TABLE OF CONTENTS. No. Title Media Source Page

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Daily News Update Page 1

UMN tambang batu bara PT Bukit Asam Tbk (PTBA) menargetkan produksi batu-bara tahun 2021 bisa naik lebih dari 20% dibanding tahun 2020 yang produksinya di kisaran 24 juta ton hingga 25 juta ton. "Kalau di rencana kita, 30 juta ton pro-duksi/tahun 2021. Akan lihat perkem-bangan. Kendala bukan stok tapi demand. Kalau demand banyak, yaa ditingkatkan produksi," ujar Direktur Utama PTBA, Arviyan Arifin kepada CNBC Indonesia di Jakarta, Rabu (27/1/2021).

Dia merasa, permintaan batubara belum akan kembali stabil seperti semula, saat pandemi belum terjadi. Menurutnya, per-mintaan akan sangat tergantung dari bagaimana suksesnya program vaksinasi yang dilakukan pemerintah.

"Adanya vaksin, buat saya secercah harapan pemulihan ekonomi. Banyak negara yang vaksin, dengan berhasilnya vaksin ekonomi membaik, tantangan bagaimana pemulihan pandemi bisa selesai," imbuhnya.

Terkait perubahan cuaca yang tidak stabil, seperti La Nina, perusahaan harus meng-atur strategi yang tepat. Hal ini harus dilakukan agar rencana produksi per-usahaan tidak terganggu.

"Yang pasti saat hujan berhenti bekerja. Safety nomor satu, musim panas harus dimaksimalkan," pungkasnya. (dob/dob)

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Freeport Indonesia Production

and Sales in 2020: Copper

Rises, Gold Even Declines

Reporter: Ridwan Nanda Mulyana | Editor: Anna Suci Perwitasari

P

T FREEPORT Indonesia (PTFI) recorded

a significant increase in terms of copper production and sales throughout 2020. On the other hand, PTFI recorded a decrease in gold production.

Based on the Freeport-McMoran (FCX) Fourth-Quarter and Year Ended 2020 report, PTFI produced 809 million pounds of copper. This number is up 33.27% compared to the realization of production in 2019 which was only 607 million pounds.

In line with that, PTFI's copper sales volume also shot up 20.53% from 667 million pounds in 2019 to 804 million pounds last year.

The average realized price for copper also rose, from US$ 2.72 per pound in 2019 to US$ 3.08 per pound last year.

Unfortunately, the increase in copper was not followed by gold commodities. Over the past year, PTFI's gold production was only 848,000 ounces or a slight decrease of 1.73% compared to 2019 which amounted to 863,000 ounces.

Meanwhile, PTFI gold sales in 2020 were recorded at 842,000 ounces, a decrease of 13.46% compared to sales in 2019 which amounted to 973,000 ounces. In fact, the realization of the average price of gold rose from US$ 1,416 per ounce in 2019 to US$ 1,832 per ounce in 2020.

Produksi dan penjualan

Freeport Indonesia di 2020:

Tembaga naik, emas malah

turun

Reporter: Ridwan Nanda Mulyana | Editor: Anna Suci Perwitasari

P

T FREEPORT Indonesia (PTFI)

men-catatkan peningkatan yang cukup signifikan dari sisi produksi dan penjualan tembaga sepanjang tahun 2020 silam. Sebaliknya, PTFI malah mencatat penu-runan pada produksi emas.

Berdasarkan laporan Fourth-Quarter and Year Ended 2020 Freeport-McMoran (FCX), PTFI memproduksi 809 juta pon tembaga. Jumlah ini naik 33,27% diban-dingkan realisasi produksi tahun 2019 yang hanya 607 juta pon.

Sejalan dengan itu, volume penjualan tembaga PTFI pun melesat 20,53% dari 667 juta pon pada 2019 menjadi 804 juta pon di tahun lalu.

Harga realisasi rata-rata tembaga juga naik, dari US$ 2,72 per pon pada 2019 menjadi US$ 3,08 per pon pada tahun lalu. Sayangnya, kenaikan dari tembaga tak diikuti oleh komoditas emas. Sepanjang tahun lalu, produksi emas PTFI hanya 848.000 ons atau turun tipis 1,73% dibandingkan tahun 2019 yang sebesar 863.000 ons.

Sementara itu, penjualan emas PTFI pada 2020 tercatat 842.000 ons, merosot 13,46% dibanding realisasi penjualan pada 2019 yang sebanyak 973.000 ons. Padahal, realisasi rata-rata harga emas menanjak dari US$ 1.416 per ons pada 2019 menjadi US$ 1.832 per ons di 2020.

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Daily News Update Page 5 President and Chief Executive Officer of

Freport-Mc.Moran Richard C. Adkerson said last year his company was still trying to increase production from PTFI's underground mining. According to him, efforts to increase production in the Papua Grasberg mineral area will continue according to schedule.

During the fourth quarter of 2020, 56 new drawbells were built in the Grasberg Block Cave and Deep Mill Level Zone (DMLZ). Currently there are more than 370 drawbells that have been opened.

Drawbells are openings for extracting ore in underground mines using the block caving method. With the addition of the drawbell, the combined average production from the Grasberg Block Cave and DMLZ mines was approximately 85,000 metric tons of ore per day during Q4 2020.

"During 2020 we built momentum to increase underground mining, and in the fourth quarter we have achieved nearly 70% of the target annual sales rate," said Adkerson in a conference call held on Tuesday (26/1) local time.

In 2021, PTFI's copper and gold production is targeted to be close to double the realization in 2020. This year, PTFI's copper production is targeted to approach 1.4 billion pounds of copper while gold is 1.4 million ounces.

PTFI also targets to be able to produce an annual average of 1.55 billion pounds of copper and 1.6 million ounces of gold in the next few years in line with efforts to ramp up the claimed production on schedule.

As for sales, PTFI targets volume to reach 1.3 billion pounds of copper and 1.3 million ounces of gold this year.

President and Chief Executive Officer

Freport-Mc.Moran Richard C. Adkerson mengatakan, tahun lalu pihaknya masih mengupayakan peningkatan produksi dari tambang bawah tanah PTFI. Menurutnya, upaya peningkatan produksi di kawasan mineral Grasberg Papua itu terus berlanjut sesuai jadwal.

Selama kuartal IV-2020, ada 56 drawbell baru yang dibangun di Grasberg Block Cave dan Deep Mill Level Zone (DMLZ). Saat ini terdapat lebih dari 370 drawbell yang telah dibuka.

Drawbell merupakan bukaan untuk pengambilan bijih (ore) di tambang bawah tanah dengan metode ambrukan (block caving). Dengan tambahan drawbell ter-sebut, produksi rata-rata gabungan dari tambang Grasberg Block Cave dan DMLZ mencapai sekitar 85.000 metrik ton bijih per hari selama Kuartal IV-2020.

"Selama 2020 kami membangun momentum untuk meningkatkan tambang bawah tanah, dan pada Kuartal keempat kami telah mencapai hampir 70% dari target tingkat penjualan tahunan," ungkap Adkerson dalam conference call yang digelar Selasa (26/1) waktu setempat. Pada tahun 2021, produksi tembaga dan emas PTFI ditargetkan mendekati dua kali lipat dari realisasi tahun 2020. Tahun ini, produksi tembaga PTFI ditargetkan bisa mendekati 1,4 miliar pon tembaga sedang-kan emas sebanyak 1,4 juta ons.

PTFI pun menargetkan bisa memproduksi tahunan rata-rata sebesar 1,55 miliar pon tembaga dan 1,6 juta ons emas pada beberapa tahun ke depan seiring dengan upaya peningkatan produksi (ramp up) yang diklaim sesuai jadwal.

