TABLE OF CONTENTS. No. Title Media Source Page

(1)

Daily News Update Page 1

T BUMI Resources Tbk (BUMI) masih menjaga target produksi di level 85 juta ton hingga 88 juta ton pada tahun ini kendati anak usahanya, PT Arutmin Indonesia men-dapat sanksi larangan ekspor batubara. Direktur dan Sekretaris Perusahaan BUMI, Dileep Srivastava, mengungkapkan dalam beberapa tahun terakhir Arutmin telah memenuhi persyaratan Domestic Market

Obligation (DMO). Bahkan Dileep

memasti-kan hal yang sama juga berlaku untuk tahun ini dimana pihaknya telah memenuhi besaran proporsi yang ada.

Ia pun menambahkan, jumlah pasokan lebih tinggi juga sudah disepakati dengan PT Perusahaan Listrik Negara (PLN). Bahkan saat ini, kegiatan penjualan disebut ber-langsung dengan normal. "Jumlah pasokan yang lebih tinggi telah disepakati dengan PLN dari unit kami dan penjualan normal," terang Dileep kepada Kontan, Minggu (22/8).

Dileep mengungkapkan, saat ini pihaknya masih tetap berpegang pada panduan dan target yang ada. Untuk itu, belum ada perubahan pada rencana produksi.

"Kami harap dapat mencapai panduan volume produksi tahun 2021 sebesar 85 juta ton hingga 88 juta ton. Lebih tinggi dari 81 juta ton di 2020 dengan harga jauh diatas harga tahun lalu," kata Dileep.

Sebelumnya, dalam keterbukaan informasi di Bursa Efek Indonesia (BEI) pada 13 Agustus 2021, BUMI dalam pandangannya memastikan...

(4)

Daily News Update Page 4 BUMI in its view ensured that PT Arutmin

Indonesia until July had fulfilled its DMO obligations of more than 25%.

"However, based on Minerba's assessment, Arutmin has not fulfilled the coal sales contract with PLN in accordance with the annual allocation, but Arutmin is of the opinion that it has fulfilled the monthly delivery commitment to PLN in accordance with the Arutmin and PLN contract mechanism which is adjusted in quantity on a monthly basis according to the ability of both parties," said Dileep.

Meanwhile, the export ban is considered to have an impact on Arutmin being unable to deliver high calorie coal (HCV) which is already bound by a contract with a foreign buyer.

The coal cannot be sold domestically because the specifications do not match the needs of PLN and other domestic buyers. As a result, Arutmin will lose revenue, potential fines and claims from buyers.

"Arutmin will also have its credibility disturbed in the eyes of foreign buyers and will have an impact on coal sales in the future," said Dileep in an information disclosure.

BUMI dalam pandangannya memastikan PT Arutmin Indonesia sampai dengan bulan Juli telah memenuhi kewajiban DMO lebih dari 25%.

"Akan tetapi berdasarkan penilaian Minerba, Arutmin belum memenuhi kontrak penjualan batubara dengan PLN sesuai dengan alokasi tahunan, namun Arutmin berpendapat telah memenuhi komitmen pengiriman bulanan kepada PLN sesuai dengan mekanisme kontrak Arutmin dan PLN yang disesuaikan kuantitasnya secara bulanan sesuai dengan kemampuan kedua belah pihak," ujar Dileep. Adapun, larangan ekspor tersebut dinilai berdampak pada tidak dapat dilakukannya pengiriman batubara kalori tinggi (HCV) oleh Arutmin yang sudah terikat kontrak dengan pembeli luar negeri.

Batubara tersebut tidak dapat dijual di dalam negeri karena spesifikasinya tidak sesuai dengan kebutuhan PLN dan pembeli dalam negeri lainnya. Dampaknya, Arutmin akan kehilangan pendapatan, potensi denda dan klaim dari pembeli.

"Arutmin juga akan terganggu kredibilitasnya di mata pembeli luar negeri dan akan berdampak pada penjualan batubara di kemudian hari," pungkas Dileep dalam keter-bukaan informasi.

The Blessing of Rising Nickel

Prices for Vale Indonesia

Parluhutan Situmorang

P

T VALE Indonesia Tbk (INCO) has benefited from the increase in nickel commodity prices. The increase had an impact on net profit growth, although the company recorded a decrease in sales volume along with an increase in energy costs.

Berkah Kenaikan Harga Nikel

bagi Vale Indonesia

Parluhutan Situmorang

P

T VALE Indonesia Tbk (INCO) mendapat berkah dari kenaikan harga komoditas nikel. Kenaikan tersebut berdampak pada pertumbuhan laba bersih, meskipun per-seroan mencatatkan penurunan volume penjualan bersamaan dengan peningkatan biaya energi.

(5)

Daily News Update Page 5 BRI Danareksa Sekuritas analyst Stefanus

Darmagiri revealed that the 37.3 percent increase in nickel selling price made Vale Indonesia's net profit grow 10.7% to US$ 58.8 million in the first half of 2021 compared to the same period last year of US$ 53.1 million.

Meanwhile, the increase in energy costs is a challenge for the company.

"The increase in energy costs, especially the increase in the purchase price of fuel oil and coal, has made the company's cost of goods sold soar," Stefanus wrote in his research.

Analis BRI Danareksa Sekuritas Stefanus Darmagiri mengungkapkan, kenaikan harga jual nikel sebesar 37,3% menjadikan laba bersih Vale Indonesia bertumbuh 10,7% menjadi US $ 58,8 juta pada semester I-2021 dibandingkan periode sama tahun lalu US$ 53,1 juta.

Sedangkan kenaikan biaya energi menjadi tantangan perseroan.

“Kenaikan biaya energi, khususnya kenaikan harga pembelian bahan bakar minyak dan batu bara menjadikan beban pokok penjualan perseroan melonjak,” tulis Stefanus dalam risetnya.

Vale Indonesia Financial Performance Summary

(in million US$)

2019 2020 2021F 2022F 2023F

Revenue 782 765 899 983 1,112

EBITDA 232 273 320 363 416

Net profit 57 83 134 164 202

EPS (US cents) 0.6 0.8 1.4 1.6 2

Net margin (%) 7.3 10.8 14.9 16.7 18.1 PER (x) 63.3 43.9 27.1 22.2 18 PBV (x) 1.9 1.8 1.7 1.6 1.5 ROAA (%) 2.6 3.7 5.6 6.4 7.4 ROAE (%) 3 4.2 6.5 7.5 8.7 Net gearing (x) (0.1) (0.2) (0.2) (0.2) (0.3)

End of year cash 249 389 411 497 608

Source: BRI Danareksa Sekuritas Vale Indonesia's financial performance in

the first half of 2021 was also affected by a 16.7 percent decline in production volume to 30,246 tons, which triggered an increase in cost of goods sold per tonne, resulting in lower profit margins in the first half of this year.

"The company's financial performance has not reflected the target we have set or only 44 percent of the company's net profit target this year," he explained.

Kinerja keuangan Vale Indonesia pada semester I-2021 juga dipengaruhi oleh penurunan volume produksi sebesar 16,7% menjadi 30.246 ton, yang memicu pening-katan beban pokok penjualan per ton, sehingga margin keuntungan mengalami penurunan pada paruh pertama tahun ini. “Kinerja keuangan perseroan belum me-refleksikan target yang kami tetapkan atau baru sebesar 44% dari target laba bersih perseroan sepanjang tahun ini,” jelas dia.

