TABLE OF CONTENTS. No. Title Media Source Page

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Daily News Update Page 1

Habis Meroket 15% dalam 3 Hari, Harga Batu Bara Nyungsep Timah (TINS) Is More Active in Reclamation of Ex-Mining Land Timah (TINS) Makin Aktif Reklamasi Lahan Bekas Tambang Hit by floods, China's thermal coal price hits record high Diterjang Banjir, Harga Batu Bara Termal China Tembus Rekor Tertinggi

Copper price surges to 2-month peak, shaking off China concerns

Bisnis

Kontan

CNBC Indonesia

Republika

Bisnis

Berita Satu

CNBC Indonesia

Bisnis

Sindonews

Mining.com

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PT Freeport Indonesia officially launches new copper smelter

& gold refinery project; plans 5G with Telekom at mine The Coal Price Rally Isn’t Ending Any Time Soon, Whitehaven Says

Orica reveals ambitions to achieve net zero by 2050 ERM on executing the mining sector’s sustainability strategies

South32 spends big on Chile copper mine

South Africa's mining industry expands 2% in August - report

Int'l Mining

BNN Bloomberg

Australian Mining Int'l Mining

Mining Weekly Kitco News

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Mineral Downstream, Ditgen. of Minerba Alludes to IMIP and Freeport Smelters which are not

yet optimal

Author: Rayful Mudassir

D

IRECTOR General of Mineral and Coal of the Ministry of Energy and Mineral Resources (MEMR) Ridwan Djamaluddin encourages the industry to accelerate product downstreaming to create added value.

He said that downstream mineral and coal (minerba) is needed to avoid exporting raw products, such as nickel ore.

He gave an example of PT Indonesia Morowali Industrial Park (IMIP) which has invested nearly Rp100 trillion to build a nickel-based industrial area. The company has also absorbed a workforce of around 35,000 people.

Ridwan claims this shows that the government has succeeded in attracting foreign investment into the country. Even so, the company is said to receive more economic benefits than domestic revenues.

"Why? Because we don't reduce it [nickel]

to a product that is more downstream, downstreaming," he said in the webinar of the 20th Anniversary of the ESDM BPSDM, Wednesday (13/10/2021).

Then, Ridwan also told about the PT Freeport Indonesia smelter, which was just inaugurated by President Joko Widodo on Tuesday (12/10/2021).

He said MIND ID, which oversees Freeport Indonesia, acknowledged that the smelter project did not provide many economic benefits. The reason is,...

Hilirisasi Mineral, Dirjen Minerba Singgung Smelter IMIP

dan Freeport yang Belum Optimal

Author: Rayful Mudassir

D

IREKTUR Jenderal Mineral dan Batu Bara Kementerian Energi dan Sumber Daya Mineral (ESDM) Ridwan Djamaluddin mendorong industri untuk mempercepat hilirisasi produk untuk menciptakan nilai tambah.

Dia mengatakan bahwa hilirisasi mineral dan batu bara (minerba) diperlukan untuk meng- hindari ekspor produk mentah, seperti bijih nikel.

Dia mencontohkan PT Indonesia Morowali Industrial Park (IMIP) yang telah menggelon- torkan investasi hampir Rp100 triliun untuk membangun kawasan industri berbasis nikel.

Perusahaan itu juga telah menyerap tenaga kerja sekitar 35.000 orang.

Ridwan mengklaim hal tersebut menunjukan bahwa pemerintah berhasil menarik investasi asing ke dalam negeri. Meski begitu, perusahaan itu disebut lebih banyak mene- rima manfaat ekonomi dibandingkan dengan penerimaan dalam negeri.

“Mengapa? Karena kita tidak menurunkannya [nikel] menjadi produk yang lebih ke hilir lagi, hilirisasi,” katanya webinar HUT ke-20 BPSDM ESDM, Rabu (13/10/2021).

Kemudian, Ridwan juga menceritakan tentang smelter PT Freeport Indonesia yang baru saja diresmikan pembangunannya oleh Presiden Joko Widodo pada Selasa (12/10/

2021).

Dia mengatakan, MIND ID yang menaungi Freeport Indonesia mengakui bahwa proyek smelter tidak banyak memberikan manfaat secara ekonomi. Pasalnya,...

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The reason is, the added value from concentrate to cathode is only a few percent difference.

“It's a mistake, because we don't reduce it to products that are more downstream. We don't make the cable industry. This is where the series of processes from mining to processing and downstream industries, including manufacturing, must be carried out in a sequential and harmonious manner,” he explained.

He said downstreaming is an important point that the government continues to push.

These efforts are made so that the satire paradigm of selling the country no longer exists.

In addition, the government has also programmed the construction of smelters, either integrated with the mine or separately. Meanwhile, the smelter which is separate from the mine is managed by the Ministry of Industry.

“The construction of this smelter is proof of our efforts to increase added value, including to produce clean energy raw materials from minerals. However, the biggest challenge is technical, because we have not completely mastered this technology,” he said. Editor : Lili Sunardi

Pasalnya, nilai tambah dari konsentrat menjadi katoda hanya selisih beberapa persen.

“Itu salahnya, karena kita tidak menurunkannya ke produk-produk yang lebih hilir.

Kita tidak membuat industri kabelnya. Di sinilah rangkaian proses dari pertambangan menjadi pengolahan dan industri hilir, termasuk manufaktur harus dilakukan secara beruntun dan harmonis,”

terangnya.

Dia menyebut, hilirisasi merupakan poin penting yang terus didorong pemerintah.

Upaya tersebut dilakukan agar paradigma sindiran berupa menjual Tanah Air tidak lagi ada.

Selain itu, pemerintah juga memprogram pembangunan smelter, baik terintegrasi dengan tambang maupun terpisah. Adapun, smelter yang terpisah dengan tambang dikelola oleh Kementerian Perindustrian.

“Pembangunan smelter ini adalah bukti usaha kita untuk meningkatkan nilai tambah, termasuk untuk menghasilkan bahan baku energi bersih dari mineral.

Namun, tantangan yang paling besar adalah teknis, karena kita belum menguasai teknologi ini secara total,” tuturnya. Editor : Lili Sunardi

The difference in the calculation of nickel levels has an impact on

state revenues

Reporter: Filemon Agung

T

HE CENTER of Reform on Economics (CORE) Indonesia noted that the difference in the calculation of nickel levels by surveyors at the smelter level is not only detrimental to nickel miners, but also has an impact on state revenues from the sector.

Selisih hitung kadar nikel berdampak ke penerimaan

negara

Reporter: Filemon Agung

C

ENTRE of Reform on Economics (CORE) Indonesia mencatat, selisih perhitungan kadar nikel pada surveyor ditingkat smelter tidak hanya merugikan para penambang nikel, melainkan berdampak pada penerimaan negara dari sektor tersebut.

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CORE Indonesia Executive Director Mohammad Faisal said the difference in the nickel content count occurred on the downstream side, which was carried out by surveyors from the smelter owner. In fact, from the upstream side, the government has determined a number of surveyors who are allowed and permitted to carry out verifiers for the nickel content.

“Investors on the downstream side set a lower rate than the upstream side and with a very significant difference in grading. for example, in the upstream case in the Morowali case, the rate is set at 1.87%, while in the smelter surveyors the rate is set at 1.5%. This is actually a difference that invites a question mark because the difference is very far,” said Faisal in the CORE Media Discussion Webinar, Tuesday (12/10/2021).

The difference in calculations, said Faisal, is not only detrimental to nickel miners or entrepreneurs but also to the state. For example, from the difference in the count between the 1.87% level to the 1.5% level, there is a difference of 0.37%.

