TABLE OF CONTENTS. No. Title Media Source Page

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Daily News Update Page 1

new construction of settling ponds untuk PT Kideco Jaya Agung, serta amandemen kontrak untuk jasa konstruksi di portsite dan hauling, loading & dewatering di proyek Wanagon untuk PT Freeport Indonesia. Selain itu, melalui anak usahanya, PT Karya Bhumi Lestari, PTRO menandatangani perjanjian jasa pertambangan dengan PT Kartika Selabumi Mining & PT Palm Mas Asri untuk periode kontrak selama tujuh tahun dan nilai kontrak sebesar US$182,45 juta.

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PTRO also signed a cooperation agreement with PT Hardaya Mining Energy & PT Central Cipta Murdaya for a contract period of four years and a contract value of US$265 million. The company has also signed an addendum to a cooperation agreement with PT Mekko Metal Mining and PT Perkasa Investama Mineral for a bauxite project located in West Kalimantan with an increase in the contract value to US$ 100 million for a period of five years.

Petrosea prioritizes Environmental, Social

& Governance (ESG) aspects, including the application of good corporate governance principles in all elements of the company.

In addition, Petrosea also continues to focus on implementing sustainability strategies in accordance with the Sustainable Development Goals (SDGs).

The company continues the diversification process by capturing new business opportunities in other mineral projects.

This is part of the implementation of the 3D strategy, namely diversification, digitization and decarbonization as an enabler and key pillar of the company to continue to develop the value proposition to all stakeholders.

In addition, Petrosea also continues to focus on implementing a sustainability strategy in accordance with the sustainable development goals (SDGs). For information, during the pandemic, the company focused on accelerating the process of diversifying its business by running several business opportunities in mineral projects, such as gold and bauxite, as well as strengthening the capabilities of sub- sidiaries in the mining and EPC sectors.

PTRO juga tandatangani kerja sama dengan PT Hardaya Mining Energy & PT Central Cipta Murdaya untuk periode kontrak selama empat tahun dan nilai kontrak sebesar US$265 juta. Perusahaan juga telah menandatangani addendum perjanjian kerjasama dengan PT Mekko Metal Mining dan PT Perkasa Investama Mineral untuk proyek bauksit yang berlokasi di Kalimantan Barat dengan peningkatan nilai kontrak menjadi US$ 100 juta untuk jangka waktu lima tahun.

Petrosea memprioritaskan aspek Environ- mental, Social & Governance (ESG), termasuk penerapan prinsip-prinsip good corporate governance di seluruh elemen perusahaan.

Selain itu, Petrosea juga terus fokus untuk implementasi strategi keberlanjutan yang sesuai dengan Sustainable Development Goals (SDGs). Perusahaan terus melanjutkan proses diversifikasi dengan menangkap peluang bisnis baru di proyek mineral lainnya. Hal ini merupakan bagian dari implementasi strategi 3D, yaitu diversifikasi, digitalisasi dan dekarbonisasi sebagai enabler dan pilar kunci perusahaan untuk terus mengembangkan value proposition kepada seluruh stake- holder.

Selain itu, Petrosea juga terus fokus untuk implementasi strategi keberlanjutan yang sesuai dengan sustainable development goals (SDGs). Sebagai informasi, pada masa pandemi, perusahaan fokus untuk mem- percepat proses diversifikasi usahanya dengan menjalankan beberapa peluang bisnis di proyek mineral, seperti emas dan bauksit, serta memperkuat kapabilitas anak perusahaan di sektor pertambangan dan EPC.

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Arutmin Confident Coal Demand Remains Strong Despite

Omicron's Shadow

The spread of the Omicron variant in the world is believed by Arutmin not to hit

coal demand, especially during the current winter season.

Author: Verda Nano Setiawan, Editor:

Happy Fajrian

P

T ARUTMIN Indonesia is optimistic that the prospect of coal demand in 2022 will still remain bright even though it is overshadowed by the soaring cases of the Omicron variant of the corona virus in various countries.

General Manager Legal & External Affairs of PT Arutmin Indonesia Ezra Sibarani said that until now the activity process in the mining sector was still running normally by complying with health protocols to prevent the spread of Covid-19.

"In the future, we still see an increase in demand in winter, there is no indication of a massive reduction in production activities like the previous delta variant outbreak," said Ezra to Katadata.co.id, Monday (20/12).

Arutmin is currently waiting for approval from the Ministry of EMR regarding the submission of the Work Plan and Budget (RKAB) for 2022. However, Ezra did not specify the volume of the coal production target for next year.

However, some time ago, he revealed that the production target for next year will not be much different from the production target set this year at 21-22 million tons.

Arutmin Yakin Permintaan Batu Bara Tetap Kuat Meski

Dibayangi Omicron

Menyebarnya varian Omicron di dunia diyakini Arutmin tak akan memukul permintaan batu bara, terutama di masa

musim dingin saat ini.

Penulis: Verda Nano Setiawan, Editor:

Happy Fajrian

P

T ARUTMIN Indonesia optimistis prospek permintaan batu bara pada 2022 masih akan tetap cerah meski dibayangi oleh melonjaknya kasus virus corona varian Omicron di berbagai negara.

General Manager Legal & External Affairs PT Arutmin Indonesia Ezra Sibarani mengatakan hingga saat ini proses aktivitas di sektor pertambangan tetap berjalan normal dengan memenuhi protokol kesehatan untuk mencegah penyebaran Covid-19.

"Prospek kedepannya kita masih melihat permintaan yang meningkat di musim dingin, belum ada indikasi pengurangan kegiatan produksi secara masif seperti outbreak varian delta sebelumnya," kata Ezra kepada Katadata.co.id, Senin (20/12).

Arutmin saat ini juga tengah menanti persetujuan dari Kementerian ESDM terkait pengajuan Rencana Kerja dan Anggaran Biaya (RKAB) untuk tahun 2022.

Meski demikian, Ezra tak merinci besaran volume target produksi batu bara tahun depan.

Hanya saja, beberapa waktu lalu, dia membeberkan target produksi di tahun depan tidak akan jauh berbeda dengan target produksi yang dipatok tahun ini sebesar 21-22 juta ton.

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Similarly, Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia is optimistic that the coal price business next year is still prospective.

"At the beginning of next year demand is estimated to be quite strong. Moreover, the Chinese government has made a policy to suppress prices," said Hendra some time ago.

Post-pandemic growth is considered to be able to encourage coal demand, especially in traditional markets. However, the level of domestic coal production and sector policies in China, India, Indonesia and elsewhere will be the determinants that affect export supply and international and domestic coal prices.

As is known, the spread of Omicron is becoming a scourge in Europe and the United States at the end of this year. The transmission of the Covid-19 variant forced the government to take steps to limit activities ahead of the Christmas and New Year holidays.

