TABLE OF CONTENTS No. Title Media Source Page

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IMA-Daily Update Page 1

"We are waiting for the final rule by the authorities regarding possible incentives for the gasification project," Dileep Srivastava, Director and Corporate Secretary of PT Bumi Resources Tbk (BUMI) told CNBC Indonesia, Wednesday (01/29/2020). BUMI is a coal company wi th the largest reser ves in Indonesia.

Coordinating Minister for the Economy Airlangga Hartarto in an omnibus law prepared a number of incentives for coal miners to facilitate the fulfillment of domestic market obligation s (DMO) and downstreaming, such as gasification (dimethyl ether/DME) or other derivative products.

Even Airlangga said that royalties would be abolished to encourage the industry.

Currently coal royalties are charged around 2%-7%, depending on the type of mine and coal calories.

"So if people have a mine that wants to go downstream plus DMOs, plus royalties, the factory will not be built as it is today. This should be cut with omnibus law," he told CNBC Indonesia.

Bakal Dapat Insentif, BUMI Semangat Garap Proyek

Gasifikasi

Rahajeng Kusumo Hastuti, CNBC Indonesia

P

ENGUSAHA tambang batu bara menyam- but positif rencana pemerintah Indonesia untuk membebaskan pembayaran royalti demi menggenjot hilirisasi. Aturan pem- bebasan royalti tersebut masuk dalam omnibus law Cipta Lapangan Kerja (Cilaka).

Meski demikian, pengusaha tambang batu bara menantikan aturan tersebut segera terbit guna meningkatkan kapasitas perusahaan dalam hilirisasi.

"Kami menunggu aturan final oleh otoritas tentang kemungkinan insentif untuk proyek gasifikasi," ujar Dileep Srivastava, Direktur dan Sekretaris Perusahaan PT Bumi Resources Tbk (BUMI) kepada CNBC Indonesia, Rabu (29/1/

2020). BUMI merupakan perusahaan batu bara dengan cadangan terbesar di Indonesia.

Menko Perekonomian Airlangga Har tar to dalam omnibus law di siapkan sejumlah insentif bagi penambang batu bara guna kemudahan pemenuhan domestic mar ket obligation (DMO) dan hilirisasi, seper ti gasifikasi (dimethyl ether/D ME) ataupun produk turunan lainnya.

Bahkan Airlangga mengatakan royalti akan ditiadakan demi mendorong industri. Saat ini royalti batu bara dikenakan sekitar 2%-7%, tergantung jenis tambang dan kalori batu bara.

"Jadi kalau orang punya tambang mau masuk hilirisasi ditambah DMO ditambah royalti maka pabriknya akan nggak bangun-bangun seperti saat ini. Ini kan yang harus di potong dengan omnibus law," terangnya kepada CNBC Indonesia.

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BUMI is one of the few coal mines that has entered the downstream industry. BUMI plans to build a coal gasification plant with an investment of up to US$ 2 billion. The company is aiming for coal gasification potential as well as to reduce dependence on energy imports.

Dileep said that BUMI is currently conducting a feasibility study to build this coal gasification. This feasibility study is expected to be completed this year and be considered by shareholders and lenders.

"We are actually very serious and actively involved," said Dileep.

The investment for the gasification plant will depend on the capacity of the plant, he estimates the investment needed is around US$ 1-2 billion. Last year the company produced around 87 million tons of coal, and will supply coal from its units such as Kaltim Prima Coal for potential plants as a supply stock and to provide power to the facilities. (dob/dob)

BUMI merupakan salah satu dari sedikit tambang batu bara yang masuk ke industri hilir.

BUMI berencana untuk membangun pabrik gasifikasi batu bara dengan investasi senilai sampai US$ 2 miliar. Perusahaan ini tengah membidik potensi gasifikasi batu bara sekaligus untuk mengurangi ketergantungan impor energi.

Dileep mengatakan saat ini BUMI tengah melakukan studi kelayakan untuk membangun gasifikasi batu bara ini. Studi kelayakan ini diharapkan bisa selesai tahun ini dan menjadi pertimbangan pemegang saham dan pemberi pinjaman.

"Kami sebenarnya sangat serius dan aktif terlibat," kata Dileep.

Investasi untuk pabrik gasifikasi nantinya bergantung pada kapasitas pabrik, dia memperkirakan investasi yang dibutuhkan ber- kisar US$ 1-2 miliar. Tahun lalu perusahaan memproduksi sekitar 87 juta ton batubara, dan akan memasok batubara dari unit- unitnya seperti Kaltim Prima Coal untuk pembangkit potensial sebagai stok pasokan dan untuk memberi daya pada fasilitas.

(dob/dob)

March 2020, SOE Mining Holding Completes Acquisition of PT Vale's

Shares

Taufik Fajar, Journalist

M

INING Industry Indonesia (Mind Id) or the mining industry holding company ensures that the signing of the PT Vale Indonesia (PTVI) share acquisition agreement is completed in March 2020.

"Yes, it is expected that March 2020 will be finished. There will be a green light," said Mind id Orias President Director Petrus Moedak at the IDX Economic Forum at the Aryaduta Hotel, Wednesday (01/29/2020).

Maret 2020, Holding BUMN Tambang Tuntaskan Akuisisi

Saham PT Vale

Taufik Fajar, Jurnalis

M

INING Industry Indonesia (Mind Id) atau holding industri pertambangan memastikan penandatan ganan kesepakatan akuisisi saham PT Vale Indonesia (PTVI) selesai pada Maret 2020.

"Diharapkan Maret 2020 ya selesai ya. Lampu hijau sudah selesai," ujar Direktur Utama Mind id Orias Petrus Moedak pada acara IDX Economic Forum di Hotel Aryaduta, Rabu (29/1/2020).

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According to him, if this agreement was signed, Mind ID would pocket 20% of PTVI shares as an obligation that must be fulfilled after 5 years had passed from the date the contract of work began.

"The initial target is 20%. That's if you get approval," he said.

Previously, PT Indonesia Asahan Aluminum (Persero) (Inalum) officially acquired 20% of PT Vale Indonesia Tbk (INCO) shares. This will benefit Indonesia in developing a new capital city.

Minister of State-Owned Enterprises (BUMN), Erick Thohir said, the acquisition of PT Vale Indonesia Tbk's divestment shares is a strategic plan to develop electric cars in Indonesia. In fact, to guarantee the need for electric car batteries. (dni)

Menurut dia, apabila kesepakatan ini diteken, Mind id akan mengantongi 20%

saham PTVI sebagai kewajiban yang harus dipenuhi usai 5 tahun berlalu dari tanggal kontrak karya dimulai.

"Target awalnya 20%. Itu kalau dapat persetujuan," ungkap dia.