If 0.37% is multiplied by the mineral benchmark price (HPM) and the exchange rate of the rupiah to the United States dollar (US) in 2020 (in last year's case) and multiplied by nickel production of around 14 million tons, then the state's loss from royalty payments could be experienced a reduction equivalent to Rp 400 billion per year.

"The figure of Rp 400 billion per year if we refer to the case in 2020. And this is only from royalties, not from other receipts, even from one place like the case in Morowali," said Faisal.

Secretary General of the Indonesian Nickel Miners Association (APNI) Meidy Katrin Lengkey suspected that there was a game at the downstream level during the verifier.

Direktur Eksekutif CORE Indonesia Mohammad Faisal mengatakan, perbedaan hitungan kadar nikel itu terjadi di sisi hilir yang dilakukan surveyor dari pihak pemilik smelter. Padahal, dari sisi hulu pemerintah sudah menetapkan sejumlah surveyor yang boleh dan di izinkan untuk melakukan verifikator atas kadar nikel tersebut.

“Investor di sisi hilir menetapkan lebih rendah kadarnya dibandingkan sisi hulu dan dengan penetapan kadar yang sangat signifikan perbedaannya. misalnya di hulu dalam kasus Morowali ditetapkan kadarnya 1,87%, sementara di smelter surveyornya menetapkan 1,5%. ini sebetulnya perbedaan yang mengundang tanda tanya karena sangat jauh perbedaannya,” kata Faisal dalam Webinar CORE Media Discusion, Selasa (12/10/2021).

Dengan adanya selisih perhitungan itu, kata Faisal, tidak hanya merugikan pihak penambang atau pengusaha nikel melainkan juga merugikan negara. Sebagai contoh, dari selisih hitungan antara kadar 1,87% menjadi kadar 1,5% terdapat selisih sebanyak 0,37%.

Jika 0,37% itu dikalikan dengan harga patokan mineral (HPM) dan nilai tukar rupiah ke dollar Amerika Serikat (US) pada tahun 2020 (dalam kasus tahun lalu) serta dikalikan produksi nikel sekitar 14 juta ton, maka kerugian negara dari pembayaran royalti bisa mengalami pengurangan setara Rp 400 miliar per tahun.

“Angka Rp 400 miliar per tahun itu kalau kita mengacu ke kasus tahun 2020. Dan ini baru dari royalti saja belum dari pos-pos penerimaan yang lain, bahkan ini dari satu tempat saja seperti kasus di Morowali,” ujar Faisal.

Sekretaris Jenderal Asosiasi Penambang Nikel Indonesia (APNI) Meidy Katrin Lengkey mencurigai adanya permainan di tingkat hilir pada saat melakukan verifikator.

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"If, for example, the surveyor company issued and the loading and unloading ports are too far apart, what is this?" Meidy said.

Therefore, he asked the government to conduct an investigation to find out this problem. So that it can be known whether the error in the calculation difference is on the upstream or downstream side.

"Because if we pay royalties based on COA loading 1.8% but if in COA disassembly there is a decrease in levels, meaning the difference of 0.1%-0.5% is not really worth it," she explained.

As is known in the Minister of EMR Number 11 of 2020 concerning the Third Amendment to the Regulation of the Minister of EMR Number 7 of 2017 concerning Procedures for Setting Standard Prices for Sales of Metal Minerals and Coal, if there is a difference in grades, an umpire can be made to appoint a third party or a third party surveyor.

"Unfortunately, in practice, many nickel companies also apply for umpires but these companies are blacklisted and cannot carry out sales to smelters," said Meidy.

When confirmed on this issue, the Director of Mineral Development and Concession of the Directorate General of Mineral and Coal at the Ministry of EMR, Sugeng Mujianto, was efficient in speaking. He only said that sampling was the key in the process of calculating nickel content.

"In one large and heterogeneous volume, sampling is one of the main keys," he said, Tuesday (12/10/2021). Editor: Khomarul Hidayat

“Kalau misalnya antara perusahaan surveyor yang diterbitkan dengan pelabuhan muat dan bongkar terlalu jauh perbedaannya, ini ada apa?” kata Meidy.

Oleh karena itu, ia meminta pemerintah melakukan investigasi untuk mengetahui permasalahan ini. Sehingga bisa diketahui apakah kesalahan selisih hitungan ini ada di pihak hulu atau di hilir.

“Karena jika kami membayar royalti berdasar COA muat 1,8% tapi jika di COA bangkar terjadi penurunan kadar artinya perbedaan 0.1%-0.5% sudah sangat tidak worth it,” jelasnya.

Seperti yang diketahui dalam Permen ESDM nomor 11 tahun 2020 tentang Perubahan Ketiga atas Peraturan Menteri ESDM Nomor 7 Tahun 2017 tentang Tata Cara Penetapan Harga Patokan Penjualan Mineral Logam dan Batubara, apabila terjadi perbedaan kadar bisa melakukan umpire untuk menunjuk pihak ketiga atau surveyor pihak ketiga.

“Sayangnya dalam praktiknya banyak perusahaan nikel juga mengajukan umpire tapi perusahaan tersebut di blacklist dan tidak bisa melaksanakan penjualan ke smelter,” tandas Meidy.

Ketika dikonfirmasi atas permasalahan ini, Direktur Pembinaan dan Pengusahaan Mineral Ditjen Minerba Kementerian ESDM, Sugeng Mujianto irit bicara. Ia hanya bilang, bahwa sampling menjadi kunci dalam proses hitung kadar nikel.

"Dalam satu volume yang besar dan heterogen maka sampling menjadi salah satu kunci utama," kata dia, Selasa (12/10/

2021).Editor: Khomarul Hidayat

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Updates! Merdeka Copper vs PSAB lawsuit in Singapore,

reconciled?

Monica Wareza, CNBC Indonesia

T

HE MINING company belonging to the Saratoga Group founded by Minister of Tourism Sandiaga Uno and entrepreneur Edwin Soeryadjaya, PT Merdeka Copper Gold Tbk (MDKA) has suspended its arbitration lawsuit against PT J Resources Nusantara (JRN), a subsidiary of PT J Resources Asia Pacific Tbk (PSAB) in Singapore.

In the disclosure of information submitted by the company, this lawsuit was filed by its subsidiary PT Pani Bersama Tambang (PBT).

This lawsuit was filed at the Singaporean International Arbitration Center (SIAC) with case number No. ARB0012/21/ARK.

"Furthermore, the application has been received and confirmed by SIAC on October 2, 2021. The suspension is valid until further notice from the disputing parties," the company's information disclosure said, quoted Wednesday (13/10/

2021).

This lawsuit began with the formation of a joint venture (JV) both to work on the Pani mine.

This was done because MDKA has a Pani mining business permit (IUP), while the Pani block contract of work is held by PT Gorontalo Sejahtera Mining (GSM), which is a subsidiary of PSAB.

Update! Gugatan Merdeka Copper vs PSAB di Singapura,

Damai?

Monica Wareza, CNBC Indonesia

P

ERUSAHAAN pertambangan milik Grup Saratoga yang didirikan oleh Menteri Pariwisata Sandiaga Uno dan pengusaha Edwin Soeryadjaya, PT Merdeka Copper Gold Tbk (MDKA) telah menangguhkan gugatan arbitrasenya terhadap PT J Resources Nusantara (JRN), anak usaha PT J Resources Asia Pasifik Tbk (PSAB) di Singapura.

Dalam keterbukaan informasi yang disampaikan perusahaan, gugatan ini dilayangkan oleh anak usahanya PT Pani Bersama Tambang (PBT).

