TABLE OF CONTENTS. No. Title Media Source Page

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Daily News Update Page 1

of Intent (LoI) for the NFC Consortium (China Non-ferrous Metal Industry's Foreign Engineering and Construction Co., Ltd) as an Engineering, Procurement and Construction (EPC) contractor, and NERIN (China Nerin Engineering Co., Ltd.) as a technical service provider, for the construction of the Amman smelter project based on the Lump Sum Turn Key (LSTK).

The LoI signing ceremony was held virtually on Thursday, July 22, 2021 and was also witnessed by the Director General of Mineral and Coal of the Ministry of Energy and Mineral Resources (MEMR) Ridwan Djamaluddin. (vap/vap)

Hal ini ditandai dengan diterbitkannya Letter of Intent (LoI) untuk Konsorsium NFC (China Non-ferrous Metal Industry's Foreign Engineering and Construction Co., Ltd) sebagai kontraktor Engineering, Procurement dan Construction (EPC), dan NERIN (China Nerin Engineering Co., Ltd.) sebagai penyedia layanan teknis, untuk pembangunan proyek smelter Amman berdasarkan Lump Sum Turn Key (LSTK).

Acara penandatanganan LoI dilakukan secara virtual pada Kamis, 22 Juli 2021 dan turut disaksikan oleh Direktur Jenderal Mineral dan Batu Bara Kementerian Energi dan Sumber Daya Mineral (ESDM) Ridwan Djamaluddin. (vap/vap)

United Tractors (UNTR) Assesses Development of Various Types

of EBT

Reporter: Arfyana Citra Rahayu | Editor:

Handoyo

C

URRENTLY, PT United Tractors Tbk (UNTR) is starting to encourage the development of new and renewable energy plants (EBT). After operating the mini- hydro power plant (PLTM), UNTR is conducting a study for other types of NRE.

United Tractors Corporate Secretary, Sara K Loebis said, the background to developing NRE, in addition to supporting the government's decarbonization target, is also developing a sustainable business.

For new and renewable energy generation, his party follows the existing prospects and opportunities and of course follows the government's plan. Therefore, UNTR is open to building NRE power plants in any area.

United Tractors (UNTR) Kaji Pengembangan Berbagai Jenis

Pembangkit EBT

Reporter: Arfyana Citra Rahayu | Editor:

Handoyo

S

AAT ini PT United Tractors Tbk (UNTR) mulai mendorong pengembangan pembangkit energi baru dan terbarukan (EBT).

Setelah mengaperasikan pembangkit listrik tenaga minihdiro (PLTM), UNTR sedang melalkukan studi untuk jenis EBT lainnya.

Sekretaris Perusahaan United Tractors, Sara K Loebis mengatakan, latar belakang pengembangan EBT, selain untuk mendukung target dekarbonisasi pemerintah, juga mengembang- kan bisnis yang berkelanjutan atau sustain- able.

Untuk pembangkit energi baru terbarukan, pihaknya mengikuti prospek dan kesem- patan yang ada dan tentunya mengikuti rencana pemerintah. Oleh karenanya, UNTR terbuka untuk membangun pembangkit EBT di daerah manapun.

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"However, until now there is no specific indication of the size of the investment,"

she explained to Kontan.co.id, Tuesday (7/6).

Sara said that the initial initiative that UNTR had initiated in the NRE sector was that it currently operates a Mini-hydro Power Plant (PLTM), namely the Kalipelus PLTMH with a capacity of 0.5MW in Central Java.

Currently, UNTR is also building the Besai Kemu PLTM in Lampung with a capacity of 7 MW which is planned to be operational in early 2023.

"There are also prospects for several other PLTM projects with a total potential of more than 20 MW," said Sara.

Running in parallel, UNTR is conducting studies and reviews to develop other types of EBT such as hydroelectric power (PLTA), floating solar PV, geothermal, wind power plants (PLTB), and Waste to Energy.

“Namun sampai saat ini belum ada indikasi spesifik besaran investasinya,” jelasnya kepada Kontan.co.id, Selasa (7/6).

Sara mengungkapkan, inisiatif awal yang sudah dirintis UNTR di bidang EBT ialah saat ini pihaknya mengoperasikan Pem- bangkit Listrik Tenaga Minihidro (PLTM) yaitu PLTMH Kalipelus berkapasitas 0,5 MW di Jawa Tengah.

Saat ini, UNTR juga sedang membangun PLTM Besai Kemu di Lampung berkapasitas 7 MW yang rencananya akan beroperasi pada awal tahun 2023.

“Masih ada juga prospek beberapa proyek PLTM lainnya dengan total potensi lebih dari 20 MW,” ungkap Sara.

Berjalan paralel, UNTR sedang melakukan studi dan tinjauan untuk mengembangkan jenis EBT lainnya seperti Pembangkit Listrik Tenaga Air (PLTA), floating solar PV, geothermal, Pembangkit Listrik Tenaga Bayu (PLTB), serta Waste to Energy.

PT Multi Harapan Utama Enters Top 10 PLN Suppliers

Fajar Widhiyanto

P

T MULTI Harapan Utama (MHU), a subsidiary of MMS Group Indonesia (MMSGI), made another achievement through an award given by PT Perusahaan Listrik Negara (PLN) as one of the Top 10 suppliers of coal for general electricity in Quarter 1 of 2022.

This award was immediately handed over by the Director of Primary Energy of PLN, Hartanto Wibowo to the Division Head Marketing, Trading and Logistics of MMSGI, Edmund Tan on Thursday, June 2, 2022 at the Executive Lounge of Commodity Square Building, South Jakarta.

PT Multi Harapan Utama Masuk Top 10 Supplier PLN

Fajar Widhiyanto

P

T MULTI Harapan Utama (MHU), salah satu anak usaha MMS Group Indonesia (MMSGI), kembali menorehkan prestasi melalui penghargaan yang diberikan oleh PT Perusahaan Listrik Negara (PLN) sebagai salah satu Top 10 Supplier batu bara untuk kelistrikan umum Triwulan 1 tahun 2022.

Pemberian penghargaan ini langsung diserahkan oleh Direktur Energi Primer PLN, Hartanto Wibowo kepada Division Head Marketing, Trading and Logistics MMSGI, Edmund Tan pada Kamis, 2 Juni 2022 di Executive Lounge Gedung Commodity Square, Jakarta Selatan.

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This award was given by PLN to several companies that have a high commitment to supplying coal to PLN and fulfilling the Domestic Market Obligation (DMO). This year, not only MHU, but also big names such as Adaro and Kideco received similar awards.

This award is proof of MHU's consistent commitment in fulfilling the domestic coal/DMO needs in the context of national energy and electricity security. Since 2020, MHU has supplied more than 7 tons of coal to PLN.