Sebelumnya, PT Indonesia Asahan Aluminium (Persero) (Inalum) resmi akuisisi 20% saham PT Vale Indonesia Tbk (INCO). Hal tersebut akan menguntungkan Indonesia dalam pembangunan Ibu Kota baru.

Menteri Badan Usaha Milik Negara (BUMN), Erick Thohir menyebutkan, akuisisi dives- tasi saham PT Vale Indonesia Tbk merupakan rencana strategis mengembangkan mobil listrik di Indonesia. Bahkan, untuk menjamin kebutuhan baterai mobil listrik.

(dni)

Heavy Equipment Business Burdened by Coal Market

Sluggishness

T

HE HEAVY equipment business will tend to slow down this year. The reason, the sector which is the mainstay of heavy equipment, namely coal mining, is still sluggish. This situation forced the heavy equipment businessman to diversify his business.

The government has set a national coal production target of 55 million tons this year, lower than last year's 610 million tons.

Jamaluddin, Chair of the Indonesian Heavy Equipment Association (Hinabi), projected heavy equipment production this year will decrease compared to the previous year.

Bisnis Alat Berat Terbebani Kelesuan Pasar Batubara

B

ISNIS a lat be rat akan cen derun g melambat tahun ini. Penyebabnya, sektor yang menjadi andalan alat berat, yakni pertambangan batubara, masih lesu.

Situasi ini memaksa pebisnis alat berat melakukan diversifikasi bisnis.

Pemerintah menetapkan target produksi batubara nasional tahun ini 55 juta ton, lebih rendah ketimbang realisasi tahun lalu 610 juta ton.

Jamaluddin, Ketua Himpunan Alat Berat Indonesia (Hinabi) memproyeksikan produksi alat berat pada tahun ini akan mengalami penurunan dibandingkan tahun sebelumnya.

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"It is estimated that there is a slight decrease of around 7% compared to 2019,"

he said to KONTAN, Wednesday (29/1).

Regarding last year's achievements, Hinabi was not final in gathering data. The industry set a production target of 6,000 units last year. During the nine months of 2019, Hinabi recorded that domestic heavy equipment production reached 4,688 units.

The type of product that dominates is 4,210 dump trucks.

Komatsu brand heavy equipment distributor, PT United Tractors Tbk (UNTR), acknowledged the weakening of the coal business also affected sales projections this year.

PT United Tractors Tbk Corporate Secretary Sara Loebis confirmed that UNTR management only set excavator sales volume in the range of 2,900 to 3,000 units this year.

The number is fairly conservative because it matches last year's UNTR sales figures which were in the range of 2,900 units.

Despite the weak coal sector, this subsidiary of the Astra Group still sees good opportunities with the need for infrastructure projects for heavy equipment.

President Director of PT Hexindo Adiperkasa Tbk (HEXA), Djonggi Gultom, said that the heavy equipment market in 2020 is estimated to be not much different from the previous year. The mining companies in particular, in the coal sector have not made many new investments alias the purchase of new heavy equipment.

In terms of sales volume, for excavators only, HEXA only targeted 1,916 units for the April 2019 fiscal year to March 2020. The sales volume shrank by...

"Diperkirakan ada sedikit turun sekitar 7%

dibandingkan tahun 2019," sebut dia kepada KONTAN, Rabu (29/1).

Mengenai pencapaian tahun lalu, Hinabi belum final mengumpulkan datanya.

Industri sempat mematok target produksi sebanyak 6.000 unit di sepanjang tahun lalu. Selama sembilan bulan di tahun 2019, Hinabi mencatat produksi alat berat dalam negeri mencapai 4.688 unit. Jenis produk yang mendominasi adalah dump truck sebanyak 4.210 unit.

Distributor alat berat merek Komatsu, PT United Tractors Tbk (UNTR) mengakui pelemahan bisnis batubara turut mem- pengaruhi proyeksi penjualan di tahun ini.

Corporate Secretary PT United Tractors Tbk Sara Loebis membenarkan manajemen UNTR hanya mematok volume penjualan ekskavator di kisaran 2.900 hingga 3.000 unit di sepanjang tahun ini.

Jumlah itu terbilang konservatif karena menyamai angka penjualan UNTR tahun lalu yang berada di kisaran 2.900 unit.

Meski sektor batubara melemah, anak usaha Grup Astra ini masih melihat kesempatan yang baik dengan kebutuhan proyek infrastruktur terhadap alat berat.

Presiden Direktur PT Hexindo Adiperkasa Tbk (HEXA), Djonggi Gultom, mengatakan kondisi pasar alat berat pada tahun 2020 diperkirakan tak jauh beda dengan tahun sebelumnya. Para perusahaan pertambangan khususnya, di sektor batubara belum banyak melakukan investasi baru alias pembelian alat berat baru.

Dari sisi volume penjualan, untuk ekskavator saja, HEXA hanya membidik 1.916 unit untuk tahun fiskal April 2019 hingga Maret 2020. Volume penjualan tersebut menyusut...

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The sales volume shrank by 7.4% compared to the previous fiscal year. Therefore, a number of heavy equipment business people take various strategies to main tain performance.

HEXA realizes that the heavy equipment business has not experienced a significant increase this year. In order to improve their performance, they continue to optimize several business lines, one of which is after sales service. "We will strengthen after-sales service, given the high demand for services and spare parts," Djonggi said.

The projected contribution of the HEXA parts business line in the April 2019-March 2020 fiscal year is US$ 134.37 million. That number grew 25% compared to the same period the previous fiscal year.

UNTR also relies on the after-sales service business line to hoist performance. "In addition to heavy equipment sales, another contribution that we rely on is after sales service. So, both of them support each other for the company' s performance," Sara explained to KONTAN, Wednesday (1/29).

Until the third quarter of 2019 UNTR revenue from sales of spare parts and after- sales services was Rp 6.8 trillion. This figure is the same as the acquisition in the same period the previous year.

Meanwhile PT Intraco Penta Tbk (INTA) continues to focus on its main business of heavy equipment sales and construction. For heavy equipment sales, INTA will diversify in sectors other than coal such as nickel mining, gold, agriculture, infra-structure and others.

INTA also developed the commercial car distribution business by opening a Tata Motors dealership. "This is our strategy to meet the needs of diverse customers and increase sales while the coal mining sector is still sluggish," said Ridyawan Amnar, Corporate Secretary of PT Intraco Penta Tbk. Reporter: Agung Hidayat, Editor: Thomas Hadiwinata

Volume penjualan tersebut menyusut 7,4%

dibandingkan tahun fiskal sebelumnya. Oleh karena itu, sejumlah pebisnis alat berat me- nempuh beragam strategi untuk memper- tahankan kinerja.