Meanwhile, the Indonesian government itself officially announced the first Omicron case on Wednesday (15/12). The case was found from a cleaning worker at the Wisma Athlete Hospital who was infected.

Health Minister Budi Gunadi Sadikin said the sample was taken from the team at Wisma Atlet on December 8. The sample was then sent to the Ministry of Health for Whole Genome Sequencing and the result was that one person was detected by Omicron.

"There are three positive confirmed cases, one positive for Omicron," said Health Minister Budi Gunadi Sadikin in a virtual press conference, Thursday (16/12).

The case also did not experience symptoms such as runny nose and cough. The results of the PCR tests...

Senada, Direktur Eksekutif Asosiasi Pertambangan Batu Bara Indonesia (APBI) Hendra Sinadia optimistis bisnis harga batu bara tahun depan masih prospektif.

"Di awal tahun depan permintaan di- perkirakan masih cukup kuat. Apalagi pemerintah Tiongkok membuat kebijakan untuk menekan harga," ujar Hendra beberapa waktu lalu.

Pertumbuhan pasca pandemi dinilai dapat mendorong permintaan batu bara, terutama di pasar tradisional. Namun tingkat produksi batu bara domestik dan kebijakan sektor di Cina, India, Indonesia, dan tempat lain akan menjadi penentu yang mempengaruhi pasokan ekspor dan harga batu bara internasional serta domestik.

Seperti diketahui, penyebaran Omicron tengah menjadi momok di Eropa dan Amerika Serikat pada akhir tahun ini.

Penularan varian Covid-19 tersebut memaksa pemerintah untuk mengambil langkah pembatasan aktivitas jelang liburan Natal dan tahun baru.

Sementara, pemerintah Indonesia sendiri resmi mengumumkan kasus Omicron pertama pada Rabu (15/12). Kasus tersebut ditemukan dari seorang pekerja pembersih di Rumah Sakit Wisma Atlet yang terinfeksi.

Menteri Kesehatan Budi Gunadi Sadikin mengatakan sampel diambil dari tim di Wisma Atlet pada 8 Desember. Sampel lalu dikirimkan ke Kemenkes untuk dilakukan Whole Genome Sequencing dan hasilnya ada satu orang yang terdeteksi Omicron.

“Ada tiga terkonfirmasi positif, satu orang positif Omicron,” kata Menteri Kesehatan Budi Gunadi Sadikin dalam konferensi pers virtual, Kamis (16/12).

Kasus tersebut juga tidak mengalami gejala seperti pilek dan batuk. Hasil tes PCR...

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The results of the PCR tests of the two cleaners also showed negative results for Covid-19. "They have undergone a second test," Budi said.

In addition, Budi said there were five people with probable Omicron status. They consist of two Indonesian citizens who returned from the US and three Chinese citizens who arrived in Manado. Currently the Indonesian citizen has been isolated at the Athlete's House, "While the Chinese citizen is under- going quarantine in Manado," he said.

Hasil tes PCR kedua petugas pembersih itu juga telah menunjukkan hasil negatif Covid-19. “Mereka telah menjalani tes kedua,” kata Budi.

Selain itu Budi mengatakan ada lima orang yang berstatus probable Omicron. Mereka terdiri dari dua WNI yang pulang dari AS serta tiga WN Cina yang tiba di Manado.

Saat ini WNI sudah diisolasi di Wisma Atlet, "Sedangkan WN Cina tersebut menjalani karantina di Manado," katanya.

United Tractors and Acset Committed to Implementing ESG

in Business Development

Reporter: Ridwan Nanda Mulyana | Editor:

Tendi Mahadi

P

T UNITED Tractors Tbk (UNTR) expressed its commitment to developing a business based on the principles of Environmental, Social, and Governance (ESG). The issuer of the Astra Group considers that the implementation of ESG is important for business sustainability going forward.

UNTR Corporate Secretary Sara K. Loebis explained, in the Sustainability Report (SR) published since 2013, United Tractors always submits reports on environmental and social compliance aspects. This includes emissions, energy efficiency, water consumption, waste management, safety, human resource development, to Corporate Social Responsibility (CSR).

In its development, the ESG principle requires the establishment of targets and reports in accordance with international standards.

United Tractors dan Acset Berkomitmen Terapkan ESG dalam Pengembangan Bisnis

Reporter: Ridwan Nanda Mulyana | Editor:

Tendi Mahadi

P

T UNITED Tractors Tbk (UNTR) menyampaikan komitmen dalam mengembangkan bisnis berdasarkan prinsip Environmental, Social, dan Governance (ESG). Emiten Grup Astra ini menilai penerapan ESG penting bagi keberlanjutan bisnis ke depan.

Corporate Secretary UNTR Sara K. Loebis menerangkan, dalam Sustainability Report (SR) yang terbit sejak 2013, United Tractors senantiasa menyampaikan laporan mengenai aspek-aspek kepatuhan lingkungan dan sosial. Termasuk dalam hal emisi, efisiensi energi, konsumsi air, pengelolaan limbah, safety, pengembangan SDM, hingga Corporate Social Responsibility (CSR).

Dalam perkembangannya, prinsip ESG mensyaratkan adanya penetapan target dan bentuk laporan yang sesuai standar internasional.

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"In this case, UNTR is in the process of refining it. The setting of targets related to ESG is in the process where we conduct a review of baselines and standard and verifiable measurements," said Sara when contacted by Kontan.co.id, Monday (20/12).

Apart from the ongoing operations, UNTR has also started a business in the field of renewable energy as part of the business transition. For example, the development of a mini hydro power plant and the use of solar PV panels to support the energy needs of existing operating installations.

Investments for these various initiatives have become part of the capital expenditure (capex) prepared by UNTR.

"We place ESG as an important part of the sustainability business because the scope of UNTR's portfolio is quite heavy in coal- related businesses," said Sara.

One of the business entities, PT Acset Indonusa Tbk (ACST) also emphasized that concern for the environment, social and good corporate governance is a serious concern for companies engaged in the construction sector.

"We also really appreciate the government's support for the implementation of this ESG. Of course, in carrying out the company's operations, we will comply with the rules in the ESG," ACST Corporate Secretary Maria Cesilia Hapsari told Kontan.co.id, Sunday (19/12) .

For information, last Wednesday (1/12), Indonesia began to become the presidium of the G20 in 2022 with the theme Recover Together, Recover Stronger. Through this theme, Indonesia invites the whole world to come together to achieve a stronger and more sustainable recovery.

"Dalam hal ini, UNTR sedang berproses menyempurnakan. Penetapan target terkait ESG dalam proses dimana kami melakukan review terkait baseline dan pengukuran yang baku serta dapat diverifikasi," terang Sara saat dihubungi Kontan.co.id, Senin (20/12).