Awarding the title of Top 10 Supplier is not only based on supply volume commit- ments. Another factor considered is that MHU always implements Good Corporate Governance (GCG) and applies Good Mining Practice principles in all of its operations.

"We are very grateful to PLN for its appreciation of our performance and commitment in corporate governance and ensuring the preservation of national electricity which has a crucial role in Indonesia's development," said Edmund Tan in a press release, Tuesday (7/6/

2022).

In 2021 alone, MHU has exceeded DMO's obligations (25% of production) with a supply commitment for domestic needs of up to 38%. Meanwhile, in Quarter 1 of 2022, MHU's DMO commitment has reached 35% of total coal production.

MHU believes that meeting the electricity needs of the Indonesian people is not only a strengthening of national energy security, but is also one of the basics in preparing Indonesian people who are prosperous, independent, and able to build the nation. Editor : Fajar Widhiyanto

Penghargaan ini diberikan oleh PLN kepada beberapa perusahaan yang memiliki komitmen tinggi atas pasokan batu bara untuk PLN dan pemenuhan Domestic Market Obligation (DMO). Tahun ini, tidak hanya MHU, namun terdapat beberapa nama besar seperti Adaro dan Kideco yang menerima penghargaan serupa.

Penghargaan ini merupakan bukti konsis- tensi komitmen MHU dalam kewajiban memenuhi kebutuhan batu bara domestik/DMO dalam rangka ketahanan energi dan listrik nasional. Sejak tahun 2020, MHU telah memasok lebih dari 7 ton batu bara kepada PLN.

Pemberian gelar Top 10 Supplier tidak hanya didasarkan pada komitmen volume pasokan saja. Faktor lainya yang dipertimbangkan yaitu karena MHU senantiasa menjalankan Tata Kelola Perusahaan yang Baik/Good Corporate Governance (GCG) serta menerapkan prinsip Praktek Pertambangan yang Baik/Good Mining Practice dalam setiap kegiatan operasinya.

“Kami sangat berterima kasih kepada PLN atas apresiasi terhadap kinerja dan komitmen kami dalam tata kelola perusahaan dan memastikan terjaganya kelistrikan nasional yang punya peran krusial terhadap pembangunan Indonesia” ujar Edmund Tan dalam siaran pers, Selasa (7/6/2022).

Di tahun 2021 sendiri, MHU sudah melebihi kewajiban DMO (25% produksi) dengan komitmen pasokan untuk keperluan domestik hingga 38%. Sedangkan, di Triwulan 1 tahun 2022, komitmen DMO MHU sudah mencapai 35% dari total produksi batubara.

MHU percaya bahwa terpenuhinya kebutuhan listrik masyarakat Indonesia tidak hanya sebagai penguatan ketahanan energi nasional, tetapi juga merupakan salah satu dasar dalam menyiapkan masyarakat Indonesia yang sejahtera, mandiri, dan mampu membangun bangsa. Editor : Fajar Widhiyanto

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Thanks to PTBA Irrigation PLTS, 525 Tanjung Raja Farmers

Harvest 3 Times a Year

Author: Digital Media

P

T BUKIT Asam Tbk (PTBA) affirms its commitment to encourage the use of renewable energy. One of them is by building a Solar Power Plant (PLTS) for irrigation of agricultural land in Tanjung Raja Village, Muara Enim, South Sumatra.

This PLTS has been operating since 2020 with a PLTS capacity of 16.5 Kilowatt peak (kWp). Thanks to the PLTS for irrigation, farmers in Tanjung Raja Village can now harvest up to 3 times a year.

Previously, farmers relied on rain-fed fields so they could only harvest once a year. The irrigated land area is 63 hectares with an estimated yield of 3 times a year reaching 567 tons. Around 525 farmers benefit from this PLTS irrigation.

The head of the Sehati Farmers Group in Tanjung Raja Village, Hopaini, revealed that the existence of PLTS irrigation allows the harvest to be increased to more than 3 times a year.

"So if the term from the Agriculture Service is IP200 (two harvests a year), we will increase it to IP300 later. The target for the next 2 years can be up to 5 harvests, if irrigation is smooth and possible," said Hopaini.

Hopini together with several residents are also responsible for the maintenance of the PLTS irrigation system. Prior to this PLTS irrigation, several times the farmers' land was threatened with crop failure due to the uncertain season. The reason is that access to water sources is too difficult.

Berkat PLTS Irigasi PTBA, 525 Petani Tanjung Raja Panen 3

Kali Setahun

Author: Media Digital

P

T BUKIT Asam Tbk (PTBA) menegaskan komitmen untuk mendorong pemanfaatan energi terbarukan. Salah satunya dengan membangun Pembangkit Listrik Tenaga Surya (PLTS) untuk irigasi lahan pertanian di Desa Tanjung Raja, Muara Enim, Sumatera Selatan.

PLTS ini telah beroperasi sejak 2020 dengan kapasitas PLTS 16,5 Kilowatt peak (kWp).

Berkat adanya PLTS untuk irigasi, para petani di Desa Tanjung Raja kini bisa panen hingga 3 kali dalam setahun.

Sebelumnya, petani mengandalkan sawah tadah hujan sehingga hanya bisa panen 1 kali dalam setahun. Lahan yang dialiri seluas 63 hektar dengan perkiraan hasil panen 3 kali setahun mencapai 567 ton. Sekitar 525 petani memperoleh manfaat dari PLTS irigasi ini.

Ketua Kelompok Tani Sehati Desa Tanjung Raja, Hopaini, mengungkapkan bahwa keber- adaan PLTS irigasi memungkinkan panen ditingkatkan hingga lebih dari 3 kali setahun.

"Jadi kalau istilah dari Dinas Pertanian itu, IP200 (satu tahun dua kali panen), kita tingkatkan nanti sampai IP300. Target ke depannya 2 tahun bisa sampai 5 kali panen, kalau pengairan lancar dan memungkinkan,"

ujar Hopaini.

Hopaini bersama beberapa warga juga bertanggung jawab atas perawatan sistem PLTS irigasi tersebut. Sebelum adanya PLTS irigasi ini, beberapa kali lahan para petani terancam gagal panen karena tidak me- nentunya musim. Pasalnya, akses ke sumber air yang terlampau sulit.

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"Although it is located quite close to the Enim River, the residents' rice fields are surrounded by hills and blocked by roads and train stations," said Hopaini. PLTS irrigation in Tanjung Raja Village is one of PTBA's CSR programs.

The irrigation pump used is a submersible type pump that has the ability to suck water containing mud. The pump capacity is 30 liters/second with a head reaching 30 meters.

The pump is driven by electricity generated from 60 polycrystaline PV panels with a capacity of 275 Watt peak (Wp) each that line the roof of the village bridge.