HEXA menyadari bisnis alat berat pada tahun ini belum mengalami kenaikan signifikan. Demi meningkatkan kinerjanya, mereka tetap meng- optimalkan beberapa lini usaha, salah satunya layanan purna jual. "Kami akan memperkuat layanan purna jual, mengingat kebutuhan service dan suku cadang masih tinggi," kata Djonggi.

Proyeksi kontribusi lini bisnis suku cadang HEXA pada tahun fiskal April 2019-Maret 2020 sebesar US$ 134,37 juta. Jumlah itu tumbuh 25% dibandingkan periode yang sama tahun fiskal sebelumnya.

UNTR juga mengandalkan lini bisnis layanan purna jual untuk mengerek kinerja. "Selain penjualan alat berat, kontribusi lain yang kami andalkan adalah layanan purna jual.

Jadi, keduanya saling menunjang untuk kinerja perusahaan," terang Sara kepada KONTAN, Rabu (29/1).

Hingga kuartal III 2019 pendapatan UNTR dari penjualan suku cadang dan jasa purna jual sebanyak Rp 6,8 triliun. Angka ini sama dengan perolehan di periode yang sama tahun sebelumnya.

Sementara itu PT Intraco Penta Tbk (INTA) tetap fokus kepada bisnis utamanya yakni penjualan alat berat dan konstruksi. Untuk penjualan alat berat, INTA akan melakukan diversifikasi di sektor selain batubara seperti pertambangan nikel, emas, pertanian, infrastruktur dan lainnya.

INTA juga mengembangkan bisnis distribusi mobil komersial dengan membuka diler Tata Motors. "Ini strategi kami untuk memenuhi kebutuhan pelanggan yang beragam serta meningkatkan penjualan di saat sektor tambang batubara masih lesu," ujar Ridyawan Amnar, Corporate Secretary PT Intraco Penta Tbk.

Reporter: Agung Hidayat, Editor: Thomas Hadiwinata

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2019 Darma Henwa Coal Production Increases 27.27%

Yurika

P

T DARMA Henwa Tbk (DEWA) recorded an increase in coal production from January to December 2019 by 27.27% to 16.94 million tons compared to 2018.

Mukson Arif Rosyidi, Corporate Secretary of Darma Henwa, said the achievement of 2019 coal production was still within the target set by the company.

"Production at the Bengalon coal mine rose 41.32% to 9.44 million tons. Asam Asam's coal production increased by 20.04% to 6.17 million tons. Meanwhile, production at m Satui is at 1.33 million tons," Mukson said, Wednesday (29/1).

During 2019, Darma only recorded 119.73 million bcm of overburden removal, up 17.54% compared to the previous year.

Mukson said overburden at the Bengalon coal mine in East Kalimantan still dominates. During 2019, Bengalon coal mine overburden reached 78.36 million bcm, or about 65% of all Darma Henwa overburden.

The Asam Asam coal mine in South Kalimantan recorded an overburden of 32.80 million bcm. Satui coal mine in South Kalimantan recorded an overburden of 8.57 million bcm.

Darma Henwa also took a number of steps to encourage productivity and optimize tool performance. The Company made improvements and increased the number of tools, as well as improvements to the composition of fleet matching. In addition, the company also improved mine planning and management of mining operations more effectively and efficiently.

Produksi Batu Bara Darma Henwa 2019 Naik 27,27%

Yurika

P

T DARMA Henwa Tbk (DEWA) mencatat peningkatan produksi batu bara atau coal delivery sepanjang Januari – Desember 2019 sebesar 27,27% menjadi 16,94 juta ton dibanding 2018.

Mukson Arif Rosyidi, Corporate Secretary Darma Henwa, mengatakan pencapaian produksi batu bara 2019 masih berada dalam rentang target yang ditetapkan perseroan.

“Produksi di tambang batu bara Bengalon naik 41,32% menjadi 9,44 juta ton. Produksi batu bara Asam Asam meningkat 20,04% menjadi 6,17 juta ton. Sementara, produksi di m Satui berada di angka 1,33 juta ton,” kata Mukson, Rabu (29/1).

Sepanjang 2019 Darma Hanya juga men- catatkan overburden removal atau pengupasan tanah sebesar 119,73 juta bcm, naik 17,54% dibanding tahun sebelumnya.

Mukson mengatakan overburden di tambang batu bara Bengalon di Kalimantan Timur masih mendominasi. Sepanjang 2019, overburden tambang batu bara Bengalon mencapai 78,36 juta bcm atau sekitar 65% dari seluruh overburden Darma Henwa.

Tambang batu bar a Asam Asam di Kalimantan Selatan mencatat overburden 32,80 juta bcm. Tambang batu bara Satui di Kalimantan Selatan mencatat overburden sebesar 8,57 juta bcm.

Darma Henwa juga melakukan sejumlah langkah untuk mendorong produktivitas dan mengoptimalisasi kinerja alat. Perseroan melakukan perbaikan dan penambahan jumlah alat, serta perbaikan pada komposisi fleet matching. Selain itu, perseroan juga memperbaiki perencanaan tambang dan pengelolaan operasional tambang yang lebih efektif dan efisien.

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"With the improvement in mining planning which is supported by improvements and the addition of a number of tools carried out by the company, we have succeeded in increasing productivity in the coal mines that we are working on," said Mukson. (RA)

“Dengan adanya perbaikan perencanaan pertambangan yang didukung oleh perbaikan serta penambahan sejumlah alat yang dilakukan perseroan, kami berhasil meningkatkan produktivitas pada tambang-tambang batu bara yang kami kerjakan,” tandas Mukson. (RA)

Rp40 T Needs to Make a Factory to 'Converting' Coal into Gas

Herdi Alif Al Hikam - detikFinance

M

ARITIME and Investment Coordinating Minister Luhut Binsar Pandjaitan today summoned PT Bukit Asam (PTBA) Managing Director Arviyan Arifin. He asked for a report on the development of the coal gasification project.

He said to build a PTBA coal gasification processing plant in Sumatra to spend up to US$ 3 billion or around Rp 40.8 trillion (in the exchange rate of Rp 13,600).

"Earlier PTBA, they want gasification in Sumatra. So investment may be close to US$

3 billion," Luhut said in his office, Central Jakarta, Wednesday (01/29/2020).

Luhut explained that PTBA's coal calories were 3,800 kcal/kg, so it could be processed into Dimethyl Ethyl gas (DME).

"They want gasification because the calories are 3,800," Luhut said.

For information, PTBA will create joint ventures with several companies for coal downstreaming.

