TABLE OF CONTENTS. No. Title Media Source Page

(1)

Daily News Update Page 1

Nevertheless, Timah managed to reduce the cost of revenue by 20.74% to Rp11.17 trillion in 2021 compared to the previous year of Rp14.09 trillion. That way, gross profit in 2021 will be Rp3.43 trillion, up 206.8% compared to 2020 of Rp1.11 trillion. The increase in general and administrative expenses to Rp1.06 trillion, as well as the increase in selling expenses to Rp132.81 billion had little impact on the company's bottom line.

"The rapid performance of the Company is a special gift in the midst of a pandemic situation that has not ended, but it does not dampen Management's optimism that in the following years the Company's performance will be able to be better supported by the use of mining technology of higher quality and lower cost," said M.

Krisna Sjarif, Director of Finance and Risk Management Timah, in his written statement, Monday (14/3).

According to Krisna, the use of Ausmelt technology, which will operate in the second half of this year, is expected to reduce the production cost of tin metal, so that the company's profitability will be even more brilliant in the midst of an increasingly competitive business climate.

Tak Lagi Merugi, Timah Raup Laba Bersih Rp1,3 Triliun

Alfian Tanjung

S

ETELAH merugi pada 2020, PT Timah Tbk (TINS) berhasil mencetak kinerja positif pada 2021 dengan membukukan laba bersih Rp1,3 triliun. Laba bersih diraih Timah, meski pendapatan sepanjang tahun lalu turun 3,99% menjadi Rp14,6 triliun dibanding 2020 yang mencapai Rp15,21 triliun.

Kendati demikian, Timah berhasil menekan beban pokok pendapatan hingga 20,74%

menjadi Rp11,17 triliun pada 2021 dibanding tahun sebelumnya sebesar Rp14,09 triliun. Dengan begitu, laba bruto pada 2021 menjadi Rp3,43 triliun atau naik 206,8%

dibandingkan dengan 2020 sebesar Rp1,11 triliun. Kenaikan beban umum dan adminis- trasi menjadi Rp1,06 triliun, serta kenaikan beban penjualan menjadi Rp132,81 miliar menjadi tidak begitu berdampak terhadap bottomline perseroan.

“Melesatnya performa Perseroan menjadi sebuah hadiah istimewa di tengah situasi pandemi yang belum berakhir, namun tak menyurutkan optimisme Manajemen bahwa di tahun‐tahun berikutnya kinerja Per- seroan akan mampu lebih baik didukung pemanfaatan teknologi penambangan yang lebih berkualitas dan berbiaya rendah,” ujar M. Krisna Sjarif, Direktur Keuangan dan Manajemen Risiko Timah, dalam keterangan tertulisnya, Senin (14/3).

Menurut Krisna, pemanfaatan teknologi Ausmelt yang akan beroperasi di semester kedua tahun ini diharapkan mampu menekan biaya produksi pembuatan logam timah, sehingga profitabilitas perseroan akan semakin cemerlang di tengah iklim usaha yang semakin kompetitif.

(4)

Tin is still the largest contributor to Timah's revenue, amounting to Rp12.38 trillion, followed by sales of tin chemical at Rp1.06 trillion, coal at Rp468.38 billion, tin soldering at Rp221.8 billion, and nickel at Rp163 billion. Export sales still dominate, amounting to Rp 13.46 trillion and local sales of Rp 1.13 trillion.

In terms of production performanc e, throughout 2021 Timah produced 24,670 tons of tin ore, a decrease of 38%

compared to the previous year of 39,757 tons of Sn, of which 46% came from onshore mining, and 54% came from marine mining. In the same year, tin production only reached 26,465 MTon or decreased by 42% from 2020 which was 45,698 MTon. With the average selling price of tin, which shot up 89% to $32,619, the Company posted sales of tin of 26,602 MTon, down 52% from the previous year of 55,782 MTon.

The soaring price of tin in the international market is a special opportunity for Timah, because with low production costs, the company is able to sell its commodities at significant prices. (AT)

Logam timah masih menjadi penyumbang terbesar bagi pendapatan Timah, yakni sebesar Rp12,38 triliun, disusul penjualan tin chemical Rp1,06 triliun, batu bara Rp468,38 miliar, penjualan tin solder Rp221,8 miliar, dan nikel sebesar Rp163 miliar. Penjualan ekspor masih mendominasi, yakni sebesar Rp13,46 triliun dan penjualan lokal Rp1,13 triliun.

Dari sisi kinerja produksi, sepanjang 2021 Timah memproduksi bijih timah sebesar 24.670 ton Sn, turun 38% dibanding tahun sebelumnya sebesar 39.757 Ton Sn, di mana sebesar 46% berasal dari penambangan darat, dan 54% berasal dari penambangan laut. Pada tahun yang sama, produksi logam timah hanya mencapai 26.465 MTon atau turun 42% dari tahun 2020 sebesar 45.698 MTon. Dengan rerata harga jual logam timah yang melesat 89% menjadi $32.619, Per- seroan membukukan penjualan logam timah sebesar 26.602 MTon atau turun 52% dari tahun sebelumnya sebesar 55.782 MTon.

Melesatnya harga komoditas timah di pasar internasional menjadi kesempatan istimewa bagi Timah, karena dengan biaya produksi yang rendah perseroan mampu menjual komoditasnya di harga yang signifikan. (AT)

Indo Tambangraya (ITMG) Earns Rp 5.43 Billion from Sales of

Treasury Shares

Reporter: Akhmad Suryahadi | Editor:

Anna Suci Perwitasari

P

T INDO Tambangraya Megah Tbk (ITMG) has again sold some of its treasury shares from the buyback. This coal mining issuer has sold 200,000 shares on March 11, 2022.

Indo Tambangraya (ITMG) Raup Rp 5,43 Miliar dari Penjualan

Saham Treasuri

Reporter: Akhmad Suryahadi | Editor:

Anna Suci Perwitasari

P

T INDO Tambangraya Megah Tbk (ITMG) kembali melakukan penjualan sebagian saham treasury hasil pembelian kembali (buyback). Emiten tambang batubara ini telah menjual sebanyak 200.000 saham pada tanggal 11 Maret 2022 lalu.

(5)

Launching information disclosure on the Indonesia Stock Exchange website, Monday (14/11), the selling price of shares refers to the closing price of daily trading on the stock exchange one day before the date of sale of shares. The selling price is Rp 27,150 per share.

Thus, ITMG obtained Rp 5.43 billion from the sale of the shares, before deducting transaction costs.

"After the sale of shares, the remaining number of shares from the repurchase that have not been transferred is 7.78 million shares," wrote Junius Prakasa Darmawan, Director of Indo Tambangraya Megah in a statement on the Indonesia Stock Exchange, Monday (14/3).

Previously, ITMG was recorded to have sold shares from the buyback. On March 7, 2022, ITMG sold 7.2 million shares, with a selling price of Rp 28,125 per share.

Meanwhile, the funds obtained by ITMG from the sale of these shares reached Rp 210.42 billion, before deducting transaction costs.

Then, on March 4, 2022, ITMG also sold 7.85 million shares from the repurchase.

The selling price was Rp 28,125 per share, and ITMG earned Rp 220.78 billion before deducting transaction fees.

Melansir keterbukaan informasi di laman Bursa Efek Indonesia, Senin (14/11), harga penjualan saham mengacu pada harga penutupan perdagangan harian di bursa efek satu hari sebelum tanggal penjualan saham.

Harga penjualan tersebut sebesar Rp 27.150 per saham.

Sehingga, ITMG memperoleh dana Rp 5,43 miliar dari hasil penjualan saham tersebut, sebelum dikurangi biaya transaksi.