The pump sucks Enim River water as far as 1 km into the intake tank measuring 3x3x2 m3 which is then distributed to the residents' rice fields. Editor : Digital Media

"Meski terletak lumayan dekat dengan Sungai Enim, sawah warga dikelilingi perbukitan dan terhalang jalan raya dan stasiun kereta," tutur Hopaini. PLTS irigasi Desa Tanjung Raja adalah salah satu program CSR PTBA.

Pompa irigasi yang digunakan merupakan pompa jenis submersible yang memiliki kemampuan menyedot air yang meng- andung lumpur. Kapasitas pompa tersebut adalah 30 liter/detik dengan head mencapai 30 meter.

Pompa tersebut digerakkan oleh listrik yang dihasilkan dari 60 panel PV polycrystaline berkapasitas masing-masing 275 Watt peak (Wp) yang berjajar meng- hiasi atap jembatan desa.

Pompa menyedot air Sungai Enim sejauh 1 km ke bak intake berukuran 3x3x2 m3 yang kemudian didistribusikan ke sawah warga. Editor : Media Digital

Agincourt Resources Commitment to Preserve the Environment in Accordance with

Mining Rules

Yurika

P

T AGINCOURT Resources (PTAR), the manager of the Martabe Gold Mine, affirmed its commitment to continue to preserve the environment, through planting 200 tree seedlings with the local government, community leaders, and the surrounding community centered at SMKN 2 Mining Batangtoru, Monday (6/6). The tree planting activity was also accompanied by the delivery of 1,200 tree seedlings to communities around the Batangtoru and Muara Batangtoru mines.

Agincourt Resources Komitmen Lestarikan Lingkungan Sesuai

Kaidah Pertambangan

Yurika

P

T AGINCOURT Resources (PTAR), pengelola Tambang Emas Martabe, menegaskan komitmennya untuk terus melestarikan lingkungan, melalui kegiatan penanaman 200 bibit pohon bersama pemerintah lokal, tokoh masyarakat, dan masyarakat sekitar yang dipusatkan di SMKN 2 Pertambangan Batangtoru, Senin (6/6). Kegiatan penanaman pohon juga diiringi penyerahan 1.200 bibit pohon ke masyarakat sekitar tambang Batangtoru dan Muara Batangtoru.

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The action was carried out in commemoration of World Environment Day 2022 with the theme "Only One Earth"

which was declared by the United Nations Environment Program (UNEP). This theme is an appeal to preserve the earth for a shared future while highlighting the need for sustainable living in harmony with nature and towards a cleaner and greener lifestyle to preserve nature. Meanwhile, the Ministry of Environment and Forestry (KLHK) carries the theme “One Earth for the Future.”

Rahmat Lubis, General Manager Operations of PTAR, said that nature conservation is a series of efforts to protect the ability of the environment against the pressures of change and negative impacts caused by various phenomena in order to remain able to support the lives of living things. It is our collective responsibility to take care of it.

To date, PTAR has planted more than 41,000 tree seedlings. In the PTAR Nursery/Nurseries facilities, more than 5,000 local plant seeds have also been prepared.

“PTAR is committed to managing the environment and biodiversity in accordance with good mining principles and in accordance with the regulations in force in the Republic of Indonesia. We are also collaborating with several leading universities in the fields of education, science, research, and biodiversity conservation," said Rahmat, Tuesday (7/6).

The universities in question include the Bogor Agricultural Institute (IPB), National University (Unas), North Sumatra Univer- sity (USU), South Tapanuli Muhammadiyah University (UMTS), and Aufa Royhan University (UNAR) in Padangsidimpuan.

Aksi tersebut dilakukan dalam rangka memperingati Hari Lingkungan Hidup Sedunia 2022 bertema “Only One Earth”

yang dideklarasikan United Nations Environment Programme (UNEP). Tema ini merupakan imbauan untuk menjaga kelestarian bumi demi masa depan bersama sekaligus menyoroti kebutuhan hidup berkelanjutan yang selaras dengan alam serta menuju gaya hidup yang lebih bersih dan lebih hijau untuk melestarikan alam.

Sementara itu, Kementerian Lingkungan Hidup dan Kehutanan (KLHK) mengusung tema “Satu Bumi untuk Masa Depan.”

Rahmat Lubis, General Manager Operations PTAR, mengatakan bahwa pelestarian alam merupakan serangkaian upaya untuk melindungi kemampuan lingkungan hidup terhadap tekanan perubahan dan dampak negatif yang ditimbulkan oleh berbagai fenomena agar tetap mampu mendukung kehidupan makhluk hidup. Hal ini merupakan tanggung jawab kita bersama untuk menjaganya.

Hingga saat ini, PTAR sudah menanam lebih dari 41.000 bibit pohon. Di fasilitas Nursery/Pembibitan PTAR juga sudah disiapkan lebih dari 5.000 bibit tanaman lokal.

“PTAR berkomitmen dalam pengelolaan lingkungan dan keanekaragaman hayati sesuai kaidah pertambangan yang baik dan sesuai dengan peraturan yang berlaku di Republik Indonesia. Kami juga bekerjasama dengan beberapa perguruan tinggi terkemuka di bidang pendidikan, sains, penelitian, dan konservasi keanekaragaman hayati,” kata Rahmat,” Selasa (7/6).

Perguruan tinggi yang dimaksud antara lain Institut Pertanian Bogor (IPB), Universitas Nasional (Unas), Universitas Sumatera Utara (USU), Universitas Muhammadiyah Tapanuli Selatan (UMTS), dan Universitas Aufa Royhan (UNAR) di Padangsidimpuan.

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In collaboration with the university, a number of activities have been held, including a survey of the composition and diversity of flora and fauna at the planned location of the Martabe Gold Mine development. In addition, a Pre-Land Clearing Fauna Inspection training was held with forestry experts from the USU Faculty of Forestry.

Dolly Pasaribu, Regent of South Tapanuli, said that Environment Day is not a mere ceremony, but a reminder for all of us to be responsible for preserving the environment. He gave his appreciation for the movements in the community that aim to create a sustainable environment in South Tapanuli, including the community movements in East Angkola District and South Angkola District which routinely collect waste.

"We appreciate PTAR's commitment as a mining company that shows its commitment to preserving the environment," said Dolly.

The hope is that the tree seedlings donated by PTAR to SMKN 2 Batangtoru can grow into shade trees for students while studying, and in particular can enrich the biodiversity in Batangtoru and its surroundings. (RA)

Dalam kerja sama dengan perguruan tinggi tersebut sejumlah kegiatan telah digelar, di antaranya survei komposisi dan keanekaragaman flora dan fauna di lokasi rencana pengembangan Tambang Emas Martabe.