Di luar operasi yang sudah berjalan, UNTR juga mulai merintis bisnis di bidang energi terbarukan alias renewable energy sebagai bagian dari transisi bisnis. Sebagai contoh, pengembangan mini hydro power plant dan penggunaan panel solar PV untuk men- dukung kebutuhan energi dari instalasi operasi yang ada.

Investasi untuk berbagai inisiatif tersebut sudah menjadi bagian dari belanja modal (capex) yang dipersiapkan UNTR.

"Kami menempatkan ESG sebagai bagian penting dalam sustainability business karena lingkup portofolio UNTR yang cukup heavy di bisnis terkait batubara," ujar Sara.

Salah satu entitas usaha, PT Acset Indonusa Tbk (ACST) juga menegaskan bahwa kepedulian terhadap lingkungan, sosial dan tata kelola perusahaan yang baik menjadi perhatian serius bagi perusahaan yang berkecimpung di sektor konstruksi tersebut.

"Kami juga sangat mengapresiasi dukungan pemerintah atas pelaksanaan ESG ini.

Tentunya dalam pelaksanaan operasional perusahaan, kami akan sesuai dengan kaidah-kaidah dalam ESG," kata Sekretaris Perusahaan ACST Maria Cesilia Hapsari, kepada Kontan.co.id, Minggu (19/12).

Sebagai informasi, pada Rabu (1/12) lalu, Indonesia mulai menjadi presidium G20 tahun 2022 yang mengusung tema Recover Together, Recover Stronger. Melalui tema tersebut, Indonesia mengajak seluruh dunia untuk bersama-sama mencapai pemulihan yang lebih kuat dan berkelanjutan.

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The theme of the G20-2022 Summit is considered to have a positive impact on corporations or issuers that promote environmental, social and governance (ESG). Investments with an ESG focus in Indonesia are also predicted to continue to grow.

Adapun tema KTT G20-2022 tersebut dinilai bakal memberikan dampak positif untuk korporasi atau emiten yang mengusung environmental, social, dan governance (ESG). Investasi dengan fokus ESG di Indonesia pun diprediksi akan terus berkembang.

Coal 'Apocalypse' Still Long, Consumption in 2050 Still 40%

Cantika Adinda Putri, CNBC Indonesia

T

HE INSTITUTE for Essential Services Reform (IESR) launched the Indonesia Energy Transition Outlook (IETO) 2022 report. The report revealed that in 2050 coal use would still account for 40% of all electricity production in Indonesia.

IESR Clean Fuel Specialist, Julius Christian Adiatma, revealed that the government's electricity sector is one of the sectors that is most highlighted in pursuing the goal of net zero emission or carbon neutral in 2050.

Unfortunately, to pursue the goal of being carbon neutral by 2050, especially in reducing coal production, Indonesia is still at a crossroads and there is no bright spot yet.

"In the electricity sector, the government will reduce emissions and one of the things we have highlighted is that the strategy chosen is still prioritizing fossil energy,"

explained Julius in a webinar, Monday (12/20/2021).

"In 2050, coal will still use approximately 40% of all electricity production in Indonesia," Julius continued.

'Kiamat' Batu Bara Masih Lama, Konsumsi di 2050 Masih 40%

Cantika Adinda Putri, CNBC Indonesia

I

NSTITUTE for Essential Services Reform (IESR) meluncurkan laporan Indonesia Energy Transition Outlook (IETO) 2022.

Dalam laporannya terungkap bahwa pada 2050 penggunaan batu bara masih mencapai 40% dari seluruh produksi listrik di Indonesia.

Spesialis Bahan Bakar Bersih IESR, Julius Christian Adiatma mengungkapkan sektor ketenagalistrikan pemerintah menjadi salah satu sektor yang paling disoroti dalam mengejar cita-cita net zero emission atau netral karbon pada 2050.

Sayangnya, untuk mengejar cita-cita netral karbon pada 2050, terutama dalam mengurangi produksi batu bara Indonesia masih berada di persimpangan dan belum ada titik terang.

"Di sektor ketenagalistrikan pemerintah akan mengurangi emisi dan salah satu hal yang kami soroti, strategi yang dipilih itu masih mengedepankan energi fosil," jelas Julius dalam sebuah webinar, Senin (20/12/

2021).

"Di 2050 masih menggunakan batubara kira- kira sebesar 40% dari seluruh produksi listrik di Indonesia," kata Julius melanjutkan.

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This is because, said Julius, the Indonesian government is still providing space for coal in transition scenarios, such as in the CCS/CCUS program for coal-fired power plants, coal gasification, and even coal co- firing.

According to IESR, the use of CCS/CCUS technology in steam power plants will result in higher electricity prices and an increased risk of potential stranded assets due to uncompetitive costs.

In addition, the application of co-firing and clean coal technology such as PLTU Ultra- supercritical results in insignificant emission reductions, thus making the effectiveness of the use of these technologies questionable.

"So far, we still see that the government is not willing to disengage from coal. Even though there are commitments to reduce steam power plants and so on, in reality the government is still trying to create new demand for coal through downstream coal," explained Julius.

The cost of electricity generation from the use of CCS in PLTU will compete with renewable energy technologies with storage. So far, PLTUs with CCS operating in the world still have problems in operating and achieving emission reductions.

According to IESR, this strategy is not profitable, because economically it will require a larger subsidy.

"For example, the production of DME to replace LPG, even from the government's calculation, the figure is a loss. Even based on calculations, the emission is still higher than that produced by DME," said Julius.

(pgr/pgr)

Pasalnya, kata Julius pemerintah Indonesia juga masih memberikan tempat bagi batu bara dalam skenario transisinya seperti dalam program penggunaan CCS/CCUS pada PLTU batubara, gasifikasi batubara, bahkan co firing batubara.

Menurut IESR, penggunaan teknologi CCS/CCUS pada PLTU akan berdampak pada harga listrik lebih mahal dan me- ningkatnya risiko potensi aset terdampar yang lebih besar karena biaya yang tidak kompetitif.

Selain itu, penerapan teknologi co-firing dan clean coal technology seperti PLTU Ultra-supercritical menghasilkan penu- runan emisi yang tidak signifikan, sehingga membuat penggunaan teknologi ini di- pertanyakan efektivitasnya.

"Sejauh ini memang masih melihat pemerintah belum rela melepaskan diri dari batu bara. Meskipun ada komitmen- komitmen akan mengurangi PLTU dan sebagainya, kenyataannya pemerintah juga masih berusaha menciptakan demand baru terhadap batu bara melalui hilirisasi batu baranya," jelas Julius.

