TABLE OF CONTENTS. No. Title Media Source Page

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Daily News Update Page 1

"Will there be dividend payments in the following years? Dividend payments will be reviewed and assessed from year to year. We don't know what nickel price will be, then what kind of financing mechanism we will get, so all these variables determine whether we have room to pay dividends. or not," he said. Editor : Pandu Gumilar

"Baik dalam bentuk debt financing, mungkin juga equity financing," ujarnya.

Lebih lanjut, Bernardus menyampaikan pihaknya akan mengkaji pembayaran dividen di tahun-tahun mendatang. Sebagaimana diketahui, tahun ini INCO tidak melakukan pembagian dividen ke pemegang sahamnya.

"Apakah tahun-tahun berikutnya ada pembayaran dividen? Pembayaran dividen akan dikaji dan diasses tahun ke tahun. Kami tidak tahu harga nikel berapa, kemudian mekanisme financing yang akan kita dapat seperti apa, jadi semua variabel itu menentukan, apakah kami mempunyai ruang untuk mem- bayarkan dividen atau tidak," ujarnya. Editor : Pandu Gumilar

Coal to US$400/Ton! ADRO Confident Extends Buyback

Rp4 T

Putra, CNBC Indonesia

T

HE PRICE of coal seems to be comfortably near the psychological level of US$ 400/ton. In trading yesterday, Wednesday (22/6/2022), the price of the ICE Newcastle futures contract closed at US$ 395/ton.

The dominant sentiment in the market is Europe which is embracing coal again after a long time trying to leave this fossil fuel.

The plan responds to the energy crisis experienced by the Blue Continent due to the ongoing war between Russia and Ukraine and makes gas supplies scarce.

Germany, Italy, Austria and the Netherlands view the reuse of coal-fired power plants as a solution to get out of the current energy crisis.

Batu Bara ke US$400/Ton!

ADRO Pede Perpanjang Buyback Rp4 T

Putra, CNBC Indonesia

H

ARGA batu bara tampaknya masih nyaman berada di dekat level psikologis US$

400/ton. Pada perdagangan kemarin, Rabu (22/6/2022), harga kontrak berjangka ICE Newcastle ditutup di US$ 395/ton.

Sentimen yang dominan di pasar adalah Eropa yang kembali merangkul batu bara setelah sekian lama terus berupaya me- ninggalkan bahan bakar fosil yang satu ini.

Rencana tersebut merespons krisis energi yang dialami oleh Benua Biru akibat perang Rusia dan Ukraina yang terus berlanjut dan membuat pasokan gas langka.

Jerman, Italia, Austria dan Belanda kompak memandang penggunaan kembali pembangkit listrik tenaga batu bara sebagai solusi untuk keluar dari krisis energi yang saat ini melanda.

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The condition is also exacerbated by Australia which is also in danger of experiencing an energy crisis. Until now, Australia has not taken any action to ban coal exports.

However, in the midst of the current trend of protectionism policies carried out in many countries, the threat of an energy crisis in the Kangaroo Country deserves attention.

Europe, which has been getting its energy supply from Russia, now has to rack its brains to find a replacement supply.

Indonesia as one of the world's largest producers has the opportunity to take over the European market in the midst of current conditions.

The Ministry of Energy and Mineral Resources (MEMR) said that there was a demand for Indonesian coal from Germany in line with the boycott of a number of countries in Europe related to the export- import activities of commodities from Russia.

Yesterday, the share price of coal issuers moved varied. Shares of state-owned coal mining company PT Bukit Asam Tbk (PTBA) still led the gains with an appreciation of 2.23%.

Meanwhile, the shares of PT Adaro Energy Indonesia Tbk (ADRO) were stagnant. The rest, such as PT Indo Tambagraya Megah Tbk (ITMG) and PT Indika Energy Tbk (ITMG) tend to be corrected.

Historically, the price movements of coal and its shares have tended to be in the same direction. So that the increase in coal prices is a positive catalyst for its share price.

However, when it comes to the potential of the European market, ADRO is actually a profitable issuer. This is because ADRO has been exporting coal to Europe since the first quarter of 2022.

Kondisi juga diperparah dengan Australia yang juga terancam mengalami krisis energi. Sampai saat ini memang Australia belum melakukan aksi pelarangan ekspor batu bara.

Namun di tengah tren kebijakan proteksio- nisme yang dilakukan di banyak negara yang marak saat ini, maka ancaman krisis energi di Negeri Kangguru patut menjadi perhatian.

Eropa yang selama ini mendapatkan pasokan energi dari Rusia pun kini harus putar otak untuk mencari suplai pengganti.

Indonesia sebagai salah satu produsen terbesar dunia berpeluang mengambil pasar Eropa di tengah kondisi seperti sekarang ini.

Kementerian Energi dan Sumber Daya Mineral (ESDM) menyampaikan bahwa terdapat permintaan batu bara Indonesia dari Jerman seiring dengan aksi boikot sejumlah negara di Eropa terkait kegiatan ekspor impor komoditas asal Rusia.

Kemarin, harga saham emiten batu bara bergerak variatif. Saham emiten tambang batu bara BUMN PT Bukit Asam Tbk (PTBA) masih memimpin penguatan dengan apresiasi 2,23%.

Sedangkan saham PT Adaro Energy Indonesia Tbk (ADRO) malah stagnan.

Sisanya seperti PT Indo Tambagraya Megah Tbk (ITMG) dan PT Indika Energy Tbk (ITMG) cenderung terkoreksi.

Memang secara historis pergerakan harga batu bara dan sahamnya cenderung searah. Sehingga kenaikan harga batu bara menjadi katalis positif untuk harga sahamnya.

Namun jika menyoal potensi pasar Eropa, sebenarnya ADRO merupakan emiten yang diuntungkan. Hal ini lantaran ADRO yang sudah mengekspor batu bara ke Eropa sejak kuartal I-2022.

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Indeed, the volume is still small because the largest market share of ADRO and other issuers is still in the Asian region.

The good prospect of coal is what causes management to believe that it will extend the corporate action of share buybacks, aka buybacks.

The company plans to extend the buyback period of the company's shares. Extension of the buyback period on 20 June 2022-19 September 2022 with a maximum amount of Rp 4 trillion.

"The company intends to extend it again for three months from the date of this information disclosure because the second extension period for the buyback of the company's shares will end on June 21, 2022," said Corporate Secretary of PT Adaro Energy Indonesia Tbk, Mahardika Putranto in a stock exchange information disclosure, Tuesday (21 /6/2022).