Sedangkan untuk penjualan, PTFI me-nargetkan volume mencapai 1,3 miliar pon tembaga dan 1,3 juta ons emas pada tahun ini.

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Daily News Update Page 6 Even so, Adkerson said that the 2021

target was still challenging as the Covid-19 pandemic health protocol continued. "It is hoped that sustainable growth during 2021 will enable us to reach our full annual target," he said.

On the investment side, PTFI's annual capex for underground mining develop-ment projects is expected to average around US$ 0.9 billion per year for the period 2021 to 2022.

Meski begitu, Adkerson mengatakan bahwa target 2021 masih menantang seiring dengan protokol kesehatan pandemi Covid-19 yang masih berlanjut. "Pertumbuhan yang berkelanjutan selama 2021 diharapkan memungkinkan kami mencapai target tahunan penuh," ungkap dia.

Dari sisi investasi, belanja modal (capex) tahunan PTFI untuk proyek pengembangan tambang bawah tanah diharapkan mencapai rata-rata sekitar US$ 0,9 miliar per tahun untuk periode 2021 hingga 2022.

Acquisition of Mineral Mining

Concession Holder, Darma

Henwa Begins Business

Diversification

Editor

P

T DARMA Henwa Tbk (DEWA) acquired

99.89% shares of PT Sabina Mahardika, a gold and mineral mining concession holder in Aceh. The acquisition is one of Darma Henwa's business expansion and diver-sification.

Mukson Arif Rosyidi, Chief Investor & Corporate Secretary of Darma Henwa, said that the acquisition of 99.89 percent of Sabina's shares indirectly led the company to own GMR shares through PT Mahadaya Imajinasi Nusantara with 99.18 percent ownership.

"By indirectly owning GMR, the company's operations will be better because it will be able to exploit the mineral mine," said Mukson in his disclosure on Tuesday (26/1). According to Mukson, if it is already operational, Darma Henwa's financial condition will be better with additional revenue from the GMR project.

Akuisisi Pemegang Konsesi

Tambang Mineral, Darma

Henwa Mulai Diversifikasi

Usaha

Redaktur

P

T DARMA Henwa Tbk (DEWA)

meng-akuisisi 99,89% saham PT Sabina Mahardika, pemegang konsesi tambang emas dan mineral di Aceh. Akuisisi tersebut merupakan salah satu ekspansi dan diversifikasi usaha Darma Henwa.

Mukson Arif Rosyidi, Chief Investor & Corporate Secretary Darma Henwa, mengata-kan akuisisi 99,89% saham Sabina secara tidak langsung membuat perseroan memiliki saham GMR melalui PT Mahadaya Imajinasi Nusantara dengan kepemilikan 99,18%. “Dengan memiliki secara tidak langsung GMR, operasional perseroan menjadi lebih baik karena akan dapat mengeksploitasi tambang mineral tersebut,” kata Mukson dalam keter-bukaan informasinya, Selasa (26/1).

Menurut Mukson, jika sudah beroperasi, kondisi keuangan Darma Henwa akan lebih baik dengan adanya tambahan pendapatan dari proyek GMR.

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Daily News Update Page 7 The company's business continuity will

also be better, because in addition to focusing on mining contractor services, it will also have mineral mining concessions. Darma Henwa, a company affiliated with the Bakrie Group, has posted a net profit of US$ 895.25 thousand for nine months 2020, down 24.78 percent compared to the same period last year of US$ 1.19 million. The decrease in net profit was influenced by an increase in financial expenses which reached US$ 8.1 million compared to the nine-month period 2019 of US$ 3.81 million.

Darma Henwa's coffers, which until the third quarter of 2020 reached US$ 239.31 million, slightly increased compared to the same period last year of US$ 237.92 million, most of which came from PT Kaltim Prima Coal and PT Arutmin Indonesia, coal mining companies that still related to the company. (AT)

Kelangsungan usaha perseroan juga akan lebih baik, karena selain fokus pada jasa kontraktor pertambangan juga akan me-miliki konsesi tambang mineral.

Darma Henwa, perusahaan yang berafiliasi dengan Grup Bakrie, hingga sembilan bulan 2020 membukukan laba bersih US$895,25 ribu, turun 24,78% dibanding periode yang sama tahun lalu sebesar US$1,19 juta. Penurunan laba bersih dipengaruhinya peningkatan beban keuangan yang mencapai US$8,1 juta dibanding periode sembilan bulan 2019 sebesar US$3,81 juta.

Pundi-pundi pendapatan Darma Henwa yang hingga kuartal III 2020 mencapai US$239,31 juta, naik tipis dibanding periode yang sama tahun lalu US$237,92 juta, sebagian besar berasal dari PT Kaltim Prima Coal dan PT Arutmin Indonesia, perusahaan tambang batu bara yang masih berelasi dengan perseroan. (AT)

Reject Maruwai Coal Bank

Guarantee, Here's the Plan of Lo

Kheng Hong's (PTRO) Issuer

Dhiany Nadya Utami

P

T PETROSEA Tbk. (PTRO) plans to

follow up on the disbursement of the bank guarantee (guarantee bond) issued to PT Maruwai Coal for road, bridge and earth-works construction projects in Murung Raya, Central Kalimantan.

In a material fact letter submitted to the Exchange authority, the company stated that it did not agree with the steps taken by PT Maruwai Coal and would take the necessary steps to refuse the disburse-ment.

Tolak Bank Garansi Maruwai

Coal, Begini Rencana Emiten

Milik Lo Kheng Hong (PTRO)

Dhiany Nadya Utami

P

T PETROSEA Tbk. (PTRO) berencana

menindaklanjuti pencairan bank garansi (guarantee bond) yang diterbitkan bagi PT Maruwai Coal untuk proyek konstruksi jalan, jembatan, dan pekerjaan tanah di Murung Raya Kalimantan Tengah.

Dalam surat fakta material yang di-sampaikan ke otoritas Bursa, perseroan menyatakan tidak setuju dengan langkah-langkah yang dilakukan oleh PT Maruwai Coal dan akan menempuh langkah-langkah yang diperlukan untuk menolak pencairan.

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Daily News Update Page 8 "The company has appointed its attorney

and submitted its objection to the invoice of PT Maruwai Coal," wrote PTRO Director Meinar Kusumastuti in the letter, as quoted by Bisnis, Wednesday (27/1/2021).

Meinar also conveyed the chronology of the bank guarantee disbursement, which initially on 18 December 2020 the company received an invoice from Maruwai Coal for a payment of IDR60.01 billion within 30 days.

According to him, the company has submitted an objection to the invoice submission from Maruwai Coal. However, on January 25, 2021, the issuer coded as PTRO received a notification from PT Bank Mandiri that the funds under the bank guarantee had been paid to Maruwai Coal in the amount of the invoice.

This incident has resulted in a poor record of the company's performance at the bank providing facilities, especially because the company objected to the basis of the issuance of the invoice.

"Due to the receipt of funds by PT Maruwai Coal on funds paid by the bank, the company will take all necessary steps to protect its interests," added Meinar.

As is well known, Petrosea is a company engaged in mining construction. Most of Petrosea's shares are owned by PT Indika Energy Tbk. Another shareholder is seasoned investor Lo Kheng Hong who narrowed a 15 percent stake. Editor: Rivki Maulana

“Perseroan telah menunjuk kuasa hukum-nya dan mehukum-nyampaikan keberatanhukum-nya terhadap invoice PT Maruwai Coal,” tulis Direktur PTRO Meinar Kusumastuti dalam surat tersebut, seperti dikutip Bisnis, Rabu (27/1/2021).

Meinar juga menyampaikan kronologis pencairan bank garansi tersebut, yang mana awalnya pada 18 Desember 2020 perseroan menerima invoice dari Maruwai Coal untuk pembayaran senilai Rp60,01 miliar dalam jangka waktu 30 hari.