“Setelah pelaksanaan penjualan saham, maka jumlah sisa saham hasil pembelian kembali yang belum dialihkan adalah sebanyak 7,78 juta saham,” tulis Junius Prakasa Darmawan, Direktur Indo Tambang- raya Megah dalam keterangan di Bursa Efek Indonesia, Senin (14/3).

Sebelumnya, ITMG tercatat beberapa kali menjual saham hasil pembelian Kembali.

Pada 7 Maret 2022, ITMG menjual sebanyak 7,2 juta saham, dengan harga penjualan sebesar Rp 28.125 per saham. Adapun, dana yang diperoleh ITMG dari hasil penjualan saham tersebut mencapai Rp 210,42 miliar, sebelum dikurangi biaya transaksi.

Kemudian, pada 4 Maret 2022, ITMG juga melakukan penjualan saham hasil pembelian kembali sebanyak 7,85 juta saham. Harga penjualan senilai Rp 28.125 per saham, dan ITMG meraup dana sebesar Rp 220,78 miliar sebelum dikurangi biaya transaksi.

Drops! Coal Collapse 7%...

Maesaroh, CNBC Indonesia

N

EWCASTLE's global benchmark thermal coal price remains sluggish. On Monday (14/3/2022) trading,...

Brol! Batu Bara Ambrol 7%...

Maesaroh, CNBC Indonesia

H

ARGA batu bara termal acuan global Newcastle masih loyo. Pada perdagangan Senin (14/3/2022)...

(6)

On Monday (14/3/2022) trading, the price of coal on the ICE market in Newcastle (Australia) closed at US$ 336.15/ton, down 7.05% compared to last weekend's closing.

The decline was even deeper than last Friday's 1.7%. Coal price correction has continued since Tuesday (8/3/2022). Coal prices had increased 0.28% on Wednesday (9/3/2022) but continued to be corrected after Thursday (10/3/2022) until yesterday.

If calculated, the price of coal has fallen 13.61% for a week. One of the reasons for the ongoing decline in coal prices is the high price of this commodity in the past month. The price of the black stone during the month is still recorded to rise 50.7%

and 301.94% during the year.

Energy Watch Executive Director Mamit Setiawan said the decline in coal prices last week was due to the fact that the market was starting to worry about the high price of coal, considering that the price had touched psychological factors.

"The price increase above US$400/ton is beyond all analysts' predictions throughout 2022 because recently there has been intensive development related to clean energy. In fact, several European countries no longer use coal," said Mamit, to CNBC Indonesia.

Although it continues to decline, coal prices are expected to continue to increase due to high demand amid disruption to supply from Russia. Rystad Energy even estimates that coal prices can pass US$

500/ton this year. The increase in prices was mainly due to the Russian-Ukrainian crisis.

Ukrainian Foreign Minister Dmytro Kuleba said global companies also needed to stop buying coal and gas from Russia.

Pada perdagangan Senin (14/3/2022) harga batu bara di pasar ICE Newcastle (Australia) ditutup di level US$336,15/ton, ambrol 7,05%

dibandingkan penutupan akhir pekan lalu.

Penurunan tersebut bahkan lebih dalam dibandingkan pada Jumat lalu yakni 1,7%.

Koreksi harga batu bara terus berlangsung sejak Selasa (8/3/2022). Harga batu bara sempat meningkat 0,28% pada hari Rabu (9/3/2022) tetapi terus terkoreksi setelah Kamis (10/3/2022) hingga kemarin.

Bila dihitung, harga batu bara sudah turun 13,61% selama sepekan.

Penurunan harga batu bara yang terus berlangsung salah satunya disebabkan oleh tingginya harga komoditas tersebut dalam sebulan terakhir. Harga si batu hitam selama sebulan masih tercatat naik 50,7% dan 301,94% selama setahun.

Direktur Eksekutif Energy Watch Mamit Setiawan mengatakan penurunan harga batu bara pekan lalu karena memang karena pasar sudah mulai khawatir dengan tingginya harga batu bara mengingat harga nya sudah menyentuh faktor psikologis.

"Kenaikan harga di atas US$400/ton di luar perkiraan semua analis sepanjang 2022 ini karena kemarin-kemarin gencarnya akan dikembangkan terkait energi bersih. Bahkan di beberapa negara Eropa sudah tidak menggunakan batu bara lagi," tutur Mamit, kepada CNBC Indonesia.

Kendati terus turun, harga batu bara diperkirakan masih akan meningkat karena permintaan yang masih cukup tinggi di tengah terganggunya pasokan dari Rusia.

Rystad Energy bahkan memperkirakan harga batu bara dapat melewati US$ 500/

ton tahun ini. Kenaikan harga terutama karena krisis Rusia-Ukraina.

Menteri Luar Negeri Ukraina Dmytro Kuleba mengatakan perusahaan global juga perlu menghentikan pembelian batu bara dan gas dari Rusia.

(7)

In a briefing on sanctions against the Russian economy on Monday (14/3/2022), Kuleba assessed that Russia was on the verge of default and economic collapse.

"Currently we are preparing to impose a fourth round of sanctions on Russia," he said as reported by CNN International.

"We are working to get EU countries to give up Russia's energy resources. A particular problem is Germany, where we know this is a difficult decision, but we are working with them," he added. CNBC INDONESIA RESEARCH TEAM (mae/mae)

Dalam briefing mengenai sanksi terhadap ekonomi Rusia pada Senin (14/3/2022), Kuleba menilai Rusia berada di ambang default dan keruntuhan ekonomi. "Saat ini kami sedang bersiap memberikan sanksi putaran keempat kepada Rusia," katanya seperti dilansir CNN International.

"Kami sedang bekerja untuk membuat negara-negara Uni Eropa menyerahkan sumber energi Rusia. Masalah khusus adalah Jerman, di mana kami tahu ini adalah keputusan yang sulit, tapi kami tengah bekerja dengan mereka," tambahnya. TIM RISET CNBC INDONESIA (mae/mae)

Freeport Smelter Supplied by PLN, When will it Operate?

Athika Rahma, Journalist

P

T PLN (Persero) supplies electricity to the Gresik Special Economic Zone (SEZ), East Java. This will increase added value for domestic mining products through mineral downstreaming.

The electricity distributed is 170 MVA to the mineral processing and refining facility (smelter) owned by PT Freeport Indonesia.

The Director General of Electricity at the Ministry of EMR, Rida Mulyana, said that competitive electricity prices were an important factor, especially for the downstream industry.

"We encourage all industries in Indonesia to use electricity from PLN," said Rida, in her statement, Tuesday (15/3/2022).

Meanwhile, PLN's Director of Commerce and Customer Management Bob Saril said that the supply of electricity by PLN to PT Freeport Indonesia through PT BKMS was carried out in four stages, the first stage was 30 MVA in September 2023,...

Smelter Freeport Disetrum Listrik PLN, Kapan Beroperasinya?

Athika Rahma, Jurnalis

P

T PLN (Persero) memasok listrik ke Kawasan Ekonomi Khusus (KEK) Gresik, Jawa Timur. Hal ini meningkatkan nilai tambah bagi produk tambang dalam negeri lewat hilirisasi mineral.

Listrik yang disalurkan sebesar 170 MVA ke fasilitas pengolahan dan pemurnian mineral (smelter) milik PT Freeport Indonesia.

Direktur Jenderal Ketenagalistrikan Kemen- terian ESDM Rida Mulyana mengatakan, harga listrik yang kompetitif menjadi faktor penting khususnya bagi industri hilir.

"Kami mendorong semua industri di Indonesia bisa memanfaatkan listrik dari PLN," ujar Rida, dalam keterangannya, Selasa (15/3/2022).