Mahardika also said that there are still a number of shares that can be bought back by the company from the provisions on the maximum number of share repurchases, as regulated in OJK Regulation Number 2/POJK.04/2013 concerning the buyback of shares issued by issuers or public companies in fluctuating market conditions significantly.

"The company believes that the implementation of the company's share repurchase during the re-extend period will not have a negative impact on the company's performance and revenue. This is because the company's current available retained earnings and cash flow are sufficient for the funds needed for the company's share repurchase in the re- extend period," said Mahardika. (trp)

Memang secara volume masih kecil karena pangsa pasar terbesar ADRO dan emiten lain memang masih berada di kawasan Asia.

Tetap ciamiknya prospek batu bara inilah yang menyebabkan manajemen yakin sehingga memperpanjang aksi korporasi pembelian kembali saham alias buyback.

Perseroan berencana memperpanjang periode pembelian kembali (buyback) saham perseroan. Perpanjangan periode buyback pada 20 Juni 2022-19 September 2022 dengan jumlah sebanyak-banyaknya Rp 4 triliun.

"Perseroan bermaksud untuk melakukan perpanjangan kembali selama tiga bulan sejak tanggal keterbukaan informasi ini karena akan berakhirnya periode perpanjangan kedua pembelian kembali saham perseroan pada 21 Juni 2022," ungkap Sekretaris Perusahaan PT Adaro Energy indonesia Tbk, Mahardika Putranto dalam keterbukaan informasi bursa, Selasa (21/6/

2022).

Mahardika juga menyebutkan masih terdapat sejumlah saham yang dapat dibeli kembali oleh perseroan dari ketentuan jumlah maksimal pembelian kembali saham, sebagaimana diatur dalam Peraturan OJK Nomor 2/POJK.04/2013 tentang pembelian kembali saham yang dikeluarkan oleh emiten atau perusahaan publik dalam kondisi pasar yang berfluktuasi secara signifikan.

"Perseroan berkeyakinan bahwa pelaksanaan pembelian kembali saham perseroan pada periode perpanjangan kembali tidak akan memberikan pengaruh negatif terhadap kinerja dan pendapatan perseroan.

Itu karena saldo laba dan arus kas perseroan yang tersedia saat ini sangat mencukupi untuk kebutuhan dana pelaksanaan pembelian kembali saham perseroan pada periode perpanjangan kembali," ujar Mahardika. (trp)

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Debt Conversion, Bumi Resources (BUMI) Will Private Placement Rp 76.69 Per Share

Reporter: Yuliana Hema | Editor: Wahyu T.

Rahmawati

P

T BUMI Resources Tbk (BUMI) announced that it will immediately increase capital without pre-emptive rights (PMTHMETD) aka private placement in order to improve financial conditions.

In the disclosure of information, this corporate action is also in order to settle BUMI's obligations to Innovate Capital Pte Ltd which has demanded that the company's debts be settled.

As an illustration, BUMI has a debt of Rp 1.01 trillion to Innovate Capital. Both agreed to settle their debt obligations through debt to equity swap with a conversion price of Rp 76.59 per series C share.

The price for this private placement is based on the Debt Settlement Agreement dated June 20, 2022 and is also in accordance with the provisions of Rule Number 1 -A concerning Changes in Listing of Shares and Equity Securities Other than Shares Issued by the Listed Company.

In the implementation of the private placement, BUMI will issue 13.21 billion new shares, or to be precise, 13,206.473,996 series C shares with a nominal value of Rp 50 per share. This value is equivalent to 10.25% of the company's issued and paid-up capital before the private placement.

To launch its action, BUMI will seek the approval of shareholders through the Extra- ordinary General Meeting of Shareholders (EGMS) scheduled for 29 July 2022.

Konversi Utang, Bumi Resources (BUMI) Bakal Private Placement

Rp 76,69 Per Saham

Reporter: Yuliana Hema | Editor: Wahyu T.

Rahmawati

P

T BUMI Resources Tbk (BUMI) meng- umumkan segera menambah modal tanpa hak memesan efek terlebih dahulu (PMTHMETD) alias private placement guna memperbaiki kondisi keuangan.

Dalam keterbukaan informasi, aksi korporasi ini juga dalam rangka penyelesaian kewajiban BUMI pada Innovate Capital Pte Ltd yang telah menagih agar utang perusahaan untuk diselesaikan.

Sebagai gambaran, BUMI memiliki utang sebesar Rp 1,01 triliun kepada Innovate Capital. Keduanya sepakat untuk menyelesai- kan kewajiban utang melalui konversi utang menjadi saham (debt to equity swap) dengan harga konversi Rp 76,59 per saham seri C.

Harga pelaksanaan private placement ini berdasarkan pada Perjanjian Penyelesaian Utang tertanggal 20 Juni 2022 dan juga sudah sesuai dengan ketentuan Peraturan Nomor 1-A tentang Perubahan Pencatatan Saham dan Efek Bersifat Ekuitas Selain Saham yang Diterbitkan oleh Perusahaan Tercatat.

Dalam pelaksanaan private placement, BUMI akan menerbitkan saham baru 13,21 miliar saham baru atau tepatnya 13.206.473.996 saham seri C dengan nominal Rp 50 per saham. Nilai tersebut setara dengan 10,25%

dari modal ditempatkan dan disetor per- seroan sebelum private placement.

Untuk melancarkan aksinya, BUMI akan meminta restu dari pemegang saham melalui Rapat Umum Pemegang Saham Luar Biasa (RUPSLB) yang dijadwalkan pada 29 Juli 2022.

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Bauxite Export Ban Accelerated, SGAR Mempawah Project Delay

to 2024

Author: Nyoman Ary Wahyudi

T

HE SOE Holding Mining Industry MIND ID or Mining Industry Indonesia targets the Mempawah Smelter Grade Alumina Refinery (SGAR) work to be completed in 2024. This target has missed the initial estimate that was set in July 2023.

The delay in the project, which is estimated to reach US$1.7 billion with an operating capacity of 1 million tons, was due to a dispute between the holders of the EPC consortium, namely BUMN from China, China Aluminum International Engineering Corporation Ltd (Chalieco) by 75 percent and the rest, PT Pembangunan Perumahan.

Tbk (PTPP).

"The internal consortium is finalizing a number of points for discussion where it is hoped that in the next 3 months these points can be agreed, so that the SGAR development project can run smoothly,"

said SVP Corporate Secretary MIND ID Heri Yusuf via text message, Wednesday (22/6/2022).

The national strategic project was targeted for completion of at least 70 percent of infrastructure development by March 2022. However, the dispute hampered the work of the smelter from 13 to 14 percent.