In Tanjung Enim, PTBA will form a joint venture with 3 other companies namely PT Pertamina (Persero), PT Pupuk Indonesia (Persero), PT Chandra Asri Petrochemical.

Butuh Rp 40 T Bikin Pabrik untuk 'Sulap' Batu Bara Jadi Gas

Herdi Alif Al Hikam - detikFinance

M

ENKO Kemaritiman dan Investasi Luhut Binsar Pandjaitan hari ini memanggil Dirut PT Bukit Asam (PTBA) Arviyan Arifin. Dia meminta laporan pengembangan proyek gasifikasi batu bara.

Dia mengatakan untuk membangun pabrik pengolahan gasifikasi batu bara PTBA di Sumatera menelan dana hingga US$ 3 miliar atau sekitar Rp 40,8 triliun (dalam kurs Rp 13.600).

"Tadi PTBA mereka mau gasifikasi di Sumatera. Jadi investasi mungkin dekat di US$ 3 miliar," kata Luhut di kantornya, Jakarta Pusat, Rabu (29/1/2020).

Luhut menjelaskan bahwa kalori batu bara milik PTBA besarnya 3.800 kcal/kg, dengan begitu bisa diolah menjadi gas Dimetil Etil (DME).

"Mereka mau gasifikasi karena kalorinya itu kan 3.800," kata Luhut.

Sebagai informasi, PTBA akan membuat perusahaan patungan dengan beberapa perusahaan untuk hilirisasi batu bara.

Di Tanjung Enim, PTBA akan membentuk perusahaan patungan dengan 3 perusahaan lainnya yakni PT Pertamina (Persero), PT Pupuk Indonesia (Persero), PT Chandra Asri Petrochemical.

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In Tanjung Enim, the company will later produce a number of products including dimethyl ether (DME) which is a coal gasification product and can be used as a substitute for LPG. Then, it will also produce fertilizer and polypropylene.

(dna/dna)

Di Tanjung Enim, perusahaan ini nantinya memproduksi sejumlah produk antara lain dimethyl ether (DME) yang merupakan produk gasifikasi batu bara dan bisa dijadikan substitusi LPG. Lalu, juga akan memproduksi pupuk dan polypropylene.

(dna/dna)

Coal Price Stays in Place, Samindo Still Calculates Targets

C

OAL mi nin g se rvice compan y P T Samindo Resources Tbk has not yet announced performance projections for this year. Samindo's management is still studying various factors, including this year's national coal production target which is lower than last year.

On the other hand, coal price movements in the global market did not increase significantly. As a result, many mining operators tend to hold production.

Nevertheless, the issuer with the MYOH stock code on the Indonesia Stock Exchange is sending a signal that it will maximize the equipment already available to meet the target throughout this year.

Head of Investor Relations of PT Samindo Resources Tbk, Ahmad Zaki Natsir admitted, in the last two years it had added 20 units of new heavy equipment.

Last year, MYOH bought 10 dump trucks with an investment of US$ 14.5 million. On that basis, Samindo Resources management will focus on maximizing the existing mining equipment rather than adding more equipment.

"We will also increase the maintenance of mining equipment so that it is not easily damaged," he said, Wednesday (29/1).

Harga Batubara Jalan di Tempat, Samindo Masih Menghitung Target

P

ERUSAHAAN jasa penambangan batubara PT Samindo Resources Tbk belum meng- umumkan proyeksi kinerja untuk tahun ini.

Manajemen Samindo masih mempelajari beragam faktor, termasuk target produksi batubara nasional pada tahun ini yang lebih rendah dibandingkan tahun lalu.

Di sisi lain, pergerakan harga batubara di pasar global tidak meningkat signifikan.

Alhasil, banyak operator pertambangan yang cenderung menahan produksi.

Kendati demikian, emiten dengan kode saham MYOH di Bursa Efek Indonesia ini mengirimkan sinyal bakal memaksimalkan peralatan yang sudah ada untuk memenuhi target di sepanjang tahun ini.

Kepala Hubungan Investor PT Samindo Resources Tbk, Ahmad Zaki Natsir mengaku, dalam dua tahun terakhir pihaknya sudah menambah 20 unit alat berat baru.

Tahun lalu, MYOH membeli 10 dump truck dengan investasi senilai US$ 14,5 juta. Atas dasar itu, manajemen Samindo Resources akan fokus memaksimalkan terlebih dahulu alat-alat pertambangan yang sudah ada ketimbang kembali menambah alat lagi.

“Kami juga akan meningkatkan maintenance alat tambang supaya tidak mudah rusak,”

kata dia, Rabu (29/1).

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This year, MYOH continues to explore opportunities to add new contracts in the field of coal mining services. But Zaki hasn't revealed the plan in detail.

To be sure, there are already three companies that submitted offers of cooperation to MYOH. "There are already several companies that are interested in MYOH becoming a contractor. Now we are still studying," explained Zaki.

Samindo Resources' operational performance last year was positive. The issuer recorded a volume of overburden removal or overburden removal of 55.2 million bank cubic meters (bcm) last year, up 1.09% (yoy) compared to the previous year at 54.6 million bcm.

The volume of coal extraction also grew 13.49% (yoy) to 11.1 million tons in 2019.

In 2018, MYOH realized coal getting 9.8 million tons. Reporter: Dimas Andi, Editor:

Thomas Hadiwinata

Tahun ini, MYOH terus menjajaki peluang menambah kontrak baru di bidang jasa pertambangan batubara. Namun Zaki belum membeberkan rencana itu secara detail.

Yang pasti, sudah ada tiga perusahaan yang mengajukan tawaran kerjasama kepada MYOH. “Sudah ada beberapa perusahaan yang berminat agar MYOH menjadi kontraktor. Sekarang masih kami pelajari,”

terang Zaki.

Kinerja operasional Samindo Resources di tahun lalu terbilang positif. Emiten itu membukukan volume pengupasan lapisan batuan penutup atau overburden removal sebesar 55,2 juta bank cubic meter (bcm) pada tahun lalu atau naik 1,09% (yoy) dibandingkan tahun sebelumnya sebesar 54,6 juta bcm.

Volume pengambilan batubara atau coal getting juga tumbuh 13,49% (yoy) menjadi 11,1 juta ton di 2019. Pada 2018, MYOH merealisasikan coal getting 9,8 juta ton.

Reporter: Dimas Andi, Editor: Thomas Hadiwinata

Managing Director of Inalum Describes the Importance of

Holding of Mining SOEs

Athika Rahma

I

NDONE SIAN Presi dent Di re ctor of Asahan Aluminum (Inalum) Orias Petrus Moedak revealed the importance of establishing a holding of mining SOE for the advancement of the Indonesian mining industry.