Sementara itu, Direktur Niaga dan Mana- jemen Pelanggan PLN Bob Saril mengatakan, penyediaan tenaga listrik oleh PLN kepada PT Freeport Indonesia melalui PT BKMS dilakukan dalam empat tahap, tahap pertama sebesar 30 MVA pada September 2023,...

(8)

the first stage was 30 MVA in September 2023, the second stage was 60 MVA on 26 December 2023, the second stage was 60 MVA on December 26, 2023, the three stage of 110 MVA in March 2024 and stage four of 170 MVA in June 2024.

"The signing of the PB 170 MVA Electric Power Purchase Agreement (PJBTL) with BKMS 100% to supply the PT Freeport Indonesia smelter in the Gresik SEZ area,"

he explained.

The electricity supply for PT Freeport Indonesia's smelter is supplied through two 150 kV subsystems, namely the Krian 3.4 subsystem and the Ngimbang subsystem with 2 circuits each. In this PJBTL, PT Freeport Indonesia's smelter becomes a premium platinum electricity customer.

"With PLN's focus on providing reliable electricity without stopping, customers can also focus on a more productive business to support the progress of the smelter industry in Indonesia," he explained.

In supporting the supply of electricity from green energy, PLN has the latest product, namely the Renewable Energy Certificate (REC). Where 1 REC unit represents 1 MWh of new renewable energy at a generator within a certain time. This program can be utilized by industry players who contribute to the use of environmentally friendly electricity.

"The REC service fee is Rp 35,000 per MWh which can be purchased by PLN customers and non-PLN customers," he said.

President Director of PT Freeport Indonesia Tony Wenas explained that finally Freeport used PLN electricity because the electricity price w as competitive so that it could streamline factory operations in the future.

tahap pertama sebesar 30 MVA pada September 2023, tahap dua sebesar 60 MVA pada 26 Desember 2023, tahap tiga sebesar 110 MVA pada Maret 2024 dan tahap empat sebesar 170 MVA pada Juni 2024.

“Penandatanganan Perjanjian Jual Beli Tenaga Listrik (PJBTL) PB 170 MVA dengan BKMS 100% untuk menyuplai smelter PT Freeport Indonesia yang ada di kawasan KEK Gresik,” paparnya.

Penyediaan ketenagalistrikan untuk smelter PT Freeport Indonesia dipasok melalui dua subsistem 150 kV yaitu subsistem Krian 3,4 dan subsistem Ngimbang masing-masing 2 sirkuit.

Dalam PJBTL ini smelter PT Freeport Indonesia menjadi pelanggan listrik premium platinum.

"Dengan fokus PLN memberikan listrik yang andal tanpa henti, maka pelanggan juga dapat fokus pada bisnis yang lebih produktif mendukung kemajuan industri smelter di Indonesia," terang dia.

Dalam mendukung penyediaan pasokan listrik dari energi hijau, PLN memiliki produk terbaru yaitu Renewable Energy Certificate (REC). Di mana 1 unit REC merepresentasikan 1 MWh energi baru terbarukan pada suatu pembangkit dalam waktu tertentu. Program ini bisa dimanfaatkan para pelaku industri yang berkontribusi dalam penggunaan listrik ramah lingkungan.

"Biaya layanan REC sebesar Rp 35.000 per MWh yang dapat dibeli oleh pelanggan PLN maupun non-pelanggan PLN," ujarnya.

Direktur Utama PT Freeport Indonesia Tony Wenas menjelaskan akhirnya Freeport memakai listrik PLN karena harga listriknya yang mampu bersaing sehingga bisa mengefisienkan operasional pabrik ke depan.

(9)

"It turns out that using PLN electricity is not too expensive either. This is also our step to take advantage of the excess electricity capacity in East Java," said Tony.

(fbn)

"Ternyata memakai listrik PLN gak terlalu mahal juga kok. Ini juga sebagai langkah kami untuk memanfaatkan kelebihan kapasitas listrik di Jawa Timur," ujar Tony.

(fbn)

Timah (TINS) Speeds Up Smelter Completion, Semester II/2022

Must Be Completed

Author: Mutiara Nabila

S

TATE-owned issuer PT Timah Tbk.

(TINS) is boosting the completion of the tin refining and processing facility development project, namely the Ausmelt Furnance.

TINS Corporate Secretary Abdullah Ukar Baswedan said that the Ausmelt project is expected to be completed at the beginning of semester II/2022.

"For now, the progress is above 90 percent, in the finalization stage," he explained, Monday (14/3/2022).

Once operational, the Ausmelt Furnance will have an installed smelting capacity of 40,000 tons of crude tin. When combined with the current smelter, it can have a full capacity of up to 80,000 tons.

The use of Ausmelt technology, which will operate in the second half of this year, is expected to be able to reduce the production cost of tin metal, so that the company's profitability will be even more brilliant in the midst of an increasingly competitive business climate.

Throughout 2021, TINS managed to turn around in profits to Rp. 1.3 trillion compared to 2020, which lost Rp. 341 billion.

Timah (TINS) Kebut

Penyelesaian Smelter, Semester II/2022 Harus Jadi

Author: Mutiara Nabila

E

MITEN BUMN PT Timah Tbk. (TINS) menggenjot penyelesaian proyek pengem- bangan fasilitas pemurnian dan pengolahan timah yakni Ausmelt Furnance.

Corporate Secretary TINS Abdullah Ukar Baswedan menyebutkan bahwa proyek Ausmelt tersebut diperkirakan rampung pada awal semester II/2022.

"Untuk saat ini progresnya sudah di atas 90 persen, tahap finalisasi," terangnya, Senin (14/3/2022).

Jika sudah beroperasi, Ausmelt Furnance itu akan memiliki kapasitas terpasang peleburan akan mencapai 40.000 ton crude tin. Jika digabungkan dengan smelter yang ada sekarang ini, bisa memiliki kapasitas penuh sampai 80.000 ton.

Pemanfaatan teknologi Ausmelt yang akan beroperasi di semester kedua tahun ini diharapkan mampu menekan biaya produksi pembuatan logam timah, sehingga profitabilitas perseroan akan semakin cemerlang di tengah iklim usaha yang semakin kompetitif.

Pada sepanjang 2021, TINS berhasil berbalik laba men jadi Rp1,3 triliun dibandingkan dengan pada 2020 yang rugi sebesar Rp341 miliar.

(10)

The surge in net profit was supported by a decrease in cost of revenue. Throughout 2021, TINS's cost of revenue fell 21 percent to Rp. 11.17 trillion compared to 2020 which was Rp. 14.09 trillion.

"The company's accelerated performance is a special gift in the midst of a pandemic situation that has not ended, but it does not dampen Management's optimism that in the following years the Company's performance will be able to be better supported by the use of mining technology of higher quality and lower cost," added M.

Krisna Sjarif, TINS Director of Finance and Risk Management. Editor : Pandu Gumilar

Lonjakan laba bersih ditopang oleh penurunan beban pokok pendapatan. Sepanjang 2021, beban pokok pendapatan TINS turun 21 persen menjadi Rp11,17 triliun dibandingkan pada 2020 yang sebesar Rp14,09 triliun.

“Melesatnya performa Perseroan menjadi sebuah hadiah istimewa di tengah situasi pandemi yang belum berakhir, namun tak menyurutkan optimisme Manajemen bahwa di tahun-tahun berikutnya kinerja Perseroan akan mampu lebih baik didukung pemanfaatan teknologi penambangan yang lebih berkualitas dan berbiaya rendah,” imbuh M.