As is known, the national strategic project for refining bauxite ore is managed by PT Borneo Alumina Indonesia (PT BAI) whose majority shares are owned by PT Inalum (Persero) as much as 60 percent and the rest by Antam with 40 percent ownership.

Larangan Ekspor Bauksit Dipercepat, Proyek SGAR Mempawah Molor hingga 2024

Author: Nyoman Ary Wahyudi

B

UMN Holding Industri Pertambangan MIND ID atau Mining Industry Indonesia menargetkan pengerjaan Smelter Grade Alumina Refinery (SGAR) Mempawah dapat rampung pada 2024. Target itu meleset dari perkiraan awal yang sempat dipatok pada Juli 2023.

Adapun molornya proyek yang ditaksir mencapai US$1,7 miliar dengan kapasitas operasi 1 juta ton itu disebabkan karena perselisihan yang terjadi dari pihak pemegang konsorsium EPC yakni BUMN asal China, China Aluminium International Engineering Corporation Ltd (Chalieco) sebesar 75 persen dan sisanya PT Pem- bangunan Perumahan Tbk (PTPP).

“Internal konsorsium sedang memfinalkan beberapa poin yang menjadi bahan diskusi di mana diharapkan dalam 3 bulan ke depan poin-poin tersebut dapat disepakati, sehingga proyek pembangunan SGAR dapat berjalan lancar,” kata SVP Corporate Secretary MIND ID Heri Yusuf melalui pesan singkat, Rabu (22/6/2022).

Proyek strategis nasional itu sempat di- target selesai pembangunan infrastruktur- nya minimal 70 persen pada Maret 2022.

Hanya saja, perselisihan itu menghambat pengerjaan smelter di posisi 13 sampai 14 persen.

Seperti diketahui, proyek strategis nasional untuk pemurnian bijih bauksit itu dikelola oleh PT Borneo Alumina Indonesia (PT BAI) yang sahamnya mayoritas dimiliki PT Inalum (Persero) sebanyak 60 persen dan sisanya Antam dengan kepemilikan 40 persen.

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On the other hand, Heri was reluctant to respond to the consequences of the delay in the Mempawah SGAR work following the government's plan to speed up the cessation of exports of clean or washed bauxite (WBx) which is targeted to be effective in June 2023.

"Regarding the government's discourse on a ban on bauxite exports in 2023, in principle, we follow the government's rules and regulations," he said.

As previously reported, the Ministry of Energy and Mineral Resources (MEMR) is accelerating efforts to stop exports of clean or washed bauxite (WBx) which is targeted to be effective in June 2023.

Director General of Mineral and Coal (Dirjen Minerba) of the Ministry of EMR Ridwan Djamaluddin said his ministry has recently encouraged the development of processing and refining plants or smelters from holders of clean bauxite mining business permits (IUP) with grades above 42 percent until June 10, 2023.

"It's clear that bauxite is regulated until June 2023, but it is related to the progress of their smelter construction, what is prohibited is washed bauxite," said Ridwan when met at the Indonesian Parliament Building, Jakarta, Tuesday (22/6/2022).

In addition, Ridwan added, aluminum products from bauxite processing will still be able to be exported even though the ban on clean bauxite exports will take effect in the middle of next year.

"If the aluminum has been processed, it can still be exported," he said. Editor : Hadijah Alaydrus

Di sisi lain, Heri enggan menanggapi konsekuensi dari molornya pengerjaan SGAR Mempawah menyusul rencana pemerintah untuk mempercepat penye- topan ekspor bauksit bersih atau washed bauxite (WBx) yang ditargetkan efektif pada Juni 2023.

“Terkait dengan wacana pemerintah untuk larangan ekspor bauksit di 2023, secara prinsip kami mengikuti ketentuan dan peraturan pemerintah,” kata dia.

Seperti diberitakan sebelumnya, Kemen- terian Energi dan Sumber Daya Mineral (ESDM) tengah mempercepat upaya peng- hentian ekspor bauksit bersih atau washed bauxite (WBx) yang ditargetkan efektif pada Juni 2023.

Direktur Jenderal Mineral dan Batu Bara (Dirjen Minerba) Kementerian ESDM Ridwan Djamaluddin mengatakan kemen- teriannya belakangan mendorong pengembangan pembangunan pabrik pengolahan dan pemurnian atau smelter dari pemegang izin usaha pertambangan (IUP) bauksit bersih dengan kadar di atas 42 persen paling lama sampai 10 Juni 2023.

“Bauksit kan sudah jelas regulasinya di- izinkan sampai Juni 2023, tapi dikaitkan dengan kemajuan pembangunan smelter mereka, yang dilarang itu washed bauxite,”

kata Ridwan saat ditemui di Gedung DPR RI, Jakarta, Selasa (22/6/2022).

Selain itu, Ridwan menambahkan, produk aluminium hasil pengolahan bauksit masih akan tetap dapat diekspor kendati larangan ekspor bauksit bersih berlaku efektif pada pertengahan tahun depan.

“Kalau aluminium yang sudah diolah, iya masih bisa diekspor,” tuturnya. Editor : Hadijah Alaydrus

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Timah will Optimize Down- streaming Through Subsidiaries

Imam Suhartadi

P

T TIMAH Tbk will increase the down- stream activities of the main tin product.

This is in response to the plan to ban tin exports this year.

The cessation of mineral exports is considered to encourage downstreaming which will provide maximum added value for the country. PT Timah Tbk, which has a stock code of TINS, currently produces and processes tin for export to meet global tin demand.

"As a SOE we will continue to support government programs, we have a strategy that focuses on regulating the downstream industry so that it is added value for the country," said Production Director of PT Timah Tbk, Purwoko at TINS Gallery, Pangkal Pinang, Wednesday night (22/6).

It is known that TINS has been downstreaming tin for a long time by establish- ing a subsidiary PT Timah Industri in 1998.

Since 2010, PT Timah Industri has produced tin chemical and then tin solder in 2015.

Timah Industri has 3 chemical plants and 1 tin solder factory, namely Stannic Chloride (SnCl4) with a capacity of 3,000 tons under the BANKASTANNIC brand, Dimethyltin Dichloride (DMT) with a capacity of 8,000 tons under the BANKASTAB DMT Series brand, then, Methyltin Stabilizer (MTS) with a capacity of 10,000 tons under the brand name BANKASTAB MT Series, and soldering tins with a capacity of 2,000 tons under the BANKAESA brand.

Timah akan Optimalkan Hiliriasi Lewat Anak Usaha

Imam Suhartadi

P

T TIMAH Tbk akan meningkatan kegiatan hilirisasi produk utama timah. Hal ini untuk merespon rencana pelarangan ekspor timah tahun ini.