Selain itu, digelar pelatihan Pre-Land Clearing Fauna Inspection bersama tenaga ahli kehutanan dari Fakultas Kehutanan USU.

Dolly Pasaribu, Bupati Tapanuli Selatan, men- sampaikan Hari Lingkungan Hidup bukanlah seremoni belaka, melainkan pengingat bagi kita semua untuk bersama-sama bertanggung- jawab melestarikan lingkungan. Ia memberi- kan apresiasi atas gerakan-gerakan di masyarakat yang bertujuan membentuk lingkungan lestari di Tapanuli Selatan, antara lain gerakan masyarakat di Kecamatan Angkola Timur dan Kecamatan Angkola Selatan yang rutin meng- kumpulkan sampah.

“Kami mengapresiasi komitmen PTAR sebagai perusahaan tambang yang menunjukkan komitmennya untuk tetap menjaga kelestarian lingkungan,” ujar Dolly.

Harapannya, bibit pohon donasi PTAR ke SMKN 2 Batangtoru dapat tumbuh menjadi pohon peneduh bagi siswa-siswi ketika belajar, dan utamanya dapat kian memper- kaya keanekaragaman hayati di Batangtoru dan sekitarnya. (RA)

Oops, Coal Prices Drop More than 6%!

Maesaroh, CNBC Indonesia

C

OAL prices plunged after moving on a hiking trail for three days. On Tuesday's trading (7/6/2022),...

Waduh, Harga Batu Bara Anjlok 6% Lebih!

Maesaroh, CNBC Indonesia

H

ARGA batu bara anjlok setelah bergerak di jalur pendakian selama tiga hari. Pada perdagangan Selasa (7/6/2022),...

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On Tuesday's trading (7/6/2022), the July contract price of stone on the ICE Newcastle (Australia) market closed at US$

369 per ton. The price fell 6.4%.

The price level is the lowest since May 26 last or in the last 11 days. The drop in coal prices yesterday also broke the positive record of black stone that had been going on since last Friday.

Within a week, the price of coal has also fallen 10% point to point. However, in a month the price of coal still rose 2.9%

while in a year the price shot up 219.2%.

The weakening of coal prices was due to the price being too high and the projected increase in production from India. India has become the center of the coal market movement in the past month as demand from the country has skyrocketed due to the heat wave.

Bollywood is also being pursued to secure coal supplies in preparation for the rainy season in July-September. The Indian government has asked their mining SOE, Coal India, to import 12 million tons for the next 13 months.

Coal India will also reopen 20 of their coal mines which have been closed so far. The 20 mines will be tendered to private companies. This step is expected to increase domestic coal production and reduce dependence on imports.

"Coal reserves in mines that are currently closed are in good condition. Mines have been closed for 6-12 years but private companies can comfortably carry out mining again. Initiatives from the private sector will be very helpful in increasing the supply of coal in large quantities," said Sanish Chandra, a spokesman for South Eastern Coalfield Limited (SECL), as quoted by The New Indian Express.

Pada perdagangan Selasa (7/6/2022), harga batu kontrak Juli di pasar ICE Newcastle (Australia) ditutup di level US$ 369 per ton.

Harganya amblas 6,4%.

Level harga tersebut adalah yang terendah sejak 26 Mei lalu atau dalam 11 hari terakhir.

Anjloknya harga batu bara kemarin juga memutus catatan positif batu hitam yang sudah berlangsung sejak Jumat pekan lalu.

Dalam sepekan, harga batu bara juga sudah anjlok 10% secara point to point. Namun, dalam sebulan harga batu bara masih menguat 2,9% sementara dalam setahun harganya melesat 219,2%.

Pelemahan harga batu bara disebabkan harganya yang sudah terlalu tinggi serta proyeksi adanya peningkatan produksi dari India. India menjadi pusat pergerakan pasar batu bara dalam sebulan terakhir karena permintaan dari negara tersebut melonjak drastis akibat adanya gelombang panas.

Negeri Bollywood juga tengah dikejar untuk mengamankan pasokan batu bara untuk persiapan musim hujan di Juli-September.

Pemerintah India sudah meminta BUMN pertambangan mereka, Coal India, untuk melakukan impor sebesar 12 juta ton untuk 13 bulan ke depan.

Coal India juga akan membuka kembali 20 pertambangan batu bara mereka yang selama ini ditutup. Ke-20 pertambangan tersebut akan ditenderkan kepada perusahaan swasta.

Langkah tersebut diharapkan bisa meningkatkan produksi batu bara domestik dan mengu- rangi ketergantungan impor.

"Cadangan batu bara di pertambangan yang kini ditutup dalam kondisi bagus. Tambang memang sudah ditutup 6-12 tahun tapi prusahaan swasta bisa dengan nyaman melakukan penambangan kembali. Inisiatif dari swasta akan sangat membantu dalam meningkatkan pasokan batu bara dalam jumlah besar," tutur Sanish Chandra, juru bicara South Eastern Coalfield Limited (SECL), seperti dikutip The New Indian Express.

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SECL is a subsidiary of Coal India. To increase domestic supply, SECL has increased production to 125,000 tons since April.

Moody's Investors Service estimates that India will continue to increase coal production to avoid an energy crisis, including boosting production at Coal India's mines. Moody's expects Coal India to increase production by about 12% this year. The company supplies 80% of India's domestic coal supply.

The weakening of coal prices was also due to the lack of increasing demand from China after the country fully opened their economy in early June.

Bank Mandiri Industry Analyst Ahmad Zuhdi assesses that the reopening of China will not have an impact on coal prices.

"The impact will not be too big because prices have overshooted. China also has a short term plan to increase domestic production. The data also shows that China's imports have decreased considerably," said Zuhdi, to CNBC Indonesia.

China's coal production reached 1.45 billion ounces in January-April, 11% more than the same period a year earlier. The increase in production suppresses imports of black stone. China imported 75.41 million tons of coal in January-April 2022, down 16 percent compared to the same period last year. CNBC INDONESIA RESEARCH TEAM (mae/mae)

SECL merupakan salah satu anak usaha Coal India. Untuk menambah pasokan domestik, SECL sudah meningkatkan produksi hingga 125 ribu ton sejak April.

Moody's Investors Service memperkirakan India akan terus meningkatkan produksi batu bara untuk menghindari krisis energi, termasuk dengan menggenjot produksi di tambang milik Coal India. Moody's memperkirakan Coal India akan menaikkan produksi sekitar 12% pada tahun ini.

Perusahaan tersebut menyuplai 80%

pasokan batu bara domestik India.

Pelemahan harga batu bara juga disebabkan belum meningkatnya permintaan dari China setelah negara tersebut membuka penuh perekonomian mereka di awal Juni.