Menurutnya, perseroan sudah menyam-paikan keberatan terhadap pengajuan invoice dari Maruwai Coal. Namun, pada 25 Januari 2021 emiten bersandi PTRO itu menerima pemberitahuan dari PT Bank Mandiri bahwa dana dalam bank garansi telah dibayarkan kepada Maruwai Coal senilai invoice.

Kejadian tersebut telah mengakibatkan adanya catatan buruk atas performa perseroan pada bank penyedia fasilitas, terutama karena perseroan keberatan dengan dasar dari penerbitan invoice. “Karena penerimaan dana oleh PT Maruwai Coal atas dana yang dibayarkan oleh bank, perseroan akan mengambil seluruh langkah yang diperlukan untuk melindungi kepentingannya,” tambah Meinar.

Sebagaimana diketahui, Petrosea merupa-kan perusahaan yang bergerak di bidang konstruksi pertambangan. Sebagian besar saham Petrosea dimiliki oleh PT Indika Energy Tbk. Pemegang saham lain adalah investor kawakan Lo Kheng Hong yang mengempit 15 persen saham. Editor : Rivki Maulana

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Antam (ANTM) has a bauxite

export permit of 1.89 million

tons until 2022

Reporter: Ridwan Nanda Mulyana | Editor: Yudho Winarto

P

T ANEKA Tambang Tbk (ANTM)

obtained metal mineral export approval for export sales of washed bauxite ore with Al2O3 content = 42% of 1.89 million wet metric tons (wmt) for the period 2021-2022.

ANTM Corporate Secretary Kunto Hendrapawoko said that the export permit was granted for the implementation of the downstream project for the construction of the Smelter Grade Alumina Refinery (SGAR) factory.

This complements ANTAM's previous bauxite ore export license of 840,000 wmt on the ownership of the Chemical Grade Alumina (CGA) Factory in Tayan.

Based on the Regulation of the Minister of Energy and Mineral Resources No. 17 of 2020 concerning Mineral and Coal Mining Business, ANTM is included in the criteria for companies holding Bauxite Production Operation Mining Permits (IUP) that already own and operate and develop mineral refining facilities in the country. "Therefore, currently ANTM is allowed to export washed bauxite ore with Al2O3 content = 42%, by obtaining a recommen-dation for export approval that is extended annually until 2023," said Kunto in a written statement to Kontan.co.id., Thursday (28/1).

Antam (ANTM) kantongi izin

ekspor bauksit 1,89 juta ton

hingga tahun 2022

Reporter: Ridwan Nanda Mulyana | Editor: Yudho Winarto

P

T ANEKA Tambang Tbk (ANTM)

men-dapatkan persetujuan ekspor mineral logam untuk penjualan ekspor bijih bauksit tercuci dengan kadar Al2O3 = 42% sebesar 1,89 juta wet metric ton (wmt) untuk periode tahun 2021-2022.

Sekretaris Perusahaan ANTM Kunto Hendrapawoko menyampaikan bahwa izin ekspor tersebut diberikan atas pelaksanaan proyek hilirisasi pembangunan Pabrik Smelter Grade Alumina Refinery (SGAR). Hal ini melengkapi izin ekspor bijih bauksit yang telah dimiliki ANTAM sebelumnya sebesar 840.000 wmt atas kepemilikan Pabrik Chemical Grade Alumina (CGA) di Tayan.

Berdasarkan Peraturan Menteri Energi dan Sumber Daya Mineral No. 17 tahun 2020 tentang Pengusahaan Pertambangan Mineral dan Batubara, ANTM masuk dalam kriteria Perusahaan pemegang Izin Usaha Pertambangan (IUP) Operasi Produksi Bauksit yang telah memiliki dan meng-operasikan serta mengembangkan fasilitas pemurnian mineral di dalam negeri.

"Oleh sebab itu, saat ini ANTM diper-kenankan untuk melakukan ekspor bijih bauksit tercuci dengan kadar Al2O3 = 42%, dengan mendapatkan rekomendasi perse-tujuan ekspor yang diperpanjang setiap tahunnya paling lama sampai dengan tahun 2023," kata Kunto dalam keterangan tertulisnya kepada Kontan.co.id, Kamis (28/1).

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Daily News Update Page 10 In 2020, ANTAM recorded unaudited

bauxite production volume in the 4th quarter of 2020 (October-December, 4Q20) which was used in alumina production and sales to third party customers of 255,000 wmt and 4Q20 unaudited bauxite sales of 276,000 wmt. Throughout 2020, ANTM's unaudited bauxite sales reached 1.23 million wmt and unaudited bauxite production levels reached 1.55 million wmt.

"In line with the Company's development strategy, ANTM is committed to developing domestic mineral downstream projects," continued Kunto.

In terms of developing the bauxite commodity, he added, currently ANTM continues to focus on the construction of the Smelter Grade Alumina Refinery (SGAR) factory in Mempawah, West Kalimantan in collaboration with PT Inalum (Persero) which has a processing capacity of 1 million tons of SGA per year for Phase 1.

Pada tahun 2020, ANTAM mencatatkan volume produksi bauksit unaudited pada triwulan ke-4 tahun 2020 (Oktober-Desember, 4Q20) yang digunakan dalam produksi alumina serta penjualan kepada pelanggan pihak ketiga sebesar 255.000 wmt dan tingkat penjualan bauksit unaudited 4Q20 mencapai 276.000 wmt. Sepanjang tahun 2020, penjualan bauksit

unaudited ANTM mencapai 1,23 juta wmt dan tingkat produksi bauksit unaudited

mencapai 1,55 juta wmt.

"Sejalan dengan strategi pengembangan Perusahaan, ANTM berkomitmen dalam pengembangan proyek hilirisasi mineral di dalam negeri," sambung Kunto.

Dalam hal pengembangan komoditas bauksit, imbuhnya, saat ini ANTM terus berfokus pada pembangunan pabrik Smelter Grade Alumina Refinery (SGAR) di Mempawah, Kalimantan Barat bekerja-sama dengan PT Inalum (Persero) yang memiliki kapasitas pengolahan sebesar 1 juta ton SGA per tahun untuk Tahap 1.

PTBA Optimistic 0% Coal

Royalty to Drive DME Project

P

RESIDENT Director of PT Bukit Asam

Tbk (PTBA) Arviyan Arifin is optimistic that the government will support the Dimethyl Ether (DME) project as a national strategic project. This was conveyed by Arviyan in an interview with CNBC Indonesia in Jakarta, Wednesday (27/1/ 2021).

PTBA Optimistis Royalti Batu

Bara 0% Dorong Proyek DME

D

IREKTUR Utama PT Bukit Asam Tbk

(PTBA) Arviyan Arifin optimistis pemerintah akan mendukung proyek Dimethyl Ether (DME) sebagai proyek strategis nasional. Demikian disampaikan Arviyan dalam wawancara dengan CNBC Indonesia di Jakarta, Rabu (27/1/2021).

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Daily News Update Page 11 "There are many incentives so that the

economics of the project can be achieved. One of them is zero royalty on the coal used for gasification. This encourages the pioneer industry to grow immediately. With incentives, it encourages other coal players to do the same," he said.

According to Arviyan, PTBA is preparing a DME downstream project. The project is being run with PT Pertamina (Persero). Currently, Arviyan continued, PTBA is preparing conditions, so that it is hoped that the project can run in the next three months.

The two BUMNs jointly build a DME gasification plant with their respective roles. PTBA for infrastructure and land as well as providing coal.

"Pertamina will buy this product. The existence of this product will help Pertamina not import LPG," he said.