According to him, holding of mining SOE will make the SOE business model more focused, directed and downstreamed.

Dirut Inalum Beberkan Pentingnya Holdingisasi BUMN

Pertambangan

Athika Rahma

D

IREKTUR Utama Indonesia Asahan Aluminium (Inalum) Orias Petrus Moedak beberkan pentingan pembentukan holdingisasi BUMN pertambangan untuk kemajuan industri pertambangan Indonesia.

Menurutnya, holdingisasi BUMN pertambangan akan membuat model bisnis BUMN lebih fokus, terarah dan terhilirisasi.

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"For example aluminum, originally from bauxite, we export bauxite, then process it into alumina, we import again. This has been going on for years. So with this holding, we don't want to be stupid," Orias said at the IDX Economic Forum titled Measuring Priority Strategy of 2020-2024 SOE in Jakarta, Wednesday (01/29/2020).

Not only that, holding will also make production costs cheaper. Then, holding is also considered to be able to help accelerate the completion of subsidiary projects, because the holding parent will be a catalyst.

"If (a subsidiary) needs our partner (parent), it can be a partner first, as happened in Mempawah, because Antam if it alone might not be strong. Later when it is strong, we exit slowly," added Inalum President Director.

Working Speed

To realize the right target holding, Orias prioritizes the speed of work of all parties, of course coupled with results that are in accordance with the plan. Parties that cannot be invited to cooperation will be immediately replaced.

"For me, the most valuable thing is time. All processes must be fast, the term is, if the car runs slowly, yes, the driver is replaced," he added.

"Contohnya aluminium, asalnya dari bauksit, bauksitnya kita ekspor, lalu diolah jadi alumina, kita impor lagi. Ini kan sudah ber- langsung bertahun-tahun. Jadi dengan adanya holding ini, kita nggak mau jadi bodoh,"

papar Orias di IDX Economic Forum bertajuk Menakar Stratrgi Prioritas BUMN 2020-2024 di Jakarta, Rabu (29/1/2020).

Tak hanya itu, holdingisasi juga akan mem-buat biaya produksi semakin murah. Lalu, holdingisasi juga dinilai bisa membantu mempercepat selesainya proyek anak usaha, karena induk holding akan menjadi katalisator.

"Kalau (anak usaha) butuh partner kita (induk) bisa jadi partner dulu, seperti yang terjadi di Mempawah, karena Antam kalau sendiri mungkin tidak kuat. Nanti kalau sudah kuat, kita exit pelan-pelan," imbuh Dirut Inalum.

Kecepatan Kerja

Untuk mewujudkan holdingisasi yang tepat sasaran, Orias mengutamakan kecepatan kerja dari seluruh pihak, tentunya dibarengi dengan hasil yang sesuai dengan rencana.

Pihak-pihak yang tidak dapat diajak kerjasama akan langsung diganti.

"Bagi saya, yang paling berharga adalah waktu. Semua proses harus cepat, istilahnya, kalau mobil berjalan lambat, ya, sopirnya diganti," imbuhnya.

Luhut: PTBA Gasification Prices Can Touch US$ 6

Muhammad Choirul Anwar, CNBC Indonesia

T

HE COORDINATING Ministe r for Maritime Affairs and Investment Luhut Binsar Pandjaitan positively welcomed the gasification that was carried out by PT Bukit Asam (PTBA).

Luhut: Harga Gasifikasi PTBA Bisa Sentuh US$ 6

Muhammad Choirul Anwar, CNBC Indonesia

M

ENKO Kemaritiman dan Investasi Luhut Binsar Pandjaitan menyambut positif gasifikasi yang digeber PT Bukit Asam (PTBA).

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Luhut has requested information from PTBA directors regarding the plan. Luhut said, PTBA coal calories reached 3,800 kcal/kg so that it was quite relevant to produce gas.

From the results of the gasification can also be produced a number of derivative products.

"So investment may be close to US$ 3 billion.

Now it is in the second stage of the process,"

Luhut said in his office on Wednesday (1/29/20).

Luhut also did not forget to consider the price of gas from PTBA coal gasification. Based on calculations, the figures presented are still in line with government expectations.

"The price of gas can come out at US$ 6. I think that's enough with the government,"

he explained.

Previously, PTBA confirmed that it would choose Tanjung Enim as the location of the gasification project. Director of PT Bukit Asam Tbk, Arviyan Arifin said that related to the gasification project development plan, the company had made a joint venture agreement in the United States last year and the feasibility study had also been completed in November 2019.

Based on the study from two locations between Peranap in Indragiri Hulu, Riau and Tanjung Enim Muara Enim, South Sumatra, the results are more feasible for projects being built in Tanjung Enim with consideration of infrastructure support and others. Besides that, in terms of capital expenditure (capex) in Tanjung Enim, it is also more efficient.

"From the results of the study, we decide on Tanjung Enim," he said in Jakarta, Monday (12/23/2019).

To replace gasification in Peranab PTBA will continue the Riau 1 PLTU project that was previously worked on by PLN. Another downstream project that...

Luhut sudah meminta keterangan dari direksi PTBA mengenai rencana tersebut.

Luhut mengatakan, kalori batubara PTBA mencapai 3.800 kcal/kg sehingga cukup relevan untuk menghasilkan gas. Dari hasil gasifikasi tersebut juga bisa dihasilkan sejumlah produk turunannya.

"Jadi investasi mungkin dekat di US$ 3 miliar. Sekarang sudah pada proses tahap ke-2," kata Luhut di kantornya, Rabu (29/1/20).

Luhut juga tak lupa mempertimbangkan harga gas hasil gasifikasi batubara PTBA.

Berdasarkan perhitungan, angka yang tersaji masih sesuai dengan harapan pemerintah.

"Harga gasnya bisa keluar di US$ 6. Saya kira cukup dengan pemerintah," bebernya.

Sebelumnya, PTBA memastikan akan memilih Tanjung Enim sebagai lokasi proyek gasifikasi. Direktur Utama PT Bukit Asam Tbk, Arviyan Arifin mengatakan terkait rencana pembangunan proyek gasifikasi pihaknya sudah melakukan joint venture agreement di Amerika Serikat tahun lalu dan studi kelayakan juga sudah selesai November 2019.

Berdasarkan studi tersebut dari dua lokasi antara Peranap di Indragiri Hulu, Riau dan Tanjung Enim Muara Enim, Sumatra Selatan, hasilnya lebih layak proyek dibangun di Tanjung Enim dengan pertimbangan dukungan infrastruktur dan lainnya. Selain itu dari segi belanja modal (capex) di Tanjung Enim juga lebih efisien.

"Dari hasil studi kita putuskan di Tanjung Enim," ungkapnya di Jakarta, Senin, (23/12/2019).