Analis Industri Bank Mandiri Ahmad Zuhdi menilai dibukanya kembali China belum akan berdampak kepada harga batu bara.

"Dampaknya nggak akan terlalu besar karena harga sudah overshoot. China juga memiliki short term plan untuk mening- katkan produksi domestik. Data juga menunjukkan impor china berkurang jauh," tutur Zuhdi, kepada CNBC Indonesia.

Produksi batu bara China mencapai 1,45 miliar on di Januari-April, 11% lebih tinggi dibandingkan periode yang sama lama tahun sebelumnya. Kenaikan produksi tersebut menekan impor batu hitam. China mengimpor batu bara sebanyak 75,41 juta ton pada Januari-April 2022, turun 16%

dibandingkan periode yang sama tahun lalu. TIM RISET CNBC INDONESIA (mae/mae)

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Lo Kheng Hong Adds Petrosea (PTRO) Shares

Thresa Sandra Desfika

S

EASONED investor Lo Kheng Hong added shares of PT Petrosea Tbk (PTRO) in the period of May 2022.

This was revealed in the Datindo Entrycom securities administration bureau report regarding PTRO's share ownership which reached 5% or more as of 31 May 2022 which was uploaded to the Indonesia Stock Exchange (IDX) information disclosure on Tuesday (7/6/2022).

In the report, Lo Kheng Hong as an individual investor is recorded as holding 151,460,000 PTRO shares or 15.017%.

Meanwhile, PT Indika Energy Tbk (INDY) controls 704,014,200 PTRO shares or 69.801%.

Meanwhile, according to the administrative bureau's report as of April 30, 2022, Lo Kheng Hong is recorded to own 151,142,100 PTRO shares or 14.985%.

Meanwhile, Indika still holds 704,014,200 PTRO shares or 69.801%.

This means, based on reports in April and May 2022, PTRO shares owned by Lo Kheng Hong increased by 317,900 shares or 0.032%.

In the first trading session on Tuesday, June 7, 2022, PTRO shares opened at the level of Rp. 2,900 or the same as the closing price on Monday (6/6/2022).

As is known, Indika Energy is ready to sell all of its 69.8% owned PT Petrosea Tbk (PTRO) shares. This plan has received approval from the extraordinary general meeting of shareholders (EGMS).

Lo Kheng Hong Tambah Saham Petrosea (PTRO)

Thresa Sandra Desfika

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NVESTOR kawakan Lo Kheng Hong menambah saham PT Petrosea Tbk (PTRO) di periode Mei 2022.

Hal tersebut terungkap dalam laporan biro administrasi efek Datindo Entrycom perihal pemilikan saham PTRO yang mencapai 5% atau lebih per 31 Mei 2022 yang diunggah pada keterbukaan informasi Bursa Efek Indonesia (BEI) pada Selasa (7/6/2022).

Dalam laporan itu, Lo Kheng Hong sebagai investor perorangan tercatat memegang sebanyak 151.460.000 saham PTRO atau 15,017%. Sedangkan, PT Indika Energy Tbk (INDY) menguasai sebesar 704.014.200 saham PTRO atau 69,801%.

Sementara itu, dalam laporan biro administarasi per 30 April 2022, Lo Kheng Hong tercatat memiliki 151.142.100 saham PTRO atau 14,985%. Adapun Indika tetap sama memegang 704.014.200 saham PTRO atau 69,801%.

Artinya, berdasarkan laporan bulan April dan Mei 2022, saham PTRO yang dimiliki Lo Kheng Hong bertambah sebesar 317.900 saham atau 0,032%.

Pada perdagangan sesi I hari Selasa, 7 Juni 2022, saham PTRO dibuka di level Rp 2.900 atau sama dengan harga penutupan hari Senin (6/6/2022).

Sebagaimana diketahui, Indika Energy siap menjual seluruh saham PT Petrosea Tbk (PTRO) yang dimiliki sebanyak 69,8%.

Rencana ini telah mengantongi persetujuan dari rapat umum pemegang saham luar biasa (RUPSLB).

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“INDY has obtained approval to sell all of INDY's shares in PT Petrosea which we currently own approximately 69.8% with a transaction value of US$ 146.6 million. So 100 percent is approximately US$ 210 million," said Indika Energy's Deputy President Director and Group CEO Azis Armand in INDY's public expose, Friday (20/5/2022). Editor : Theresa Sandra Desfika

“INDY memperoleh persetujuan menjual seluruh saham yang INDY punya di PT Petrosea yang saat ini kita miliki kurang lebih 69,8% dengan nilai transaksi US$

146,6 juta. Jadi 100 persennya kurang lebih US$ 210 juta,” ujar Wakil Direktur Utama dan Grup CEO Indika Energy Azis Armand dalam paparan publik INDY, Jumat (20/5/2022). Editor : Theresa Sandra Desfika

Energy Crisis in India Lifts Coal Prices Back

Reporter: Hikma Dirgantara | Editor:

Wahyu T. Rahmawati

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FTER having broken through the level of US$ 400 in the first quarter of 2022, coal prices then slid. Even the price of coal had touched the level of US$ 191 per tonne when the price fell.

However, now coal prices are heating up again and touched the level of US$ 405 per tonne at the end of May. Today, Tuesday (7/6), coal price corrected slightly and was at the level of US$ 394.35 per ton.

Founder of Traderindo.com Wahyu Laksono said that the increase in coal prices could not be separated from the energy crisis that occurred in India. This is driven by soaring demand for coal imports from India to meet the needs of power plants following the heat wave since last April.

On the one hand, India must also secure coal supplies to continue the rainy season from July to September. However, Wahyu assessed that the increase in coal prices was not solely triggered by India, but also came from other energy commodities.

Krisis Energi di India Mengangkat Harga Batubara

Kembali

Reporter: Hikma Dirgantara | Editor:

Wahyu T. Rahmawati

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ETELAH sempat menembus level US$ 400 pada kuartal pertama 2022, harga batubara kemudian melandai. Bahkan harga batubara sempat menyentuh ke level US$ 191 per ton ketika terjadi penurunan harga.

Namun, kini harga harga batubara kembali memanas dan menyentuh lagi level US$ 405 per ton pada akhir Mei. Pada hari ini, Selasa (7/6), harga batubara sedikit terkoreksi dan berada di level US$ 394,35 per ton.

Founder Traderindo.com Wahyu Laksono mengungkapkan, kenaikan harga batubara tidak terlepas dari adanya krisis energi yang terjadi di India. Hal ini didorong oleh melonjaknya permintaan impor batubara dari India untuk memenuhi kebutuhan pembangkit listrik seiring terjadinya gelombang panas sejak April lalu.