Gugatan ini dilakukan di Singaporean International Arbitration Center (SIAC) dengan nomor perkara No. ARB0012/21/

ARK.

"Lebih lanjut, permohonan tersebut telah diterima dan dikonfirmasi oleh SIAC pada tanggal 2 Oktober 2021. Penangguhan tersebut berlaku sampai pemberitahuan lebih lanjut dari para pihak yang ber- sengketa," tulis keterbukaan informasi perusahaan, dikutip Rabu (13/10/2021).

Gugatan ini berawal dari pembentukan perusahaan patungan (joint venture/JV) keduanya untuk menggarap tambang Pani.

Hal ini dilakukan lantaran MDKA memiliki izin usaha pertambangan (IUP) Pani, sedangkan kontrak karya blok Pani dipegang oleh PT Gorontalo Sejahtera Mining (GSM) yang merupakan anak usaha dari PSAB.

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Based on the announcement made by the company in early 2020, MDKA controls the Pani IUP in Gorontalo Province, Sulawesi while PSAB controls 100% of the interest in the Pani Project.

Please note that the Pani project contains 72.7 million tonnes of mineral resources at a gold grade of 0.98 g/t for 2.3 million ounces of gold. PBT has started a drilling program of 11,000 meters on the Pani IUP in the area between the Pani IUP and the Pani Project.

However, as the two companies previously intended to develop the projects separately, reserves for both projects would be constrained by the need to maintain pit walls within each area.

Thus, through this merger, it is assessed that the overall reserves will materially tend to be larger than those carried out separately.

The GSM Contract of Work is divided into three separate mining blocks, namely the Pani Project, the Bolangitang block and the Bulagidun block.

However, PBT considers that JRN has failed to fulfill its obligations in fulfilling the preliminary requirements required for the completion of the Conditional Shares Sale and Purchase Agreement (CSPA) which was carried out on November 25, 2019 as amended on December 16, 2019 between the two companies.

To that end, PBT asked SIAC to decide that JRN must settle its obligations in accordance with the CSPA or provide compensation of US$ 500 million-US$ 600 million or equivalent to Rp 7 trillion-Rp 8.4 trillion (assuming an exchange rate of Rp 14,000/US$).

Meanwhile, according to J Resources, JRN's obligations are limited to using all reasonable efforts to ensure that the preconditions are met, however,...

Berdasarkan pengumuman yang disampaikan perusahaan pada awal 2020 lalu, maka MDKA mengendalikan IUP Pani di Provinsi Gorontalo, Sulawesi ini sedangkan PSAB mengendalikan 100% kepentingan dalam Proyek Pani tersebut.

Untuk diketahui proyek Pani mengandung sumber daya mineral 72,7 juta ton pada tingkat emas 0,98 g/t untuk 2,3 juta ons emas. PBT telah memulai program penge- boran 11.000 meter pada IUP Pani di area antara IUP Pani dan Proyek Pani.

Namun karena kedua perusahaan sebelumnya berniat untuk mengembangkan proyek secara terpisah, cadangan untuk kedua proyek akan terkena kendala oleh kebutuhan untuk memelihara pit wall di dalam masing- masing area.

Dengan demikian, lewat penggabungan ini dinilai cadangan keseluruhan akan secara material cenderung menjadi lebih besar daripada dikerjakan secara terpisah.

Kontrak Karya GSM terbagi dalam tiga blok tambang yang terpisah, yaitu Proyek Pani, blok Bolangitang dan blok Bulagidun.

Namun demikian, PBT menilai JRN telah gagal untuk melakukan kewajibannya dalam memenuhi persyaratan-persyaratan pendahuluan yang diperlukan untuk penyelesaian Conditional Shares Sale and Purchase Agreement (CSPA) yang dilakukan pada 25 November 2019 sebagaimana diubah pada 16 Desember 2019 antara kedua perusahaan.

Untuk itu, PBT meminta SIAC untuk memutuskan JRN harus menyelesaikan kewajibannya sesuai dengan CSPA atau memberikan ganti rugi senilai US$ 500 juta-US$ 600 juta atau setara dengan Rp 7 triliun-Rp 8,4 triliun (asumsi kurs Rp 14.000/US$).

Sementara itu, menurut J Resouces, kewajiban JRN terbatas pada penggunaan seluruh upaya yang wajar untuk memastikan bahwa syarat pendahuluan terpenuhi, tetapi,...

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however, JRN is under no obligation to and cannot unilaterally fulfill any preconditions that require third party action.

In addition, PSAB also considers that the CSPA does not apply a contract deadline of 12 months so that the preliminary conditions can be met.

Then, the amount of compensation claimed by PBT in the arbitration was also considered unfounded and had no legal or factual basis. (tas/tas)

tetapi, JRN tidak berkewajiban untuk dan tidak dapat secara sepihak memenuhi syarat pendahuluan yang memerlukan tindakan pihak ketiga.

Selain itu, PSAB juga menilai bahwa CSPA tersebut tidak memberlakukan tenggat waktu kontrak selama 12 bulan agar syarat pendahuluan tersebut dapat dipenuhi.

Lalu, besarnya ganti rugi yang diklaim PBT dalam arbitrase tersebut juga dinilai tidak berdasar dan tidak memiliki dasar hukum atau fakta. (tas/tas)

Increase the Added Value of Commodities, Jokowi Encourages Downstreaming

Reporter: Dessy Suciati Saputri/Editor:

Friska Yolandha

P

RESIDENT Joko Widodo (Jokowi) emphasized the importance of massive industrial downstreaming in Indonesia. He wants natural resource commodities in Indonesia to no longer be exported in the form of raw materials so that the country can get added value.

He conveyed this when giving directions to the participants of LXII Regular Education Program (PPRA) and the XXIII Forces Short Education Program (PPSA) 2021, the National Resilience Institute of the Republic of Indonesia at the State Palace, Jakarta, Wednesday (13/10).

“The most important thing is massive downstreaming. We can no longer export in the form of raw materials, in the form of raw materials that have no added value.

We make money from it, yes. We get income from there, yes. But the added value is what we want," Jokowi said.

Tingkatkan Nilai Tambah Komoditas, Jokowi Dorong

Hilirisasi

Reporter: Dessy Suciati Saputri/Redaksi:

Friska Yolandha

P

RESIDEN Joko Widodo (Jokowi) mene- kankan pentingnya dilakukan hilirisasi industri besar-besaran di Indonesia. Ia ingin komoditas sumber daya alam di Indonesia tak lagi diekspor dalam bentuk bahan mentah sehingga negara bisa mendapatkan nilai tambah.

Hal ini disampaikannya saat memberikan pengarahan kepada peserta Program Pendidikan Reguler Angkatan (PPRA) LXII dan Program Pendidikan Singkat Angkatan (PPSA) XXIII Tahun 2021 Lembaga Ketahanan Nasional Republik Indonesia di Istana Negara, Jakarta, Rabu (13/10).

“Yang paling penting adalah hilirisasi besar- besaran. Tidak bisa lagi kita mengekspor dalam bentuk raw material, dalam bentuk bahan mentah yang tidak memiliki nilai tambah. Kita dapat uang dari situ, iya. Kita dapat income dari situ, iya. Tapi nilai tambahnya itu yang kita inginkan,” ujar Jokowi.

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Jokowi does not want the Indonesian people to only become 'diggers' from the wealth of existing natural resources.

Meanwhile, the resulting commodities are processed abroad to become semi-finished or finished goods and then return to Indonesia at high prices.

"This is what little by little, step by step we must begin to eliminate," he added.