The DME factory is estimated to be operational for the next four years. He noted that 6 million tonnes of coal would produce 1.8 million tonnes of DME. (miq/miq)

"Banyaknya insentif supaya keekonomian proyek bisa tercapai. Salah satunya dengan zero royalti terhadap batubara yang dipakai gasifikasi. Hal itu mendorong industri pioneer segera tumbuh. Dengan insentif, mendorong pemain batubara lain melaku-kan hal yang sama," katanya.

Menurut Arviyan, PTBA sedang memper-siapkan proyek hilirisasi DME. Proyek itu dijalankan bersama PT Pertamina (Persero). Saat ini, lanjut Arviyan, PTBA sedang menyiapkan syarat-syarat, sehingga diharapkan proyek bisa berjalan tiga bulan ke depan.

Kedua BUMN itu bersama-sama mem-bangun pabrik DME gasifikasi dengan peran masing-masing. PTBA untuk infrastruktur dan lahan serta menyediakan batubara. "Pertamina akan membeli produk ini. Adanya produk ini akan membantu Pertamina tidak impor LPG," ujarnya.

Adapun pabrik DME tersebut diperkirakan baru bisa beroperasi empat tahun ke depan. Dia mencatat 6 juta ton batubara akan menghasilkan 1,8 juta ton DME. (miq/miq)

Coal Subject to Tax Also Affects

Supply to PLN

Rio Indrawan

A

PART from the bad weather factor, the policy of coal as a taxable good is one of the causes of disruption to the supply to power plants in Java.

Ridwan Djamaluddin, Director General of Mineral and Coal at the Ministry of ESDM, said that the issue of shortage of coal supply to power plants has indeed been resolved. Apart from natural conditions,...

Batu Bara Kena Pajak Turut

Pengaruhi Pasokan ke PLN

Rio Indrawan

S

ELAIN faktor cuaca buruk, kebijakan batu bara sebagai barang kena pajak menjadi salah satu penyebab terganggunya pasokan ke pembangkit listrik di Pulau Jawa.

Ridwan Djamaluddin, Direktur Jenderal Mineral dan Batu Bara Kementerian ESDM, mengatakan isu kekurangan pasokan batu bara ke pembangkit listrik memang sudah teratasi. Selain kondisi alam,...

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Daily News Update Page 12 Apart from natural conditions, government

policies also affect the supply of coal. This policy is related to the current status of coal as a taxable good.

"There are government policy contributions, among others, coal is taxable, right? How do you pay VAT and other things, that's why there is a situation (shortage of supply)," Ridwan said in a virtual press conference in Jakarta, Wednesday (27/1).

Coal as Taxable Goods (BKP) refers to the provisions in the Omnibus Law, the Job Creation Law Number 11 of 2020.

Ridwan explained that the tax problem imposed by coal has now been resolved after a meeting was held with PLN and coal mining business actors.

Unfortunately, he did not reveal whether there were any efforts from the govern-ment to reduce the burden on PLN due to the imposition of this tax. However, it is certain that there are no changes to the rules and PLN will comply with these regulations. "The PPN has been agreed to be paid by PLN," he said.

PLN itself is known to have held talks with the Ministry of Finance to ask for relief from this tax imposition. Moreover, coal is PLN's primary energy for generating raw materials. About 60% of PLN's electricity raw material comes from coal.

Sujatmiko, Director of Coal Development and Business of the Ministry of ESDM, previously said that PLN is currently coordinating with the Ministry of Finance (Kemenkeu) to anticipate the impact of the 10% VAT that must be borne.

"Until now, the information is that PLN still bears the VAT. Related to that, PLN is requesting approval from the Ministry of Finance to overcome or anticipate the consequences of the 10% currently borne by PLN," said Sujatmiko. (RI)

Selain kondisi alam, kebijakan pemerintah juga mempengaruhi pasokan batu bara tersebut. Kebijakan tersebut terkait dengan status komoditas batu bara yang kini sebagai barang kena pajak.

“Ada kontribusi kebijakan pemerintah antara lain, batu bara kena pajak kan. PPN bagaimana bayarnya dan lain-lain, itu makanya ada situasi itu (kekurangan pasokan),” kata Ridwan dalam konferensi pers secara virtual di Jakarta, Rabu (27/1).

Batu bara menjadi Barang Kena Pajak (BKP) merujuk pada ketentuan dalam Omnibus Law, Undang Undang Cipta Kerja No.11 Tahun 2020. Ridwan menjelaskan masalah perpajakan yang dikenakan batu bara kini sudah selesai setelah dilangsungkan pertemuan dengan PLN maupun pelaku usaha tambang batu bara.

Sayangnya ia tidak beberkan ada tidaknya upaya dari pemerintah untuk mengurangi beban PLN akibat pengenaan pajak tersebut. Namun dipastikan tidak ada perubahan aturan dan PLN akan patuh terhadap aturan tersebut. “PPN sudah disepakati akan dibayar PLN,” tukasnya.

PLN sendiri diketahui sempat melakukan pembicaraan dengan Kementerian Keuangan untuk meminta keringanan atas pengenaan pajak tersebut. Apalagi batu bara adalah energi primer PLN untuk bahan baku pem-bangkitnya. Sekitar 60% bahan baku listrik PLN berasal dari batu bara.

Sujatmiko, Direktur Pembinaan dan Peng-usahaan Batubara Kementerian ESDM, sebelumnya mengatakan saat ini PLN sedang berkoordinasi dengan Kementerian Keuangan (Kemenkeu) untuk mengantisipasi dampak dari 10% PPN yang harus ditanggung.

“Sampai saat ini infonya PLN masih menang-gung PPN-nya. Terkait itu PLN sedang me-minta persetujuan kepada Kemenkeu untuk mengatasi atau mengantisipasi konsekuensi 10% yang saat ini ditanggung PLN,” ungkap Sujatmiko. (RI)

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54 Coal Companies Are Ready to

Meet PLN's Needs

Denis Riantiza Meilanova

A

TOTAL of 54 coal companies are said to

have committed to meet coal supply to PT PLN (Persero)'s power plants according to the contract.

This commitment follows the depletion of coal supplies at PLN's power plants due to extreme weather.

Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources Ridwan Djamaluddin said that the extreme weather in coal-producing areas, especially South Kalimantan, has disrupted mining operations and coal delivery to PLN. As a result, a number of PLTUs in Java are experiencing shortages of supply.

"What is constrained is not all directly to mining operations, but road and river infrastructure so that the supply of fuel for mining operations is constrained. The transport trucks are also constrained," Ridwan said in a virtual press conference, Wednesday (27/1/2021).

According to him, so far there are four coal companies in South Kalimantan that have been affected by the flood, namely PT Prolindo, PT Binuang Mitra Bersama, PT Arutmin Indonesia, and PT Bhumi Rantau Energi.

Apart from weather constraints, Ridwan acknowledged that not all coal suppliers to PLN had run their supplies according to the contract.

On the other hand, due to the enactment of Law no. 11/2020 concerning Job Creation which includes coal as a taxable item, making coal purchases subject to value added tax (VAT).

54 Perusahaan Batu Bara Siap

Penuhi Kebutuhan PLN

Denis Riantiza Meilanova

S

EBANYAK 54 perusahaan batu bara

disebut telah berkomitmen untuk memenuhi pasokan batu bara ke pembangkit listrik PT PLN (Persero) sesuai dengan kontrak.

Komitmen ini menyusul menipisnya pasokan batu bara di pembangkit PLN akibat cuaca esktrem.

Direktur Jenderal Mineral dan Batubara Kementerian Energi dan Sumber Daya Mineral Ridwan Djamaluddin mengatakan bahwa cuaca ekstrem yang terjadi di daerah penghasil batu bara, terutama Kalimantan Selatan, telah menganggu kegiatan operasi penambangan dan pengiriman batu bara ke PLN. Akibatnya, sejumlah PLTU di Jawa mengalami kekurangan pasokan.