Di satu sisi, India juga harus mengamankan pasokan batubara untuk menyambung musim penghujan pada Juli hingga September men- datang. Tapi, Wahyu menilai kenaikan harga batubara tidak semata-mata dipicu oleh India, tapi juga datang dari komoditas energi lainnya.

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“The ban given to Russia by Europe has triggered an increase in the price of natural gas, which in turn has spread to coal. The reason is that many countries that depend on natural gas are turning to coal for now,"

explained Wahyu when contacted by Kontan.co.id, Tuesday (7/6).

Fundamentally, Wahyu views that the current supply of coal is still limited, especially with Russia being subject to economic sanctions. On the one hand, many coal mines have to close because many countries have switched to going green. Meanwhile, demand continues to rise with the recovery of economic activity in various parts of the world.

Therefore, Wahyu sees that coal prices still have the potential to rise this year. However, he sees the increase in coal prices will be followed by a correction. This is because the Chinese government will intervene to keep prices from being too expensive by spurring domestic production.

"Currently, coal will still move in the range of US$ 400 per tonne, but the level of US$

500 could be a new target for coal this year," he added.

Meanwhile, in the medium term, Wahyu estimates that coal could fall back to US$

300 per ton if there is no new catalyst to lift coal prices.

“Larangan yang diberikan ke Rusia oleh Eropa telah memicu kenaikan harga pada harga gas alam, yang pada akhirnya ikut merembet ke batubara. Pasalnya, banyak negara yang bergantung pada gas alam beralih ke batubara untuk saat ini,” jelas Wahyu ketika dihubungi Kontan.co.id, Selasa (7/6).

Secara fundamental, Wahyu menilai pasokan batubara saat ini masih terbatas, terlebih dengan Rusia yang dikenai sanksi ekonomi.

Di satu sisi, banyak juga tambang batubara yang harus tutup lantaran banyak negara yang beralih go green. Sementara dari per- mintaan justru terus naik dengan pulihnya aktivitas ekonomi di berbagai belahan dunia.

Oleh karena itu, Wahyu melihat pada tahun ini harga batubara masih berpotensi naik.

Kendati begitu, ia melihat kenaikan harga batubara akan diikuti dengan koreksi. Hal tersebut dikarenakan pemerintah China akan melakukan intervensi agar menjaga harga tidak terlalu mahal dengan memacu produksi dalam negeri.

“Saat ini, batubara masih akan bergerak di kisaran US$ 400 per ton, namun level US$

500 bisa menjadi target baru untuk batubara di tahun ini,” imbuh dia.

Sementara secara jangka menengah, Wahyu memperkirakan batubara bisa kembali turun ke US$ 300 per ton jika tidak ada katalis baru yang mengangkat harga batubara.

Rich nations may fork out billions to wean Indonesia off coal

Bloomberg News

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VER since Indonesia accelerated plans last year to achieve carbon neutrality, a parade of climate envoys from developed nations has headed to the archipelago, offering assistance and financial aid in exchange for a commitment by the world’s biggest exporter of coal by weight to phase out coal power.

Ever since Indonesia accelerated plans last year to achieve carbon neutrality, a parade of climate envoys from developed nations has headed to the archipelago, offering assistance and

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financial aid in exchange for a commitment by the world’s biggest exporter of coal by weight to phase out coal power.

It’s an ambitious goal. Coal generates about 60% of Indonesia’s electricity and the fossil fuel has made fortunes for some of the nation’s most powerful business elites. The war in Ukraine has lifted global demand, boosting the stocks and profits of coal-mining companies, making them even more attractive for investors. Meanwhile, the nation’s monopoly power distributor gets coal for its power plants at a discount, giving it little incentive to hook up renewable- energy suppliers.

Rich nations are betting that agreements known as Just Energy Transition Partnerships will help break the deadlock and provide fossil fuel-dependent nations such as South Africa and Indonesia with the financing and support to speed up the transition. Donors must “break the status quo,” said U.S. climate envoy John Kerry in April.

Yet three people from donor countries with knowledge of the talks, who visited Indonesia this year, raised concerns privately that Indonesian President Joko Widodo’s cabinet is split over the need to end the use of coal. Some want to continue building the coal sector, negotiators said. Others are seeking billions for each shuttered coal plant and some factions would like to continue building them, said Jake Schmidt, senior strategic director of the international climate program at the Natural Resources Defense Council, who monitors the discussions.

“That’s not what the donor countries” envision, Schmidt said. “The framework is basically stop building new coal and begin to decline,” but “there are parts of the Indonesian government that are not quite there.”

Publicly, the Indonesian government has made a strong commitment to rein in coal and develop green energy. Dian Triansyah Djani, Co-Sherpa for Indonesia’s G20 presidency and ambassador to the UN, said the country welcomes the discussions toward the Just Energy

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Transition Partnership. Jokowi, as the president is known, has pledged to shut all Indonesia’s coal-power plants by 2055 and be 100% dependent on renewable sources five years later. No new coal-fired power plants will be approved and there are plans to finally roll out a carbon tax in July.

Those targets will be tough to meet without a deal with wealthy nations, as well as detailed regulations that force power users and generators to switch to clean energy. A government study said the nation will need $150-$200 billion investment in low carbon programs annually until 2030, or roughly 3.5% of GDP, to meet its net-zero targets.

“If they don’t have a comprehensive dialogue and a comprehensive strategy, it’s unlikely that the transition will happen,” said Stephan Garnier, Indonesia energy coordinator and lead energy specialist at the World Bank.

Indonesia is one of a handful of resource-driven nations that could make a major difference in the battle to curb climate change. Southeast Asia’s biggest economy has the world’s fourth biggest population and is the second-biggest coal producer. Coal output began to soar in the 1990s and powerful local investors snapped up controlling interests in some mining companies, augmenting the wealth of a largely decentralized elite class. Predicting a boom in demand for electricity, Indonesia began to invest heavily in coal power, a trend that continued under Jokowi.

In 2015, he launched a program to build 35,000 megawatts of new power capacity largely supported by an additional 117 new coal-fired power plants. By 2020, electricity output had grown more than five-fold over nearly two decades.

But growth in demand didn’t keep up. When the added capacity comes online, and some of it is years behind schedule, it could create a power surplus of as much as 40%, according to the Institute for Essential Services Reform. The country’s biggest grid, covering Java and Bali, already has 24% more capacity than it needs, according to BloombergNEF. That has driven domestic coal power costs well below international market rates, squeezing out renewables.

The nation’s 2030 goal is to reduce emissions by between 29% and 41%. Officials have said the country can reach the low end of the band with measures such as mixing plant debris in with coal, retiring older power stations early and reducing subsidies, but it will need foreign assistance to achieve more.

“Because of this oversupply of coal, going beyond that by 2030 will be difficult,” said Garnier.