(6)

Daily News Update Page 6 Although the company's nickel production

volume only reflects 47 percent of the target, BRI Danareksa Sekuritas maintains Vale Indonesia's production volume target of 64 thousand tons this year.

“We are optimistic that the company will increase production volume in the second half of this year. This action is in line with the increase in the selling price of nickel and a number of these actions are expected to increase the company's net profit to US$ 134 million this year," he said.

Stefanus These various factors prompted BRI Danareksa Sekuritas to maintain its recommendation to buy INCO shares with a target price of Rp 6,300. The price target implies an estimate of PE this year around 33.4 times.

Vale Indonesia's net profit this year is estimated to increase to US$ 134 million compared to last year's realization of US$ 83 million. The company's revenue is also projected to increase from US$ 765 million to US$ 899 million.

Meanwhile, Samuel Sekuritas analyst Dessy Lapagu maintained that Vale Indonesia's sales volume reached 64,400 tons this year, an increase of 23.6% from last year's realization. Sales volume is projected to increase again to 79,700 tons in 2022. "We also estimate an increase in the average selling price of nickel in 2021-2022 to the level of US$ 18,200-18,800 per tonne. The price increase was supported by the sentiment of electric car batteries, which became a factor in boosting global nickel demand," Dessy wrote in her research.

Vale Indonesia also has a positive catalyst from the construction of the Bahodopi smelter after the signing of a cooperation agreement to form a joint venture (JV) with TISCO and Shandong Xinhai Technology. The JV will build...

Meskipun volume produksi nikel perseroan hanya merefleksikan 47% dari target, BRI Danareksa Sekuritas tetap mempertahankan target volume produksi Vale Indonesia sebanyak 64 ribu ton tahun ini.

“Kami optimistis bahwa perseroan akan menggenjot volume produksi pada paruh kedua tahun ini. Aksi ini sejalan dengan kenaikan harga jual nikel dan sejumlah aksi tersebut diharapkan meningkatkan laba bersih perseroan menjadi US$ 134 juta pada tahun ini,” sebut

Stefanus Berbagai faktor tersebut men-dorong BRI Danareksa Sekuritas untuk mempertahankan rekomendasi beli saham INCO dengan target harga Rp 6.300. Target harga tersebut mengimplikasikan perkiraan PE tahun ini sekitar 33,4 kali.

Adapun laba bersih Vale Indonesia tahun ini diperkirakan naik menjadi US$ 134 juta dibandingkan realisasi tahun lalu sebesar US$ 83 juta. Pendapatan perseroan juga diproyeksikan meningkat dari US$ 765 juta menjadi US$ 899 juta.

Sementara itu, analis Samuel Sekuritas Dessy Lapagu tetap mempertahankan volume pen-jualan Vale Indonesia mencapai 64.400 ton sepanjang tahun ini atau meningkat 23,6% dari realisasi tahun lalu. Volume penjualan di-proyeksikan kembali meningkat menjadi 79.700 ton pada 2022.

“Kami juga memperkirakan kenaikan rata-rata harga jual nikel tahun 2021-2022 ke level US$ 18.200-18.800 per ton. Pening-katan harga tersebut didukung oleh sentimen baterai mobil listrik yang menjadi faktor pendongkrak permintaan nikel global,” tulis Dessy dalam risetnya.

Vale Indonesia juga memiliki katalis positif dari pembangunan smelter Bahodopi setelah ditandatanganinya perjanjian kerja sama pem-bentukan perusahaan patungan (joint venture/ JV) bersama TISCO dan Shandong Xinhai Technology. JV tersebut akan membangun...

(7)

Daily News Update Page 7 The JV will build a nickel smelter in Xinhai

Industrial Park, Morowali, Central Sulawesi.

“The smelter is targeted to produce 73 thousand tons of nickel per year. With the expectation of 36 months of construction, the joint venture is expected to start contributing to the company's financial performance in 2024," he explained.

Therefore, Samuel Sekuritas maintains its recommendation to buy INCO shares with the target price being revised up from Rp 6,400 to Rp 6,700. The target price takes into account the projected increase in Vale Indonesia's net profit this year to US$ 134 million from US$ 83 million. Likewise, the estimated revenue is projected to increase from US$ 765 million to US$ 915 million. Editor : Gora Kunjana

JV tersebut akan membangun smelter nikel di Xinhai Industrial Park, Morowali, Sulawesi Tengah.

“Smelter tersebut ditargetkan memproduksi sebanyak 73 ribu ton nikel per tahun. Dengan ekspektasi konstruksi 36 bulan, perusahaan patungan tersebut diharapkan mulai berkontribusi terhadap kinerja keuangan perseroan pada 2024,” jelasnya. Sebab itu, Samuel Sekuritas mempertahan-kan rekomendasi beli saham INCO dengan target harga direvisi naik dari Rp 6.400 menjadi Rp 6.700 Target harga tersebut mempertimbangkan proyeksi kenaikan laba bersih Vale Indonesia tahun ini menjadi US$ 134 juta dari US$ 83 juta. Begitu juga dengan perkiraan pendapatan diproyeksikan me-ningkat dari US$ 765 juta menjadi US$ 915 juta. Editor : Gora Kunjana

Mining Sector is Excited,

Kobexindo Reaches 143%

Revenue Increase

P

T KOBEXINDO Tractors Tbk (KOBX), an issuer of integrated heavy equipment solutions, posted a 143% jump in net revenue to US$56.40 million compared to the same period last year of US$23.18 million.

“In comparison, the net income for the first six months of 2021 has exceeded the full year 2020 achievement which was recorded at US$50.97 million. This surge in growth cannot be separated from the increasing demand for heavy equipment, especially mining," said PT Kobexindo Tractors Tbk President Director Andry B. Limawan in a written statement.

Sektor Pertambangan

Bergairah, Kobexindo Raih

Lonjakan Pendapatan 143%

P

T KOBEXINDO Tractors Tbk (KOBX), emiten penyedia solusi alat berat ter-integrasi, membukukan lonjakan penda-patan bersih 143% menjadi US$56,40 juta dibandingkan periode sama tahun lalu yakni US$23,18 juta.

“Jika dibandingkan, Pendapatan Bersih enam bulan pertama 2021 tersebut sudah melampaui pencapaian satu tahun penuh 2020 yang tercatat US$50.97 juta. Lonjakan pertumbuhan ini tidak lepas dari meningkatnya permintaan alat berat, khususnya pertambangan,” papar Direktur Utama PT Kobexindo Tractors Tbk Andry B. Limawan dalam keterangan tertulisnya.

(8)

Daily News Update Page 8 The consolidated net income figure is a

combination of the net income of KOBX's business segments. The business segments owned by the company include the heavy equipment unit segment, the spare parts segment, the repair service segment and mining contractors and finally the rental segment which consists of heavy equip-ment rental and building rental.

The heavy equipment unit segment in the second quarter of 2021 managed to record a net income of US$43.39 million, a 235% growth when compared to the achieve-ment of the same period last year of US$12.93 million.