Krisna Sjarif, Direktur Keuangan dan Mana- jemen Risiko TINS. Editor : Pandu Gumilar

A total of 7 new smelters are scheduled to operate this year

Reporter: Muhammad Julian | Editor:

Handoyo

T

HE GOVERNMENT is pursuing additional refining facilities, aka smelters.

This year, the Ministry of Energy and Mineral Resources (MEMR) targets as many as 2 new integrated smelters to be operational this year.

The two integrated smelters include the East Halmahera Ferronickel Plant (P3FH) PT Aneka Tambang Tbk (ANTM) located in North Maluku, and the smelter owned by PT Sebuku Iron Lateritic Ores (SILO) in South Kalimantan.

The Directorate General of Mineral and Coal (Ditjen Minerba), Ministry of EMR, Sugeng Mujiyanto said, the Ministry of EMR would focus all facilitation and debottlenecking efforts on aspects of licensing, land tenure, funding, energy supply, and other related aspects to support the integrated smelter project.

Sebanyak 7 Smelter Baru Dijadwalkan Beroperasi Tahun Ini

Reporter: Muhammad Julian | Editor:

Handoyo

P

EMERINTAH mengejar tambahan fasilitas pemurnian alias smelter. Tahun ini, Kemen- terian Energi dan Sumber Daya Mineral (ESDM) menargetkan sebanyak 2 smelter terintegrasi anyar bisa beroperasi tahun ini.

Kedua smelter terintegrasi yang dimaksud meliputi Pabrik Feronikel Halmahera Timur (P3FH) PT Aneka Tambang Tbk (ANTM) yang berlokasi di Maluku Utara, dan smelter milik PT Sebuku Iron Lateritic Ores (SILO) di Kalimantan Selatan.

Direktorat Jenderal Mineral dan Batubara (Ditjen Minerba), Kementerian ESDM, Sugeng Mujiyanto mengatakan, Kementerian ESDM bakal memfokuskan seluruh upaya fasilitasi dan debottlenecking pada aspek perizinan, penguasaan lahan, pendanaan, pasokan energi, serta aspek lainnya yang terkait untuk mendukung proyek smelter yang terintegrasi.

(11)

For this purpose, the Ministry of EMR will continue several programs such as market sounding as an effort to facilitate the funding aspect, intensive coordination with PT PLN (Persero) as an effort to facilitate the energy supply aspect, and cross- Ministerial/Institutional coordination as an effort to facilitate and debottleneck all aspects. which is related.

"In connection with the issuance of Law Number 3 of 2020 concerning Amend- ments to Law Number 4 of 2009 concerning Mineral and Coal Mining, the authority of the Ministry of EMR in terms of monitoring the development and imple- mentation of mineral refining facilities operations can only be carried out on refining facilities that are integrated with mining activities (integrated mining),"

added Sugeng (12/3).

Apart from the above targets, as many as 5 stand-alone smelters are also scheduled to operate this year, so there will be 7 new smelters operating this year if things go according to plan.

The five stand alone smelters include a smelter with Mixed Hydroxide Precipitate (MHP) PT Smelter Nickel Indonesia in Banten, lead bullion smelter PT Kapuas Prima Citra in Central Kalimantan, Zinc Ingot smelter PT Kobar Lamandau Mineral in Central Kalimantan, grade alumina smelter PT Well Harvest Winning AR (Phase II) in West Kalimantan, and PT Alchemist Metal Industry's Pig Iron smelter in North Maluku.

The seven smelters will fulfill the 21 domestic smelters that have been completed in the previous country. In detail, the twenty-one smelters consist of 15 Nickel mineral refining facilities, 2 Bauxite mineral refining facilities, 1 Iron mineral refining facility, 2 Copper mineral refining facilities, and 1 Manganese mineral refining facility.

Untuk tujuan ini, Kementerian ESDM akan melanjutkan beberapa program seperti market sounding sebagai upaya fasilitasi pada aspek pendanaan, koordinasi intensif dengan PT PLN (Persero) sebagai upaya fasilitasi pada aspek pasokan energi, dan Koordinasi lintas Kementerian/Lembaga sebagai upaya fasilitasi dan debottlenecking pada seluruh aspek yang terkait.

“Sehubungan dengan terbitnya UU Nomor 3 Tahun 2020 tentang Perubahan atas UU Nomor 4 Tahun 2009 tentang Pertambangan Mineral Dan Batubara, kewenangan Kemen- terian ESDM dalam hal pengawasan atas pembangunan serta pelaksanaan operasi fasilitas pemurnian mineral hanya dapat dilakukan terhadap fasilitas pemurnian yang terintegrasi dengan kegiatan penambangan- nya (integrated),” imbuh Sugeng (12/3).

Di luar target di atas, sebanyak 5 smelter yang berdiri sendiri alias stand alone juga dijadwalkan dapat beroperasi pada tahun ini, sehingga akan ada 7 smelter anyar yang beroperasi pada tahun ini jika berjalan sesuai rencana.

Kelima smelter stand alone tersebut meliputi smelter dengan produk Mixed Hydroxide Precipitate (MHP) PT Smelter Nikel Indonesia di Banten, smelter timbal bullion PT Kapuas Prima Citra di Kalimantan Tengah, smelter Zinc Ingot PT Kobar Lamandau Mineral di Kalimantan Tengah, smelter grade alumina PT Well Harvest Winning AR (Fase II) di Kalimantan Barat, dan smelter Pig Iron PT Alchemist Metal Industry di Maluku Utara.

Ketujuh smelter tersebut akan menggenapi 21 smelter di dalam negeri yang sudah selesai dibangun di dalam negeri sebelumnya.

Secara terperinci, keduapuluh satu smelter tersebut terdiri atas 15 fasilitas pemurnian mineral Nikel, 2 fasilitas pemurnian mineral Bauksit, 1 fasilitas pemurnian mineral Besi, 2 fasilitas pemurnian mineral Tembaga, dan 1 fasilitas pemurnian mineral Mangan.

(12)

Chairman of the Association of Indonesian Mining Experts (Perhapi), Rizal Kasli said, with the operation of new smelters, Indonesia has started gradually, able to get out of the trap as a country producing raw materials based solely on natural resources.

"In the future, Indonesia can become a country that is able to process its natural resources, to produce industrial-based products, which in addition to having greater economic value, also have a strategic and vital role for world industry,"

Rizal told Kontan.co .id (14/3).

According to Rizal, the addition of a processing plant for a number of commodities needs to be followed up by the downstream sector in the downstream industry by developing various industries that produce products made from metal mineral commodities. Rizal noted that currently the mineral metal-based downstream industry is not yet developed.

As a result, the intermediate products produced by the nickel, bauxite, lead and iron processing plants that will operate in Indonesia, most of the final products are still exported abroad.

"Indeed, creating a metal -based end product industrial ecosystem requires a large amount of money, mastery of technology, market availability, and the readiness of human resources. The focus on preparing these things should be addressed by the Government immediately, so that mineral downstreaming can be carried out thoroughly domestically, starting from mining to producing various end products of great value," explained Rizal.

Energy Watch Executive Director, Mamit Setiawan said downstream through smelters would provide significant added value to the products produced. In line with this, the state's Non-Tax State Revenue (PNBP) can also increase.

Ketua Umum Perhimpunan Ahli Pertambang- an Indonesia (Perhapi), Rizal Kasli mengatakan, dengan beroperasinya smelter-smelter baru, Indonesia telah mulai secara bertahap, mampu keluar dari jebakan sebagai negara penghasil bahan baku berbasis sumber daya alam semata.