Likewise with the wealth of the sea. The President does not want the Indonesian people to only become fishermen. He also encouraged the construction of a marine product processing industry so that it could get greater added value.

Jokowi emphasized that fishing must be carried out for the welfare of the people but also must be measured and also guaranteed its sustainability. Preservation and sustainability of this nature must be balanced between economic interests and other interests.

"We have to produce products that have high added value, which combines the use of natural wealth with wisdom and technology that preserves it," he explained.

Therefore, he continued, the government took over the ownership of several foreign companies in Indonesia. Like PT Freeport Indonesia, which is managed by McMoran and now the majority share is owned by Indonesia. Then the Mahakam Block and Rokan Block, whose 100 percent management was handed over to PT Pertamina.

"Now we just have to see, we can not continue, increase production from what we have taken over," he said.

Jokowi said that the principle of a sustainable economy must really be maintained through a green economy and a blue economy. All existing commodities must also be encouraged by industrial downstreaming.

Jokowi tak ingin, bangsa Indonesia hanya menjadi ‘tukang gali’ saja dari kekayaan sumber daya alam yang ada. Sementara komoditas yang dihasilkan justru diolah di luar negeri untuk menjadi barang setengah jadi atau barang jadi dan kemudian kembali lagi ke Indonesia dengan harga yang tinggi.

“Inilah yang sedikit demi sedikit, tahap demi tahap harus mulai kita hilangkan,” tambahnya.

Begitu juga dengan kekayaan laut. Presiden tak ingin masyarakat Indonesia hanya menjadi nelayan saja. Ia pun mendorong agar dibangun industri pengolahan hasil laut sehingga bisa mendapatkan nilai tambah yang lebih besar.

Jokowi menekankan, penangkapan ikan harus dilakukan untuk kesejahteraan rakyat namun juga harus terukur dan juga dijamin keber- lanjutannya. Kelestarian dan keberlanjutan alam ini harus diseimbangkan antara kepentingan ekonomi dan kepentingan lainnya.

“Kita harus menghasilkan produk yang mem- punyai nilai tambah tinggi, yang mengkom- binasikan antara pemanfaatan kekayaan alam dengan kearifan dan teknologi yang meles- tarikan,” jelas dia.

Karena itu, lanjutnya, pemerintah mengambil alih kepemilikan beberapa perusahaan asing di Indonesia. Seperti PT Freeport Indonesia yang dikelola McMoran dan kini saham mayoritasnya telah dimiliki oleh Indonesia.

Kemudian Blok Mahakam dan Blok Rokan yang 100 persen pengelolaannya diserahkan kepada PT Pertamina.

“Sekarang tinggal kita melihat, kita bisa tidak melanjutkan, meningkatkan produksi dari yang sudah kita ambil alih ini,” kata dia.

Jokowi mengatakan, prinsip ekonomi ber- kelanjutan ini harus betul-betul dijaga melalui green economy dan blue economy. Seluruh komoditas yang ada pun juga harus didorong dengan hilirisasi industri.

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The Ministry of EMR records 2,741 mining locations without

permits

Author: Newswire

T

HE MINISTRY of Energy and Mineral Resources (MEMR) noted that there are 2,741 mining locations without permits or crates spread across various regions in Indonesia.

Minister of EMR Arifin Tasrif said that there were 96 locations of coal crates spread across East Kalimantan, South Kalimantan, Bengkulu and South Sumatra.

In addition, there are 2,645 mineral crates located in almost all provinces.

“Involving around 3.7 million crate workers, with details of approximately 480 locations outside the mining permit area [WIUP], as well as 133 locations within the WIUP, and 2,128 locations not yet known to be inside or outside the WIUP to be identified," he said in a webinar in Jakarta, Wednesday (13/10/2021).

Minister Arifin said that mining activities without permits have many impacts that can damage business activities for holders of official permits.

Not only that, the Crate also endangers safety because it does not follow the rules of an adequate understanding of mining, and has the potential to cause environmental damage, including floods, landslides, and reducing soil fertility.

Mining activities without permits also have the potential to cause social problems, security disturbances, and forest destruction. "Then another potential is to harm Non-Tax State Revenue [PNBP], as well as local tax revenues," said Arifin.

Kementerian ESDM Catat Ada 2.741 Lokasi Pertambangan

Tanpa Izin

Author: Newswire

K

EMENTERIAN Energi dan Sumber Daya Mineral (ESDM) mencatat ada 2.741 lokasi pertambangan tanpa izin atau Peti yang tersebar di berbagai daerah di Indonesia.

Menteri ESDM Arifin Tasrif mengatakan bahwa terdapat 96 lokasi Peti batu bara yang tersebar di Kalimantan Timur, Kalimantan Selatan, Bengkulu, dan Sumatera Selatan. Selain itu, ada 2.645 lokasi Peti mineral yang tersebar hampir di seluruh provinsi.

“Melibatkan sekitar 3,7 juta orang pekerja Peti, dengan rincian kira-kira 480 lokasi berada di luar wilayah izin usaha pertambangan [WIUP], serta 133 lokasi di dalam WIUP, dan 2.128 lokasi belum diketahui berada di dalam atau di luar WIUP yang akan diidentifikasi,” ujarnya dalam sebuah webinar di Jakarta, Rabu (13/10/2021).

Menteri Arifin menyampaikan, kegiatan pertambangan tanpa izin memiliki banyak dampak yang dapat merusak kegiatan usaha bagi pemegang izin resmi.

Tak hanya itu, Peti juga membahayakan keselamatan karena tidak mengikuti kaidah- kaidah pengertian penambangan yang me- madai, serta berpotensi terjadi kerusakan lingkungan hidup, antara lain banjir, longsor, dan mengurangi kesuburan tanah.

Aktivitas pertambangan tanpa izin juga berpotensi menimbulkan masalah sosial, gangguan keamanan, dan kerusakan hutan.

“Kemudian potensi lain adalah merugikan Penerimaan Negara Bukan Pajak [PNBP], serta penerimaan pajak daerah,” kata Arifin.

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The value of state losses caused by mining activities without a permit is approximately equal to half of the PNBP of the Directorate General of Mineral and Coal of the Ministry of EMR.

"Mining activities that are not equipped with a valid permit are a crime or criminal act," said Arifin. Editor : Lili Sunardi

Nilai kerugian negara yang ditimbulkan akibat kegiatan pertambangan tanpa izin kurang lebih hampir sama dengan setengah PNBP Direktorat Jenderal Mineral dan Batu Bara Kementerian ESDM.

“Kegiatan menambang yang tanpa dilengkapi dengan perizinan yang sah merupakan suatu tindakan kejahatan atau tindakan pidana,” tegas Arifin. Editor : Lili Sunardi

Merdeka Copper Subsidiary Hands Over 215.66 Hectare

Compensation Land

By : Amrozi Amenan/FER

A

SUBSIDIARY of PT Merdeka Copper Gold Tbk which operates a gold mine in Banyuwangi, East Java, PT Bumi Suksesindo (BSI), handed over compensation land (lakom) for the third time covering an area of 215.66 hectares in Bondowoso to the government through the Ministry of Environment and Forestry (KLHK).

Director of BSI, Cahyono Seto said, BSI operates a gold mine in Banyuwangi on an area of 992 hectares of land with a borrow- to-use forest area permit (IPPKH). Based on government regulation (PP) number 24 of 2010 concerning the use of forest areas, BSI is obliged to provide a lakkom at least twice the area of IPPKH or 1,984 hectares.