Much could depend on talks between donors and South Africa, which has led the field in terms of establishing a JETP. Ambassador Djani said Indonesia is in talks with South Africa about the structure and implementation of the partnership.

But even if all goes well in South Africa, Indonesia has its own set of unique issues to overcome. The government requires coal miners to sell at least a quarter of their supplies domestically with prices capped at $70 a ton for the highest quality, compared with recent prices of around $400 a ton in the global market. That means state utility PT Perusahaan Listrik Negara can produce electricity from its power plants more cheaply than the cost of producing green power. Worse still, PLN signed take-or-pay contracts with the coal plants, many of which operate well below capacity. So when demand increases, PLN can draw more power from them at zero extra cost, which is tough to beat, no matter how cheap solar is.

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Investments in clean energy “must follow PLN’s timeframe and needs, with no other recourse if a deal with PLN doesn’t work out,” said Fabby Tumiwa, executive director at the Jakarta- based Institute for Essential Services Reform. “A reform to the electricity market structure so that PLN is not the single off-taker would quicken the shift to renewables.”

And coal remains the heart of Indonesia’s energy supply, with production at record levels.

Even with the moratorium on new projects, coal-fired power plants already under construction will add another 14 GW of capacity from 2021-2030. This year, Jokowi broke ground on the nation’s first coal gasification plant, which will cost $2.3 billion.

In coal-mining regions such as East Kalimantan, proposed site of Indonesia’s new capital, coal accounts for almost half the economy, according to Tumiwa at the IESR. Increased demand from abroad since the war in Ukraine has sent shares in mining companies soaring.

Shares of miner PT Adaro Minerals Indonesia have jumped more than 1,500% since its public debut in January. As many as half of the 575 lawmakers in parliament have connections with the mining sector, according to the Indonesia Mining Advocacy Network, which investigates the crossover between officials and business.

“Countries have always relied on the resources available to them to increase electrification rates and drive economic growth,” said Caroline Chua, an analyst with BloombergNEF. “In Indonesia, that resource was coal.”

Indonesia has the theoretical potential to meet the entire world’s electricity demand from renewables, according to an IESR study last year, but it has fewer solar panels than Norway and has barely begun to tap abundant wind and geothermal resources. Lifetime costs of solar projects in Indonesia could be as much as 40% lower if finance and investment risks were comparable to those in advanced economies, according to the International Energy Agency.

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Still, there are some signs of progress. The Asian Development Bank last year launched a multi-billion dollar plan that aims to help Indonesia and the Philippines retire 50% of their coal plants over the next 10 to 15 years. Indonesia, in turn, has said it will retire some of the power stations earlier than scheduled if they meet the end of their economic life-cycle, a plan Tumiwa says could involve as much as 9.3 gigawatts of capacity through 2030.

And despite all the obstacles, negotiators are optimistic that a deal can be reached this year.

“Indonesia will be our next partnership,” US Treasury Climate Counselor John Morton said at an event with the Center for Global Development in early May. “If this were easy, it would have been done years ago. Countries could have managed this on their own,” he said. “We’re talking about economy-wide economic transitions of energy sectors, which are huge political beasts.” (By Philip Heijmans and Dan Murtaugh)

India ramps up coal output to reduce dependence on imports: Moody's

Coal India Ltd targets to increase production by around 12 per cent in the current year, the agency said

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ARGE coal-importing nations, including India, will look to ramp up the output of domestic coal to strengthen energy security and lessen dependence on the import of fossil fuels, Moody's Investors Service said on Tuesday.

The government has recently mandated CIL to import coal as an emergency measure to avoid a shortage of coal for the country’s power utilities and build up buffer stock.

"Large coal-importing countries such as China and India will also seek to ramp up domestic coal production to enhance energy security and reduce reliance on coal imports. Chinese coal production surged 15 per cent in March 2022," Moody's Investors Service said.

Coal India Ltd targets to increase production by around 12 per cent in the current year, the agency said.

The state-owned firm accounts for over 80 per cent of India's coal output.

Moody's Investors Service further said that metallurgical and thermal coal prices will remain high, but below recent peaks.

However, the supply constraints were easing, it added.

Prices for copper, zinc, nickel and aluminium reflect low inventories and supply risk related to Russia. Supply, which was tight even before disruptions from the military conflict, will remain constrained, it noted.

"Steel and raw material prices have begun to soften as panic buying recedes, supply-chain issues reduce global demand, COVID-related lockdowns reduce consumption in China, and inflationary cost pressures and higher interest rates weigh on sentiment and economic growth," the agency added. PTI

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Yankuang Energy says open to buying rest of Yancoal Australia

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HINA's Yankuang Energy said on Tuesday that it was open to negotiations to buy the remaining shares in its majority-owned unit Yancoal Australia, after the Australian coal firm rejected a $1.8 billion offer.

Yankuang, which owns 62.26 per cent of Yancoal's shares, said last month that it was considering offering Yancoal shareholders $3.60 per share in convertible bonds for the remaining 498.2 million shares not held by the company, which is a discount to the market price.

Yancoal said an independent committee it appointed to evaluate the potential transaction unanimously concluded that an acquisition by Yankuang would not be in the best interests of Yancoal's minority shareholders.

Shares of Yancoal rose 3 per cent to A$5.58 ($3.99) in early trading.

Yankuang said in its statement that it remained open to further negotiation, adding it "looks forward to continuing its discussions" with Yancoal's independent board committee.

The Chinese energy firm said Yancoal's share price has inflated since the recent surge in coal prices, and its $3.60 offer was based on the stock's historic trading price and its own evaluation of how much the firm was worth.

Yankuang said its offer would also allow minority shareholders to convert their bonds into Yankuang shares if they wanted.

Reuters previously reported the offer was "unacceptable" to Glencore, which holds a 6.4 per cent stake in Yancoal, because it "significantly undervalues" the stock.

Demand for thermal coal, the most polluting fossil fuel burned to generate electricity, is high due to power shortages in China and a European gas squeeze further exacerbated by Russia's invasion of Ukraine.

Yancoal confirmed it had not received an acceptable formal offer from Yankuang.

($1 = 1.3928 Australian dollars) Source: Reuters

Indonesia eyes subsidies, nuclear power in renewable energy Bill

I

NDONESIA, the biggest thermal coal exporter, vowed to subsidise renewable energy projects and open its first nuclear power plant by 2045 in a draft legislation to help it reach its net-zero emissions goal.

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The Bill, which still needs approval from President Joko Widodo and Parliament before becoming law, seeks to lead the country on a path that would both ensure all 270 million residents have access to power while also making the country entirely reliant on renewable energy by 2060.

The draft sets out a strategic outline, with more detailed rules to be issued later.