Untuk menggantikan gasifikasi di Peranab PTBA akan meneruskan proyek PLTU 1 Riau yang sebelumnya digarap PLN.

Proyek hilirisasi lain yang...

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Another downstream project that will be developed is the South Sumatra 8 power plant which is projected to be completed in 2021.

"The Riau PLTU 1 plan which was originally worked on by PLN, now PTBA is given the opportunity to develop there, I have sent a letter to PLN, hopefully there will be a good response," he hoped.

He said that related to gasification there are several key things, one of which is technology. According to him, the matter of technology has been tested, because in some locations China has produced several products ranging from gas, to products made even further downstream, and even avtur is made from coal.

The initial phase of the gasification project will be processed downstream products from gas to methanol, dimethyl ether (DME), ammonia, and fertilizer.

During this time, the use of coal is only used as fuel for power plants that have pollution impacts at the downstream level. However, after being processed into gas, it is expected to have lower emissions, which means it is more environmentally friendly.

"We also increase the added value, if coal value is 1, after becoming methanol, it will be 7-8 times, DME 6-9 times, petrochemical is above 10 times," he said. (gus)

Proyek hilirisasi lain yang akan dikem- bangkan yakni PLTU Sumsel 8 yang di- proyeksikan selesai pada tahun 2021.

"Rencana PLTU Riau 1 yang semula digarap PLN, kini PTBA diberi kesempatan kem- bangkan di sana, saya sudah berkirim surat ke PLN mudah-mudahan ada tangapan baik," harapnya.

Ia mengatakan terkait gasifikasi ada beberapa hal kunci, salah satunya teknologi. Soal teknologi menurutnya sudah teruji, karena di beberapa lokasi China sudah menghasilkan beberapa produk mulai dari gas, sampai dibuat produk yang lebih hilir lagi, bahkan avtur pun dibuat dari batu bara.

Tahap awal dari proyek gasifikasi ini akan diproses produk hilir dari gas menjadi methanol, dimethyl ether (DME), amonia, dan pupuk.

Selama ini, pemanfaatan batu bara hanya dimanfaatkan sebagai bahan bakar pembangkit listrik yang berdampak polusi di level downstream. Namun setelah diolah menjadi gas diharapkan akan lebih rendah emisi, yang artinya lebih ramah lingkungan.

"Kita juga meningkatkan nilai tambah, kalau batu bara nilainya 1, setelah menjadi metanol jadi 7-8 kali, DME 6-9 kali, petrochemical di atas 10 kali," ungkapnya.

(gus)

Issuers of Coal immune to Corona Virus?

Pandu Gumilar

C

OAL issuers are optimistic that the corona virus will not disrupt exports to China at the beginning of the year.

Emiten Batu Bara Kebal Virus Corona?

Pandu Gumilar

E

MITEN-emiten batu bara mengaku optimistis virus corona tidak akan meng- ganggu ekspor ke China pada awal tahun.

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Corporate Secretary of Bukit Asam Hadis Surya said the corona virus has not affected the coal sales performance. Because the new company will begin an expedition to China in March.

"It also happens that the port destination and location of our consumers are not in the Wuhan area which is the place where the corona virus is endemic," he told Bisnis on Tuesday (1/28/2020).

The Hadith said that the contribution of exports to China this year was only 2 percent of the total production of 30 million tons. So he is optimistic, the virus will not be a pressure on income in the first quarter of 2020.

Golden Energy Mines Corporate Secretary Sudin Sudirman also said the company's coal exports would not be hit by the deadly disease in the near future.

"The corona virus will hit Chinese tourism first [rather than coal] if it is not immediately overcome, because many countries have given travel warnings," he said.

For information, China contributed 38.64 percent of black gold sales to the company.

GEMS-coded stock issuer can at least export as much as 9.42 million tons of total production of 24.37 million tons.

This year the company targets to produce 35.6 million tons of coal with a capital expenditure of US$ 24.8 million.

Meanwhile, Bumi Resources Corporate Secretary Dileep Srivastava said sales performance would not be hampered by the deadly virus.

According to him, even though the plague was contagious, demand from the bamboo curtain country had not diminished. "There has been no impact. About 15 percent-20 percent of our exports will go there," he concluded. Editor: M. Taufikul Basari

Sekretaris Perusahaan Bukit Asam Hadis Surya mengatakan virus corona belum memengaruhi kinerja penjualan batu bara.

Pasalnya, perseroan baru akan memulai ekspedisi ke China pada Maret mendatang.

“Kebetulan juga destinasi pelabuhan dan lokasi konsumen kami bukan di daerah Wuhan yang merupakan tempat di mana virus corona mewabah,” katanya kepada Bisnis Selasa (28/1/2020).

Hadis mengatakan kontribusi ekspor ke China tahun ini hanya sebesar 2 persen dari total produksi sebesar 30 juta ton. Jadi dia optimistis, virus tidak menjadi penekan pendapatan pada kuartal I/2020.

Sekretaris Perusahaan Golden Energy Mines Sudin Sudirman pun menyatakan ekspor batu bara perseroan tidak akan terpukul oleh penyakit mematikan itu dalam waktu dekat.

“Virus corona akan memukul pariwisata China terlebih dahulu [daripada batu bara]

jika tidak secepatnya diatasi, karena sudah banyak negara beri travel warning,” katanya.

Sebagai informasi, China berkontribusi atas 38,64 persen penjualan emas hitam kepada perseroan. Emiten berkode saham GEMS itu setidaknya bisa mengekspor sebanyak 9,42 juta ton dari total produksi 24,37 juta ton.

Adapun pada tahun ini perseroan me- nargetkan bisa memproduksi 35,6 juta ton batu bara dengan belanja modal sebesar US$24,8 juta.

Sementara itu, Sekretaris Perusahaan Bumi Resources Dileep Srivastava mengatakan kinerja penjualan tidak akan terhambat oleh virus mematikan itu.

Menurutnya, meski wabah menular permintaan dari negeri tirai bambu belum berkurang. “Belum ada dampaknya. Sekitar 15 persen-20 persen ekspor kami akan tujukan ke sana,” pungkasnya. Editor : M.

Taufikul Basari

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Entering Prolegnas, Commission VII Forms Working Committee on

the Minerba and EBT Bill

C

OMMISSIO N VII of the H ouse of Representatives revealed that it immediately formed a working committee (Panja) to discuss the issuance of two bills in the energy sector which were included in the 2020 National Legislation Program (Prolegnas). In addition, a discussion oversight committee would also be formed.

Previously, the DPR Plenary Meeting passed two energy bills to Prolegnas 2020, namely the Amendment Bill to Law Number 4 of 2009 concerning Mineral and Coal Mining (Minerba) and the Bill on New and Renewable Energy (EBT).