“Indonesia ke depannya bisa menjadi negara yang mampu mengolah sumber daya alam yang dimilikinya, untuk menghasilkan produk- produk berbasis industri, yang selain mem- punyai nilai ekonomis yang lebih besar, juga punya peran strategis dan vital bagi industri dunia,” ujar Rizal kepada Kontan.co.id (14/3).

Menurut Rizal, penambahan pabrik pengolahan sejumlah komoditas ini perlu ditindaklanjuti oleh sektor hilir di industri downstream dengan mengembangkan aneka industri yang menghasilkan produk-produk berbahan dasar komoditi logam mineral.

Rizal mencatat, saat ini industri downstream berbasis logam mineral terbilang belum berkembang.

Akibatnya,produk antara yang dihasilkan oleh pabrik pengolahan nikel, bauksit, timbal dan besi yang akan beroperasi di Indonesia sebagian besar produk akhirnya tetap di- ekspor keluar negeri.

“Memang, membuat ekosistem industri end product berbasis logam, membutuhkan biaya yang besar, penguasaan teknologi, ketersediaan pasar, serta kesiapan sumber daya manusia. Fokus penyiapan hal-hal tersebut yang semestinya segera dibenahi oleh Pemerintah, agar hilirisasi mineral dapat dilakukan di dalam negeri secara tuntas, mulai dari penambangan hingga menghasil- kan aneka end product yang bernilai besar,”

terang Rizal.

Direktur Eksekutif Energy Watch, Mamit Setiawan mengatakan, hilirisasi melalui smelter akan memberikan nilai tambah yang cukup signifikan terhadap produk yang dihasilkan. Sejalan dengan hal ini, Penerimaan Negara Bukan Pajak (PNBP) negara juga bisa bertambah.

(13)

"In addition, other multiplier effects will also be obtained. An increase in labor should be possible, the regional economy around the smelter can grow, domestic needs should also be met so as to reduce imports of the products produced so that the CAD (current account deficit) can be reduced," said Mamit when contacted by Kontan.co.id ( 14/3).

Furthermore, Mamit assessed that the commitment of investors in completing smelter projects needs to be guarded. This is intended to ensure that the commitment of investors to complete the construction of the smelter is realized, not just to get an export quota.

"In addition, the potential for illegal exports is still very large. Extra supervision is needed from law enforcement officers and related institutions so that illegal exports do not occur," added Mamit.

“Selain itu, multiplier effect yang lain juga akan didapatkan. Peningkatan tenaga kerja seharusnya bisa terjadi, perekonomian daerah sekitar smelter bisa tumbuh, kebutuhan dalam negeri juga seharusnya bisa terpenuhi sehingga bisa mengurangi impor dari produk yang dihasilkan sehingga CAD (current account deficit) bisa dikurangi,”

kata Mamit saat dihubungi Kontan.co.id (14/3).

Lebih lanjut, Mamit menilai bahwa komitmen dari investor dalam menyelesaikan proyek-proyek smelter perlu dikawal. Hal ini dimaksudkan untuk memastikan agar komitmen investor untuk menyelesaikan pembangunan smelter benar direalisasi, bukan sekadar untuk mendapat kuota ekspor semata.

“Selain itu, potensi terjadi ekspor ilegal masih sangat besar. Perlu pengawasan yang ekstra dari aparat penegak hukum dan lembaga terkait agar tidak terjadi illegal ekspor,” imbuh Mamit.

RI's Nickel Production Beats Russia, Reaches 1 Million Metric

Tons

I

NDONESIA is ranked number one in the list of countries that produce nickel throughout 2021. In fact, Indonesia has managed to beat Russia.

Based on data from the 2021 United States Geological Survey (USGS) report, Indonesia will produce 1 million metric tons of nickel in 2021. This figure is up 29.7 percent compared to 2020 which was only 771 thousand tons.

Produksi Nikel RI Kalahkan Rusia, Tembus 1 Juta Metrik

Ton

I

NDONESIA duduk di peringkat nomor wahid dalam daftar negara-negara yang memproduksi nikel sepanjang 2021.

Bahkan, RI berhasil mengalahkan Rusia.

Berdasarkan data dari laporan Survei Geologi Amerika Serikat 2021 (USGS), Indonesia memproduksi 1 juta metrik ton nikel pada 2021. Angka ini naik 29,7 persen dibandingkan 2020 yang hanya 771 ribu ton.

(14)

Meanwhile, the Philippines is in second place with production of 370 thousand metric tons in 2021. This number is up from the previous year which was 334 thousand tons.

Then, Russia is in third place with a total production of 250 thousand metric tons in 2021. This figure is down from the 2020 position which reached 283 thousand tons.

Furthermore, Australia is recorded to produce 160 thousand metric tons of nickel, Canada 130 thousand metric tons, Brazil 100 thousand metric tons, and China 120 thousand metric tons in 2021. Then, other countries produced 410 thousand metric tons of nickel last year.

Overall, the world will produce 2.7 million metric tons of nickel in 2021. This number is up from the 2020 position of 2.51 million metric tons.

For information, world nickel prices have soared due to the Russia-Ukraine war. The commodity price had penetrated US$

101,365 per ton on last Tuesday (8/3).

Nickel prices soared because the market was worried about supplies from Russia after carrying out military action in Ukraine. (tdh/aud)

Sementara, Filipina berada di peringkat kedua dengan produksi sebanyak 370 ribu metrik ton pada 2021. Jumlah tersebut naik dari tahun sebelumnya yang sebanyak 334 ribu ton.

Kemudian, Rusia menduduki peringkat ketiga dengan jumlah produksi sebanyak 250 ribu metrik ton pada 2021. Angka tersebut turun dari posisi 2020 yang mencapai 283 ribu ton.

Selanjutnya, Australia tercatat memproduksi nikel sebanyak 160 ribu metrik ton, Kanada 130 ribu metrik ton, Brazil 100 ribu metrik ton, dan China 120 ribu metrik ton pada 2021.

Lalu, negara-negara lain memproduksi nikel sebanyak 410 ribu metrik ton pada tahun lalu.

Secara keseluruhan, dunia memproduksi nikel sebanyak 2,7 juta metrik ton pada 2021. Jumlah itu naik dari posisi 2020 yang sebanyak 2,51 juta metrik ton.

Sebagai informasi, harga nikel dunia melonjak imbas perang Rusia-Ukraina.

Harga komoditas itu sempat tembus US$

101.365 per ton pada perdagangan Selasa (8/3) lalu.

Harga nikel melonjak karena pasar khawatir pasokan dari Rusia setelah melakukan aksi militer ke Ukraina. (tdh/aud)

Besides Disaster, There Are Blessings From The Russia-

Ukraine War For RI

Cantika Adinda Putri, CNBC Indonesia

T

HE IMPACT of the war between Russia and Ukraine does not only talk about disaster or bad effects on the domestic economy.

Selain Petaka, Ada Berkah Dari Perang Rusia-Ukraina Untuk RI

Cantika Adinda Putri, CNBC Indonesia

D

AMPAK perang Rusia dan Ukraina tak melulu bicara soal petaka atau imbas buruk terhadap perekonomian di dalam negeri.

(15)

The war between Russia and Ukraine also had a positive impact on the country's economy through high domestic commodity prices.

The high prices of commodities, such as coal and nickel, will at least raise the Republic of Indonesia's Non-Tax State Revenue (PNBP). Understandably, currently Indonesia is a country that exports large amounts of coal and nickel.

Head of the Center for Macroeconomic Policy at the Fiscal Policy Agency (BKF) of the Ministry of Finance, Abdurrohman, explained that the war between Russia and Ukraine had an impact on two channels of the domestic economy, namely the financial market and on the supply or availability of energy resources, which are mostly produced by Russia and Ukraine.