Dihentikannya ekspor mineral itu dinilai akan mendorong terjadinya hilirisasi yang memberikan nilai tambah maksimal bagi dalam negeri. PT Timah Tbk yang memiliki Kode Saham TINS saat ini memproduksi dan mengolah timah untuk diekspor me- menuhi kebutuhan timah global.

“Sebagai BUMN kita akan terus mendukung program pemerintah, kita memiliki strategi itu fokus untuk mengatur industri hilir agar added value bagi dalam negeri,”

kata Direktur Produksi PT Timah Tbk, Purwoko di TINS Gallery, Pangkal Pinang, Rabu Malam (22/6).

Diketahui, TINS sudah sejak lama melakukan hiliriasi timah dengan mendirikan anak usaha PT Timah Industri pada tahun 1998. Sejak 2010, PT Timah Industri memproduksi tin chemical dan kemudian tin solder pada tahun 2015.

Timah Industri memiliki 3 pabrik kimia dan 1 pabrik tin solder yaitu Stannic Chloride (SnCl4) berkapasitas 3.000 ton dengan merek BANKASTANNIC, Dimethyltin Dichloride (DMT) berkapasitas 8.000 ton dengan merek BANKASTAB DMT Series, kemudian, Methyltin Stabilizer (MTS) berkapasitas 10.000 ton dengan merek BANKASTAB MT Series, dan tin solder berkapasitas 2.000 ton dengan merek BANKAESA.

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Tin solder products are used in the electronics and automotive industries, while tin chemical is used in the Polyvinyl chloride (PVC) industry as a tin stabilizer additive for the manufacture of construction pipes, profiles, transparent PVC plastics and others.

According to him, the Tin Industry needs to increase the production capacity of tin chemical and tin solder at least twice to support the smooth downstreaming and ban the export of tin.

Currently, Timah Industri has a tin chemical and tin solder factory located in Cilegon, Banten. The factory's installed capacity is 10,000 tons per year for tin chemical and 4,000 tons per year for tin solder.

"Last year, our production of tin chemical was around 7,000 tons, while tin solder was around 2,000 tons," said Purwoko.

As is known, PT Timah Tbk in the first quarter of 2022 could record a profit of Rp 601 billion.

"We hope that commodity prices can continue to be high, so that it will also have an impact on the company's performance.

To boost the company's performance, PT Timah Tbk also adds a fleet of six production suction vessels to increase production at sea," he said.

With the better performance of PT Timah Tbk, of course as a state company this has an impact on the state through taxes, PNBP, and royalties. PT Timah Tbk in 2021 will deposit taxes and PNBP of Rp 776 billion and in 2022 we target PT Timah Tbk's tax and PNPB to reach Rp 1.90 trillion.

Previously, the government planned to ban the export of tin. Previously, President Joko Widodo (Jokowi) said that the plan to stop tin exports would be carried out this year.

Produk tin solder digunakan pada industri elektronik dan otomotif, sedangkan tin chemical digunakan pada industri Polyvinyl chloride (PVC) sebagai bahan aditif tin stabilizer untuk pembuatan pipa konstruksi, profile, plastik PVC transparan dan lainnya.

Menurut dia, Timah Idustri perlu memper- besar kemampuan produksi tin chemical dan tin solder setidaknya dua kali lipat demi mendukung kelancaran hilirisasi dan pelarangan ekspor timah.

Saat ini, Timah Industri memiliki pabrik tin chemical dan tin solder yang berlokasi di Cilegon, Banten. Adapun kapasitas ter- pasang pabrik tersebut yakni 10.000 ton per tahun untuk tin chemical dan 4.000 ton per tahun untuk tin solder.

“Di tahun lalu, produksi tin chemical kami sekitar 7.000 ton, sedangkan tin solder sekitar 2.000 ton,” kata Purwoko.

Seperti diketahui, PT Timah Tbk pada kuartal pertama 2022 bisa membukukan laba Rp 601 miliar.

"Kita berharap harga komoditas masih bisa terus tinggi, sehingga juga berdampak pada kinerja perusahaan. Untuk meng- genjot kinerja perusahaan, PT Timah Tbk juga menambah armada kapal isap produksi sebanyak enam unit untuk meningkatkan produksi di laut," katanya.

Dengan semakin baiknya kinerja PT Timah Tbk, tentunya sebagai perusahaan negara ini memberikan dampak kepada negara melalui pajak, PNBP, dan royalti. PT Timah Tbk tahun 2021 menyetorkan pajak dan PNBP sebesar Rp776 Miliar dan di tahun 2022 tins menargetkan pajak dan PNPB PT Timah Tbk mencapai Rp 1, 90 Trilyun.

Sebelumnya, Pemerintah berencana melarang ekspor timah. Sebelumnya, Presiden Joko Widodo (Jokowi) menyebut, rencana untuk menghentikan ekspor timah tersebut akan dilakukan tahun ini.

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Director General of Mineral and Coal at the Ministry of EMR, Ridwan Djamaluddin, said that his party is currently preparing a number of documents related to tin to be submitted to President Jokowi.

"Frankly, we are preparing material for the Minister of EMR (to) convey information and data on what is happening with tin in Indonesia. So that when a decision is made, the best conditions will occur ," said Ridwan in a Hearing Meeting (RDP) with Commission VII DPR RI, Tuesday (21/6).

Ridwan continued, currently at least 98%

of the tin blocks produced in Indonesia are still destined for the export market. Only the remaining 2% is earmarked for the domestic market.

With these conditions, Ridwan considered that there was a need for massive investment to build a domestic processing industry if tin exports were banned later.

The Ministry of EMR noted that Indonesia's total tin reserves reached 2.88 million tons.

Editor : Imam Suhartadi

Direktur Jenderal Mineral dan Batubara Kementerian ESDM Ridwan Djamaluddin mengatakan, pihaknya kini tengah mem- persiapkan sejumlah dokumen terkait timah untuk disampaikan kepada Presiden Jokowi.

"Terus terang kami sedang menyiapkan bahan untuk Menteri ESDM (untuk) menyampaikan informasi dan data apa yang terjadi dengan timah di Indonesia. Sehingga nanti saat dibuat keputusan, kondisi ter- baiklah yang terjadi," kata Ridwan dalam Rapat Dengar Pendapat (RDP) bersama Komisi VII DPR RI, Selasa (21/6).

Ridwan melanjutkan, saat ini setidaknya 98% balok timah yang diproduksi di Indonesia masih diperuntukkan untuk pasar ekspor. Hanya 2% sisanya yang diperuntukkan untuk pasar dalam negeri.