"BSI provides lakkom in two areas, namely Bondowoso, East Java, and Sukabumi, West Java, with a total land area of 2,038 hectares. So far BSI has handed over 1,173.24 hectares of compensation land to the government," said Seto, Wednesday (13/10/2021).

Anak Usaha Merdeka Copper Serahkan Lahan Kompensasi

215,66 Hektare

Oleh : Amrozi Amenan/FER

A

NAK usaha PT Merdeka Copper Gold Tbk yang mengoperasikan tambang emas di Banyuwangi, Jawa Timur, PT Bumi Suksesindo (BSI), menyerahkan lahan kompensasi (lakom) untuk ketiga kalinya seluas 215,66 hektare di Bondowoso kepada pemerintah melalui Kementerian Lingkungan Hidup dan Kehutanan (KLHK).

Direktur BSI, Cahyono Seto menyampaikan, BSI mengoperasikan tambang emas di Banyuwangi di atas lahan izin pinjam pakai kawasan hutan (IPPKH) seluas 992 hektare. Berdasarkan peraturan pemerintah (PP) nomor 24 tahun 2010 tentang penggunaan kawasan hutan, BSI berkewajiban menyediakan lakom minimal dua kali lipat dari luasan IPPKH atau seluas 1.984 hektare.

"BSI menyediakan lakom di dua wilayah, yaitu di Bondowoso, Jawa Timur, dan Sukabumi, Jawa Barat, dengan total luas lahan 2.038 hektare. Sampai saat ini BSI telah menyerahkan 1.173,24 hektare lahan kompensasi kepada pemerintah," ujar Seto, Rabu (13/10/2021).

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Previously, BSI had submitted the second Lakom covering an area of 857.26 hectares in Sukabumi, West Java, in September 2021 and the first Lakom in Bondowoso covering an area of 100.32 hectares in September 2020.

"This is the largest lakkom on the island of Java that has been handed over to the government by IPPKH holders," said Seto.

Before the land is handed over to the government, explained Seto, the company is also obliged to plant the compensation land.

In September this year, the assessment team went to the Bondowoso Lakom to verify the planting results and stated that the reforestation results on an area of 215.66 hectares located in the Districts of Botolinggo, Cermee, Klabang, Prajekan, Taman Krocok, and Tegal Ampel, Bondowoso Regency reached 100 percent and can be handed over to the government.

Seto added that the minimum success rate that can be submitted to the government is 75%. "We plant teak, pine, sengon and several types of fruit trees that we plant before we hand them over. We are proud to be able to contribute to the expansion of forest areas in Java," added Seto.

Sebelumnya, BSI telah menyerahkan lakom kedua seluas 857,26 hektare di Sukabumi, Jawa Barat, pada September 2021 dan lakom pertama di Bondowoso seluas 100,32 hektare pada September 2020.

"Ini lakom yang terluas di Pulau Jawa yang pernah diserahkan kepada pemerintah oleh pemegang IPPKH,” kata Seto.

Sebelum lahan diserahkan kepada pemerintah, jelas Seto, perusahaan juga berkewajiban untuk menanami lahan kompensasi tersebut.

Pada September tahun ini, tim penilai turun ke lakom Bondowoso untuk mem- verifikasi hasil penanaman dan menyata- kan hasil reboisasi di atas lahan seluas 215,66 hektare yang terletak di Kecamatan Botolinggo, Cermee, Klabang, Prajekan, Taman Krocok, dan Tegal Ampel, Kabu- paten Bondowoso mencapai 100 persen dan bisa diserahkan kepada pemerintah.

Seto menambahkan, tingkat keberhasilan minimum yang dapat diserahkan kepada pemerintah adalah 75%. "Kami menanam jati, pinus, sengon dan beberapa jenis tanaman buah yang kami tanam sebelum kita serahkan. Kami bangga bisa berkontribusi dalam perluasan kawasan hutan di Jawa,” imbuh Seto.

After Skyrocketing 15% in 3 Days, Coal Prices Drop

Hidayat Setiaji, CNBC Indonesia

C

OAL prices fell after rising for three trading days in a row. Profit taking will always overshadow the black stone as long as the price continues to be in a bullish trend.

Habis Meroket 15% dalam 3 Hari, Harga Batu Bara Nyungsep

Hidayat Setiaji, CNBC Indonesia

H

ARGA batu bara turun setelah mengalami kenaikan selama tiga hari perdagangan beruntun. Aksi ambil untung (profit taking) memang akan selalu membayangi si batu hitam selama harga terus dalam tren bullish.

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Yesterday, the price of coal on the ICE Newcastle (Australia) market was recorded at US$ 255/ton. Down 1.92%

compared to the previous day.

This correction occurred after coal prices rose for three consecutive days. In those three days, the price of this commodity skyrocketed 15.61%.

Therefore, it is natural for investors to be tempted. Prices rose by more than 15% in three days, it's rare for an asset to deliver such high returns. Driven by the desire to raise money, coal contracts experienced selling pressure so that the price fell.

Coal Fundamentals Still Strong

However, strong fundamentals can make coal prices rise again. The high demand will again push up the price of Indonesia's mainstay export commodity.

Toby Hassall, Analyst at Refinitiv, believes that the sharp increase in natural gas prices has supported the rise in coal prices.

Yesterday, natural gas prices at Henry Hub (Oklahoma, United States) soared 2.78%.

Since the end of 2020 (year-to-date), prices have skyrocketed by 122.92%.

When the price of natural gas rises, the cost of generating electricity with primary energy sources from this commodity will be more expensive. In Europe, the cost of generating electricity with natural gas on 12 October 2021 is EUR 85.22/MWh.

Meanwhile with coal it is EUR 54.76/MWh.

So surely the business world is competing to divert primary energy sources for power plants from natural gas to coal. The hunt for coal keeps the price going up. CNBC INDONESIA RESEARCH TEAM (aji/aji)

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

255/ton. Turun 1,92% dibandingkan hari sebelumnya.

Koreksi ini terjadi setelah harga batu bara naik tiga hari berturut-turut. Dalam tiga hari tersebut, harga komoditas ini meroket 15,61%.

Oleh karena itu, wajar jika investor tergiur.

Harga naik lebih dari 15% dalam tiga hari, jarang ada aset yang bisa memberikan imbalan setinggi itu. Didorong oleh hasrat mengeruk cuan, kontrak batu bara meng- alami tekanan jual sehingga harganya turun.

Fundamental Batu Bara Masih Kuat Akan tetapi, fundamental yang kuat bisa membuat harga batu bara naik lagi.

Tingginya permintaan akan kembali men- dongkrak harga komoditas andalan ekspor Indonesia tersebut.

Toby Hassall, Analis Refinitiv, menilai kenaikan harga gas alam yang begitu tajam mendukung lesatan harga batu bara.

Kemarin, harga gas alam di Henry Hub (Oklahoma, Amerika Serikat) melejit 2,78% Sejak akhir 2020 (year-to-date), harga meroket 122,92%.

Saat harga gas alam naik, maka biaya pembangkitan listrik dengan sumber energi primer dari komoditas ini semakin mahal. Di Eropa, biaya pembangkitan listrik dengan gas alam pada 12 Oktober 2021 adalah EUR 85,22/MWh. Sementara dengan batu bara adalah EUR 54,76/MWh.

So pasti dunia usaha berlomba-lomba mengalihkan sumber energi primer pembangkit listrik dari gas alam ke batu bara.

Perburuan terhadap batu bara membuat harganya terus naik. TIM RISET CNBC INDONESIA (aji/aji)

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Timah (TINS) Is More Active in Reclamation of Ex-Mining Land

Author: Lorenzo Anugrah Mahardhika

P

T TIMAH Tbk. (TINS) continues to be committed to implementing good mining practice rules by developing ex-mining land that can be enjoyed well by the surrounding community. One of these efforts is reclamation, even producing a number of potential tourist areas.