"Reflected on energy prices, as well as food prices have started to increase, because the supply of wheat from Ukraine, including the supply is quite large and its impact on global prices is also significant,"

Abdurohman explained to CNBC Indonesia, Monday (14/3/2022).

As is known, on Monday (14/3/2022) the price of Brent oil experienced a correction or a decrease of up to 48% compared to the closing position of trading at the end of last week, but the price was still perched at the level of US$ 111 per barrel. Meanwhile, light sweet oil or West Texas Intermediate (WTI) fell 2% to US$107.14 per barrel.

According to Abdurrohman, with Indonesia as a net oil importer country, this increase in oil prices will clearly affect the domestic economy.

However, the increase in energy prices did not only occur in world oil prices, but also other commodities such as coal, crude palm oil (CPO), nickel, and so on.

Perang Rusia dan Ukraina juga memiliki imbas yang positif terhadap ekonomi negara melalui tingginya harga komoditas di dalam negeri.

Tingginya harga komoditas, seperti misalnya batu bara serta nikel setidaknya akan mengerek Pendapatan Negara Bukan Pajak (PNBP) RI. Maklum, saat ini hitungannya Indonesia adalah negara yang melakukan ekspor batu bara dan nikel dalam jumlah yang besar.

Kepala Pusat Kebijakan Ekonomi Makro BKF Kemenkeu, Abdurrohman menjelaskan perang Rusia dan Ukraina berdampak terhadap dua jalur perekonomian dalam negeri, yakni pasar keuangan dan terhadap pasokan atau ketersediaan sumber daya energi yang banyak diproduksi oleh Rusia dan Ukraina.

"Terefleksi ke harga-harga energi, juga harga pangan sudah mulai mengalami kenaikan, karena supply gandum dari Ukraina termasuk pasokannya cukup besar dan pengaruhnya ke harga global juga signifikan," jelas Abdurohman kepada CNBC Indonesia, Senin (14/3/2022).

Seperti diketahui, pada hari Senin (14/3/

2022) harga minyak jenis brent mengalami koreksi atau penurunan hingga 48% dibandingkan posisi penutupan perdagangan akhir pekan lalu, namun harganya masih bertengger pada level US$ 111 per barel.

Sementara itu, minyak jenis light sweet atau West Texas Intermediate (WTI) anjlok 2%

menjadi US$107,14 per barel.

Menurut Abdurrohman, dengan Indonesia sebagai negara net importir minyak, kenaikan harga minyak ini jelas akan mem- pengaruhi perekonomian domestik.

Kendati demikian, kenaikan harga energi bukan hanya terjadi pada harga minyak dunia, tapi juga komoditas-komoditas lainnya seperti batu bara, crude palm oil (CPO), nikel, dan sebagainya.

(16)

So that the impact on the state budget is like two sides of a coin, revenue increases and on the other hand there must also be a fairly large state expenditure or expenditure.

"In terms of revenue, the increase in energy prices and other commodities will have an impact on tax revenues, especially oil and gas Income Tax (PPh) and oil and gas PNBP (Non-Tax State Revenue).

"We can only get blessings from other commodities such as coal, nickel and CPO.

If the price of coal reaches a record high, world coal is approaching US$ 400 per tonne and the price of nickel has also touched the level of US$ 100,000 per tonne, so it becomes a kind of blessing too,"

he said.

The chairman of the DPR's Budget Agency, Said Abdullah, said that the APBN was actually safe, driven by commodity prices such as coal, nickel and CPO. "Our mainstay is there too, today's state budget is actually safe and waiting for the second quarter of 2022 to look like," he said. (pgr/pgr)

Sehingga dampaknya terhadap APBN bak dua sisi mata koin, penerimaan naik dan di sisi lain juga harus ada pengeluaran atau belanja negara yang juga cukup besar.

"Dari sisi penerimaan naiknya harga energi dan komoditas lain akan berdampak terhadap penerimaan pajak khususnya PPh migas (minyak dan gas bumi) dan PNBP (Penerimaan Negara Bukan Pajak) migas.

Dampak penerimaan ada, juga dari pengeluaran dari subsidi," tuturnya.

"Kita cukup dapat blessing dari komoditas lain seperti batu bara, nikel, dan CPO. Kalau harga batu bara capai rekor tertinggi batu bara dunia mendekati US$ 400 per ton dan harga nikel juga sempat menyentuh level US$ 100.000 per ton, sehingga itu jadi semacam blessing juga," tandasnya.

Ketua Badan Anggaran DPR, Said Abdullah menyampaikan, sesungguhnya APBN aman, terdorong oleh harga-harga komoditas seperti batu bara, nikel dan CPO. "Andalan kita di situ juga, APBN hari ini sesungguhnya aman dan tunggu kuartal II-2022 seperti apa," tandas dia. (pgr/pgr)

Price of Coal Like Roller Coaster, Indonesia Needs to Boost

Production?

Author: Faustina Prima Martha

N

EWCASTLE's global benchmark thermal coal price plunged nearly 12 percent last week. During coal trading, last week, coal trading opened very convincingly with an increase of 6.9 percent on Monday (07/03/2022) at US$435/ton. However, the price slumped 2.1 percent in the following trading day. Coal prices slightly rose...

Harga Batu Bara Bak Roller Coaster, Indonesia Perlu Genjot

Produksi?

Author: Faustina Prima Martha

H

ARGA batu bara termal acuan global Newcastle anjlok hampir 12 persen pecan lalu. Selama perdagangan batu bara, pekan lalu, perdagangan batu bara dibuka sangat meyakinkan dengan naik 6,9 persen pada Senin (07/03/2022) di angka US$435/ton.

Tetapi, harganya merosot 2,1 persen pada perdagangan hari berikutnya. Harga batu bara sempat naik tipis...

(17)

Coal prices slightly rose 0.3 percent on Wednesday (9/3/2022) before sinking 13.8 percent on Thursday (10/3/2022) and down 1.7 percent on Friday (11/03/

2022).

Even though coal prices fell last week, in the past month coal prices still posted a 53.6 percent jump on a point-to-point basis. Over the past year, prices have soared 309.6 percent.

Energy Watch Executive Director, Mamit Setiawan, said that the decline in coal prices last week was due to the market starting to worry about the high price of coal, considering that the price had touched psychological factors.

"The price increase above US$400/ton is beyond the forecast of all analysts throughout 2022 because recently there has been intensive development related to clean energy. In fact, several European countries are no longer using coal,"

explained Mamit, Monday (14/03/ 2022).

Mamit estimates that coal prices will continue to increase in the future because demand is still quite high amid supply disruptions from Russia.

The reason is that Russia is the largest supplier of thermal coal in the European Union, even last year when referring to data from Eurostat, Russia supplied 36 million tons of thermal coal, which is equivalent to 70 percent of the total imports of thermal coal in the European Union. As a result, dependence on Russian coal has increased and Russia's market share has grown substantially.

Apart from the Russian issue, coal supply is expected to be disrupted due to flooding in Australia and Indonesia's domestic demand fulfillment (DMO) policy.

Harga batu bara sempat naik tipis 0,3 persen pada Rabu (9/3/2022) sebelum amblas 13,8 persen pada Kamis (10/3/

2022) dan turun 1,7 persen pada perdagangan Jumat (11/03/2022).

Meskipun harga batu bara anjlok pada pekan lalu, dalam sebulan terakhir harga batu bara masih mencatatkan lonjakan 53,6 persen secara point-to-point. Selama setahun terakhir, harga melambung 309,6 persen.