Dengan kondisi tersebut, Ridwan menilai perlu ada investasi masif untuk membangun industri pengolahan di dalam negeri jika nantinya ekspor timah dilarang. Kemen- terian ESDM mencatat, jumlah cadangan logam timah Indonesia mencapai 2,88 juta ton. Editor : Imam Suhartadi

Minister of EMR Presses Commitment to Reducing Carbon

Emissions in the Coal Industry

Rio Indrawan

T

HE INDONESIAN government supports global strategic efforts to reduce carbon gas emissions in the coal sub-sector through the use of new and renewable energy and technology (EBT). This step is expected to contribute to the achievement of the Net Zero Emissions (NZE) target in 2060 or sooner.

Menteri ESDM Tekan Komitmen Penurunan Emisi Karbon di

Industri Batu bara

Rio Indrawan

P

EMERINTAH Indonesia mendukung upaya strategis global dalam menekan emisi gas karbon di subsektor batu bara melalu pemanfataan teknologi dan energi baru dan terbarukan (EBT). Langkah ini diharapkan dapat berkontribusi terhadap pencapaian target emisi nol bersih atau Net Zero Emission (NZE) di tahun 2060 atau lebih cepat.

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Arifin Tasrif, Minister of Energy and Mineral Resources (MEMR), stated the importance of the coal sub-sector in adapting to the times.

"In the next few years, the use of coal will lose popularity with EBT as part of the energy transition process," said Arifin, Wednesday (22/6).

The EMR Ministry itself, said Arifin, is preparing four strategies to reduce carbon emissions, namely the development of the downstream coal industry, the use of clean coal technology in power plants, Carbon Capture Storage/Carbon Capture Utilization Storage (CCUS), and biomass co-firing.

“The implementation of this strategy will consider the multiplier effect of the energy transition process itself. One side closed a number of job opportunities. On the other hand, it will open up many job creation opportunities,” he explained.

The meeting at the High Level Advisory Group (HLAG) of Coal in the Global Net Zero discussed the preparation of a special report on practical policy measures to reduce carbon emissions caused by the coal sector.

Later, this special report will compre- hensively analyze the impact of the NZE target on the entire coal sector chain and become input for the state in implementing its national contribution commitments and NZE targets.

"This report was prepared at the right moment, where currently world energy prices are soaring and emphasize the importance of energy security and affordability for all," said Arifin.

The HLAG meeting was attended by a number of representatives from member countries of the International Energy Agency (IEA), representatives of companies in the energy sector,...

Arifin Tasrif, Menteri Energi dan Sumber Daya Mineral (ESDM), menyatakan pentingnya subsektor batu bara dalam melakukan adaptasi perkembangan zaman.

“Dalam beberapa tahun mendatang penggunaan batu bara akan kalah pamor dengan EBT sebagai bagian dari proses transisi energi,” kata Arifin, Rabu (22/6).

Kementerian ESDM sendiri, kata Arifin, tengah menyiapkan empat strategi dalam mereduksi emisi karbon, yaitu pembangunan industri hilir batu bara, pemanfaatan clean coal technology di pembangkit, Carbon Capture Storage/Carbon Capture Utilization Storage (CCUS), dan co-firing biomassa.

“Implementasi strategi ini akan memper- timbangkan multiplier effect dari proses transisi energi itu sendiri. Satu sisi menutup sejumlah kesempatan kerja. Sisi lain akan membuka banyak peluang penciptaan lapangan kerja,” jelasnya.

Pertemuan High Level Advisory Group (HLAG) Coal in the Global Net Zero membahas penyusunan laporan khusus mengenai langkah-langkah kebijakan praktis untuk mengurangi emisi karbon yang disebabkan oleh sektor batu bara.

Nantinya, laporan khusus ini akan meng- analisa secara komprehensif mengenai dampak dari target NZE terhadap seluruh rantai sektor batubara dan menjadi masuk- an bagi negara dalam implementasi komitmen kontribusi nasional dan target NZE.

“Laporan ini disusun di momentum yang tepat, dimana saat ini harga energi dunia sedang melonjak dan semakin menekankan akan pentingnya aspek ketahanan energi (energy security) dan keterjangkuan (affordability for all),” ungkap Arifin.

Pertemuan HLAG dihadiri oleh sejumlah perwakilan dari negara anggota Inter- national Energy Agency (IEA), perwakilan perusahaan di sektor energi,...

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representatives of companies in the energy sector, as well as funding management organizations such as the Asian Development Bank (IDB) and the Climate Investment Fund (CIF).

Some of the issues that emerged in the discussion were the challenge of balancing the coal phase out strategy and NRE development, each country has different capacities and capabilities in the energy transition process, funding support and attractive funding mechanisms for the success of each country's coal phase out strategy.

In addition, other discussions on the agenda are the involvement of local communities in the energy transition process to ensure effective and appropriate implementation and the urgency of strong regulatory support in the energy transition process, especially for developing countries. It is planned that HLAG will meet again in July to discuss the draft report that has been prepared together. (RI)

perwakilan perusahaan di sektor energi, serta organisasi pengelola pendanaan seperti Asian Development Bank (IDB) dan Climate Investment Fund (CIF).

Beberapa isu yang mengemuka dalam diskusi adalah tantangan dalam menye- imbangkan strategi coal phase out dan pengembangan EBT, setiap negara memiliki kapasitas dan kapabilitas yang berbeda dalam proses transisi energi, dukungan pendanaan dan mekanisme pendanaan yang menarik bagi kesuksesan strategi coal phase out masing-masing negara.

Di samping itu, pembahasan lain yang menjadi agenda adalah keterlibatan masyarakat lokal dalam proses transisi energi untuk memastikan implementasi yang efektif dan sesuai serta urgensi dukungan aturan (regulatory support) yang kuat dalam proses transisi energi, khususnya bagi negara- negara berkembang. Rencananya, HLAG akan kembali melakukan pertemuan pada bulan Juli untuk membahas mengenai draft laporan yang sudah disusun bersama. (RI)

Already Up 13% in a Week, Coal Takes a Break

Maesaroh, CNBC Indonesia

C

OAL prices weakened after flying over the past week. In trading on Wednesday (22/6/2022), the price of July contract stone on the ICE Newcastle (Australia) market closed at US$ 392 per ton.

Weakened 0.88%.

Sudah Naik 13% dalam Seminggu, Batu Bara Rehat

Dulu

Maesaroh, CNBC Indonesia

H

ARGA batu bara melemah usai terbang selama sepekan terakhir. Pada perdagangan Rabu (22/6/2022), harga batu kontrak Juli di pasar ICE Newcastle (Australia) ditutup di US$ 392 per ton.