Officials have their work cut out for them, as the nation with the world's fourth-largest population also has one of the world's smallest wind and solar power fleets. Indonesia relied on fossil fuels for 86 per cent of its electricity in 2020, according to BloombergNEF.

Here are a few key issues in the latest draft of the Bill, which will soon be discussed by the government:

Export tax

Indonesia will prioritise local demand before allowing renewable energy to be transmitted overseas, with exporters required to pay a tax. The stipulation would follow a ban by nearby Malaysia, and could hamper neighbouring Singapore's plan to import clean electricity. The focus on domestic use also applies to the coal sector, where miners will have to set aside at least 30 per cent of their output for local consumption at a ceiling price of US$70 (S$96) a tonne for high-quality coal, compared with current global prices around S$400 a tonne.

Funding incentives

The government will give incentives, including tax and administrative ones, to support new projects. It will also subsidise renewable energy when the cost of producing it is unable to compete with fossil fuels. A renewable energy fund will collect money from the state budget, export taxes, carbon trading funds and other sources, then use the cash to build infrastructure, give incentives for developers or to support research.

Nuclear power

Indonesia will set up a nuclear power assembly that will monitor the development and operation of atomic plants. Only state-owned companies would be allowed to build, operate and shut such plants. The country plans to operate its first one in 2045.

Coal reliance

The Bill differentiates between "renewables" - wind, solar, geothermal, hydropower, biomass and a few other small technologies - and "new energy", which includes nuclear, hydrogen and several coal-based technologies, while carving out room for both to aid in the transition.

Indonesia is building its first coal gasification plant that will start operating in 2024.

Local impact

The government seeks to ensure renewable energy investments would benefit surrounding communities. Companies must prioritise the use of local workers as well as domestically sourced materials, while investors are expected to transfer their technology to local workers.

Companies must also prevent pollution and have recovery plans in place if their operations lead to environmental damage.

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Silver production in Peru down 4.4% in April - report

By Vladimir Basov

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CCORDING to the Ministry of Energy and Mines of Peru (MINEM), silver production in Peru, the world’s third largest silver producing country, was 247,227 kg in April 2022, a decline of 4.4% compared to 258,522 kg mined in April 2021.

MINEM said that similarly, Peru’s silver production of 986,193 kg achieved in January-April 2022 showed a contraction of 6.1% compared to the previous year, primarily due to the lower production reported by Compañía Minera Ares S.A.C. (-6.2%) and Compañía de Minas Buenaventura S.A.A. (-48.3%).

The ministry said that significant decline in Buenaventura’s silver production was due to its Uchucchacua production unit continuing to partially suspend operations.

At the company level, Compañía Minera Antamina S.A. was the largest silver producer in Peru accounting for 17.7% share of the country’s total silver production in April, followed by Compañía Minera Ares S.A.C. (8.8%) and Volcan Compañía Minera S.A.A. (7.5%).

At the regional level, Áncash maintained its first position accounting for 22.1% of Peru’s total silver production in April, followed by Pasco (19.7%) and Junín (15.3%).

As demand for rare earths rises, the world’s biggest producer might stop exporting them, says analyst

By: Naimul Karim

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HINA, the world’s biggest producer of magnet rare earth oxides could stop exporting the group of minerals within the next decade due to increasing domestic demand and a shortage in global supply, said Ryan Castilloux, founder of the independent research group, Adamas Intelligence.

The global demand for rare earths, which are employed in a range of applications including permanent magnets used in electric vehicles (EV) and renewable energy devices, has increased in recent years as the world looks to meet its decarbonization goals.

In a report published in April, Adamas said that the lack of new primary and secondary supply sources for rare earth oxides in the market from 2022 onwards, coupled with the inability of existing producers to increase their output, will create a major neodymium- praseodymium (NdPr) oxide shortage by 2035.

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“If we consider that China is responsible for about 90% of the world’s neo magnet production today and 70% of the demand for those magnets exists in China, and then we consider…

around one-third of the market to be unsatisfied by 2035, we can quickly begin to see the calculus that China is going to be faced with,” said Castilloux at a webinar on rare earths organized by BMO.

“Do they sell magnets to the domestic market to empower automakers to create their EVs…or do they simply export the magnets to a fridge manufacturer in Nebraska or Turkey? I think the decision is clear,” he added.

The Adamas Intelligence head added that the possibility of China halting its exports is

“beginning to crystallize” with decision makers in North America where steps are being taken to address the challenge, but less so in Europe, which is more optimistic about the Asian juggernaut being able to “continuously deliver,” as they have done over the past 20 years.

By 2035, the research group expects the production of rare earths to more than double and add about 300,000 tonnes, compared to 2021. But that would still not be enough to keep up with the annual growth in demand of 8 to 10%.

“Last year global production was about 250,000 tonnes or so…we are looking to do a century’s worth of work in 12 years, which is formidable, but still won’t be enough to meet the tripling of demand,” said Castilloux, while speaking to BMO analyst Robin Fiedler.

By 2035, Adamas expects China to double its production, see another 50,000 tonnes from new projects, 25,000 tonnes from expansions and another 25,000 tonnes from recycling.

Elaborating on how rare earths are recycled, Castilloux explained that a major portion of the materials in this category are derived not from end-of-life products, but from cuttings and working scrap. Those remnants are generated from the shaping of large magnetic blocks, such as those that go into EV motors.

Scraps make up about 25 to 30% of the magnet rare earth oxide supply annually.

“On the other side of the recycling point… there’s a recognition that a lot of rare earths go to waste yards…because they are often used in small amounts in technologies…it’s a challenge to bring them together and recycle them,” said Castilloux.

The Adamas managing director also spoke about the difficulties of producing and recovering rare earths and how companies in China and Japan are more advanced in the sector compared to their counterparts in North America and Europe.

According to Castilloux, there are about 42 advanced rare earth projects globally, out of which just two are currently in the process of developing mines.

“It is a technically challenging business… it’s one thing just to say that I am going to produce neo magnets, but you also need to consider which grades are you going to produce, who are your customers, and what are their specifications… it’s a very dynamic business, one which the west doesn’t have the experience…we kind of need to re-invent the wheel on that,” he said.

He added that producers in Japan and China have gained a “tacit knowledge” around magnets which help in minimizing the “costly and scarce” dysprosium and terbium inputs used in those magnets, giving producers advantages with costs and technology.

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“So collectively trying to kind of put all that in a basket and beginning to produce magnets in the US or Europe is absolutely a major challenge and getting the human resource to come in is the icing on top of that challenging cake,” said Castilloux, adding that he doesn’t expect rare earths to be replaced in products any time soon.

In terms of the price forecast, Castilloux expects prices of rare earths to increase until 2025, after which he envisions rates will plateau by 2029 due to bottlenecks in EV production caused by supply shortages, after which he expects prices to rise again.

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