“Heavy equipment unit is the segment with the highest contribution among other segments. This segment contributed 76.84% of net income to consolidated net income. The increase in coal prices which reached 70% since the beginning of 2021 clearly has a positive impact on our performance," said Andry B. Limawan. The significant increase in sales of heavy equipment units made the contribution of this segment increase from 55.77% in the second quarter of 2020 to 76.84% in the second quarter of 2021.

The spare parts segment as of June 2021 posted a net revenue of US$7.26 million, a 25% growth compared to the same period in 2020, US$5.80 million. This segment contributed 12.88% to Kobexindo's Net Revenue, or the second largest after the Heavy Equipment Unit Sales segment. The third largest segment is the repair service and mining contractor segment, this segment managed to achieve US$3.10 million equivalent to 5.50% of consoli-dated net income.

During the first six months, this segment grew 52.57% compared to the achieve-ment of the same period in 2020, which was US$2.03 million.

Angka pendapatan bersih konsolidasi merupakan gabungan dari pendapatan bersih segmen-segmen usaha yang dimiliki KOBX. Segmen usaha yang dimiliki perseroan antara lain segmen unit alat berat, segmen suku cadang, segmen jasa perbaikan dan kontraktor pertambangan dan terakhir segmen sewa yang terdiri dari sewa alat berat dan sewa bangunan.

Segmen unit alat berat pada triwulan II-2021 berhasil membukukan angka pendapatan bersih US$43.39 juta, tumbuh 235% jika disandingkan dengan pencapaian periode sama tahun lalu sebesar US$12.93 juta. “Unit alat berat merupakan segmen dengan kontribusi tertinggi diantara segmen lainnya. Segmen ini menyumbangkan angka penda-patan bersih sebesar 76,84% terhadap pendapatan bersih secara konsolidasi. Kenaikan harga batu bara yang mencapai 70% sejak awal tahun 2021 jelas berdampak positif terhadap kinerja kami," jelas Andry B. Limawan.

Kenaikan signifikan pada penjualan unit alat berat membuat kontribusi segmen ini me-ningkat dari 55,77% pada triwulan II-2020 menjadi 76,84% pada triwulan II-2021. Segmen suku cadang per Juni 2021 mem-bukukan pendapatan bersih sebesar US$7,26 juta tumbuh 25% ketimbang periode yang sama tahun 2020, US$5,80 juta. Segmen ini berkontribusi 12,88% terhadap Pendapatan Bersih Kobexindo, atau terbesar kedua setelah segmen Penjualan Unit Alat Berat. Segmen terbesar ketiga adalah segmen jasa perbaikan dan kontraktor pertambangan, segmen ini berhasil meraih US$3,10 juta setara 5,50% terhadap pendapatan bersih konsolidasian.

Sepanjang enam bulan pertama, segmen ini tumbuh 52,57% dibandingkan pencapaian periode sama tahun 2020 lalu yakni US$2,03 juta.

(9)

Daily News Update Page 9 “The surge in growth in this segment is

also supported by the performance of subsidiaries engaged in mining contractor services. The latest business unit owned by the Company, thus adding services to support Kobexindo's revenue portfolio," he added.

The other revenue segment is the rental segment which consists of rental of heavy equipment and buildings. The heavy equipment rental segment posted a net income of US$2.30 million, a 15.24 percent growth compared to the same period last year of US$1.97 million. This segment contributed 4.08% to KOBX's consolidated Net Revenue.

The building rental segment in this year's period posted revenue of US$390 thousand or equivalent to a 0.69% contribution to the Company's consolidated Net Revenue. The solid performance of net income in the first six months coupled with a tight cost control strategy made the Company's profit performance increase significantly. The gross profit position in the first six months grew by 203.19% to US$11.92 million compared to last year's performance of US$3.93 million.

The growth in selling expenses, general administrative expenses, operating expenses were still lower than the gross profit growth, resulting in an operating profit of US$4.96 million. This is inversely proportional to the operating loss for the same period last year which was recorded at US$1.77 million.

The solid profit performance was also recorded by net profit attributable to owners of the parent entity which posted US$3.05 million compared to the same period in 2020 which posted a net loss of US$4.04 million.

“Lonjakan pertumbuhan di segmen ini turut ditopang oleh kinerja entitas anak yang bergerak di jasa kontraktor pertam-bangan. Unit usaha terbaru yang dimiliki Perseroan, sehingga menambah jasa layanan guna menopang portofolio penda-patan Kobexindo,” tambahnya.

Adapun segmen pendapatan lain adalah segmen sewa yang terdiri dari sewa alat berat dan bangunan. Segmen sewa alat berat membukukan pendapatan bersih sebesar US$2.30 juta tumbuh 15,24% dibandingkan periode yang sama tahun lalu yakni US$1,97 juta. Segmen ini menyumbang 4,08% terhadap Pendapatan Bersih konsolidasi KOBX.

Segmen sewa bangunan pada periode tahun ini membukukan pendapatan US$ 390 ribu atau setara kontribusi 0,69% terhadap Pendapatan Bersih konsolidasi Perseroan.

Solidnya kinerja pendapatan bersih pada enam bulan pertama yang dibarengi dengan strategi kontrol biaya yang ketat membuat kinerja laba Perseroan mening-kat signifikan.

Posisi laba kotor pada enam bulan pertama tumbuh 203,19% menjadi US$11,92 juta dibandingkan kinerja tahun lalu US$3,93 juta.

Pertumbuhan beban penjualan, beban umum administrasi, beban pperasi masih lebih rendah dari pertumbuhan laba kotor, sehingga laba usaha tercatat US$4,96 juta. Hal ini berbanding terbalik dengan per-olehan rugi usaha periode sama tahun lalu yang tercatat US$1,77 juta.

Solidnya kinerja laba juga dibukukan oleh laba bersih yang dapat diatribusikan kepada pemilik entitas induk yang mem-bukukan US$3,05 juta dibandingkan periode yang sama di 2020 yang mem-bukukan rugi bersih sebesar US$4,04 juta.

(10)

Daily News Update Page 10 "We hope that the pandemic will end soon,

so that economic activity can gradually recover and the national economic growth rate will rise again," said Andry B. Limawan. (RO/E-1)

“Kami berharap pandemi segera usai, sehingga aktivitas perekonomian dapat berangsur pulih dan tingkat pertumbuhan ekonomi nasional kembali naik,” tandas Andry B. Limawan. (RO/E-1)

MIND ID Targets To Separate

From Inalum This Year

Author: Denis Riantiza Meilanova

T

HE HOLDING of state-owned enterprises (BUMN) for the mining industry, Mining Industry Indonesia (MIND ID) targets the separation of the company from Inalum Operation to be completed this year. MIND ID CEO Orias Petrus Moedak said that currently PT Indonesia Asahan Aluminum (Persero) or Inalum is still carrying out holding and operating functions as an operational holding company.

By changing MIND ID to become a strategic holding company, the company will replace the function of Inalum. Meanwhile, Inalum will be under MIND ID and focus on carrying out operational functions.

"We will shift to a strategic holding, where Inalum will go down and there will be PT MIND ID that carries out legal, strategy, human resources and financing functions," he said quoted Friday (20/8/2021).

Orias said that until now the restructuring process is still ongoing and is expected to be completed in the near future.

"Hopefully this year or early next year the MIND ID can be established," he said. Previously, Orias said that after the separation process is complete, Inalum Operating has the potential to conduct an initial public offering (IPO).