Biaya pembangkitan listrik dari penggunaan CCS pada PLTU akan bersaing dengan teknologi energi terbarukan dengan storage. Sejauh ini, PLTU dengan CCS yang beroperasi di dunia masih punya kendala pada operasi dan pencapaian penurunan emisinya.

Menurut IESR strategi tersebut tidak menguntungkan, karena secara hitung- hitungan ekonomi akan membutuhkan subsidi yang lebih besar.

"Misalnya produksi DME untuk meng- gantikan LPG, bahkan dari hitungan pemerintah pun angkanya itu rugi. Pun berdasarkan hitung-hitungan emisinya itu masih lebih besar dari yang dihasilkan oleh DME," ujar Julius. (pgr/pgr)

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Adaro Glances for Smelter Grade Alumina Business

Reporter: Intan Pratiwi/Editor: Nidia Zuraya

P

T ADARO Energy Tbk bought a 3.7 percent stake in PT Cita Mineral Investindo Tbk (CITA) at the close of the stock exchange on Friday (17/12) last week.

Adaro, which is a coal company, has begun to look at the potential for the mineral business through this corporate action.

Adaro's Head of Corporate Communi- cation, Febriati Nadira explained that Adaro chose to invest in CITA shares because the Company believes that the metallurgical grade bauxite and smelter grade alumina businesses are promising businesses in the long term.

"The company sees an improvement in the global economy and an increase in commodity prices. In addition, this share purchase is part of the diversification of Adaro's non-mining assets," said Ira to Republika.co.id, Monday (20/12).

This corporate action, said Ira, also came from the company's internal cash. Ira explained that Adaro currently has a fairly good financial position and liquidity level, so that the Company has the flexibility to make measured financial investments in instruments with a higher risk profile.

"This financial investment is expected to provide a good rate of return," said Ira.

This positive financial performance is reflected in the third quarter of this year.

The company could even pocket a profit of 420.90 million US dollars.

Adaro Lirik Bisnis Smelter Grade Alumina

Reporter: Intan Pratiwi/Redaksi: Nidia Zuraya

P

T ADARO Energy Tbk membeli 3,7 persen saham PT Cita Mineral Investindo Tbk (CITA) pada penutupan bursa Jumat (17/12) pekan lalu. Adaro yang merupakan perusahaan batubara mulai melirik potensi bisnis mineral melalui aksi korporasi tersebut.

Head Of Corporate Communication Adaro, Febriati Nadira menjelaskan Adaro me- milih berinvestasi kepada saham CITA karena Perseroan berpendapat bahwa bisnis metallurgical grade bauxite dan smelter grade alumina merupakan bisnis yang menjanjikan dalam jangka panjang.

"Perusahaan melihat perbaikan pereko- nomian global dan peningkatan harga komoditas. Selain itu pembelian saham ini merupakan bagian dari diversifikasi aset non tambang Adaro," ujar Ira kepada Republika.co.id, Senin (20/12).

Aksi korporasi ini kata Ira juga berasal dari kas internal perusahaan. Ira menjelaskan Adaro saat ini memiliki posisi keuangan dan tingkat likuiditas yang cukup baik sehingga Perseroan memiliki fleksibilitas untuk melakukan investasi keuangan terukur pada instrumen yang memiliki tingkat profil risiko yang lebih tinggi.

"Investasi keuangan ini diharapkan dapat memberikan tingkat pengembalian yang baik," ujar Ira.

Torehan kinerja keuangan yang positif ini tercermin dari kuartal tiga tahun ini.

Perusahaan bahkan bisa mengantongi laba sebesar 420,90 juta dolar AS. Pendapatan perusahaan yang tumbuh 31,44 persen.

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The company's revenue grew 31.44 percent. The company's revenue in the third quarter of this year reached 2.56 billion US dollars. This condition then dragged profits up to reach 284.81 percent.

Adaro recorded coal production during this period of nearly 40 million tonnes.

Meanwhile, coal sales volume was 38.86 million tons.

Overburden removal reached 173.03 Mbcm at the end of last September, or up 8 percent YoY, and the strip ratio for this period was 4.36x. Unfavorable weather slows down stripping activity.

Pendapatan perusahaan pada kuartal ketiga tahun ini mencapai 2,56 miliar dolar AS. Kondisi ini kemudian mengeret laba naik mencapai 284,81 persen.

Adaro mencatat produksi batu bara pada periode ini hampir 40 juta ton. Sedangkan volume penjualan batu bara sebesar 38,86 juta ton.

Pengupasan lapisan penutup mencapai 173,03 Mbcm pada akhir September lalu, atau naik 8 persen YoY, dan nisbah kupas periode ini mencapai 4,36x. Cuaca yang kurang baik memperlambat aktivitas pengupasan penutup.

Mining Permit Approval Slow, APBI: Disrupt Investment

Climate

Author: Rayful Mudassir

C

OAL mining entrepreneurs have complained about the government's slow response to the application for extension of mining permits. This is considered to provide uncertainty for the investment climate in the country.

Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia said that the extension of the coal mining permit could actually be submitted 5 years before the contract expired. However, the approval can be done until the end of the contract.

This condition is said to provide uncertainty for mining companies.

Moreover, in the proposal, the mining company has issued an investment for the next year's plan. This condition is considered to be able to disrupt the investment climate in the future.

Persetujuan Izin Tambang Lambat, APBI: Ganggu Iklim

Investasi

Author: Rayful Mudassir

P

ENGUSAHA pertambangan batu bara mengeluhkan lambatnya reaksi pemerintah terkait pengajuan perpanjangan izin tambang. Hal itu dinilai dapat memberikan ketidakpastian bagi iklim investasi di dalam negeri.

Direktur Eksekutif Asosiasi Pertambangan Batubara Indonesia (APBI) Hendra Sinadia mengatakan bahwa perpanjangan izin tambang batu bara sebenarnya sudah dapat diajukan 5 tahun sebelum kontrak berakhir.

Namun, persetujuannya dapat dilakukan hingga menjelang kontrak berakhir.

Kondisi itu disebut memberikan ketidakpastian bagi kalangan perusahaan tambang.

Terlebih dalam pengajuan tersebut, perusahaan tambang telah mengeluarkan investasi untuk rencana tahun berikutnya.

Kondisi itu pun dinilai dapat mengganggu iklim investasi ke depan.

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“The approval can be given before the expiry of the contract. So it can be H-1, until the last minute. It has the potential to cause uncertainty," he told Bisnis, Monday (12/20/2021).

In the rules, the holder of the contract of work for coal mining concessions (PKP2B) after the contract expires will be converted into a special mining business permit (IUPK).

Government Regulation Number 96/2021 concerning the Implementation of Mineral and Coal Mining Business Activities explains the issue of the extension of the mining contract. In Article 59 it is explained that the application for an extension of the period of mining and coal production operations to the minister is no later than 5 years or no later than 1 year.