Melemah 0,88%.

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The weakening of coal prices yesterday broke the upward trend that has been going on since June 15 last or the last week.

The weakness also made the black stone's attempt to return to the level of US $ 400 stalled.

In a week, coal prices rose 13.6% point-to- point. In a month the price of coal still fell 5.1% but in a year the price shot up 213.3%.

The weakening of coal prices was due to easing concerns about supply and China's steps to maintain commodity prices. The price of black stone soared on Monday and Tuesday after European countries ranging from Germany, Britain, Austria, to the Netherlands announced that they would again use coal as a source of their electricity generation.

Supply is reported to have flowed into Europe and this slightly eased market concerns. Montel News reported that coal supplies at ports in northwestern Europe reached their highest level since 2020.

In addition to reviving power plants, coal supply also increased sharply as Europe piled up supplies before banning coal imports from Russia on August 10. Coal supply at the Ports of Amsterdam, Rotterdam and Antwerp (ARA) currently stands at 6.49 million tonnes, up 1.3% over the previous week. This supply is expected to continue to increase by up to 20% or an increase of 1 million tons in the future.

Perret Associates estimates that thermal coal imports from European countries including the UK and Poland will reach 84 million tonnes this year, up dramatically from 58.5 million tonnes in 2021.

However, Perret considers the surge in imports to be excessive and "overacting".

The reason is that the ability of coal power plants in Europe will not necessarily absorb that much supply.

Pelemahan harga batu bara kemarin memutus tren kenaikan yang berlangsung sejak 15 Juni lalau atau sepekan terakhir.

Pelemahan juga membuat upaya batu hitam untuk kembali ke level US$ 400 terhenti.

Dalam sepekan, harga batu bara menguat 13,6% secara point to point. Dalam sebulan harga batu bara masih anjlok 5,1% tetapi dalam setahun harganya melesat 213,3%.

Pelemahan harga batu bara disebabkan meredanya kekhawatiran mengenai pasokan serta langkah China untuk menjaga harga komoditas tersebut. Harga batu hitam melambung pada Senin dan Selasa kemarin setelah negara-negara Eropa mulai dari Jerman Inggris, Austria, hingga Belanda mengumumkan akan kembali menggunakan batu bara sebagai sumber pembangkit listrik mereka.

Pasokan dilaporkan sudah mengalir ke Eropa dan ini sedikit meredakan kekhawatiran pasar. Montel News melaporkan pasokan batu bara pada pelabuhan di barat laut Eropa mencapai level tertinggi sejak 2020.

Selain untuk menghidupkan kembali pembangkit listrik, pasokan batu bara juga meningkat tajam karena Eropa menumpuk pasokan sebelum melarang impor batu bara dari Rusia pada 10 Agustus mendatang. Pasokan batu bara pada Pelabuhan Amsterdam, Rotterdam dan Antwerp (ARA) sekarang ini mencapai 6,49 juta ton, naik 1,3% dibandingkan pekan sebelumnya. Pasokan ini diperkirakan akan terus meningkat hingga 20% atau bertambah 1 juta ton ke depan.

Perret Associates memperkirakan impor batu bara thermal dari negara-negara Eropa termasuk Inggris dan Polandia mencapai 84 juta ton tahun ini, naik drastis dibandingkan 58,5 juta ton pada 2021. Namun, Perret menganggap lonjakan impor tersebut berlebihan dan " overacting". Pasalnya, kemampuan pembangkit listrik batu bara di Eropa belum tentu akan menyerap pasokan sebanyak itu.

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"Let's say if Europe can import that much, but will they be able to absorb it completely?

I think they are buying too much. How long will their generators run out of stock," said Guillaume Perret of Perret Associates, as quoted by Montel News.

The weakening of coal was also driven by China's attitude to take firm action against those who sell coal prices above the provisions. "With the current global situation, inflationary pressures, and the large impact of inflation, it is very important for us to keep prices within a reasonable range," Wei Qijia, an official with China's National Development and Reform Commission, was quoted as saying by the Financial Review.

China's brick production in January-May 2022 increased and reached 1.81 billion.

The production rose 10.4% over the same period last year. However, the use of coal in China is likely to increase as power plants begin to increase supply ahead of the winter season. CNBC INDONESIA RESEARCH TEAM (mae/mae)

"Katakanlah jika Eropa bisa mengimpor sebanyak itu, tapi apa mampu mereka menyerap sepenuhnya. Menurut saya, mereka membeli terlalu banyak. Berapa lama pembangkit mereka akan menghabis- kan stok," tutur Guillaume Perret dari Perret Associates, seperti dikutip Montel News.

Pelemahan batu bara juga didorong oleh sikap China untuk menindak tegas mereka yang menjual harga batu bara di atas ketentuan.

"Dengan situasi global seperti saat ini, tekanan inflasi, dan dampak inflasi yang besar maka sangat penting bagi kita untuk menjaga harga tetap pada kisaran yang masuk akal," tutur pejabat Komisi Reformasi dan Pembangunan Nasioal China Wei Qijia, seperti dikutip dari Financial Review.

Produksi batu bata China pada Januari-Mei 2022 meningkat dan mencapai 1,81 miliar.

Produksi tersebut naik 10,4% dibandingkan periode yang sama tahun lalu. Namun, penggunaan batu bara di China kemungkinan meningkat karena pembangkit listrik mulai menambah pasokan menjelang musim dingin. TIM RISET CNBC INDONESIA (mae/mae)

Indonesia's Coal Targeted by Europe, Entrepreneurs Have Not

Revised Production Targets

According to information from the Ministry of EMR, so far, no coal entrepreneur has submitted a revised RKAB to change its production target, to

absorb European demand.

By: Muhammad Fajar Riyandanu

T

HE MINISTRY of EMR said that no coal company had submitted a revised Work Plan and Budget (RKAB) to change its production target amid high prices and export demand.

Batu Bara RI Diincar Eropa, Pengusaha Belum Revisi Target

Produksi

Menurut informasi Kementerian ESDM sejauh ini belum ada pengusaha batu bara yang mengajukan revisi RKAB untuk mengubah target produksinya,

untuk menyerap permintaan Eropa.

Oleh: Muhamad Fajar Riyandanu

K

EMENTERIAN ESDM menyebut belum ada perusahaan batu bara yang mengajukan revisi Rencana Kerja dan Anggaran Belanja (RKAB) untuk mengubah target produksinya di tengah tingginya harga dan permintaan ekspor.