MIND ID Targetkan Bisa

Memisahkan Diri dari Inalum

Tahun Ini

Author: Denis Riantiza Meilanova

H

OLDING badan usaha milik negara (BUMN) industri pertambangan, Mining Industry Indonesia (MIND ID) menargetkan pemi-sahan perseroan dari Inalum Operation dapat rampung tahun ini.

CEO MIND ID Orias Petrus Moedak mengatakan bahwa saat ini PT Indonesia Asahan Aluminum (Persero) atau Inalum masih melaksanakan fungsi holding dan operating sebagai operational holding company.

Dengan beralihnya MIND ID menjadi strategic holding, maka perusahaan akan menggantikan fungsi dari Inalum. Sementara itu, Inalum akan berada di bawah MIND ID dan fokus men-jalankan fungsi operasi.

“Kami akan bergeser jadi strategic holding, di mana Inalum akan turun ke bawah dan akan ada PT MIND ID yang menjalankan fungsi legal, strategi, human resources, dan financing,” katanya dikutip Jumat (20/8/2021).

Orias menuturkan, hingga kini proses re-strukturisasi masih berjalan dan diharapkan bisa rampung dalam waktu dekat.

“Mudah-mudahan tahun ini atau awal tahun depan bisa berdiri MIND ID-nya,” ujarnya. Sebelumnya, Orias mengatakan bahwa setelah proses pemisahan selesai, Inalum Operating berpotensi untuk melakukan initial public offering (IPO).

(11)

Daily News Update Page 11 “Now the process of separating Inalum

Operating from MIND ID. Inalum Operating will stand alone, MIND ID will stand alone. Later, when it is separated, we will prepare Inalum Operating for the IPO," he said. Meanwhile, Inalum officially became the mining industry BUMN holding by controlling shares owned by the Indonesian government in PT Aneka Tambang Tbk., PT Bukit Asam Tbk., PT Timah Tbk, and PT Freeport Indonesia on November 27, 2017.

Then, on August 17, 2019, Inalum as a holding company presented a new identity, namely MIND ID, which distinguishes between the holding function and the aluminum smelting operational function. Editor : Lili Sunardi

“Sekarang proses pemisahan Inalum Operating dari MIND ID. Inalum Operating akan berdiri sendiri, MIND ID berdiri sendiri. Nanti kalau sudah pisah, kami siapkan Inalum Operating untuk IPO,” ucapnya.

Adapun, Inalum resmi menjadi holding BUMN industri pertambangan dengan menguasai saham milik pemerintah Indonesia di PT Aneka Tambang Tbk., PT Bukit Asam Tbk., PT Timah Tbk, dan PT Freeport Indonesia pada 27 November 2017.

Kemudian, pada 17 Agustus 2019, Inalum sebagai holding menghadirkan identitas baru, yakni MIND ID, yang membedakan antara fungsi holding dan fungsi operasional peleburan aluminium. Editor : Lili Sunardi

IMTG Net Profit Soared by

312%

By: Ahmad Nabhani

I

N THE FIRST semester of 2021, PT Indo Tambangraya Megah Tbk (ITMG) posted a net profit of US$ 118 million, an increase of 312% compared to the same period in 2020 which was recorded at US$ 29 million. The result increased net earnings per share to US$ 0.11.

ITMG President Director Mulianto said profit growth was supported by the momentum of rising coal prices and implementing cost efficiency. Moreover, vaccination programs and the imple-mentation of the new normal around the world have driven the recovery of energy consumption and demand, so that prices began to gradually rise since October last year.

Laba Bersih IMTG Melonjak

Tajam 312%

Oleh: Ahmad Nabhani

S

EMESTER pertama 2021, PT Indo Tambangraya Megah Tbk (ITMG) mem-bukukan laba bersih sebesar US$ 118 juta atau melonjak 312% dibanding periode yang sama tahun 2020 yang tercatat sebesar US$ 29 juta. Hasil itu melonjakan laba bersih per saham menjadi US$ 0,11.

Direktur Utama ITMG, Mulianto mengata-kan, pertumbuhan laba ditopang keun-tungan dari momentum kenaikan harga batu bara dan menerapkan efisiensi biaya. Terlebih, program vaksinasi dan penerapan normalitas baru di seluruh dunia telah mendorong pemulihan konsumsi dan permintaan energi, sehingga harga mulai berangsur naik semenjak Oktober tahun lalu.

(12)

Daily News Update Page 12 "The Newcastle Index recorded that the

coal price touched US$ 131.41 per ton at the end of June 2021. During the first half of 2021, the company recorded an average coal price of US$ 74.7 per ton, up 34 percent from US$ 55. ,7 per tonne on an annual basis with a total sales volume of 9.0 million tons," he said.

He said that the price increase pushed net sales to reach US$ 676 million in the first half, while gross profit margin rose 18 percent from the first half of last year to 34 percent in the first half of this year. In addition, ITMG has secured 79% of the targeted sales contract of 21.5-22.4 million tons for this year.

It is recorded that 56% of the selling price has been determined, another 24% refers to the coal price index, while 21% has not been sold. In the first half of this year, the company sold 9.0 million tons of coal, which included China at 2.7 million tons, Indonesia at 1.7 million tons, Japan at 1.4 million tons, the Philippines at 0.7 million tons, and Thailand amounted to 0.7 million tons.

”Indeks Newcastle mencatat harga batu bara menyentuh US$ 131,41 per ton pada akhir Juni 2021. Sepanjang paruh pertama 2021, perusahaan mencatat perolehan rata-rata harga batu bara sebesar US$ 74,7 per ton, naik 34% dari US$ 55,7 per ton secara tahunan dengan total volume penjualan 9,0 juta ton,” ujarnya.

Disampaikannya, kenaikan harga itu men-dorong penjualan bersih tercatat sebesar US$ 676 juta pada paruh pertama, sedang-kan marjin laba kotor naik 18% dari paruh pertama tahun lalu menjadi 34% pada paruh pertama tahun ini. Selain itu, ITMG telah mendapatkan 79% dari kontrak penjualan yang ditargetkan sebesar 21,5-22,4 juta ton untuk tahun ini.

Tercatat sebanyak 56% harga jualnya telah ditetapkan, 24% lagi mengacu pada indeks harga batu bara, sedangkan 21% belum terjual. Perseroan di semester pertama tahun ini telah menjual 9,0 juta ton batu bara yang meliputi Tiongkok sebesar 2,7 juta ton, Indonesia sebesar 1,7 juta ton, Jepang sebesar 1,4 juta ton, Filipina sebesar 0,7 juta ton, dan Thailand sebesar 0,7 juta ton.

Coal prices are still smoldering,

this is the stock

recommendation of coal issuers

from analysts

Reporter: Akhmad Suryahadi | Editor: Tendi Mahadi

C

OAL prices continue to strengthen this year. Newcastle coal prices even skyrocketed to an all-time high of US$ 171 per tonne.

Harga batubara masih

membara, ini rekomendasi

saham emiten batubara dari

analis

Reporter: Akhmad Suryahadi | Editor: Tendi Mahadi

H

ARGA batubara terus melanjutkan penguatannya tahun ini. Harga batubara Newcastle bahkan sempat meroket ke rekor tertingginya sepanjang masa di level US$ 171 per ton.