Then, the extension of the period of production operation activities for mining non-metallic minerals or rocks to the minister no later than 2 years or no later than 6 months before the expiration of the contract.

"The extension of the period of production operation activities as referred to in paragraph (1) and paragraph (2) is given for a period according to the remaining term of the IUP, and according to the extension period," explained Article 59 paragraph 3 of the PP.

Hendra considered that the government should be able to provide clarity regarding the contract extension as soon as possible.

He said, the sooner the decision on the extension is given, the better it will be as an effort to provide certainty for the business.

“That deadline creates uncertainty.

Because of this the company [PKP2B] has a 30 year contract. That's what we're a little worried about," he said.

“Persetujuan itu dapat diberikan sebelum berakhirnya kontrak. Jadi bisa H-1, sampai last minute. Itu berpotensi menyebabkan ketidakpastian,” katanya kepada Bisnis, Senin (20/12/2021).

Dalam aturannya, pemegang kontrak perjanjian karya pengusahaan pertambangan batubara (PKP2B) habis kontrak akan dikonversi menjadi izin usaha pertambangan khusus (IUPK).

Peraturan Pemerintah Nomor 96/2021 tentang Pelaksanaan Kegiatan Usaha Pertambangan Mineral dan Batu Bara menjelaskan soal perpanjangan kontrak tambang tersebut. Pada Pasal 59 diterang- kan bahwa permohonan perpanjangan jangka waktu kegiatan operasi produksi minerba kepada menteri paling cepat 5 tahun atau paling lambat 1 tahun.

Kemudian, perpanjangan jangka waktu kegiatan operasi produksi untuk pertambangan mineral bukan logam atau batuan kepada menteri paling cepat dalam jangka waktu 2 tahun atau paling lambat 6 bulan sebelum berakhirnya kontrak.

“Perpanjangan jangka waktu kegiatan operasi produksi sebagaimana dimaksud pada ayat (1) dan ayat (2) diberikan dengan jangka waktu sesuai sisa jangka waktu IUP, dan sesuai jangka waktu perpanjangan,” terang pasal 59 ayat 3 PP tersebut.

Hendra menilai bahwa pem erintah seharusnya dapat memberikan kejelasan terkait perpanjangan kontrak secepat- cepatnya. Kata dia, lebih cepat keputusan perpanjangan diberikan maka akan lebih baik sebagai upaya memberikan kepastian bagi pengusahaan.

“Tenggat waktu itu yang menimbulkan ketidakpastian. Karena ini perusahaan [PKP2B] sudah berkontrak 30 tahun. Itu yang kami agak khawatir,” katanya.

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He warned that this situation could have a snowball effect for the coal industry. For example, job security for employees, customers, and contractors in the industry.

Business Observatory, at least PT Bumi Resources Tbk. (BUMI) has proposed a contract extension for PT Kaltim Prima Coal (KPC). The company's mining contract will expire on December 31, 2021.

However, until now the company has not received any news regarding the approval of the contract extension. Meanwhile, the ESDM Ministry said it would still evaluate the company's contract extension application.

Director of Bumi Resources Dileep Srivastava said that KPC had complied with all formal requirements set by the government. "Currently we are waiting for the official final decision from the authorities," he told Bisnis, Friday (12/17/2021).

Bisnis has contacted the Director of Coal Concession Development at the Directorate General of Mineral and Coal at the Ministry of EMR, Sujatmiko, to request a response regarding the delay in approval of mining permits. Until this news was revealed, there has been no response from the person concerned. Editor : Lili Sunardi

Dia mengingatkan bahwa situasi tersebut bisa jadi memberikan efek bola salju bagi industri batu bara. Misalnya, kepastian kerja bagi karyawan, pelanggan, maupun kontraktor pada industri tersebut.

Amatan Bisnis, setidaknya PT Bumi Resources Tbk. (BUMI) telah mengajukan perpanjangan kontrak untuk PT Kaltim Prima Coal (KPC). Kontrak tambang perusahaan tersebut akan berakhir pada 31 Desember 2021.

Namun, hingga kini perusahaan belum mendapatkan kabar terkait persetujuan perpanjangan kontrak. Sementara itu, Kementerian ESDM menyebut masih akan mengevaluasi pengajuan perpanjangan kontrak perusahaan.

Direktur Bumi Resources Dileep Srivastava mengatakan bahwa KPC telah memenuhi seluruh ketentuan formal yang ditetapkan oleh pemerintah. “Saat ini kami menunggu keputusan final resmi dari otoritas,” katanya kepada Bisnis, Jumat (17/12/2021).

Bisnis telah menghubungi Direktur Pem- binaan Pengusahaan Batu Bara Ditjen Minerba Kementerian ESDM Sujatmiko untuk meminta tanggapan ihwal lambatnya persetujuan izin tambang. Hingga berita ini diturunkan, belum ada tanggapan dari yang bersangkutan. Editor : Lili Sunardi

Prices Rise 10 Days Not Broken, Coal Is Getting 'Sexy'!

Hidayat Setiaji, CNBC Indonesia

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OAL prices have not stopped rising. The increase in the price of the black stone has now become 10 trading days in a row.

Harga Naik 10 Hari Nggak Putus, Batu Bara Makin 'Seksi'!

Hidayat Setiaji, CNBC Indonesia

H

ARGA batu bara belum berhenti naik.

Kenaikan harga si batu hitam kini menjadi 10 hari perdagangan beruntun.

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Yesterday, the price of coal on the ICE Newcastle (Australia) market closed at US$

183.15/ton. Up 1.69% from last weekend's position.

The increase fulfilled the positive trend of coal prices for 10 consecutive days. During those 10 days, the price was up 26.66%.

The economic recovery after the corona virus pandemic (Coronavirus Disease- 2019/Covid-19) has made coal demand soar. The International Energy Agency (IEA) estimates that coal-fired power generation this year will reach 10.35 Terawatt Hours (TWh), up 9% from 2020.

"The increase in demand exceeds the supply that low-carbon energy sources can afford," the IEA report said.

Overall, demand for coal will increase by 6% in 2021. This takes into account power generation and other industrial needs such as cement. If this trend continues, coal demand could hit an all-time high in 2022.

"In fact, this is a worrying signal as it deviates from the pursuit of zero emissions," said Fatih Biroll, Executive Director of the IEA, as quoted by Reuters.

China and India are the countries with the highest increase in coal demand. This year, the demand for coal for power generation in China is estimated to increase by 9%

while India's increase by 12%. CNBC INDONESIA RESEARCH TEAM (aji/aji)

Kemarin, harga batu bara di pasar ICE Newcastle (Australia) ditutup di US$

183,15/ton. Naik 1,69% dari posisi akhir pekan lalu.