"Yang terkendala tidak semua langsung ke operasi penambangan, tapi infrastruktur jalan dan sungai sehingga pasokan bahan bakar untuk operasi tambang terkendala. Truk-truk pengangkutnya juga terkendala," ujar Ridwan dalam konferensi pers secara virtual, Rabu (27/1/2021).

Menurutnya, sejauh ini ada empat per-usahaan batu bara di Kalimantan Selatan yang terdampak banjir, yakni PT Prolindo, PT Binuang Mitra Bersama, PT Arutmin Indonesia, dan PT Bhumi Rantau Energi. Selain kendala cuaca, Ridwan mengakui bahwa belum semua pemasok batu bara ke PLN menjalankan pasokannya sesuai kontrak.

Di sisi lain, akibat berlakunya Undang-Undang No. 11/2020 tentang Cipta Kerja yang memasukkan batu bara sebagai barang kena pajak, membuat pembelian batu bara dikenai pajak pertambahan nilai (PPN).

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Daily News Update Page 14 This new provision also affects the supply

of coal to PLN.

"B to B [business to business] between PLN and suppliers, they have their own contracts. It must be admitted that not all are as beautiful as heaven, some are not. There is also a contribution from government policies, including making coal a taxable item. There must be VAT, who pays, how to pay, that's something new," he said.

To overcome this situation, the Ministry of ESDM has invited 54 coal companies that supply PLN to ensure their commitment to fulfill coal supply obligations in accordance with the contract and time frame agreed with PLN.

Ridwan said that the government continues to ensure that the use of coal to meet domestic needs is a priority.

Through the Decree of the Minister of ESDM Number 255K/30/MEM/2020 concerning the Fulfillment of Domestic Coal Needs in 2021, the government has set a minimum percentage of DMO (domestic market obligation) coal sales of 25 percent of the planned total coal production in 2021 which is approved by the government.

"Exports can only be allowed if 25 percent has been fulfilled. We also appreciate these companies [54 companies], they are not only 25 percent, they also supply more," said Ridwan.

Meanwhile, this year coal production is targeted to reach 550 million tons. Of this amount, 137.5 million tonnes are targeted to fulfill the DMO, while coal demand for electricity is projected to reach 113 million tonnes. Editor: Zufrizal

Ketentuan baru ini juga turut me-mengaruhi pasokan batu bara ke PLN. "B to B [business to business] antara PLN dan pemasok, mereka punya kontrak sendiri. Harus diakui belum semua seindah surga, ada yang enggak pas memang. Juga ada kontribusi kebijakan pemerintah, antara lain menjadikan batu bara barang kena pajak. Harus ada PPN, siapa yang bayar, gimana bayarnya, itu sesuatu yang baru," katanya.

Untuk mengatasi situasi ini, Kementerian ESDM telah mengundang 54 perusahaan batu bara pemasok PLN untuk memastikan komitmennya memenuhi kewajiban pasokan batu bara sesuai dengan kontrak dan waktu yang disepakati dengan PLN. Ridwan menuturkan bahwa pemerintah terus memastikan penggunaan batu bara untuk memenuhi kebutuhan dalam negeri menjadi prioritas.

Melalui Keputusan Menteri ESDM Nomor 255K/30/MEM/2020 tentang Pemenuhan Kebutuhan Batubara Dalam Negeri Tahun 2021, pemerintah telah menetapkan persentase minimal penjualan batu bara DMO (domestic market obligation) sebesar 25 persen dari rencana jumlah produksi batu bara tahun 2021 yang disetujui oleh pemerintah.

"Ekspor baru boleh kalau 25 persen ini sudah terpenuhi. Kami apresiasi juga dari perusahaan-perusahaan tadi [54 per-usahaan], mereka bukan hanya 25 persen, lebih pun mereka pasok," kata Ridwan. Adapun, tahun ini produksi batu bara ditargetkan mencapai 550 juta ton. Dari jumlah tersebut, sebanyak 137,5 juta ton ditargetkan untuk pemenuhan DMO, sedangkan kebutuhan batu bara untuk kelistrikan diproyeksi mencapai 113 juta ton. Editor : Zufrizal

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Delayed Delivery, Coal Stock at

PLN PLTU Critical

T

HE MINISTRY of Energy and Mineral

Resources (ESDM) revealed that the constraints on coal delivery have made its availability in a number of Steam Power Plants (PLTU) running low. In fact, stocks in a number of PT PLN (Persero) 's power plants are critical.

"Gradually, the coal stock (in PLTU) decreases. Usually, it is safe 15 days later that this slowdown (coal delivery) will erode the stock. The normal ones are alert, some are in an emergency, some are even critical," said the Director General of Electricity, ESDM. Rida Mulyana in a press conference for the Primary Energy Supply Chain for Power Plants, Wednesday (27/1).

However, Rida did not specify the number of PLTUs whose coal stocks declined. Floods and unfriendly weather have made the period for sending coal stocks from South Kalimantan to power plants in Java, Madura and Bali (Jamali) longer. He explained the normal time required is 4 days, then increased to 7 days or more due to this condition.

Nevertheless, Rida emphasized that fuel oil (BBM) is the final option for operating the power plant.

The government will encourage PLN to use gas as a substitute for coal if the supply at the plant is running low. If the use of gas is at its maximum, then the Ministry of ESDM will encourage the use of BBM.

"Even if the gas is stuck, the maximum is still not enough. To meet our needs, we are very, very forced, we use BBM," he said.

Pengiriman Molor, Stok Batu

Bara di PLTU PLN Kritis

K

EMENTERIAN Energi dan Sumber Daya

Mineral (ESDM) mengungkapkan kendala pengiriman batu bara membuat ketersedia-annya di sejumlah Pembangkit Listrik Tenaga Uap (PLTU) menipis. Bahkan, stok di sejum-lah pembangkit PT PLN (Persero) kritis. "Lambat laun stok batu bara (di PLTU) berkurang. Biasanya, aman 15 hari kemudian perlambatan (pengiriman batu bara) ini yang menggerus stok. Yang normal jadi siaga, ada yang kondisi darurat, malah ada yang kritis," ujar Direktur Jenderal Ketenagalistrikan ESDM Rida Mulyana dalam konferensi pers Rantai Pasok Energi Primer Pembangkit Listrik, Rabu (27/1).

Namun, Rida tak merinci jumlah PLTU yang stok batu baranya merosot.

Banjir serta cuaca yang tidak bersahabat membuat jangka waktu pengiriman stok batu bara dari Kalimantan Selatan ke pembangkit di Jawa, Madura, dan Bali (Jamali) bertambah lama. Ia menerangkan waktu normal yang dibutuhkan yakni 4 hari, kemudian bertam-bah menjadi 7 hari atau lebih akibat kondisi tersebut.

Kendati demikian, Rida menegaskan Bahan Bakar Minyak (BBM) menjadi opsi akhir untuk mengoperasikan pembangkit.

Pemerintah akan mendorong PLN untuk

menggunakan gas sebagai substitusi batu bara apabila pasokan di pembangkit sudah menipis. Apabila penggunaan gas sudah maksimum, baru KESDM mendorong penggunaan BBM.

"Kalaupun gasnya sampai mentok, maksimum masih kurang juga, untuk penuhi kebutuhan, kami dengan sangat sangat sangat terpaksa, kami gunakan BBM," ujarnya.

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Daily News Update Page 16 Fuel is the final option for plant operation

because it is the most expensive, so it can affect the basic cost of electricity. Apart from this option, he said the Ministry of ESDM is still looking for another way, namely proposing the use of cargo ships to load coal.