(13)

Daily News Update Page 13 BRIDanareksa Sekuritas analyst Stefanus

Darmagiri estimates that the coal company will post a solid net profit in the third quarter. The rising performance of issuers will be driven by a more solid average selling price (ASP).

This is because most of the coal sales volume is based on contracts and there is a lag of up to 6 months between global coal prices and the company's ASP.

The improving performance is also supported by expectations of better coal production following the arrival of dry weather.

Stefanus noted that a number of coal issuers that have announced their performance results in the first semester of 2021 reported better EBITDA margins, including PT Indo Tambangraya Megah Tbk (ITMG) of 32.7% (from the previous 12.4%) and PT Harum Energy Tbk (HRUM) of 38.3% (from the previous 21.4%). Meanwhile, there are also issuers who will receive more blessings from the strengthening of global coal prices this year. RHB Sekuritas analyst Andrey Wijaya said export-based issuers such as ITMG and PT Adaro Energy Tbk (ADRO) were two of them.

Just so you know, during the first semester of 2021, ADRO recorded coal sales volume of 25.78 million tons. Based on geographical segmentation, as much as 28% of ADRO's total coal sales are directed to the domestic market. The Southeast Asian market (excluding Indonesia) accounted for 22% of total sales in the first half of 2021, with Malaysia being the largest.

The portion of sales to China rose to 20%, while 18% of ADRO's sales went to other East Asian markets (besides China) and 10% was sold to the Indian market.

Analis BRIDanareksa Sekuritas Stefanus Darmagiri memperkirakan, perusahaan batubara akan membukukan laba bersih yang solid di kuartal ketiga ini. Naiknya kinerja emiten akan didorong oleh harga jual rata-rata atau average selling price (ASP) batubara yang lebih solid.

Hal ini karena sebagian besar volume penjualan batubara didasarkan pada kontrak serta adanya jeda (lag) hingga 6 bulan antara harga batubara global dan ASP perusahaan.

Membaiknya kinerja juga didukung oleh ekspektasi produksi batubara yang lebih baik seiring datangnya cuaca yang kering. Stefanus mencatat, sejumlah emiten batu-bara yang telah mengumumkan hasil kinerja semester I-2021 melaporkan marjin EBITDA yang lebih baik, diantaranya PT Indo Tambangraya Megah Tbk (ITMG) sebesar 32,7% (dari sebelumnya 12,4%) dan PT Harum Energy Tbk (HRUM) sebesar 38,3% (dari sebelumnya 21,4%).

Sementara itu, ada pula emiten yang akan mendapat berkah lebih dari adanya penguatan harga batubara global tahun ini. Analis RHB Sekuritas Andrey Wijaya menyebut, emiten berbasis ekspor seperti ITMG dan PT Adaro Energy Tbk (ADRO) adalah dua diantaranya.

Asal tahu, sepanjang semester I-2021, ADRO mencatatkan volume penjualan batubara sebesar 25,78 juta ton. Berdasarkan segmentasi geografis, sebanyak 28% dari total penjualan batubara ADRO dilempar ke pasar domestik. Pasar Asia Tenggara (tidak termasuk Indonesia) meliputi 22% dari total penjualan pada semester I-2021, dengan Malaysia sebagai yang terbesar. Porsi penjualan ke China naik menjadi 20%, sementara sebanyak 18% penjualan ADRO dilempar ke pasar Asia Timur lainnya (selain China) dan 10% nya dijual ke pasar India.

(14)

Daily News Update Page 14 Meanwhile, during the first half of 2021,

ITMG has sold 9.0 million tons of coal. The largest sales were directed to China (2.7 million tons), followed by the Indonesian market (1.7 million tons), Japan (1.4 million tons), the Philippines (0.7 million tons), Thailand (0.7 million tons). ), and other countries in East and Southeast Asia. Similarly, Andrey also assessed that the performance prospect of issuers in this quarter will improve. "Coal production should increase in the third quarter of 2021," said Andrey to Kontan.co.id.

Although coal prices continued to strengthen, stocks under BRIDanareksa Sekuritas' coverage were still in the red zone since the beginning of the year. For example, ADRO shares are still corrected 11.54% year-to-date, PT Bukit Asam Tbk (PTBA) shares are corrected 24.91%, and PT United Tractors Tbk (UNTR) shares are corrected 28.57%.

Stefanus assessed that the correction in the shares of coal miners reflects the attention paid to environmental, social and governance issues in the coal sector.

Andrey recommends buying ITMG, ADRO, and PTBA shares. Meanwhile, BRIDana-reksa Sekuritas' top picks in this sector are ADRO shares with a target price of Rp. 1,600 and PTBA with a target price of Rp. 3,300.

Stefanus also recommends buying ITMG shares with a target price of Rp 16,500 and buying UNTR shares with a target price of Rp 30,000. For HRUM shares, Stefanus put a selling recommendation with a target price of Rp 4,100.

"The main risk in this sector is the reversal of global coal prices with the expectation of easing concerns about global supply," Stefanus wrote in his research, Monday (16/8).

Sementara sepanjang paruh pertama tahun 2021, ITMG telah menjual 9,0 juta ton batubara. Penjualan terbesar ditujukan kepada China (2,7 juta ton), disusul ke pasar Indonesia (1,7 juta ton), Jepang (1,4 juta ton), Filipina (0,7 juta ton), Thailand (0,7 juta ton), dan negara-negara lain di Asia Timur dan Tenggara.

Senada, Andrey juga menilai prospek kinerja emiten di kuartal ini akan membaik. “Seharusnya produksi batubara akan meningkat di kuartal III-2021,” ujar Andrey kepada Kontan.co.id.

Meski harga batubara terus menguat, saham-saham di bawah cakupan BRIDanareksa Sekuritas masih berada di zona merah sejak awal tahun. Sebut saja saham ADRO yang secara year-to-date masih terkoreksi 11,54%, saham PT PT Bukit Asam Tbk (PTBA) yang terkoreksi 24,91%, dan saham PT United Tractors Tbk (UNTR) yang terkoreksi 28,57%.

Stefanus menilai, terkoreksinya saham-saham penambang batubara ini mencerminkan adanya perhatian terhadap isu-isu lingkungan, sosial dan tata kelola atau environmental, social

and governance (ESG) pada sektor batubara.

Andrey merekomendasikan beli saham ITMG, ADRO, dan PTBA. Sementara pilihan utama (top picks) BRIDanareksa Sekuritas di sektor ini adalah saham ADRO dengan target harga Rp 1.600 dan PTBA dengan target harga Rp3.300.

Stefanus juga merekomendasikan beli saham ITMG dengan target harga Rp 16.500 dan beli saham UNTR dengan target harga Rp 30.000. Untuk saham HRUM, Stefanus menyematkan rekomendasi jual dengan target harga Rp 4.100.

“Risiko utama di sektor ini adalah pembalikan harga batubara global dengan ekspektasi meredanya kekhawatiran ter-hadap pasokan global,” tulis Stefanus dalam riset, Senin (16/8).

(15)

1,000 Oxygen Concentrators,

Adaro's Support for Covid-19

Handling

Anto Kurniawan

T

HROUGH the program “Adaro Struggles for Indonesia”, Adaro provides support for 1,000 oxygen concentrators worth Rp 12.6 billion to hospitals & clinics spread across several regions in Indonesia. PT Adaro Energy Tbk (Adaro) fully understands that moral and material support will greatly assist the handling of Covid-19 patients. This support can even keep the spirit of the health workers.