Kenaikan tersebut menggenapi tren positif harga batu bara menjadi 10 hari berturut- turut. Selama 10 hari itu, harga naik 26,66%.

Pemulihan ekonomi usai pandemi virus corona (Coronavirus Disease-2019/Covid- 19) membuat permintaan batu bara menanjak. International Energy Agency (IEA) memperkirakan pembangkitan listrik dari batu bara tahun ini mencapai 10,35 Terawatt Hours (TWh), naik 9% dari 2020.

"Peningkatan permintaan melebihi pasokan yang mampu disediakan sumber energi rendah karbon," sebut laporan IEA.

Secara keseluruhan, permintaan batu bara naik 6% pada 2021. Ini memperhitungkan pembangkit listrik dan kebutuhan industri lainnya seperti semen. Jika tren ini berlanjut, maka permintaan batu bara bisa menembus rekor tertinggi sepanjang masa pada 2022.

"Sebetulnya, ini adalah sinyal yang meng- khawatirkan karena melenceng dari upaya menuju nol emisi," tegas Fatih Biroll, Direktur Eksekutif IEA, seperti dikutip dari Reuters.

China dan India menjadi negara dengan peningkatan permintaan batu bara tertinggi. Tahun ini, permintaan batu bara untuk pembangkit listrik di China diper- kirakan naik 9% sedangkan India melesat 12%. TIM RISET CNBC INDONESIA (aji/aji)

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Freeport's Second Copper Smelter Construction, Encourage

Downstream Industry

Mustiana Lestari - detikFinance

I

T HAS BEEN 54 years since PT Freeport Indonesia (PTFI) has been present in Papua. Operating since 1970, Freeport continues to develop its mining activities in Tembagapura, Papua.

There are two main mining areas owned by Freeport, namely the Grasberg Open Mine and the Underground Mine. The Grasberg open pit mine stopped operating in early 2020. So Freeport is now focusing on underground mining which consists of 4 sections Big Gossan, Deep Ore Zone (DOZ), Deep Mill Level Zone (DMLZ) and Grasberg Block Cave (GBC).

"From the production of these four mines, they produce 150-170 thousand tons of ore per day. Production in DOZ is 3,000- 5,000 tons of ore per day, the life of this mine is almost finished, the plan is that the mine will close early next year. Big Gossan produces 7,000 tons of ore per day.

Meanwhile, our new GBC mine produces 71 thousand tons per day," explained PTFI's Executive Vice President Operations and Head of Mining Engineering, Carl Tauran to detik.com at his office, Tembagapura, Mimika, Papua, some time ago.

From the ore that is mined, a mineral extraction process is carried out which is separated from the ore rock dregs through a flotation process at the processing plant (Mill) which produces a concentrate containing copper with accompanying minerals of gold and silver. Concentrate is the final product of PTFI's mining...

Pembangunan Smelter Tembaga Kedua Freeport, Dorong Industri

Hilir

Mustiana Lestari - detikFinance

S

UDAH 54 tahun PT Freeport Indonesia (PTFI) hadir di tanah Papua. Beroperasi sejak tahun 1970, Freeport terus mengembangkan aktivitas penambangannya di Tembagapura, Papua.

Terdapat dua area tambang utama yang dimiliki Freeport, yaitu Tambang Terbuka Grasberg dan Tambang Bawah Tanah.

Tambang terbuka Grasberg sudah berhenti beroperasi pada awal tahun 2020. Sehingga Freeport kini fokus di tambang bawah tanah yang terdiri dari 4 bagian Big Gossan, Deep Ore Zone (DOZ), Deep Mill Level Zone (DMLZ) dan Grasberg Block Cave (GBC).

"Dari produksi keempat tambang ini menghasilkan 150-170 ribu ton bijih per hari. Produksi di DOZ 3.000-5.000 ton bijih per hari, umur tambang ini sudah hampir habis, rencana awal tahun depan tambang akan tutup. Big Gossan menghasilkan 7.000 ton bijih per hari. Sementara tambang baru kita GBC produksinya mencapai 71 ribu ton per hari," jelas Executive Vice President Operation sekaligus Kepala Teknik Tambang PTFI, Carl Tauran kepada detik.com di kantornya, Tembagapura, Mimika, Papua, beberapa waktu lalu.

Dari bijih yang ditambang tersebut, dilakukan proses pengambilan mineral yang dipisahkan dari ampas batuan bijih melalui proses flotasi di pabrik pengolahan (Mill) yang menghasilkan konsentrat yang meng- andung tembaga dengan mineral ikutan emas dan perak. Konsentrat adalah produk akhir penambangan PTFI...

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Concentrate is the final product of PTFI's mining which will then be sent to a smelter to be reprocessed into semi-finished goods and absorbed by the downstream industry.

Carl predicts an increase in the production of concentrates in which the minerals copper, gold and silver are found. In detail, the production from Big Gossan will produce concentrates reaching 70 thousand tons/day, DMLZ 80 thousand tons/day, and GBC 130 thousand tons/day.

Freeport has a smelter in Gresik that has been operating, built in 1996 and operated by PT Smelting. Now this first smelter has the ability to process 1 million Dry Metric Tons (DMT) of copper concentrate into 300,000 tons of copper cathode per year.

From a production capacity of 1 million tons of concentrate, PT Smelting is currently expanding to 1.3 million metric tons per year, so its processing capacity will increase by about 30% to reach approximately 1.3 million DMT.

Currently, we are also building a second smelter in the JIIPE Gresik area, which will have a capacity of 1.7 million tons. The construction of the second smelter is currently entering the construction stage, following the implementation of Front-End Engineering Design, land reclamation and strengthening, as well as detailed engineering which has started since the end of 2018.

To date, progress on the construction of the second smelter has reached 8%. This development confirms PTFI's commitment to build a smelter, in accordance with the 2018 divestment agreement. "The obligation to build a smelter is stated in the PTFI Special Mining Business Permit (IUPK) which is an integral part of PTFI's license to continue operations until 2041,"

said Carl closing the conversation.

Konsentrat adalah produk akhir penambangan PTFI yang kemudian akan dikirim ke pabrik peleburan (smelter) untuk dapat diolah lagi menjadi barang setengah jadi dan diserap oleh industri hilir.

Carl memprediksi peningkatan produksi konsentrat yang di dalamnya terdapat mineral tembaga, emas dan perak. Rincian- nya produksi dari Big Gossan akan menghasilkan konsentrat mencapai 70 ribu ton/hari, DMLZ 80 ribu ton/hari, serta GBC 130 ribu ton/hari.

Freeport punya smelter di Gresik yang telah beroperasi, dibangun tahun 1996 dan dioperasikan oleh PT Smelting. Sekarang smelter pertama ini memiliki kemampuan untuk mengolah 1 juta Dry Metric Ton (DMT) konsentrat tembaga menjadi 300.000 ton katoda tembaga per tahun.