The consideration is that carrying coal using cargo ships can protect coal from rain so that its quality is maintained. In addition, the cargo of cargo ships reached 62 thousand metric tons (MT) higher than barges, which was 7,000 MT.

The problem, he said, is that not all ports can accommodate cargo ships. The Ministry of ESDM has also made efforts to deliver coal from East Kalimantan and South Sumatra.

"We will shift or reschedule the maintenance time for the generator. If it is scheduled in these months we will reschedule it in the second semester. This means that there is no shortage of electricity supply due to maintenance," he explained.

On the same occasion, the Director General of Mineral and Coal at the Ministry of ESDM Ridwan Djamaluddin said there were 4 coal mining companies in South Kalimantan that were affected by the flood disaster.

The four companies are PT Prolindo Cipta Nusantara, PT Binuang Mitra Bersama, PT Arutmin Indonesia, and PT Bhumi Rantau Energi.

"What is constrained is not all directly related to mining operations, but also road and river infrastructure, so that the supply of fuel for mining operations and transport vessels is also constrained," Ridwan explained. (ulf/sfr)

BBM menjadi opsi akhir operasional pem-bangkit lantaran harganya paling mahal, sehingga bisa mempengaruhi biaya pokok tenaga listrik. Selain opsi tersebut, ia mengatakan Kementerian ESDM masih mencari jalan lain, yakni mengusulkan penggunaan kapal barang untuk memuat batu bara.

Pertimbangannya, membawa batu bara menggunakan kapal barang bisa melin-dungi batu bara dari hujan sehingga kualitasnya terjaga. Selain itu, muatan kapal barang lebih besar mencapai 62 ribu metrik ton (MT) dibandingkan kapal tongkang yakni 7.000 MT.

Permasalahannya, kata dia, tidak semua pelabuhan mampu disandari kapal barang. Kementerian ESDM juga telah meng-upayakan pengiriman batu bara dari Kalimantan Timur dan Sumatera Selatan. "Kami akan menggeser atau menjadwal ulang waktu perawatan pembangkit. Kalau terjadwal di bulan-bulan ini kami jadwal ulang di semester kedua. Artinya tidak ada kekurangan pasokan listrik akibat

maintenance (perawatan)," terangnya. Dalam kesempatan yang sama, Direktur Jenderal Minerba Kementerian ESDM Ridwan Djamaluddin mengatakan ada 4 perusahan tambang batu bara di Kalimantan Selatan yang terdampak musibah banjir.

Keempat perusahaan itu yakni PT Prolindo Cipta Nusantara, PT Binuang Mitra Bersama, PT Arutmin Indonesia, dan PT Bhumi Rantau Energi.

"Yang terkendala tidak semuanya langsung kepada operasi penambangan, tapi juga infrastruktur jalan dan sungai, sehingga pasokan bahan bakar untuk operasi tambang dan kapal pengangkut juga ter-kendala," terang Ridwan. (ulf/sfr)

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Record Guys! Coal Price Breaks

Through New Highs

Tirta Citradi, CNBC Indonesia

T

HE PRICE of charcoal, aka coal, is hot. In trading on Wednesday (27/1/2021), the ICE Newcastle coal futures contract price was closed at its new high.

The contract price which was actively traded broke a new record with an appreciation of 2.54% to a level of US$ 90.8/ton. The coal price has now exceeded the previous record of US$ 90.5/ton. The opportunity for coal prices to increase again is still open. The existence of commodity supercycle sentiment made the outlook for mining and agricultural commodity prices bullish after falling in 2020 due to the Covid-19 pandemic.

Historically, the price of coal has risen to above US$ 100/ton in the post-crisis recovery period. To get to US$ 100/ton, the price of coal must first break through the psychological level of US$ 95/ton.

However, at the same time, China's thermal coal price which became the reference, Qinhuangdao 5,500 Kcal/Kg, began to be corrected. Previously, China's domestic coal price reached the level of US$ 160/ton.

As of Tuesday (26/1/2021), China's local coal prices dropped 3.32% to the level of US$ 135/ton. Since reaching its highest level on January 20, Qinhuangdao coal prices have dropped 15.88%.

Rekor Guys! Harga Batu Bara

Tembus Level Tertinggi Baru

Tirta Citradi, CNBC Indonesia

H

ARGA arang-arangan alias batu bara sedang hangat-hangatnya. Pada perda-gangan Rabu kemarin (27/1/2021) harga kontrak futures (berjangka) batu bara ICE Newcastle ditutup di level tertinggi baru-nya.

Harga kontrak yang aktif diperjualbelikan tersebut tembus rekor baru dengan apresiasi sebesar 2,54% ke level US$ 90,8/ton. Harga si batu bara kini sudah melampaui rekor sebelumnya di US$ 90,5/ton.

Peluang harga batu bara untuk naik lagi masih terbuka. Adanya sentimen

commodity supercycle membuat outlook harga-harga komoditas tambang dan pertanian menjadi bullish setelah anjlok di tahun 2020 akibat pandemi Covid-19. Secara historis harga batu bara tembus ke atas US$ 100/ton pada periode recovery

pascakrisis. Untuk sampai ke US$ 100/ton harga batu bara harus tembus level psikologis US$ 95/ton terlebih dahulu. Namun di saat yang sama harga batu bara termal China yang menjadi acuan yakni Qinhuangdao 5.500 Kcal/Kg mulai ter-koreksi. Sebelumnya harga batu bara domestik China ini tembus level US$ 160/ton.

Per Selasa (26/1/2021) harga batu bara lokal China drop 3,32% ke level US$ 135/ton. Sejak mencapai level tertingginya pada 20 Januari lalu, harga batu bara Qinhuangdao sudah melorot 15,88%.

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Daily News Update Page 18 The prospects for coal in the future are still

quite positive, supported by expensive gas prices, reduced output by producers due to falling prices during the pandemic, and increased demand in several key markets such as India and China.

China's coal production in December continued to grow for the sixth consecutive month and remained above last year's level but still insufficient to address the shortfall that led to a sharp rise in China's domestic coal prices.

According to data from the National Bureau of Statistics (NBS), China produced 351.9 million tonnes of coal in December, up 3.2% compared to December 2019. Until now, coal imports by China for the January 2021 period reached 24.58 million tons. Although this month is not yet finished, it has become the highest since June 2020. Meanwhile, new imports of coal by India were recorded at 18.69 million tons this month. Highest imports in at least the last year.

China seems to have started to loosen its import quota policy starting in December. This also coincides with the high price of domestic coal at a time when the need for electricity is rapidly increasing. Even the Chinese government made a blackout. Meanwhile, Indian coal imports tended to increase consistently from July to October last year. However, after that Indian coal imports tend to stay at the level of 17-18 million tons per month until the end of 2020. CNBC INDONESIA RESEARCH TEAM (twg/twg)

Prospek untuk batu bara ke depan masih cukup positif, didukung oleh harga gas yang mahal, penurunan output oleh produsen akibat anjloknya harga di masa pandemi hingga kenaikan permintaan di beberapa pasar utama seperti India dan China.

Produksi batu bara China pada bulan Desember terus tumbuh selama enam bulan berturut-turut dan tetap di atas level tahun lalu tetapi masih belum cukup untuk mengatasi kekurangan yang menyebabkan kenaikan tajam harga batu bara domestik China.

Menurut data dari National Bureau of Statistics (NBS), China memproduksi 351,9 juta ton batu bara pada Desember, naik 3,2% dibandingkan dengan Desember 2019.

Hingga saat ini, impor batu bara oleh China untuk periode Januari 2021 mencapai 24,58 juta ton. Meski bulan ini belum kelar, tetapi sudah menjadi yang tertinggi sejak Juni 2020. Sementara impor baru bara oleh India tercatat 18,69 juta ton pada bulan ini. Impor tertinggi dalam setidaknya setahun terakhir.