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"Nobody has (proposed a revision of the RKAB) yet," said Director General of Mineral and Coal (Minerba) Ridwan Djamaluddin when met by reporters at the Nusantara I Building, DPR on Tuesday (21/6).

Lana Saria, the Director of Coal Business Guidance at the Ministry of EMR, conveyed the same thing. She said that so far no coal company has submitted a revised RKAB.

But on the other hand, with the request, it is possible that a number of coal business actors will propose a revised RKAB. "Of course, if demand increases, the company will submit a request for a revised RKAB,"

said Lana via text message on Tuesday (21/6).

Lana added that currently a number of European countries are looking at Indonesian coal for energy security during the winter season. Europe is again hunting for coal supplies to rekindle steam power plants (PLTU). This policy after Russia cut gas shipments to the region. Moscow even plans to completely stop gas exports to the region in August 2022. Several European countries are approaching Indonesia, which is one of the main coal producing countries in the world. Even Germany has submitted a request for coal as much as 6 million tons.

Lana added that if Germany formally submits a request, the Ministry of EMR will forward the request to the Indonesian Coal Mining Association (APBI). "Availability of supplies with the assistance of APBI. Later, it will be carried out on a business to business (B to B) basis," he said.

Apart from Germany, a number of other countries such as Poland, India and Pakistan are also interested in buying Indonesian coal. "There is news like that, but there has been no official request,"

explained Lana.

"Belum ada (yang ajukan revisi RKAB)," ujar Direktur Jenderal Mineral dan Batu Bara (Minerba) Ridwan Djamaluddin saat ditemui wartawan di Gedung Nusantara I DPR pada Selasa (21/6).

Hal serupa juga disampaikan oleh Direktur Pembinaan Pengusahaan Batu bara Kemen- terian ESDM Lana Saria. Ia mengatakan, sampai sejauh ini belum ada perusahaan batu bara yang mengajukan revisi RKAB.

Namun di sisi lain, dengan adanya permintaan tak menutup kemungkinan sejumlah pelaku usaha batu bara akan mengajukan revisi RKAB. "Tentunya bila permintaan meningkat, perusahaan akan mengajukan permohonan revisi RKAB," kata Lana melalui pesan singkat pada Selasa (21/6).

Lana menambahkan, saat ini sejumlah negara Eropa tengah melirik batu bara Indonesia untuk ketahanan energi selama musim dingin. Eropa kembali berburu pasokan batu bara untuk menyalakan kembali pembangkit listrik tenaga uap (PLTU). Kebijakan ini setelah Rusia memangkas pengiriman gas ke kawasan tersebut. Bahkan Moskow berencana menghentikan sepenuhnya ekspor gas ke kawasan tersebut pada Agustus 2022.

Beberapa negara Eropa mendekati Indonesia yang merupakan salah satu negara produsen batu bara utama di dunia. Bahkan Jerman telah mengajukan permintaan batu bara sebanyak 6 juta ton.

Lana menambahkan, jika nantinya Jerman mengajukan permintaan secara resmi, Kementerian ESDM akan meneruskan permintaan tersebut kepada Asosiasi Pertam- bangan Batu Bara Indonesia (APBI). "Keter- sediaan pasokan dengan dibantu APBI.

Selanjutnya nanti akan dilakukan secara business to business (B to B)," ujarnya.

Selain Jerman, sejumlah negara lain seperti Polandia, India dan Pakistan juga tertarik untuk membeli batu bara Indonesia. "Ada kabar seperti itu, tapi belum ada permintaan secara resmi," jelas Lana.

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10 DESTINATION COUNTRIES FOR INDONESIAN COAL EXPORTS (2020)

Quoting barchart.com's futures report on Wednesday (22/6) morning, the price of coal on the ICE Newcastle market was at the level of US$ 390 per ton. This figure is much higher than the coal price in March at US$ 242.64 per ton.

Previously, APBI Executive Director Hendra Sinadia said he received news that a number of companies had submitted a revised Budget and Cost Work Plan (RKAB) to increase production capacity. Generally, business actors will submit RKAB in the middle of the year in June or July.

According to him, the opportunity to increase production can be done depending on the readiness of each company in conducting mine planning and financial capabilities.

Mengutip laporan berjangka barchart.com pada Rabu (22/6) pagi, harga batu bara di pasar ICE Newcastle berada di level US$ 390 per ton. Angka tersebut jauh lebih tinggi dari harga batu bara di bulan Maret seharga US$

242,64 per ton.

Sebelumnya, Direktur Eksekutif APBI Hendra Sinadia mengatakan dirinya memperoleh kabar bahwa sejumlah perusahaan sudah mengajukan revisi Rencana Kerja Anggaran dan Biaya (RKAB) untuk menambah kapasitas produksi. Umumnya para pelaku usaha akan mengajukan RKAB pada pertengahan tahun di bulan Juni atau Juli.

Menurutnya, peluang mendongkrak produksi dapat dilakukan tergantung kesiapan tiap-tiap perusahaan dalam melakukan perencanaan tambang dan kemampuan keuangan.

China India Philippines Japan Malaysia South Korea Vietnam Taiwan Thailand Bangladesh

Million Tons Source: Ministry of EMR

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"The government knows more precisely about the companies that propose the revised RKAB," he said.

Chairman of the Indonesian Mining and Energy Forum (IMEF) Singgih Widagdo said that amid high prices and opportunities for coal demand from European countries, a number of business players would propose a revised RKAB.

"Pemerintah yang lebih tahu persisnya mengenai perusahaan-perusahaan yang mengajukan revisi RKAB," ujarnya.

Ketua Indonesian Mining and Energy Forum (IMEF) Singgih Widagdo mengatakan di tengah tingginya harga dan peluang permintaan batu bara dari negara Eropa, sejumlah pelaku usaha akan mengajukan revisi RKAB.

BIGGEST COAL PRODUCER ISSUER (2021)

Even so, Singgih said the company would still count before submitting a revised RKAB. One of the points that will be taken into account is how long the high price of coal will last.

"Increasing production, for example, from 30 million tons to 35 million tons, and increasing...

Walau begitu, Singgih menyebut perusahaan akan tetap berhitung sebelum mengajukan revisi RKAB. Salah satu poin yang akan diperhitungkan yakni berapa lama kondisi harga tinggi batu bara akan bertahan.

"Menaikkan produksi misalnya dari 30 juta ton ke 35 juta ton, dan penambahan...

Million Tons Source: Indonesia Stock Exchange (IDX), PT

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and increasing the number of heavy equipment. That's limited to that. If you have to make new investments such as making additional transportation ports, it seems unlikely," Singgih told Katadata.co.id.