TINS Director of Operations and Production Agung Pratama said, in the mining activities carried out, TINS applies the rules of good mining practice, namely carrying out post-mining activities. One of these steps is land and sea reclamation.

"We always try to support and implement regulations that have been set by the government, so that they can contribute to state revenues," he explained on Wednes- day (10/13/2021).

One example of reclamation efforts from ex-mining land is Kampoeng Air Jangkang Reclamation located in Bangka. Agung explained, Kampoeng Air Jangkang Reclamation was built on a former mining area of 37 hectares and was built with the concept of agro-edu-tourism.

Kampoeng Air Jangkang Reclamation was made a Animal Breeding Center (Mini Zoo) whose management is in collaboration with an animal lover foundation, namely Animal Lovers Bangka Island or ALOBI.

Meanwhile, 1 other Reclamation Village is located in Selinsing Village, Hanging District, East Belitung Regency, Bangka Belitung Province. Agung added that the 17.7 hectare project was built on a former tin mine owned by a company that operated in the 2010-2013 period.

Timah (TINS) Makin Aktif Reklamasi Lahan Bekas Tambang

Author: Lorenzo Anugrah Mahardhika

P

T TIMAH Tbk. (TINS) terus berkomitmen melakukan kaidah good mining practice dengan mengembangkan lahan eks tambang yang dapat dinikmati dengan baik oleh masyarakat sekitar. Salah satu upaya tersebut dengan reklamasi, bahkan menghasilkan sejumlah kawasan wisata yang potensial.

Direktur Operasi dan Produksi TINS Agung Pratama mengatakan, dalam kegiatan penambangan yang dilakukan, TINS menerapkan kaidah good mining practice, yaiktu melaksanakan kegiatan pasca tambang. Salah satu upaya langkah tersebut adalah melakukan reklamasi darat dan laut.

“Kami selalu berupaya mendukung dan menerapkan regulasi yang sudah ditetapkan pemerintah, sehingga dapat berkontribusi terhadap penerimaan negara,” jelasnya pada Rabu (13/10/2021).

Salah satu contoh upaya reklamasi dari lahan eks tambang adalah Kampoeng Reklamasi Air Jangkang yang berada di Bangka. Agung me- maparkan, Kampoeng Reklamasi Air Jangkang dibangun diatas bekas tambang seluas 37 hektare dan dibangun dengan konsep agro- edu-tourism.

Kampoeng Reklamasi Air Jangkang dijadikan Pusat Penangkaran Satwa (Mini Zoo) yang pengelolaannya bekerjasama dengan yayasan pecinta satwa yakni Animal Lovers Bangka Island atau ALOBI.

Sementara itu, 1 Kampung Reklamasi lainnya berlokasi di Desa Selinsing, Kecamatan Gantung, Kabupaten Belitung Timur, Provinsi Bangka Belitung. Agung menambahkan, proyek seluas 17,7 hektare ini berdiri di atas eks tambang timah milik perusahaan yang beroperasi pada periode 2010 – 2013 lalu.

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He explained, in 2013-2016 this land was managed together with the East Belitung Regional Government. However, because the management was considered poor, TINS decided to collaborate with the Village-Owned Enterprises (BUMDes) of Kampong Selinsing Reclamation.

Agung said that his party had plans to commercialize the 2 Reclamation Villages.

However, this has to be postponed for a while due to the ongoing corona virus pandemic.

"So far, there is no fee to enter the Reclamation Village. Indeed, last year we had a [commercialization] plan, but it had to be arrested first,” he said.

Meanwhile, as a whole until semester I/2021, TINS has carried out land reclamation on its 201 hectares of land.

This amount covers 52 percent of the company's land reclamation target, which is 400 hectares.

Meanwhile, in the same period of time, TINS has reclaimed 25 hectares of its mining area located at sea, or 76 percent of its annual target of 32.8 hectares. Editor : Farid Firdaus

Ia menjelaskan, pada tahun 2013 -2016 lahan ini dikelola bersama dengan Pemerintah Daerah Belitung Timur. Namun, karena pengelolaan tersebut dinilai kurang baik, TINS memutuskan untuk berkolaborasi dengan Badan Usaha Milik Desa (BUMDes) Kampong Reklamasi Selinsing.

Agung mengatakan, pihaknya memiliki rencana untuk melakukan komersialisasi kepada 2 Kampung Reklamasi tersebut. Namun, hal ini harus ditunda untuk sementara karena pandemi virus corona yang masih terjadi.

“Sejauh ini masuk ke Kampung Reklamasi belum dipungut biaya. Memang pada tahun lalu kami sudah ada rencana [komersialisasi], tetapi harus ditahan dulu,” katanya.

Adapun, secara keseluruhan hingga semester I/2021, TINS telah melaksanakan reklamasi darat pada 201 hektare lahannya. Jumlah tersebut mencakup 52 persen dari target reklamasi darat perusahaan, yakni 400 hektare.

Sementara itu, dalam periode waktu yang sama, TINS telah mereklamasi 25 hektare lahan tambangnya yang berada di laut, atau 76 persen dari target tahunan pada 32,8 hektare. Editor : Farid Firdaus

Hit by floods, China's thermal coal price hits record high

Dinar Fitra Maghiszha

C

HINA's thermal coal price touched a record high on Wednesday (13/10/2021) triggered by the flood that hit the production center in the Shanxi region, as the main coal producer in the Bamboo Curtain country - China's nickname -.

Diterjang Banjir, Harga Batu Bara Termal China Tembus

Rekor Tertinggi

Dinar Fitra Maghiszha

H

ARGA batu bara termal China menyentuh rekor tertinggi pada Rabu (13/10/2021) dipicu bencana banjir yang menerjang pusat produksi di wilayah Shanxi, sebagai peng- hasil utama batu bara di Negeri Tirai Bambu -julukan China-.

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Local governments in the production sites of Shanxi and Inner Mongolia have ordered about 200 mines to increase production due to the energy crisis. But the incessant rains have flooded at least 60 mines in the region.

Four mines with an annual production capacity of 4.8 million tonnes have been closed, a regional official told a press conference Tuesday (12/10/2021).

This makes the supply condition even more critical considering that Beijing is currently trying to liberalize electricity prices in order to boost demand.

Zhengzhou thermal coal prices touched a record high of USD254.44 tons in early trading Wednesday (13/10), after nearly tripling this year.

Data also showed China's coal imports rose last September by 32.88 million tons, or 76% from a year earlier, according to customs data. China itself is the world's largest coal consumer and is grappling with an energy crisis caused by a lack of supply and rising fuel prices.

The government has taken various steps to increase the production of 'blacks' and manage electricity demand in the power generation industry, while other power producers are increasing imports.

Supply from Russia and Mongolia has been limited by the capacity of rail shipments, while shipments from Indonesia are still hampered by the weather.

The price increase in China recently occurred after Beijing announced that it would impose market-based electricity tariffs, aka considering the market situation to set prices to customers. This is claimed to be a breakthrough to allow the industry to lock in electricity prices with suppliers. (akr)

Pemerintah daerah di lokasi produksi Shanxi dan Mongolia Dalam telah memerintahkan sekitar 200 tambang untuk meningkatkan produksi seiring krisis energi yang terjadi.

Tetapi hujan yang tak kunjung berhenti telah membanjiri setidaknya 60 tambang di wilayah tersebut.