House of Representatives Commission VII Chairman Sugeng Suparwoto said the plan to establish a working group meeting would be held on Thursday (30/1). While preparing the working committee, he continued, the energy commission will send a letter to the government so that the relevant ministries/institutions immediately participate in discussing the two bills.

"Thursday (1/30) we will hold an internal meeting to form a supervisory committee and a committee member. The discussion on the Minerba Bill will begin immediately after the committee is formed," Sugeng said, Tuesday (1/28).

Sugeng predicted that the discussion on the Minerba Bill would be faster than the EBT Bill. The reason is that the govern-ment has issued a Presidential Trust (Ampres) in the previous period.

Masuk Prolegnas, Komisi VII Bentuk Panja RUU Minerba dan

EBT

K

OMISI VII DPR mengungkapkan segera membentuk panitia kerja (panja) untuk membahas penerbitan dua rancangan undang-undang (RUU) di bidang energi yang masuk dalam Program Legislasi Nasional (Prolegnas) 2020. Selain itu, akan dibentuk pula panja pengawasan pembahasan.

Sebelumnya, Rapat Paripurna DPR sudah meloloskan dua RUU energi ke Prolegnas 2020, yaitu RUU Perubahan atas UU Nomor 4 Tahun 2009 tentang Pertambangan Mineral dan Batu Bara (Minerba) dan RUU tentang Energi Baru dan Terbarukan (EBT).

Ketua Komisi VII DPR Sugeng Suparwoto mengatakan rencananya rapat pembentukan panja akan diselenggarakan pada Kamis (30/1) mendatang. Sembari mem- persiapkan panja, sambungnya, komisi energi akan berkirim surat kepada pemerintah agar para kementerian/lembaga terkait segera turut serta melakukan pembahasan dua RUU.

"Kamis (30/1) kami akan rapat internal membentuk panja pengawasan dan panja RUU. Pembahasan RUU Minerba akan segera dimulai setelah panja dibentuk,"

ungkap Sugeng, Selasa (28/1).

Sugeng memperkirakan pembahasan RUU Minerba akan lebih cepat ketimbang RUU EBT. Pasalnya, pemerintah sudah menge- luarkan Amanah Presiden (Ampres) pada periode sebelumnya.

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"Administratively, the Minerba Bill is far more advanced because the Ampres and the Problem Entry List (DIM) have been issued, but it has not been discussed. While EBT has not," he said.

Sugeng said the energy commission would also schedule a public discussion regarding the two legal regulations. Because, the two bills are an initiation from the legislative body.

On the other hand, he said the DPR and the government wanted to accelerate the discussion of the two houses in order to improve the investment climate improvement in the national energy sector.

Specifically, investing in EBT.

"Now the World Bank no longer wants to finance coal and solar-based power plants.

This means that we must strive for EBT to have a firm legal umbrella, so that the development of EBT is progressing significantly," he said.

While related to the points contained in the two bills, according to Sugeng, it will not be detailed to the regulation of energy prices.

The two bills, he said, would only regulate legal certainty.

"The price provisions are in government regulations. Prices are usually from presidential regulations (Perpres), presidential decrees (Keppres), and so on, because this is dynamic," he concluded. (uli/age)

"Secara administratif jauh lebih maju RUU Minerba karena sudah keluar Ampres dan Daftar Isian Masalah (DIM), tapi belum dibahas. Sementara EBT belum," ujarnya.

Sugeng mengatakan komisi energi akan pula menjadwalkan diskusi publik mengenai dua beleid hukum itu. Sebab, kedua RUU merupakan inisiasi dari lembaga legislatif.

Di sisi lain, ia mengungkapkan DPR bersama pemerintah ingin mempercepat pembahasan kedua ruu demi meningkatkan perbaikan iklim investasi di sektor energi nasional. Khususnya, investasi di EBT.

"Sekarang Bank Dunia tidak mau lagi membiayai power plant yang berbasis batu bara dan solar. Artinya, kami harus ber- upaya agar EBT mempunyai kepastian payung hukum yang firm, sehingga pengembangan EBT maju signifikan,"

tuturnya.

Sementara terkait poin-poin yang ada di dalam kedua RUU, menurut Sugeng, tidak akan rinci sampai ke pengaturan harga energi. Kedua RUU, katanya, hanya akan mengatur soal kepastian hukum.

"Ketentuan harga ada di aturan pemerintah. Harga biasanya dari peraturan presiden (perpres), keputusan presiden (keppres), dan sebagainya, karena ini bersifat dinamis," pungkasnya. (uli/age)

The cruel Corona Virus makes the price of coal more sprawled

Tirta Citradi, CNBC Indonesia

B

ENCHMARK contract coal prices closed lower in yesterday's trade.

Kejamnya Virus Corona Buat Harga Batu Bara Makin Terkapar

Tirta Citradi, CNBC Indonesia

H

ARGA batu bara kontrak acuan ditutup melemah pada perdagangan kemarin.

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Corona virus attack in China is now a negative sentiment that makes the price of this commodity down.

Yesterday (01/29/2020) Newcastle coal ICE benchmark contract price weakened 0.96% to US$ 66.9 / ton. The price of coal has continued to erode since January 14. As from mid-January to yesterday, coal prices have corrected by 13.3%.

In addition to trade activities that have not shown significant improvement, the spread of the corona virus that attacks China and countries in other parts of the world has also become a negative sentiment for the coal market.

Corona virus is a virus that is still one group with the cause of SARS. The impact caused by this virus can range from pneumonia to respiratory system failure.

The virus was first discovered in Wuhan earlier this year after more than 50 people reported mysteriously had pneumonia.

Investigate a calibaration, the seafood wholesale market in Wuhan is the origin of the virus.

The market does not only sell seafood. But it also sells meat from other wild animals such as bats. Diseases caused by the corona virus can be transmitted from animals to humans (zoonoses).

The first case of death was reported on 9 January. A 61-year-old man in Wuhan was declared dead after testing positive for this malignant virus. After this incident, the number of reported cases every day increased, as did the number of victims killed.

CNBC International reports that currently there are 7,700 cases and 170 deaths have been reported. This virus does not only spread in China alone. Now there are 18 countries that have reported the findings of this case.

Serangan virus corona di China saat ini jadi sentimen negatif yang membuat harga komoditas ini turun.

Kemarin (29/1/2020) harga batu bara kontrak acuan ICE Newcastle melemah 0,96%

ke level US$ 66,9/ton. Harga batu bara terus tergerus sejak 14 Januari lalu. Terhitung sejak pertengahan Januari hingga kemarin, harga batu bara telah terkoreksi sebesar 13,3%.