One of the most important needs at this time is the availability of oxygen for Covid-19 patients. The surge in the number of patients that is not proportional to the supply of oxygen causes various unwanted conditions to occur.

"This oxygen concentrator unit will further complement other hospitals and health facilities in handling Covid-19 patients who need oxygen. This tool will be very useful, especially in areas that are far from access to oxygen suppliers," said President Director of PT Adaro Energy Tbk, Garibaldi Thohir in Jakarta.

In collaboration with the Satriabudi Dharma Setia Foundation (YSDS), Adaro ensures that this oxygen concentrator meets the criteria for ease of patient handling, which is easy to move and transport to the patient's location, does not require complex handling and does not need to be refilled.

In addition to distributing Oxygen Concentrator units, YSDS will also conduct socialization on usage procedures, so that goods are ensured...

1.000 Konsentrator Oksigen,

Dukungan Adaro untuk

Penanganan Covid-19

Anto Kurniawan

M

ELALUI program “Adaro Berjuang untuk Indonesia”, Adaro memberikan dukungan 1.000 konsentrator oksigen senilai Rp 12,6 miliar kepada Rumah Sakit & Klinik yang tersebar di beberapa wilayah di Indonesia. PT Adaro Energy Tbk (Adaro) sangat memahami bahwa dukungan moril dan materiil akan sangat membantu penanganan pasien Covid-19. Dukungan ini bahkan dapat menjaga semangat para tenaga kesehatan.

Salah satu kebutuhan yang penting saat ini adalah ketersediaan oksigen untuk pasien Covid-19. Lonjakan jumlah pasien yang tidak sebanding dengan pasokan oksigen menyebabkan berbagai kondisi yang tidak diinginkan harus terjadi.

“Unit konsentrator oksigen ini akan semakin melengkapi Rumah Sakit dan Faskes lainnya dalam menangani pasien Covid-19 yang membutuhkan oksigen. Alat ini akan sangat berguna terutama di wilayah yang jauh dari akses terhadap pemasok oksigen," ujar Presiden Direktur PT Adaro Energy Tbk, Garibaldi Thohir di Jakarta.

Bekerjasama dengan Yayasan Satriabudi Dharma Setia (YSDS), Adaro memastikan konsentrator oksigen ini memenuhi kriteria kemudahan dalam penanganan pasien yaitu mudah dipindahkan dan dibawa ke lokasi pasien, tidak perlu penanganan yang kompleks serta tidak perlu diisi ulang. Disamping mendistribusikan unit Konsen-trator Oksigen, YSDS akan melakukan sosialisasi tata cara penggunaan, sehingga barang dipastikan...

(16)

Daily News Update Page 16 so that goods are ensured to function

optimally. Oxygen concentrators will be distributed to provide benefits in areas of Indonesia that are in dire need of oxygen support.

"Adaro Fights For Indonesia" is always present as a form of Adaro's struggle with the Indonesian people to stay strong and be a winner in the face of this pandemic. (akr)

sehingga barang dipastikan dapat berfungsi secara optimal. Konsentrator Oksigen akan didistribusikan untuk memberikan manfaat di wilayah Indonesia yang sangat me-merlukan dukungan oksigen.

“Adaro Berjuang Untuk Indonesia” senan-tiasa hadir sebagai bentuk perjuangan Adaro bersama bangsa Indonesia untuk tetap tegar dan menjadi pemenang dalam menghadapi pandemi ini. (akr)

Danger, Coal Prices Drop More

than 2%!

Hidayat Setiaji, CNBC Indonesia

C

OAL prices fell quite sharply. It seems that investors are eager to make money because the price had penetrated record highs.

Last weekend, the price of coal on the ICE Newcastle (Australia) market was recorded at US$ 159.75/ton. Dropped 2.29% compared to the previous day's position.

On August 16, 2021, the price of coal was at US$ 169.75/ton, the highest record since at least 2008. After that, the price moved down because it seemed that market participants were busy cashing out profits. The money obtained from coal is not in cans. In the last month, the price of the black stone still posted an increase of 12.02%.

Meanwhile, since the end of 2020 (year-to-date), the increase has reached 108.39%. So it is not surprising that coal is vulnerable to profit taking.

Bahaya, Harga Batu Bara

Anjlok 2% Lebih!

Hidayat Setiaji, CNBC Indonesia

H

ARGA batu bara turun cukup tajam. Sepertinya investor bernafsu untuk mengeruk cuan karena harga sempat menembus rekor tertinggi.

Akhir pekan lalu, harga batu bara di pasar ICE Newcastle (Australia) tercatat US$ 159,75/ton. Anjlok 2,29% dibandingkan posisi hari sebelumnya.

Pada 16 Agustus 2021, harga batu bara berada di US$ 169,75/ton, rekor tertinggi setidaknya sejak 2008. Selepas itu, harga bergerak turun karena sepertinya pelaku pasar beramai-ramai mencairkan keun-tungan.

Cuan yang didapat dari batu bara memang

bukan kaleng-kaleng. Dalam sebulan terakhir, harga si batu hitam masih mem-bukukan kenaikan 12,02%.

Sementara sejak akhir 2020 (year-to-date), kenaikannya mencapai 108,39%. Jadi tidak heran batu bara rentan terserang profit

(17)

Daily News Update Page 17 Toby Hassall, Analyst at Refinitiv, said that

there are at least two other factors that can pose a risk to coal prices. One, the corona virus pandemic (Coronavirus Disease-2019/Covid-19) has returned to craze in various countries. This can reduce the demand for electricity, which has an impact on the demand for coal.

In Europe, for example, coal-fired power generation in Germany last week fell 14.2% compared to the previous week. Compared to the same period the previous year, there was a decrease of 4.9%.

Second, the trend of rising prices will make coal producers compete to boost production. In the end, production can be too much and exceed demand thereby affecting prices. CNBC INDONESIA RESEARCH TEAM (aji/aji)

Toby Hassall, Analis Refinitiv, menyebut setidaknya ada dua faktor lain yang bisa mendatangkan risiko buat harga batu bara. Satu, pandemi virus corona (Coronavirus

Disease-2019/Covid-19) kembali menggila di

berbagai negara. Ini bisa menurunkan permintaan listrik, yang berimbas ke permin-taan batu bara.

Di Eropa, misalnya, pembangkitan listrik bertenaga batu bara di Jerman pada pekan lalu turun 14,2% dibandingkan sepekan sebelum-nya. Dibandingkan periode yang sama tahun sebelumnya, terjadi penurunan 4,9%.

Kedua adalah tren kenaikan harga akan membuat produsen batu bara berlomba-lomba untuk mendongkrak produksi. Pada akhirnya, produksi bisa terlalu banyak dan melampaui permintaan sehingga mem-pengaruhi harga. TIM RISET CNBC INDONESIA (aji/aji)

Coal prices skyrocket amid rising demand & soaring gas prices

A

SIAN benchmark Australian thermal coal at Newcastle Port has seen an unprecedented 106% gain in prices in 2021. In stark contrast, international oil benchmark Brent crude gained only 33% this year.

The price of coal soared to more than $166 per metric ton, according to the latest report by market data provider Argus. The Newcastle weekly index, which stood at $46.18 in September 2020, now stands at its all-time high of $195.20 from July 2008.