Empat tambang dengan kapasitas produksi tahunan mencapai 4,8 juta ton telah ditutup, menurut seorang pejabat daerah dalam konfe- rensi pers, Selasa (12/10), dilansir Reuters, Rabu (13/10/2021).

Hal ini membuat kondisi pasokan semakin kritis mengingat Beijing saat ini sedang berupaya untuk meliberalisasi harga listrik dalam rangka mendorong permintaan. Harga batu bara termal Zhengzhou menyentuh rekor tertingginya sebesar USD254,44 ton pada awal perdagangan Rabu (13/10), setelah melonjak hampir tiga kali lipat pada tahun ini.

Data juga menunjukkan impor batu bara China naik pada September lalu sebesar 32,88 juta ton atau 76% dari tahun sebelumnya, menurut data kepabeanan. China sendiri merupakan konsumen batu bara terbesar di dunia yang sedang bergulat dengan krisis energi yang disebabkan oleh kurangnya pasokan serta naiknya harga bahan bakar.

Pemerintah telah mengambil berbagai langkah untuk meningkatan produksi 'si hitam' dan mengelola permintaan listrik di industri pembangkit, sedangkan produsen listrik lainnya tengah meningkatkan impor.

Pasokan dari Rusia dan Mongolia telah dibatasi oleh kapasitas pengiriman kereta api, sedangkan pengiriman dari Indonesia masih terhambat oleh cuaca.

Kenaikan harga di China belakangan terjadi setelah Beijing mengumumkan bakal mengenakan tarif listrik berbasis 'market- based price' alias mempertimbangkan situasi pasar untuk menetapkan harga kepada para pelanggan. Hal ini diklaim sebagai bentuk terobosan untuk memungkinkan industri mengunci harga listrik dengan pemasok. (akr)

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Copper price surges to 2-month peak, shaking off China concerns

MINING.COM Staff Writer

T

HE GLOBAL energy crisis that has led to power shortages and factory slowdowns did not stop copper prices from rallying to their highest levels since the beginning of August.

On Wednesday, copper futures for December delivery erased earlier losses to trade at

$4.499/lb for a gain of 4.0% as of 3:40 p.m. EDT. The intraday high was $4.528/lb.

The rebound in copper prices comes amid short-term concerns surrounding China and its debt-addled property sector, plus the ongoing economic threat posed by the covid-19 delta variant.

“In the short term there are some headwinds, mainly due to concerns about China’s economy,” Jay Tatum, portfolio manager at New York-based Valent Asset Management, recently told Bloomberg.

“But once the world gets back to normal growth rates, evenly spread across the economy, we still think there’s a strong case to be made for metals like copper.”

Not everyone is convinced that copper’s outlook is rosy.

The International Monetary Fund has expressed concern that the world’s economic recovery, which drove copper’s blistering rally in May, has lost momentum and become increasingly divided.

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Citigroup — one of the biggest cheerleaders for copper earlier this year — recently warned Bloomberg that prices could fall another 10%, with demand shrinking over the next three months.

“What tipped me over the edge in terms of becoming outright bearish was the power, coal and gas crisis,” said Max Layton, managing director for commodities research at Citigroup in London told Bloomberg. “The concern is that it gets a lot worse.”

Data on Wednesday also showed that the world’s top consumer has been picking up imports to counter its supply worries, which briefly drove down the price of copper. (With files from Bloomberg and Reuters)

PT Freeport Indonesia officially launches new copper smelter & gold refinery project; plans 5G with Telekom at mine

Posted by Paul Moore

I

NDONESIA’s President Joko Widodo on October 12 officiated at the groundbreaking ceremony for PT Freeport Indonesia’s (PTFI) new copper smelter at the Special Economic Zone Java Integrated Industrial and Port Estate (SEZ JIIPE) in Gresik, East Java.

The $3 billion smelter will have a 1.7 Mt/y copper concentrate and 600,000 t/y copper cathode capacity plus will include a $200 million 54 t/y capacity gold refinery being built in JIIPE is a project to strengthen the national downstream metals industry in Indonesia. PTFI has signed an engineering, procurement and construction contract for the project with Japan’s Chiyoda.

JIIPE is a strategic national project jointly promoted by PT AKR Corporindo Tbk., (AKRA.IJ) along with state-owned Pelindo III which will integrate the industrial estate with deep seaport and other utilities.

“The arrival of PTFI in the Special Economic Zone (SEZ) JIIPE in Gresik will be a strong pull factor for other industries to invest in Indonesia, especially those in the copper derivatives industry. We will keep supporting the development of infrastructure, as well as easing business processes. In addition, the local government of East Java province and district of Gresik will contribute to meeting the human resources needs of SEZ Gresik to make Indonesia more attractive as an investment destination,” said President Widodo.

According to Jakarta, Indonesia-based news agency ANTARA News, State-Owned Enterprises (SOEs) Minister Erick Thohir also highlighted at the event the plan of state-owned telecommunication provider Telkom Group to collaborate with gold and copper miner giant PT Freeport Indonesia in developing a 5G network for the mine in Mimika Regency north of Timika.

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“In line with the global transformation of Industrial Revolution 4.0, we hope that the 5G mining technology can get inaugurated in the next six months. It will be the first one implemented in Southeast Asia,” ANTARA News quoted him as stating at the groundbreaking ceremony. “In addition to maintaining operational security, the technology will help in protecting workers, as the site is an underground mining area,” he noted.

Furthermore, the 5G mining technology will streamline the plant’s integration by implementing a hyper-connected network. The news item also referred to comments about implementation of more autonomous mobile machinery at the mine.

The Coal Price Rally Isn’t Ending Any Time Soon, Whitehaven Says

David Stringer, Bloomberg News

C

OAL prices are likely to remain high after soaring to new records on strengthening power demand and challenges in key supplier nations, according to a major Australian producer.

High-quality thermal coal at Newcastle port in Australia, the benchmark in Asia, the world’s largest market for the fuel, averaged $167.52 a ton in the quarter ending Sept. 30 from $52 a ton in the same period a year earlier, Whitehaven Coal Ltd. said Thursday in a production report statement.

“Both thermal and metallurgical coal prices are forecast to remain well supported due to strong demand and continuing supply tightness,” the Sydney-based supplier said. The Newcastle coal index was at $232.06 a ton as of Wednesday, according to the company.

Rising demand for the fuel driven by global efforts to spur industrial activity and boost growth after the impact of coronavirus has collided with waning output from mine hubs.

That’s led to shortfalls in Europe to China and India, prompting curbs on electricity consumption and power outages.

The impact of the heavy rainfall and government restrictions on exports from Indonesia have tightened volumes of seaborne coal, while the market has also been impacted by logistics issues in Russia, South Africa and Australia’s Hunter Valley region, Whitehaven said in its statement.

That’s been a particular issue for China, the top producer and consumer of the fuel. The National Development and Reform Commission, China’s top planning agency, pledged Wednesday to boost local output and raise imports to ensure sufficient supply through winter.

“China’s dependence on the seaborne market remains strong,” Whitehaven said. “Attempts to expand domestic coal production have been disappointing against a backdrop of strengthening energy demand.”

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Orica reveals ambitions to achieve net zero by 2050

Tom Parker

O

RICA has set a target for its decarbonisation efforts, announcing its goal to reach net zero emissions by 2050, covering scope 1, 2 and 3 greenhouse gas (GHG) emissions sources.

The commitment extends on Orica’s previously established target to reduce scope 1 and 2 operational emissions by at least 40 per cent by 2030, which the company announced in November 2020.

Orica has outlined measures it is putting in place in pursuit of its net zero emissions ambition.