China terlihat mulai melonggarkan kebijakan kuota impornya mulai Desem-ber. Hal ini juga bertepatan dengan tingginya harga batu bara domestik di saat kebutuhan akan listrik meningkat pesat. Bahkan pemerintah China sampai melaku-kan pemadaman.

Sementara itu impor batu bara India cenderung mengalami kenaikan secara konsisten mulai bulan Juli hingga Oktober tahun lalu. Namun setelah itu impor batu bara India cenderung bertahan di level 17-18 juta ton per bulan hingga di penghujung tahun 2020. TIM RISET CNBC INDONESIA (twg/twg)

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Copper price drop hammers mining stocks

MINING.COM Staff Writer

C

OPPER prices fell sharply on Wednesday with anxiety over a “third wave” of variant

covid-19 spreading across the globe and a stronger US dollar pushing down the bellwether metal, often seen as barometer of the economy.

On the Comex market, copper for delivery in March fell as much as 2.7% to $3.5205 a pound ($7,760 a tonne) in New York, wiping all its gains so far this year amid heavy volumes.

The metal dipped below $2.00 a pound at the height of the pandemic in March, but then powered back to hit a near-eight year highs in the first week of 2021.

Industrial metals trading on the LME also retreated with nickel back below $18,000 a tonne and zinc falling 2.8% to $2,558 a tonne.

Copper stocks were the worst performers, but losses were steep across the sector. Shares in BHP Group fell 3.7%, Rio Tinto gave up 3% while Vale declined 3.8% on the day as a weaker outlook for iron ore further clouded the outlook.

Among copper companies Ivanhoe Mines, building what could be the world’s second-largest copper mine in the Congo, were hardest hit, dropping 7.5%, First Quantum Minerals fell 6.4% while Freeport McMoRan managed to curtail losses to 4.5%.

Strong fundamentals remain in place

In a recent note Moody Investor Service said prices will ease from the January highs during 2021-22 as supply normalizes through 2021, in particular in large producing countries such as Chile and Peru, which together account for about 40% of world copper production.

The market will remain tight over the next six to 12 months, with new supply delayed because lockdowns and mobility restrictions last year led copper producers to suspend projects in progress.

Industrial activity and infrastructure investment, as well as economic recovery in developed countries that are large users of copper, such as Japan, the US, and the EU and the UK will also buoy prices:

We see long-term demand fundamentals as positive, based on infrastructure investments and an ongoing gradual shift toward electric vehicles.

Incremental supply coming from greenfield projects remains limited, while some brownfield expansions will only replace depleting reserves, rather than adding to overall capacity, which supports long-term copper prices.

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Freeport sees rising copper demand boosting 2021 results

By Reuters Staff

F

REEPORT McMoRan Inc posted a quarterly profit on Tuesday that narrowly beat analysts’

estimates on rising production and prices for copper and gold, with executives forecasting continued growth for 2021.

Copper sales and prices have jumped in recent months as parts of the world - China especially - began to recover from the coronavirus pandemic. Copper demand is closely linked to economic health.

At the same time, unprecedented stimulus measures and low interest rates to cushion economies from the impact of the pandemic have benefited prices for gold, which is seen as a hedge against inflation.

Freeport’s stock, which has more than doubled in the past six months, was down 6% at $27.24 in midday trading.

Executives said production should continue to rise this year, likely allowing the company to resume its dividend, which was cut last year.

“The fundamental outlook for copper today is better than it was 10 years ago,” Freeport Chief Executive Richard Adkerson said on a Tuesday conference call.

Excluding items, Phoenix, Arizona-based Freeport reported a fourth-quarter profit of 39 cents per share, compared with analysts’ average estimate of 38 cents per share, according to IBES data from Refinitiv.

Production of copper in the quarter rose to 864 million pounds, while gold output climbed to 273,000 ounces.

Expenses fell 11.2% to $2.79 billion, helped by cost-savings plan unveiled last year.

In Indonesia, the company’s largest area of operations, Adkerson said Freeport is in talks to expand an existing smelter and also contract with a third party to build a new smelter.

Such a plan would amend an agreement Freeport made with Jakarta in 2018 to build a smelter.

Adkerson, 74 and CEO since 2003, said he has no plans to retire and is healthy. “There’s great things to come and I want to be here and be part of it,” he said.

Reporting by Arundhati Sarkar in Bengaluru and Ernest Scheyder in Houston; Editing by Anil D’Silva and Jan Harvey

(21)

Thiess cuts probe drilling costs by leveraging advanced void

management system

Posted by Daniel Gleeson

T

HIESS says its mine planning team is pioneering the development and use of an advanced

void management system that is informing probing, drill pattern and blasting design.

The holistic system gives the contractor’s office and field-based teams immediate access to a central database of void information to support better, faster decision making and task optimisation.

Thiess General Manager WA/SA (Acting), Matt Henderson, said the system focuses on capturing, monitoring and understanding existing voids to help the project team manage and backfill where required.

“It gives us and our client a clear understanding of the geological and geotechnical risks associated with the project and how to best address them,” Henderson said. “This flows from mine design into operations, enabling our project team to manage and mitigate risk to our people and delivery.”

Thiess Mine Planning Manager, Ravi Achari, said the system, designed to enable verticle mining through extensive networks of underground voids (drives, development workings, workings, vertical rises and large slopes), was developed to improve safety and provide greater certainty in the company’s delivery.

“The system was developed using insights and learnings from a number of technologies currently available on the market, but without integration were unable to provide the required outcome,” Achari said. “We also leveraged insight from our void officers and surveyors, and drill and blast, geotechnical and mine planning engineers.”

Achari confirmed the new system enables his team to determine the right solution specific to each void.

“The system uses historical plans, probing and drilling data to survey the position and size of the old workings,” he said. “This includes checking the location and attributes of the voids we find against the recorded data to verify any changes in size or shape.

“Our findings will then inform our safety zone and backfilling requirements.”

Incorporating over five-years of proven void management processes and procedures, the system delivers client benefits by enabling Thiess’ team to mine additional tonnes.

“The system gives a precise delineation of the voids informing a more tailored drill and blast design that allows additional recovery of the commodity,” Achari said. “It has also enabled a reduction of probe drilling costs by up to 25%, representing a substantial cost saving.”

To date the system has helped manage and treat over 25 km of underground voids and stopes in Western Australia, and is currently being leveraged to develop an integrated drill and blast reporting system for Thiess globally.

(22)

Baru Gold Corp. project management team mobilises to project site

Published by Jessica Casey, Editorial Assistant

B

ARU Gold Corp has announced the management engineering team has mobilised to the project site on Sangihe Island, Indonesia.

Garry Kielenstyn, Chief Operating Officer Sangihe Gold Project, and Fatchil Amal, Mine Technical Manager, join the balance of the core team already on the island. In the near-term, the team will focus on office and site setup, hiring of construction personnel and procurement of construction materials and equipment in preparation for the construction of the heap leach operation at the Sangihie gold project site.

Kielenstyn’s experiences and track record is uniquely suitable for the Sangihe Gold operation as he has extensive experience running small start-up operations in remote parts of Indonesia. He served as Indonesia Country Manager and President Director of PT Cokal, focusing on the preparation of a 260 million t coking coal project at Murung Raya, Central Kalimantan.