In addition, Singgih added, before deciding to export to Europe, the government and business actors are asked to take into account the quality of the coal, the condition of the coal stock and also the loading port.

Meanwhile, coal demand from Europe is generally of quality above 5,500 kcal per kg or even above 6,000 kcal per kg.

Meanwhile, the majority of Indonesian coal is at 4,000 kcal per kg to 5,000 kcal per kg.

According to Singgih, if exports to a number of European countries are carried out, the companies most capable of doing so are companies that have Coal Mining Concession Work Agreements (PKP2B).

PKP2B is an agreement between the Government of the Republic of Indonesia and a company incorporated as an Indonesian legal entity to conduct coal mining business activities. "The most capable are like PT Arutmin and PT Kaltim Prima Coal (KPC)," said Singgih. Editor:

Happy Fajrian

dan penambahan jumlah alat berat. Sebatas itu. Kalau harus buat investasi baru seperti membuat tambahan pelabuhan angkut sepertinya tidak," kata Singgih kepada Katadata.co.id.

Selain itu, Singgih menambahkan, sebelum memutuskan untuk melakukan ekpor ke Eropa, pemerintah dan para pelaku usaha diminta memperhitungkan kualitas batu bara, kondisi stok batu bara dan juga pelabuhan muat.

Adapun permintan batu bara dari Eropa umumnya berada pada kualitas di atas 5.500 kcal per kg atau bahkan di atas 6.000 kcal per kg. Sementara mayoritas batu bara Indonesia berada pada angka 4.000 kcal per kg sampai 5.000 kcal per kg.

Menurut Singgih, apabila ekspor ke sejumlah negara Eropa jadi dilakukan, perusahaan yang paling mampu melakukan hal tersebut adalah perusahaan yang memiliki Perjanjian Karya Pengusahaan Pertambangan Batubara (PKP2B).

PKP2B adalah perjanjian antara Pemerintah Republik Indonesia dengan perusahaan berbadan hukum Indonesia untuk melakukan kegiatan usaha pertambangan batubara. "Yang paling mampu seperti PT Arutmin dan PT Kaltim Prima Coal (KPC),"

ujar Singgih. Editor: Happy

Copper price falls to lowest since March 2021 as recession fears rattle the market

MINING.COM Staff Writer

C

OPPER prices tumbled on Wednesday to their lowest level since March 2021 as fears over a global economic slowdown dented investor sentiment.

Copper for delivery in July fell 2.6% from Tuesday’s settlement, touching a low of $3.88 per pound ($8,550 per tonne) Wednesday morning on the Comex market in New York.

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The most-traded July copper contract in Shanghai ended daytime trading 1.6% lower to 67,060 yuan ($9,971.60) a tonne.

“Base metals remain pressured by a challenging demand outlook related to China’s covid-19 lockdowns and to monetary policy tightening raising recession fears over the trade-off between inflation and growth,” Standard Chartered wrote in a note.

“We expect the base metals complex to continue to take its cues from macro developments, USD moves, external market moves and risk appetite trends.”

Stocks in Europe fell along with US futures and Asian equities amid ever- louder warnings that Federal Reserve monetary tightening may lead to an economic downturn. The dollar climbed.

Mining stocks also slid, with BHP Group down almost 10% from the previous week, Glencore down 8%, and Freeport- McMoRan down 16%.

“Investors should remember that Fed- induced slowdowns are simply a short- term abatement of the symptom — inflation — and not a cure for the problem — underinvestment,” Goldman Sachs Group said in a note.

“The quicker and the higher they need to hike, the higher the probability of a recession,” Christian Nolting, Deutsche Bank International Private Bank chief investment officer, said on Bloomberg Television, referring to monetary policy.

50,000 go on strike in Chile

On the supply side, Chilean state-owned copper producer Codelco, the world’s largest, was hit on Wednesday by a nationwide strike against the miner’s decision to close permanently an allegedly polluting smelter in the country’s central zone.

Unions demand that, instead of shutting down Ventanas, the company upgrades it. Codelco’s decision followed an environmental incident that saw dozens of people fall ill, the miner said June 17. The move was later backed by Chilean President Gabriel Boric and several of his ministers.

About 50,000 copper workers, including Codelco’s employees as well as contractors, joined on Wednesday the indefinite strike, the Federation of Copper Workers said in a statement.

(With files from Reuters and Bloomberg)

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PwC: ‘Miners have an opportunity to emerge as leaders in a critical transition’

Published by Will Owen, Editor

M

INING companies posted strong financial results for 2021, with revenues rising by 32%

and net profits soaring by 127% on the back of high commodity prices and prudent cost management.

According to PwC’s 19th annual review of the Top 40 mining companies, Mine 2022, which examines global trends in the mining industry, future success will depend on whether or not the Top 40 can take a leading role in the world’s clean energy transition and continue to generate significant stakeholder value.

To do this, miners must use their strong current financial position to meet challenges including development timelines, price volatility, geopolitical risks, stakeholder expectations, economies of scale, and economic resource scarcity.

In the UK, many companies, particularly material intensive manufacturing companies, are increasingly looking at ways to reduce the threat of rising raw material prices as part of the energy transition and other inflationary factors. Options to strategically secure supply of raw materials can include agreeing long term offtake agreements, direct financial investment in mines or purchase of equity stakes in mines, which can provide a partial offset against rising materials costs.

Drew Stevenson, PwC UK’s Energy, Utilities and Resources leader, comments:

“Demand for the range of critical minerals needed to power the energy transition journey is unlikely to diminish as countries, such as the UK, accelerate towards their Net Zero target dates. The mining industry has a key role to play not only in discovering and delivering essential commodities to drive this decarbonisation pathway, but in identifying and integrating cleaner, greener methods of extraction with electric or hydrogen powered engines and minimising waste.

“This will go a long way towards creating a much more sustainable supply chain in the longer term, as well as supporting the sector and its clients’ ESG reporting requirements. Without this ambitious and forward looking approach by the industry, the prospects of energy transition at scale will be jeopardised.”

This year’s report suggests that the rewards for those miners that emerge as leaders in the clean energy transition could be immense. According to recent data, the need for ‘critical minerals’ – such as lithium, copper, nickel, and cobalt – is expected to grow over the next three decades, with some estimates suggesting that the annual demand from clean energy technologies will reach over US$400 billion by 2050.

This is because the world’s shift to net zero will require more mining (in particular for critical minerals), not less. The rapid scaling of the low-emission energy systems of the future – solar and wind power, electric vehicles, and grid-scale batteries – will be highly material-intensive.

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