The company will look to reduce its operational footprint, prioritising scope 1 and 2 operational emissions reductions through the deployment of tertiary catalyst abatement technology, sourcing renewable energy and optimising energy efficiency and industrial processes.

Orica will collaborate with its suppliers along the way, engaging proactively as new and emerging technologies arrive and become commercial.

Orica aims to partner with suppliers to source lower-emissions-intensity ammonium nitrate (AN) and ammonia for its products to reduce the company’s scope 3 emissions.

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It is also important to Orica to report its progress along the way and transparently disclose performance in line with the taskforce recommendations on climate-related financial disclosure.

Orica managing director and chief executive officer Sanjeev Gandhi said the company’s commitment is an important extension of its initial 2030 emission-reduction goals.

“Our ambition of net zero emissions by 2050 shows our commitment to playing a part in achieving the goals of the Paris Agreement,” he said.

“This is a strong signal that the decarbonisation of Orica will, and must, continue beyond 2030 and requires a collaborative approach across all of our stakeholders.”

Gandhi said he is excited by the progress already made at Orica.

“We’re making solid progress having already achieved a 9 per cent emissions reduction in the 2020 financial year and further reductions this financial year,” he said.

“We’ve taken our 2030 medium-term target and extended our planning over the long term, developing a credible roadmap to support our ambition to achieve net zero emissions by 2050.”

However, Gandhi said Orica must remain vigilant and is already putting the infrastructure in place to do so.

“Over the next decade, Orica is deploying tertiary catalyst abatement, prioritising renewable energy opportunities and supporting a trial of carbon capture utilisation and storage technology,” he said.

“Beyond 2030, how we achieve our ambition is dependent on effective global policy frameworks, supportive regulation and financial incentives, and access to new and emerging technologies operating at commercial scale.”

ERM on executing the mining sector’s sustainability strategies

Posted by Daniel Gleeson

W

ITH sustainability close to the number one topic shaping the business landscape, the mining industry faces perhaps more scrutiny today than ever before. From stakeholder engagement to employee welfare and the emissions generated from using mined commodities, there is a spectrum of issues on which mining companies are judged. Not just by traditional critics such as NGOs, but increasingly by policymakers, investors and consumers themselves.

As a result, mining companies are seeking the advice of consultants that live and breathe environmental, social and governance (ESG) issues to adapt to this evolving backdrop (see the mining consultants focus in IM October 2021 for more on this).

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In this regard, they don’t come much bigger than ERM, which calls itself the largest global pure play sustainability consultancy. With a remit that goes into strategic, operational and tactical challenges, the company’s services have been in serious demand of late.

Louise Pearce, ERM Global Mining Lead; Jonathan Molyneux, ERM Mining ESG Strategy Lead;

Peter Rawlings, Low Carbon Economy Transition Lead; and Geraint Bowden, Regional Client Director – Mining, were happy to go into some detail about how the company is serving the industry across multiple disciplines.

In demand

According to the four, there is increasing demand for services from miners interested in energy/battery minerals (lithium, cobalt, nickel, copper, platinum, palladium and rhodium (PGMs)) on the back of rising numbers of new mines coming onto the scene, “shorter supply chains to customers”, the perceived need to secure domestic supply of these minerals, and requirements of “evidence of responsibly-produced certifications from industry organisations such as the Initiative for Responsible Mining Assurance (IRMA)”.

Such trends have been underwritten by a shift in both the requirements and considerations around the extraction of these minerals, according to Molyneux.

“In the last five to seven years, the main ESG incentives for change have come from access to capital (ie investor ESG preferences, especially in relation to catastrophic incidents),” he said.

“Over the last three years, we have seen a strong rise in expectations from downstream customers, particularly leading brands.”

Automotive original equipment manufacturers like BMW and Daimler are placing sustainability at the centre of their brands, according to ERM. Their initial focus has been on

‘net-zero’ driving/electrification – and they have made progress on this with several major electric car launches. They then shifted to examining the carbon emissions and ESG, or responsible practices, of tier-one and tier-two component manufacturers. The last step has been a full analysis of the ESG credentials of input materials right back to source, ie the mine.

“We see a shift from the historic lens of customers managing supply risk by sourcing from organisations which ‘do little/no harm’ (eg human rights compliance, catastrophic incident avoidance) to supply partners that can contribute to the ‘do net good’ or ‘create value for all stakeholders’ (ie communities, workforce, nature positive),” Pearce said.

Such a shift has resulted in more clients considering “circular thinking” in their operational strategy, as well as carrying out risk reviews and transformation projects focused on a company’s social or cultural heritage. Tied to this, these same companies have been evaluating their water use, biodiversity requirements and, of course, decarbonisation efforts.

It is the latter on which the steel raw materials companies predominantly have been looking for advice, according to ERM.

The focus has been on ‘green’ iron ore, low-carbon steel and ‘circular’ steel, according to Molyneux and Bowden, with ERM providing input on how companies in this supply chain can integrate sustainability into their strategy and operations.

On the thermal coal side, meanwhile, it is a very different type of ERM service in demand:

mine retirements, closure/local/regional regeneration transitions and responsible disposals.

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Delivering on decarbonisation

The mining industry decarbonisation targets have come thick and fast in the last 18-24 months, with the latest announcement from the International Council on Mining and Metals (ICMM) seeing all 28 mining and metals members sign up to a goal of net zero Scope 1 and 2 greenhouse gas (GHG) emissions by 2050 or sooner, in line with the ambitions of the Paris Agreement.

Many have gone further than Scope 1 (direct emissions from owned or controlled sources) and Scope 2 (indirect emissions from the generation of purchased electricity, steam, heating and cooling consumed by the reporting company) emissions, looking at including Scope 3 (all other indirect emissions that occur in a company’s value chain) targets.

Fortescue Metals Group, this month, announced what it said is an industry-leading target to achieve net zero Scope 3 emissions by 2040, for example.

These are essential goals – and ones that all interested parties are calling for – in order to deliver on the Paris Agreement, yet many miners are not yet in the position to deliver on them, according to Pearce, Molyneux, Rawlings and Bowden.

“Miners need to look at decarbonisation at a holistic level across their operations and value chain, and cannot just delegate the net zero requirements to individual assets,” Rawlings said.

“The solutions needed require investment and are often at a scale well beyond individual assets/sites.”

Much of this decarbonisation effort mirrors other industries, with the use of alternative fuels for plant and equipment, accessing renewable electricity supplies, etc, they said.

Process-specific activities can present challenges and is where innovation is required.

“These hard to abate areas are where a lot of efforts are currently focused,” Rawlings said.

Tied into this discussion is the allowance and estimates made for carbon.

There has been anecdotal evidence of miners taking account of carbon in annual and technical reports – a recent standout example being OZ Minerals inclusion of a carbon price in determining the valuation of its Prominent Hill shaft expansion project in South Australia – but there is no current legislation in place.

“We are seeing a broad spectrum of price and sophistication (targeted audience, knowledge level), but it is an active board level discussion for most clients,” Bowden said on this subject.

“Most clients view this as market-driven requirements as opposed to a voluntary disclosure.”

This has been driven, in part, from the recommendations of the Task Force on Climate- Related Financial Disclosures, which many miners – including all the majors – are aligning their reporting with.

Some clients are also looking into scenarios to work around carbon regimes such as the Carbon Border Adjustment Mechanism, which proposes a carbon-based levy on imports of specific products.

Having acquired several companies in recent months focused on the low carbon economy transition – such as E4tech, Element Energy and RCG – ERM feels best placed to provide the technical expertise and experience to deliver the sustainable energy solutions miners require to decarbonise their operations.