Direktur Eksekutif Energy Watch, Mamit Setiawan, menyebutkan turunnya harga batu bara pekan lalu akibat pasar sudah mulai khawatir dengan tingginya harga batu bara mengingat harga nya telah menyentuh faktor psikologis.

"Kenaikan harga di atas US$400/ton di luar perkiraan semua analis sepanjang 2022 ini karena kemarin-kemarin gencarnya akan dikembangkan terkait energi bersih. Bahkan di beberapa negara Eropa sudah tidak menggunakan batu bara lagi,"

jelas Mamit, Senin (14/03/2022).

Mamit memperkirakan harga batu bara ke depan akan tetap mengalami peningkatan karena permintaan yang masih cukup tinggi di tengah terganggunya pasokan dari Rusia.

Alasannya, Rusia adalah pemasok batu bara termal terbesar di Uni Eropa, bahkan tahun lalu jika mengacu data dari Eurostat, Rusia memasok sebesar 36 juta ton batu bara termal yang setara dengan 70 persen dari total impor batu bara termal di Uni Eropa. Sehingga ketergantungan terhadap batu bara Rusia meningkat dan pangsa pasar Rusia pun tumbuh secara subs- tansial.

Selain persoalan Rusia, pasokan batu bara diperkirakan akan terganggu karena banjir di Australia dan kebijakan pemenuhan kebutuhan dalam negeri (DMO) dari Indonesia.

(18)

As is known, coal mining in the main Hunter Valley region in New South Wales (NSW) was flooded after heavy rains that occurred early last week, which is believed to reduce the world's coal supply.

“As a country that exports coal which is quite large in the world, I think the world will definitely look at Indonesian coal because at this time their hope is to live in Indonesia in the midst of Australia's flood condition. If they want to go to other countries such as South Africa, Canada, Colombia, the number of their exports is not significant," continued Mamit.

Mamit's forecast is in line with Rystad Energy's projections. Their research shows that coal prices could cross US$500/ton this year.

Furthermore, according to Mamit, the current fluctuation in coal prices should be used by Indonesia to increase exports.

“I think this is an opportunity to increase production for sure, while maintaining and paying attention to DMO. Because currently with the Simbara system, DMO supervision should be more awake. Thus, the potential for supply shortages will be avoided. By increasing production and increasing exports, the country will benefit from paying royalties and export taxes. In addition, other multiplier effects will be obtained," said Mamit. Editor : Rio Sandy Pradana

Sebagaimana diketahui, pertambangan batu bara di wilayah lembah Hunter utama di New South Wales (NSW) terendam banjir setelah hujan lebat yang terjadi pada awal pekan lalu sehingga diyakini akan mengurangi pasokan batu bara dunia.

“Sebagai negara yang mengekspor batu bara yang cukup besar di dunia, saya kira pasti dunia akan melirik batu bara Indonesia karena saat ini harapan mereka ya tinggal Indonesia di tengah kondisi Australia yang sedang banjir.

Mau ke negara lain seperti Afrika Selatan, Kanada, Kolombia jumlah ekspor mereka tidak signifikan,” sambung Mamit.

Perkiraaan Mamit tersabut sejalan dengan proyeksi Rystad Energy. Penelitian mereka yang menunjukkan bahwa harga batu bara dapat melewati US$500/ton tahun ini.

Lebih lanjut, menurut Mamit, fluktuasi harga batu bara yang terjadi saat ini sebaiknya dimanfaatkan Indonesia untuk meningkatkan ekspor.

“Saya kira ini kesempatan untuk meningkatkan produksi pastinya, dengan tetap menjaga dan memperhatikan DMO. Karena saat ini dengan sistem Simbara seharusnya pengawasan DMO menjadi lebih terjaga ya. Dengan demikian, potensi terjadinya kekurangan pasokan akan terhindari. Dengan meningkatkan produksi dan memperbanyak ekspor maka negara akan di untungkan dari pem- bayaran royalti dan juga pajak ekspor. Selain itu, multiplier effect yang lain akan didapatkan,” tandas Mamit. Editor : Rio Sandy Pradana

PT Kaltim Prima Coal granted special mining business permit

Published by Jessica Casey, Editorial Assistant

P

T KALTIM Prima Coal (KPC) has been granted a special mining business permit (IUPK) by the Investment Minister, Head of the Indonesia Investment Coordinating Board Decree of the Investment Minister and Head of The Investment Coordinating Board.

(19)

PT KPC is based out of Indonesia and is held 30% by Tata Power through its wholly-owned subsidiary, Bhira Investments Pte Ltd.

These are strategic assets to Tata Power, which also help in hedging imported coal price exposure for its generating assets. The renewal will also help to ensure a regular supply of coal for its thermal power plants.

Dr Praveer Sinha, CEO and Managing Director of Tata Power, said: “We are thankful to the Indonesian government for trusting PT KPC through the renewal of our special mining business permit for coal. This will ensure a robust coal supply chain for our imported coal- based thermal plants resulting in the generation of reliable power to meet India's energy demands.”

This IUPK is granted for an initial period of 10 years up until 31 December 2031 and can be extended by the provisions of the applicable regulations. This extension confers certainty of the mining operations and sup-ply of coal.

Copper price falls on demand concerns in China

MINING.COM Staff Writer

P

RICES of industrial metals fell on Monday as diplomatic efforts to resolve the Russia- Ukraine conflict calmed supply-disruption fears, while demand concerns in top consumer China also weighed on the market.

Copper for delivery in May fell on the Comex market in New York to $4.5405 per pound ($9,989 per tonne), down 1.8% compared to Friday’s closing.

“Copper market sentiment is bearish as supplies are starting to ramp up. It shows some rational thinking,” said Dan Smith, managing director at Commodity Market Analytics.

Ukraine will seek to discuss a ceasefire, immediate withdrawal of troops and security guarantees with Russia after both sides reported rare progress on the weekend, despite fierce Russian bombard- ments.

A new report by Capital Economics argues there is weakness ahead amid a gloomier demand backdrop, particularly in China, responsible for more than half the world’s copper consumption.

(20)

The London-headquartered independent researcher has cut its 2022 growth forecasts for China as the country copes with the highest covid numbers since the start of the pandemic (and no indications the country is dropping its zero-covid policy), higher import bills as oil trades above $100 a barrel, damaged exports as Europe and Japan consume less, and higher inflation brought on by a spike in the cost of agricultural commodities.

While Beijing has set a floor of 5.3% GDP growth this year, Capital Economics says it appears to be “bracing for weaker growth in practice” and expects a policy response by officials:

“The NPC [National People’s Congress] pointed to modest easing and suggested that officials would offer more support if unemployment rises much above its current level. But that is unlikely to provide a complete offset.

Given copper’s widespread use in industry, construction and transport, the metal’s price correlates with overall economic growth and manufacturing activity and in the world’s largest economy based on purchasing price parity.

A yawning gap has now opened up between the Capital Economics Copper Demand Proxy and the ruling price. (With files from Reuters)

Indonesia Feb trade surplus seen widening on strong commodity exports - Reuters Poll

I

NDONESIA's export growth likely accelerated in February due to high commodity prices, as the conflict between Ukraine and Russia fueled fears of supply squeezes and as authorities in Jakarta lifted a ban on coal exports, a Reuters poll showed.

The Southeast Asian country's trade surplus is expected to widen to $1.66 billion in February, up from around $930 million in January, according to the median forecast of 15 analysts.

The resource-rich country has been enjoying an export boom riding on an cyclical upswing of commodity prices, allowing it to record a trade surplus every month since May 2020.

February's exports are forecast to show a jump of 37.32per cent on a yearly basis, up from January's 25.31per cent rise, while February imports were seen up 40.04per cent, compared with 36.77per cent a month prior.