The Richards Bay index, Newcastle’s South African equivalent, also jumped more than 55% this year, closing at $137.06 per metric ton last week.

According to Yulia Buchneva, Fitch ratings agency’s director in natural resources, thermal coal remains one of the main global energy sources with an over 35% share in power generation worldwide.

“We expect that the share of coal in energy generation will decline driven by the energy

transition agenda, however this will have a rather longer-term impact on the market. In the medium-term, demand for coal in emerging markets with less strict environmental agenda, in particular in India, Pakistan, and Vietnam, where coal-fired power dominates generation, is

(18)

Daily News Update Page 18 expected to rise,” Buchneva told CNBC, noting that Europe and the US represent a mere 10%

of worldwide coal demand.

“The current high thermal coal prices have decoupled from costs and are therefore not

sustainable. We expect that prices will normalize during the remainder of the year,” she added.

Fitch Ratings expects the price of Australian coal to drop toward $81 by year’s end.

Thermal coal is burned to generate electricity. It is the most carbon-intensive fossil fuel, with a high level of emissions. Argus analysts claim coal prices were impacted by high electricity demand and a surge in global gas prices due to the Covid-19 pandemic, combined with unseasonably low gas storages in Europe and low gas imports.

Tianqi, IGO produce first Australian lithium hydroxide for batteries

Reuters

A

JOINT venture between Tianqi Lithium and IGO Ltd has produced Australia’s first batch of lithium hydroxide, as demand for the chemical used in electric-vehicle (EV) batteries is set to gain speed, IGO said on Monday.

IGO gave debt-laden Tianqi a lifeline late last year when it agreed to pay $1.4 billion for a stake in the Chinese company’s Australian lithium assets, namely the Kwinana processing plant and the world’s biggest lithium mine, Greenbushes, both in Western Australia.

Tianqi had postponed commissioning of the Kwinana hydroxide plant in March 2020, citing liquidity problems, after a precipitous fall in lithium prices blamed on oversupply. Lithium prices are up sharply in 2021 on resurgent demand.

“We first ran some spodumene through the calcination oven and then through all of the various steps. That culminated… in getting some lithium product out of the last step to produce the first lithium hydroxide,” Chief Executive Peter Bradford told Reuters on Friday. Spodumene is the name for hard-rock lithium.

Lithium hydroxide is used to make cathodes for lithium-ion batteries that power electric vehicles.

Perth-based IGO expects to be producing a saleable lithium hydroxide product by the end of 2021, and a high-quality battery grade product by the March quarter next year, Bradford said. The Kwinana plant is expected to reach its initial 24,000 tonne per year (tpy) capacity by the end of 2022, with another 24,000 tpy expansion to commission in 2024 before doubling that capacity again to 96,000 tonnes in the following years.

“All indicators are that the EV thematic is growing at a far faster rate that people have estimated,” Bradford said.

“We believe that with the demand there, there is going to be a desire to build out our lithium hydroxide capacity.”

(19)

Daily News Update Page 19 While all production from the first phase has been sold, the Kwinana partners are talking to potential customers, including automakers, for later stage production, he added.

IGO, which also produces nickel and cobalt, is also involved in a state government-led project to move further into the battery supply chain to produce cathode active materials, which mix battery minerals together in various ratios.

IGO said on Thursday it was in preliminary talks to acquire Australian nickel miner Western Areas Ltd.

However, interests associated with mining billionaire Andrew Forrest raised their stake in the firm on Friday as the race heats up to secure raw materials key to the battery industry.

(By Melanie Burton and Tom Daly; Editing by Jason Neely and Karishma Singh)

China Faces Winter Warnings as Coal Demand Grows

Analysts say record coal and natural gas prices may lead to power shortages in months

ahead.

An analysis by Michael Lelyveld

T

HE COMBINED forces of extreme weather, the COVID-19 crisis and political pressures may be setting the stage for energy shortages in China next winter, analysts say.

The country's electricity generators have been racking up losses due to record prices for coal and natural gas, while summer power demand spikes in a punishing season of heat waves and floods.

Spot market costs for liquefied natural gas (LNG) have climbed to nearly double the break-even rate for profitable power production, S&P Global Platts news service said.

Last winter brought unusually cold temperatures to both Europe and North Asia, straining LNG supplies, said Mikkal Herberg, energy security research director at the Seattle- based National Bureau of Asian Research.

"Now they are both having hot summers along with a huge surge in industrial activity with the easing of COVID constraints, especially China, which is putting further strain on supply and stock levels," said Herberg.

"There is something of a perfect storm going on in the global gas market," he said. Rising demand for power and production has also lit a fire under the market for coal.

The break-even coal price for many of China's power plants is 600-650 yuan (U.S. $92.50-100.21) per metric ton, according to Platts. But on July 30, benchmark thermal coal prices hit a record 1,080 yuan (U.S. $166.51) per ton, Reuters reported.

Consumer price controls have left generators with little incentive to boost output, while other problems have only added to their woes.

(20)

Daily News Update Page 20 High demand for coal earlier this year due to COVID-19 recovery led to a wave of mining accidents, followed by state safety inspections and a sudden drop in coal production in the second quarter of the year.

The resulting squeeze on supplies has stretched inventories thin. On Aug. 6, Reuters reported that coal stocks held by mines dropped 26 percent from a year before. Inventories at major power plants were down by a similar margin, state television said.

All this is happening while the government promises to reduce reliance on high carbon-emitting coal, which still accounts for 56.8 percent of primary energy. Gas is seen as a cleaner transitional fuel until non-fossil sources take a dominant role.

But decarbonization plans appear to be on hold as the government tries to deal with the immediate problems of power shortages and spiraling prices by reopening previously closed coal mines for a year to add 44 million tons of production, Bloomberg News reported on Aug. 5.

Last month, the government's top economic planning agency said it would open nearly 110 million tons of "advanced" coal production capacity in the second half of this year, Reuters reported separately.

"We are in the peak power consumption period and must guarantee coal supply to power plants ... and will not allow the shutdown of power generation units due to a lack of coal," the National Development and Reform Commission (NDRC) said on July 18.

The power problems have been further complicated by conditions in Europe that may keep China from increasing gas consumption as an alternative to coal.

LNG prices in Europe typically rise with winter demand and ease in warm weather months, giving consuming countries a chance to refill depleted storage facilities.

But the economic slump and partial recovery from the COVID-19 crisis disrupted the cycle while the effects of climate change have kept demand high.

European gas storage is at 50-60 percent of capacity this summer compared with 80 percent a year earlier, Reuters cited analysts as saying. Last August, European storage was over 88 percent full, according to records of the European Union's Aggregated Gas Storage Inventory. "There is a real risk of Europe entering the winter season with low inventory levels, suggesting that prices will remain well supported," Amsterdam-based ING Group said.

Increased Demand

Heat waves in both Europe and Asia have kept energy demand high, suggesting that current prices may only be a base for increases to come.

Dutch natural gas prices have already surged 80 percent to record highs in the past three months, Reuters said.

Some analysts are warning that a harsh winter could tighten gas markets further in Europe and Asia at the same time.

"Storage levels are quite low in many places as a hot summer has meant that there has not been much chance to replenish stocks, so this could be bullish for winter, especially if it's going to be freezing again," a Singapore- based trader told Reuters.