From May 2011 to April 2013, he was General Manager and Director at PT Batutua Tembaga Raya and PT Kharisma Permai with a focus on the preparation of the 25 000 tpy copper cathode SXEW (leach) project at Wetar, East Indonesia. From 2008 to 2011, he was the Resident Mining Manager and Director at Straits Resources during which period he was responsible for all mining activities as IMK underwent a significant recapitalisation, including upgrading JORC Resource to 730 000 gold equivalent ounces with a single large pit operation. CEO of Baru Gold, Terry Filbert, commented: “Having our senior management team mobilise from central Indonesia to the site on Sangihe Island will allow for the more efficient use of contractors, on site-setup and faster procurement of heap leach equipment. Given Garry and the team’s extensive experience in constructing larger and more complex heap leach start-up operations, I am confident in our 2Q21 start-up milestones as we continue to move the construction preparation forward while awaiting the operation license upgrade.”

Newcrest culls Cadia costs into negative territory

Nickolas Zakharia

N

EWCREST Mining has reported its lowest ever quarterly all-in-sustaining cost (AISC) at the Cadia gold-copper mine in New South Wales.

The record AISC of negative US$6 ($7.83) per ounce of gold was due to higher copper prices and sales volumes, along with the timing of sustaining capital expenditure.

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Daily News Update Page 23 Newcrest stated that the record AISC was offset by operating costs due to the strengthening Australian dollar against the US dollar and increased refining and transport costs, and royalty and concentrate treatment.

The company produced 535,477 ounces of gold and 34,557 tonnes of copper in the December quarter across its operations. This marked a 6 per cent increase to quarterly gold production, which was leveraged by reduced scheduled maintenance.

Cadia experienced a 1 per cent decrease in gold production to 194,088 ounces due to lower grades and recoveries.

Newcrest’s Telfer gold mine produced 98,855 ounces of gold in the December quarter which was 14 per cent higher than the pervious period.

Newcrest managing director and chief executive officer Sandeep Biswas said the December quarter results reflected strong operational performance.

“Our results for the December quarter were underpinned by a strong operational and safety performance together with significant advancements in our growth agenda and sustainability commitments,” he said.

In December 2020, Newcrest submitted an application to the Department of Planning, Industry and Environment for modification 14, which will increase Cadia’s processing capacity from 32 million tonnes per annum to 35 million tonnes per annum.

A renewable energy transition was also progressed in the quarter at Cadia with a renewable energy power purchase agreement, which will see Newcrest’s greenhouse gas emissions reduced by around 20 per cent from 2024.

The Havieron project in Western Australia is expected to enter commercial production within the next three years, Biswas added.

“In December 2020, we took a major step towards defining the potential of the Havieron project with the announcement of an initial inferred mineral resource estimate,” he said. “In January 2021, the board approved funding to construct the box cut, exploration decline and associated infrastructure, following receipt of the necessary regulatory approvals to commence these activities.

“With work now well underway at the project, we see the potential of achieving commercial production from Havieron within the next three years.”

Fluor helping ioneer realise Rhyolite Ridge lithium-boron potential

Posted by Daniel Gleeson

F

LUOR says its leadership and robust experience in mineral production is exemplified by its work to develop the most advanced and significant lithium operation in the United States at Rhyolite Ridge’s lithium-boron project in central Nevada, USA.

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Daily News Update Page 24 Fluor says its capabilities and experience in developing large-scale materials production facilities allow the company to address the most important projects with a depth of talent across all disciplines that enables these vital projects to be properly designed, constructed and commissioned on time and within budget. Its global locations, with a focus and expertise on mining and metals, have engineered and constructed multiple successful, sustainable projects in different geographies and taken them from concept development to successful production, according to the company.

“Fluor is united with ioneer in delivering a world-class project that will quadruple American lithium battery material production by 2023,” Tony Morgan, President of Fluor’s mining and metals business, said. “This project fully supports our two companies’ mutual corporate goals of promoting a sustainable future.

“Fluor’s wide range of capabilities position us to support clients across the battery value chain and help lead the way in the ongoing energy transition and build up sustainable domestic supply to combat climate change.”

Fluor says it is partnering with ioneer for the development of Rhyolite Ridge, which, when complete, will produce more than 20,000 t/y of lithium battery materials, enough to support the production of over 400,000 electric cars per year.

This lithium project is leading the way in US lithium-ion battery supply chain development, according to the engineering group. Fluor, working with the ioneer team and subcontractors, will demonstrate the capability of US engineering to deliver such an important project on schedule and budget, it said.

“The Rhyolite Ridge project is being developed with a rigorous attention to details,” Fluor said. “Fluor, working with ioneer and leading metallurgical laboratory, Kemetco Research, have undertaken a standard setting, lock cycle, full simulation pilot plant over the past two years of development. Using extensive data collection and analysis, this robust test facility has allowed Fluor engineers and subcontractors to fully understand the design parameters and performance expectations that allow this unique mineralogical project to not only succeed, but to produce at the very bottom of the global lithium cost curve.”

A multi-disciplinary Fluor team has, to date, spent more than 300,000 man hours on Rhyolite Ridge and the project is rapidly progressing toward shovel-ready status. Assuming permitting and final project funding occur in a timely manner, Rhyolite Ridge is expected to be ready to start construction in mid-2021, Fluor said.

Gold mine in Ontario helps Australian Evolution Mining to increase

production

By Vladimir Basov

A

USTRALIAN gold miner Evolution Mining today reported that the group’s gold production

for the December 2020 quarter was 180,305 ounces, which is 6% more than in September quarter (170,021oz) at an AISC of A$1,166/oz (Sep qtr: A$1,198/oz).

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Daily News Update Page 25 In Australia, the company’s Ernest Henry mine produced 24,473oz at an AISC of negative A$710/oz generating net mine cash flow of A$73.7 million; Cowal mine produced 54,926oz at an AISC of A$958/oz generating net mine cash flow of A$39.2 million; Mt Rawdon produced 24,306oz at an AISC of A$1,170/oz generating net mine cash flow of A$24.2 million.

Production at Evolution's Red Lake gold mine in Ontario increased by 27% to 33,709oz at an AISC of A$1,937/oz generating net mine cash flow of A$10.3 million. This places it ahead of schedule for Stage 1 of the transformation plan to increase annual production to 200,000 ounces at an AISC of less than US$1,000 per ounce.

Evolution said it has delivered mine operating cash flow and net mine cash flow of A$258.9 million and A$170.5 million respectively (Sep qtr: A$272.3M; A$183.4M).

The company added that it is on track to achieve FY21 group guidance of 670,000 – 730,000 ounces at an AISC of A$1,240 – A$1,300 per ounce.

Evolution Mining is a leading, growth-focused Australian gold miner. Evolution operates five wholly-owned mines – four in Australia and one in Ontario, Canada. In addition, Evolution holds an economic interest in the Ernest Henry copper-gold mine in Queensland.

RANKED: World’s top 10 gold projects

MINING.com Editor

W

ITH gold prices hitting record highs over the past year, the question becomes whether the world can produce enough of the precious metal to keep pace with its rising demand.

To give a better picture of the size and potential of the world’s gold supply, MINING.com and sister company MiningIntelligence collaborated to provide a ranking of the largest undeveloped gold deposits around the globe that could one day become integral to the global gold supply chain.

While the ranking is based on the projects’ total measured and indicated resources, many companies include proven and probable reserves that can be economically extracted in resource estimates.

Topping the list by a wide margin is the Pebble mine project located in the Bristol Bay region of Southwest Alaska, which contains nearly 71 million gold ounces, about 23 million ounces more than the next biggest deposit.

However, it remains to be seen if Pebble mine will eventually materialize, as the project’s key water permit was formally rejected by the US Army Corps of Engineers last November. This decision is currently being challenged by project owner Northern Dynasty Minerals (TSX: NDM).

Should we consider only those that are actively being developed, then Seabridge’s (TSX: SEA) KSM project would move into the top spot, followed closely by the Norte Abierto project in Chile, jointly owned by mining giants Barrick (TSX: ABX) and Newmont (TSX: NGT).

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