ANZ analysts, who predicted a $2.65 billion trade surplus for February, said exports received a boost from the lifting of the coal export ban, as well as higher prices of commodities such as coal and palm oil.

Indonesia, the world's biggest exporter of thermal coal, stopped shipments of the fuel for part of January due to low inventory levels at domestic power plants, in a move that wiped $2 billion of mineral fuel exports.

(21)

Analysts had previously forecast a moderation of commodity prices this year, but Bank Mandiri economist Faisal Rachman said the war in Ukraine could prolong the commodities' boom, which would help Indonesia's current account position this year.

"There is an increasing possibility that 2022 current account balance (will) record a narrower deficit than our initial forecast of -2.15per cent of GDP," Faisal said. Indonesia registered a current account surplus equivalent to 0.3per cent of GDP in 2021.

"The length of the Russia-Ukraine conflict will determine the matter."

(Polling by Arsh Mogre and Vivek Mishra in Bengaluru; Writing by Gayatri Suroyo; Editing by Ed Davies)

Spiked nickel prices to remain as Russia-Ukraine conflict continues

Emily Murphy

F

OLLOWING the surge in nickel prices on the back of Russia’s invasion of Ukraine, prices may remain highly elevated over the course of 2022 and beyond according to Fitch Solutions.

On March 8, nickel prices on the London Metal Exchange (LME) soared to record highs of US$101,365/tonne ($139,343/t) up from US$25,557/t ($35,136) at the beginning of the month.

Concerns over supply disruption amid the Russia-Ukraine conflict prompted a sharp initial rise, before a reversal of the short position held by Xiang Guangda, founder of Tsingshan Holding Group, caused them to spike further.

Prices later fell back to US$48,063/t ($66,079) but trading on the LME was suspended on March 8 and remains so at the time of writing.

In 2021 Russia was responsible for 9.3 per cent of the world’s nickel mine production, and around one-fifth of refined nickel.

“We believe that prices could remain very high in the near and medium-term, in excess of previous historical highs, due to the prospect of greater sanctions from the west, firms pre- emptively self-sanctioning, and possible export restrictions from Russia,” a statement from Fitch read.

“Even an end to the war in Ukraine and a withdrawal of sanctions would, most likely, still leave nickel prices above our previous expectations for the medium term at least.”

Aluminium prices could also rise further but are currently stabilising, with Russia having produced 5.4 per cent of the world’s aluminium in 2021.

On March 4, aluminium futures on the LME surged to record highs of US$4100/t ($5640).

Despite a subsequent correction down to around US$3470/t ($4773) by close on March 10, Fitch said that supply disruptions from Russia will keep prices above the range of US$3000/t ($4126) which they were trading at in late January as tensions around Ukraine continue.

(22)

Rystad Energy: Coal prices soar to 200 year high

Published by Will Owen, Deputy Editor

C

OAL prices are soaring, hitting US$462/t on 10 March, up from US$186/t on 23 February and likely to pass US$500/t this year, Rystad Energy research suggests.

While most of Europe and the wider world have focused on how Russia’s war in Ukraine has impacted oil, gas and, more recently, nickel prices, relatively little has been written about the coal price shock that is likely to hit the region and spread like a tsunami around the world.

Russia is Europe’s largest supplier of thermal coal. According to Eurostat, last year, Russia supplied EU member states with 36 million t of thermal coal, representing 70% of total thermal coal imports. While volumes have stayed about the same, a decade ago, Russian coal imports were just half that at 35%. While total power coal demand has been on a declining trend for the last 10 years, coal-fired power generators in Europe have become increasingly dependent on Russian coal and Russia’s market share has grown substantially over time.

“There is simply an almost complete absence of surplus thermal coal available globally. Prices have shot past US$400 and the US$500/t mark seems to be in play,” says Steve Hulton, VP of Coal at Rystad Energy.

As gas prices continue to soar, European administrations may look to coal to pick up any shortfall in electricity generation as gas usage is scaled back. However, coal consumers will struggle to source additional coal from alternative producers because the supply/demand balance of the international seaborne thermal coal is extremely tight.

How high could prices go?

If sanctions on coal trade with Russia eventuate or there is a physical disruption to Russian rail/port transportation, then the sky’s the limit. Producers and traders are reporting that buyers are already starting to pivot away from Russian coal both in the Atlantic and Pacific markets. And the threat of additional demand and lack of available supply is moving the market. In the last week, coal prices in both Europe and the Pacific have experienced massive jumps. In a sign of just how tight and nervous the market is, a physical trade of Newcastle FOB (6000 kcal) coal was reported last week Wednesday at US$400/t.

Alternative sources: little relief from Colombia, Germany, Poland, South Africa, or the US

Imported coal is generally of better quality and cheaper than any domestic production as all the best coal in Europe was mined out years ago. Germany for example, once a coal mining powerhouse, no longer produces any bituminous coal or anthracite. The last couple of ‘hard’

or ‘black’ coal mines, were closed in 2018 following years of financial subsidies, which were necessary because of high production costs associated with the deep seams and difficult underground mining conditions. Large scale surface mining of low rank (low energy) lignite coal is still carried out, but imported coal is vital to meet the needs of the many thermal power plants designed to burn higher calorific value fuel.

(23)

Poland is Europe’s largest remaining coal producer and some 70% of total power generation is sourced from coal. Polish coal production rose slightly in 2021 with the country producing 52 million t of lignite (brown coal), up 13% year-on-year, and 55 million t of hard coal, up 1%.

However, the long-term production trend is in decline, and while Poland exports some thermal and coking coal to neighbouring EU countries, it has also increased imports of high energy thermal coal from Russia as it is generally cheaper than local production from deep underground mines.

One of the first places buyers will be calling will be suppliers from Colombia and South Africa.

Colombian coal production, which is nearly all exported, recovered in 2021 following a large fall in 2020 due to COVID-19 and a three-month long industrial dispute at the large Cerrejon operation. Production rose to 59.6 million t in 2021, up from 49.3 million t the prior year but still well short of the almost 80 million t it achieved previously. It is expected that production will increase again this year, potentially making an additional 10 million t available for the export market, particularly as Glencore, now the full owner of Cerrejon, looks to take advantage of market conditions and rack-up value from the acquisition.

South African coal exports have been below planned levels for a number of years. Exports fell below 60 million t last year, the lowest level in decades as the rail network was severely hampered by theft of copper cable. Annual exports of 70 to 75 million t should be achievable if railway operator Transnet can sort out its security issues.

US coal production is currently seeing a resurgence after several years of decline, boosted by strong coal demand and robust prices, both domestically and overseas. Based on EIA figures reported to 3Q21, US thermal coal producers were on track to end up exporting approximately 36 million t last year, a hefty 30% increase from 2020. Only around 5 million t were destined for Europe as Asian markets again proved a popular and growing destination.

With a lack of investment in new mining areas and a general avoidance of the sector by investors, several US mines have closed in recent years, which will hamper the ability to ramp up additional coal for a rampant European market, particularly when US power stations are paying high prices for domestic supply.

China’s Jan-Feb coal output jumps 10.3% for winter heating

C

HINA’s coal output rose 10.3% in the first two months of 2022 from a year earlier, after Beijing encouraged miners to ramp up production for the winter heating season, with demand also receiving a boost from Indonesia’s export ban.

The world’s biggest coal miner and consumer produced 686.6 million tonnes of the dirty fossil fuel during January-February period, up from 617.59 million tonnes in the same period in 2021, the National Bureau of Statistics said on Tuesday.

The bureau combines data for January and February due to the Lunar New Year holiday, which fell in early February this year.

TABLE OF CONTENTS. No. Title Media Source Page