Dari kapasitas produksi 1 juta ton konsentrat, PT Smelting saat ini tengah ekspansi menuju 1,3 juta metric ton per tahun, sehingga kapasitas pengolahannya akan bertambah sekitar 30% hingga mencapai kurang lebih 1,3 juta DMT.

Saat ini kami juga sedang membangun smelter kedua di Kawasan JIIPE Gresik yang kapasitasnya nanti 1,7 juta ton.

Pembangunan smelter kedua saat ini me- masuki tahap konstruksi, setelah pelaksanaan Front-End Engineering Design, reklamasi dan penguatan lahan, serta rekayasa detail yang sudah dimulai sejak akhir 2018.

Hingga saat ini kemajuan pembangunan smelter kedua telah mencapai 8%.

Perkembangan ini menegaskan komitmen PTFI untuk membangun smelter, sesuai dengan kesepakatan divestasi tahun 2018.

"Kewajiban pembangunan smelter ter- tuang dalam Izin Usaha Pertambangan Khusus (IUPK) PTFI yang menjadi bagian tak terpisahkan dari izin keberlanjutan operasi PTFI hingga 2041," ujar Carl menutup percakapan.

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With the construction of the second PTFI smelter, it is hoped that the downstream industry will grow so that it can consume domestic copper cathodes, such as cable factories growing in Indonesia, including electric vehicles.

For information, detikcom together with MIND ID held a Mine Exploration program containing expeditions to Indonesian mining areas. detikcom visited mining industrial cities in Indonesia to take a complete picture of how people live and mineral-producing areas and how they are processed. (mul/akn)

Dengan pembangunan smelter kedua PTFI ini diharapkan tumbuh industri hilir sehingga dapat mengkonsumsi katoda tembaga dalam negeri, seperti pabrik kabel tumbuh di Indonesia, termasuk electric vehicle.

Sebagai informasi, detikcom bersama MIND ID mengadakan program Jelajah Tambang berisi ekspedisi ke daerah pertambangan Indonesia. detikcom menyambangi kota-kota industri tambang di Indonesia untuk me- motret secara lengkap bagaimana kehidupan masyarakat dan daerah penghasil mineral serta bagaimana pengolahannya. (mul/akn)

ArcelorMittal contracts Metso Outotec for iron ore processing plant revamp in Mexico

Posted by Daniel Gleeson

M

ETSO Outotec says it has been awarded a contract to supply key grinding equipment for ArcelorMittal’s Las Truchas 2.3 Mt/y iron ore processing plant revamp project in Mexico.

The value of the order is approximately €17 million ($19 million), to be booked in the Minerals division’s Q4 (December quarter), 2021 orders received.

The order includes two Metso Outotec Premier™ grinding mills with a total installed power of 19 MW. In addition, Metso Outotec will deliver an in-house designed Mill Reline Machine, enabling efficient and safe replacement of the steel and rubber lining systems, an operations- friendly Select™ Ball Feeder and spare parts, the company said.

Andy Lingenfelter, Vice President, Minerals Sales, North and Central America at Metso Outotec, said: “We are pleased to have been chosen for this project. In Mexico, Metso Outotec is a leading grinding mill supplier and is supported by our strong local service and consumables presence.

“With our Planet Positive Premier grinding mills and associated life cycle service offerings, our customer will be able to expand their iron ore production in a safe, efficient and environmentally responsible way in partnership with us.”

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Iron ore price highest in two months on China demand hopes

MINING.COM Staff Writer

I

RON ore prices surged on Monday, buoyed by renewed optimism over demand for the steel- making ingredient in China.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $123.51 a tonne during afternoon trading, up 3.3% compared to Friday’s closing, its highest since October 21.

Iron ore’s most-active January contract on the Singapore Exchange rose as much as 6.7% to

$127.95 a tonne, its highest since Oct. 12.

The most-traded May contract on China’s Dalian Commodity Exchange erased earlier gains to close 1.3% lower at 673.50 yuan ($105.60) a tonne, retreating from a seven-week peak.

China’s rising imported iron ore stockpiles, which last week hit their highest level since mid- 2018, and steel production curbs that are expected to be enforced as China aims for smog- free skies for the Beijing Olympics in February, tempered investors’ enthusiasm.

“Analysts expect a rebound in steel output as Beijing’s yearly targets have been met, prompting mills to resume production,” resources sector advisor and broker SP Angel said in a December 17 note.

With China churning out 946.36 million tonnes of crude steel from January-November, down 2.6% from the year-ago period, there is scope for mills to ramp up production as the target is to limit this year’s output to no more than last year’s volume of 1.05 billion tonnes in order to control emissions. (With files from Reuters)

Resources exports to skyrocket

Emily Murphy

A

USTRALIA’s resource and energy exports are expected to reach a record $379 billion in 2021-22, up from $310 billion in 2020-21, according to the Resources and Energy Quarterly for December 2021.

The report found that high commodity prices, good volume growth and a weak Australian dollar are driving a surge in export earnings.

“These are outstanding results that will provide further jobs and opportunities in our regions and benefit all Australians,” said Minister for Resources and Water Keith Pitt.

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“Hundreds of new projects in the pipeline, including 60 new or expanded coal mines, will deliver thousands of new jobs, especially in regional areas.

The report outlines that a stronger outlook for base metals and coal is expected to more than offset the impact on export earnings of the downward adjustment to iron ore price forecasts.

Metallurgical coal prices have held at historic highs for several months, as supply shortages have met strong Chinese demand and rebounding global industrial production.

Australia’s metallurgical coal export values are forecast to surge with recent price movements, rebounding from $23 billion in 2020–21 to a peak of above $50 billion in 2021–

22.

Additionally, thermal coal spot prices spiked in October as strong Chinese demand met global supply disruptions and capacity constraints, with the surging prices expected to push export values up to $35 billion in 2021–22.

“Coal is the star performer. Australia’s high-quality coal is finding new markets across Asia, including India, with Australian producers enjoying record price increases across all grades of coal,” Pitt said.

“Australia is set to benefit from a global shortage of energy, with record earnings from thermal and metallurgical coal and LNG.”

As carmakers race to capture the electric vehicle market, lithium exports are expected to overtake zinc in 2022–23, forecast to rise from $1.1 billion in 2020–21 to $4.2 billion in 2022–23.

On a downward trend, iron ore export earnings are expected to fall from a record $153 billion in 2020–21 to $118 billion in 2021–22.

Australia’s mining sector makes up more than half of Australia’s total exports and directly employs approximately 250,000 people.