(21)

Daily News Update Page 21 Herberg also cited problems like China's shortage of gas storage capacity that lead to surges and slowdowns in buying on the spot market.

"Chinese majors are trying to load up on gas inventories for the winter under pressure from the government to not have another damaging gas shortage like last winter," he said.

Despite the winter warnings, little seems to have changed since Bloomberg News raised similar shortage concerns as a "desperate scenario" nearly two months ago.

In a July 9 commentary, RFA cited energy expert Edward Chow at the Center for Strategic and International Studies as saying that the LNG industry is typically cyclical and that the shortage scenario was little cause for alarm.

"Europe was always the market of last resort for spot LNG supplies, since it has access to imports of pipeline gas and more gas storage capacity, while other major LNG markets do not," Chow said.

The major difference between the Bloomberg scenario then and the Reuters warning now is that the earlier analysis focused on the risk that Europe could be forced to burn more coal next winter if gas supplies run short, while the Reuters outlook highlights the possible pressures on Asian importers.

In the brief period between the two warnings, China has already put out the call for more coal.

The backsliding by the world's leading coal producer and consumer is likely to be damaging for carbon emissions and the message it sends at a time when the United Nations Intergovernmental Panel on Climate Change has called for "strong, rapid and sustained reductions" to avoid the worst consequences of global warming.

Platts analyst James Huckstepp told Reuters that "Russia is now the only country with spare (gas) production, but in order to increase exports they would need to book additional capacity through Ukraine, and up to this point they have refrained."

The reference is to the tangle of issues surrounding Russia's gas exports to Europe through Ukraine and the pending completion of Gazprom's Nord Stream 2 pipeline across the Baltic Sea to Germany that would draw volumes away from the Ukrainian route.

The project would allow Gazprom to dispense with Ukrainian transit entirely, potentially exposing Kiev to new security risks by ending the interdependent relationship between the two countries that has persisted since the Soviet collapse.

Despite European concerns about rising gas prices and dwindling stockpiles, Gazprom has declined to reserve additional transit capacity on either the Yamal-Europe pipeline through Belarus and Poland or the transit lines through Ukraine, Interfax reported on Aug. 2.

Price Increases

European gas importers may have gotten a taste of the rising energy security risks on Aug. 5 when a fire broke out at a Russian processing plant, causing Gazprom to reduce exports on the Yamal-Europe route and withdraw more gas from underground storage. Gas prices soared to over U.S. $540 (3,502 yuan) per thousand cubic meters, Interfax said.

(22)

Daily News Update Page 22 On Tuesday, gas prices hit a new high as the September futures contract on the Dutch Title Transfer Facility (TTF) gas hub index traded in the range of U.S. $564-582 (3,657- 3,774 yuan) per thousand cubic meters, according to Interfax.

On Thursday, Gazprom issued a statement suggesting that gas could start flowing to Europe through the Nord STream 2 pipeline by the end of this year.

For Gazprom, the situation may help to fulfil a long-held ambition to create competition between Europe and Asia for its resources. But so far, low volumes from its 3,000- kilometer (1,864-mile) Power of Siberia pipeline to China suggest it still has a long way to go.

On Aug. 10, the official Xinhua news agency reported that China has imported over 10 billion cubic meters (353 billion cubic feet) of gas from the pipeline since it opened in December 2019.

The Power of Siberia project was designed to pump 38 billion cubic meters (bcm) of gas annually to China in 2025 with a possible increase of capacity to 44 bcm.

In June, Gazprom reported that the line had delivered 3.84 bcm in its first year of operation, indicating that it has supplied only about 6 bcm to China so far this year.

TerraCom to extend Blair Athol coal mine life

Tom Parker

T

ERRACOM has extended the life of its Blair Athol coal mine in Queensland’s Bowen Basin by approximately 10 years.

The announcement comes after TerraCom engaged Deswik Mining Consultants to complete an updated assessment of the Clermont operation.

As of June 30, 2021, the Blair Athol marketable reserves totalled 19.5 metric tonnes, and with a two-million-tonne sales profile, it’s estimated there’s another 10 years of life in the mine. TerraCom executive chairman Craig Ransley is excited by what’s to come of Blair Athol.

“This latest JORC reserve result means that the Blair Athol operation will effectively be able to operate for 14 years under TerraCom ownership,” he said.

“Blair Athol has already contributed significantly to the TerraCom group and we look forward to a further 10 years contribution from the operation.”

TerraCom acquired the thermal coal mine from Rio Tinto in 2017 via the former’s subsidiary Orion Mining after Rio had closed the mine and placed it under care and maintenance since 2012.

In April, TerraCom was forced to defend the authenticity of the coal at Blair Athol, denying allegations the company was involved in a fake coal sampling investigation.

(23)

Daily News Update Page 23 The investigation and subsequent 2020 court case centred on allegations that lab testing and certification company ALS had helped TerraCom to falsify its coal quality results to increase the coal’s worth.

On August 10, TerraCom advised July 2021 operating EBITDA results of $13.6 million for Blair Athol. This represented a cash margin of $58 per tonne.

Bauxite production set to rise 3.8% in 2021

MINING.COM Staff Writer

I

NCREASED bauxite production from mines in Australia (+4.1%) and Guinea (+3.6%) is expected to push global output up 3.8% in 2021 to 372.8 million tonnes, according to research released by GlobalData.

The buoyant outlook follows a challenged 2020 that still churned out 1.2% more product at 359.2 million tonnes than in 2019.

“Over the forecast period (2021-2025), global bauxite production is expected to grow at a compound annual growth rate (CAGR) of 2.2% to reach 406,700 tonnes by 2025,” says Vinneth Bajaj, GlobalData’s associate project manager in a news release.

“Australia (+1.6%) and Guinea (+6.5%) will maintain a steady supply growth, supported by a series of upcoming projects. Together, they account for eight of the 17 planned bauxite projects, tracked by GlobalData, which have the potential to commence production by 2025.”

(24)

Daily News Update Page 24 In Australia, bauxite production growth will be supported by the restart of Metro Mining’s Bauxite Hills mine, where operations were halted due to the wet season. The mine is expected to produce about four million tonnes of bauxite in 2021.

Further, the formal commitment of the Stage 2 expansion of the mine to a capacity of six million tonnes, which is part of the company’s long-term development plan, will be dependent on the global market conditions.

In Guinea, the Boffa mine, which began operations in January 2020, is expected to gradually reach its full capacity during the second half of 2021. The mine is expected to produce up to nine million tonnes of bauxite in 2021, compared with seven million tonnes in 2020.

Earlier this year, operations began at the Garafiri project which has over 300 million tonnes of bauxite reserves. The project has an initial production capacity of three million tonnes, which will be expanded up to eight million tonnes.

In late July, China Railway Construction Corporation the announced completion of the construction of a railway line from Boffa to Boke, which will now increase the single trip freight volume to 10,000 tonnes, up from 5,000 tonnes, as part of the first phase of the Boke development project.

Phases 2 and 3 include exploitation of bauxite resources in the new mining areas of Santou II and Houda and development of an alumina refinery in the Boke special economic zone. Overall, this will play a crucial role in establishing Guinea as an export nation, according to GlobalData.

Bauxite is a sedimentary rock with a relatively high aluminium content. It is the world’s main source of aluminium and gallium.

TABLE OF CONTENTS. No. Title Media Source Page