Coal India’s coal grades improve 64%in April-Oct

Shobha Roy, Kolkata

Following consumer complaints, Coal India allows for quality testing via third-party

C

OAL India Ltd’s emphasis on ensuring better quality coal supplies seems to be yielding results with the state-owned miner registering an improvement in grade conformity in coal supplies to 64 per cent during April-October 2021 as against 59 per cent during same period last year.

The improvement is based on an analysis conducted by independent third-party sampling agencies. Grade conformity refers to the supply of declared grade of coal and above it.

The improvement in coal grade conformity comes at a time when there have been contentions of fall in quality of coal supplies by a certain section of Coal India’s customers.

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"The mosoon rains every year cause a certain degree of deterioration in coal quality due to surface moisture of coal. Loading through payloaders may lead to little amounts of mud and slurry getting in due to sogginess of the groud. But it does not mean that Coal India mixes rocks in its supplies. Isolated incidents if any are dealt with the severity they deserve," a senior company official said.

The notion that customers were not receiving tha grade of coal that they pay for was misconceived, as no customer suffers financial loss arising out of quality mismatch between the declared dispatched grade and the analysed grade, he added.

As per terms of the fuel supply agreement, Coal India initially bills customers based on the declared grade of coal despatched. Such provisional bills are later adjusted once the quality of coal is tested and established by an authorised third party sampling agency.

Production through surface miners, deployed in OC (opencast) mines, which entail blast free selective mining leading to better quality coal output and consistent sized coal, posted a growth of 11 per cent from April to November at 180.4 million tonne (mt) against 162.5 mt during the same period last year.

Independent sampling

To allay apprehensions on quality issues, all Coal India customers can also opt for quality assessment of coal supplies through independent third-party sampling agencies (TPSA).

To strengthen analysis of coal supplied, Coal India has engaged two third-party sampling and testing agencies —COTECNA Inspection India and SGS India — in addition to the existing CSIR-CIMFR and Quality Council of India. Further, the Ministry of Power has decided that Power Finance Corporation shall empanel TPS.

The agreement also has a provision for challenging the result of TPSAs, whereby the coal samples preserved are sent to the designated government referee laboratory for re-analysis, as well.

UTTAM portal

In order to monitor coal quality, Coal India has launched a portal ‘UTTAM’ (Unlocking Transparency by Third Party Assessment of Mined Coal) to record the entire cycle of a sample. With the help of this portal, consumers can access coal quality information on a regular basis.

Of the 58 coal testing laboratories across subsidiary Coal India companies, 50 are now NABL accredited and the process is underway for the remaining eight.

“Due to continuous conscious measures towards quality maintenance, the gap between the weighted average of declared and analysed GCV of coal reduced remarkably to 23 kcal/kg in FY21 from 61 kcal/kg in FY20,” the report said.

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China to release rare earths mining rights in an 'orderly' way - Shanghai Securities News

C

HINA should release its exploration and mining rights for rare earths appropriately and in an orderly manner, according to an official from the industry ministry cited by the Shanghai Securities News on Monday.

Chang Guowu, an official from the Ministry of Industry and Information Technology, told an industry conference that China should strengthen exploration of the Bayan Obo mine in the Inner Mongolia region, as well as medium and heavy rare earths resources.

"(We should) expand the exploitation of resources ... further improve overall rare earths quota management and regulate the utilisation of imported ore and other waste containing rare earths resources," Chang said, according to the media.

China is the world's dominant producer of rare earths, a prized group of 17 minerals used in consumer electronics and military equipment. It raised its 2021 rare earths mining quota to a record high of 168,000 tonnes. Chang noted that China still has shortcomings in green development and high-end rare earth products applications, according to the Shanghai Securities News. He suggested the industry should maintain prices of rare earth products within a reasonable range.

The state-backed China Minmetals Earth Co Ltd said in September that its parent group was planning a rare earth-related strategic restructuring with Chinalco and the Ganzhou government. (Reporting by Min Zhang and Dominique Patton. Editing by Gerry Doyle)

Lundin Mining to acquire world-class Josemaria copper-gold project in Argentina for C$625 million

By Vladimir Basov

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UNDIN Mining announced today that it has entered into a definitive agreement with Josemaria Resources to acquire all of its shares through a plan of arrangement for an implied equity value of approximately C$625 million (US$485 million).

Lundin said that the company will acquire 100% of the advanced stage Josemaria copper-gold project located in the San Juan Province of Argentina.

Mineral Reserves are estimated by Josemaria Resources to be 1,012 Mt at an average grade of 0.30% copper, 0.22 g/t gold and 0.94 g/t silver, containing approximately 6.7 billion lb of copper, 7.0 million oz of gold and 30.7 million oz of silver estimated using a copper price of US$3.00/lb, gold price of US$1,500/oz and silver price of US$18.00/oz silver.

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Josemaria is expected to produce an average of 166,000 tonnes of copper, 331,000 oz of gold and 1.2 million oz of silver per year for the first three years. Over a 19-year mine life defined by the current Mineral Reserve estimate, average annual production is forecast to be 131,000 t of copper, 224,000 oz of gold and 1.0 million oz of silver at an average total cash cost of US$1.55/lb of copper equivalent.

"The world-class Josemaria project is a unique opportunity at an advanced stage with a clear path to production. With Josemaria, Lundin Mining positions itself as a major copper producer with a diversified portfolio of high-quality, long-life base metal assets," the company said in a statement.

Importantly, the company added that the project has a completed positive feasibility study and has been advancing through environmental approvals, and commercial and fiscal terms with federal and provincial authorities. Josemaria Resources anticipates the ESIA and commercial and fiscal terms to be finalized in 2022, outlining a project timeline of approximately five years to commercial production.

President and CEO Peter Rockandel commented, "Josemaria is a world-class copper-gold project that has many characteristics which makes it the ideal project, at the right time, for Lundin Mining to advance in the next phase of our growth."

"Building on our strengthened technical expertise, leveraging our financial strength, and drawing on Josemaria Resources' in-country knowledge, we believe this opportunity will create meaningful value for all stakeholders. The addition of Josemaria will elevate Lundin Mining's position to a major base metals producer with high-quality, low-cost copper exposure," he added.

Under the terms of the transaction, Josemaria Resources shareholders may elect to receive in exchange for each Josemaria Resources common share, 0.1487 of a Lundin Mining Share or C$1.60 cash or any combination thereof issuable to all Josemaria Resources shareholders.

The consideration will be subject to a total maximum cash consideration of approximately C$183 million and a total maximum share consideration of approximately 39.7 million Lundin Mining Shares, equating to 30% of the transaction consideration payable in cash and 70% of the transaction consideration payable in Lundin Mining Shares, respectively.

Lundin Mining is a diversified Canadian base metals mining company with operations in Brazil, Chile, Portugal, Sweden and the United States of America, primarily producing copper, zinc, gold and nickel.

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