Di samping aktivitas perdagangan yang belum menunjukkan perbaikan signifikan, meluasnya virus corona yang menyerang China dan negara di berbagai negara belahan dunia lain turut menjadi sentimen negatif untuk pasar batu bara.

Virus corona merupakan virus yang masih satu golongan dengan penyebab SARS.

Dampak yang ditimbulkan oleh virus ini dapat berupa pneumonia hingga kegagalan sistem pernapasan.

Virus ini pertama kali ditemukan di Wuhan awal tahun ini setelah lebih dari 50 orang dilaporkan mengidap pneumonia secara misterius. Usut punya usut, pasar grosir seafood di Wuhan menjadi tempat asal muasal virus tersebut.

Pasar tersebut tak hanya menjual makanan seafood. Namun juga menjual daging hewan liar lainnya seperti kelelawar. Penyakit akibat virus corona ini dapat ditularkan dari hewan ke manusia (zoonosis).

Kasus kematian pertama dilaporkan pada 9 Januari lalu. Seorang pria berusia 61 tahun di Wuhan dinyatakan meninggal dunia setelah positif terinfeksi virus ganas ini. Setelah kejadian tersebut, jumlah kasus yang dilaporkan tiap harinya bertambah, begitu juga dengan jumlah korban meninggal.

CNBC Internasional melaporkan, saat ini sudah ada 7.700 kasus dan korban meninggal dunia dilaporkan mencapai 170 orang. Virus ini tak hanya menyebar di China saja. Sekarang ada 18 negara yang sudah melaporkan temuan kasus ini.

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The number of cases is still very likely to increase. Especially now that this virus has 'traveled' to other countries. This virus has infected more than 16 countries. The virus infection that causes pneumonia has now entered the Middle East. Finally, there were four cases of people infected with the corona virus in the United Arab Emirates yesterday.

Many economists and analysts began to take into account the effects and losses of this event for China. One analyst from Nomura even believes that the economic impact of the corona virus will be greater than SARS 17 years ago.

When SARS broke out in 2002-2003, China's economic growth had slashed by 2 percentage points in the first quarter to the second quarter of 2003. "Based on our assumptions, China's GDP growth for the first quarter of 2020 will be below the 6%

achieved in 2019," he said.

If the Chinese economy has to be depressed again then this is not good news for various commodities. One of them is coal. China is one of the biggest coal consumers in the world. If the Chinese economy is depressed, it could result in a decrease in coal demand.

This is what causes coal prices to continue to be corrected. (twg/twg)

Jumlah kasus masih sangat mungkin bertambah. Apalagi sekarang virus ini telah 'jalan-jala' ke negara lain. Virus ini telah menjangkiti lebih dari 16 negara. Infeksi virus penyebab pneumonia ini kini sudah masuk ke Timur Tengah. Terakhir, ada empat kasus orang terinfeksi virus corona di Uni Emirat Arab kemarin.

Mulai banyak ekonom dan analis yang memperhitungkan dampak dan kerugian dari peristiwa ini untuk China. Salah seorang analis dari Nomura bahkan meyakini dampak ekonomi virus corona ini akan lebih besat daripada SARS 17 tahun silam.

Saat SARS merebak pada 2002-2003, pertumbuhan ekonomi China sempat terpangkas 2 persen poin pada kuartal pertama ke kuartal kedua tahun 2003. "Berdasarkan asmsi kami, pertumbuhan PDB China untuk kuartal pertama 2020 akan di bawah 6% yang di- capai tahun 2019," katanya.

Jika ekonomi China harus kembali tertekan maka ini bukan kabar baik untuk berbagai komoditas. Salah satunya batu bara. China merupakan salah satu konsumen batu bara terbesar di dunia. Kalau ekonomi China tertekan, maka bisa berakibat pada penurunan permintaan batu bara. Inilah yang menyebabkan harga batu bara terus terkoreksi. (twg/twg)

Iron price craters on coronavirus

Frik Els

B

ENCHMARK iron ore prices fell on Wednesday after as China, responsible for more than 70%

of the world’s seaborne iron ore trade, struggles to control the deadly coronavirus outbreak.

The Chinese import price of 62% Fe content ore dropped more than 7% to $86.84 per dry metric tonne, according to Fastmarkets MB, after trade resumed following the Chinese lunar new year break.

(22)

The number of confirmed cases jumped to almost 6,000, outstripping the figure in mainland China during the SARS outbreak of 2002–2003. The death toll climbed to 132.

BMO Capital said in a research note on Monday that the Beijing’s response to the outbreak, assuming it can be brought under control, could be significant.

The investment bank believes the Chinese government ~6% growth target for 2019 “is likely non-negotiable in order to meet the doubling of per capita GDP promised by President Xi in 2020 versus 2010”:

And with consumption weaker, this will likely involve more fixed asset investment-heavy government spending.

As a result, we may see another push into infrastructure projects into mid-year, while property restrictions could be further eased.

For metals and bulk commodity demand, we see a slightly weaker Feb-March than may have been anticipated, but limited changes to expectations for the year as a whole.

Furnaces are blasting

Last week economic data showed the country’s steelmakers produced just shy of 1 billion tonnes in 2019, the second record-breaking year in a row.

China produces more crude steel than the rest of the world combined, reaching 996.3 million tonnes in 2019, up 8.3% over the prior year, according to government figures. During December, steelmakers churned out on average 2.7m tonnes per day, 12% higher than December 2018.

Production of steel products in China grew by nearly 10% from a year earlier to 1.2 billion tonnes in 2019. The China Iron and Steel Association said last week it expects domestic demand for steel to grow modestly in 2020, to roughly 890m tonnes.

Imports top 1 billion tonnes

Chinese imports of the steelmaking raw material topped 1 billion tonnes for the third year in a row as Beijing’s efforts to stimulate the economy pay off.

China’s iron ore purchases in December totalled 101.3m tonnes, up nearly 12% from July and 17% from last year customs data showed, marking the highest level of imports since September 2018.

Full year iron ore imports were the second best on record at 1.069 billion tonnes, up 0.5% from last year and within shouting distance of 2017’s record 1.075 billion tonnes.

Gold demand nudged lower in 2019

By: Simone Liedtke, Writer

G

LOBAL gold demand declined to 4 355.5 t in 2019, down 1% compared with 2018, the World Gold Council’s (WGC’s) latest ‘Gold Demand Trends’ report, published on Thursday, shows.

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WGC member and market relations director John Mulligan says 2019 was “broadly one of two distinct halves”, the first half of which indicated resilience and growth across most sectors.

The second half, Mulligan tells Mining Weekly, was characterised by strong institutional investment and weakened consumer demand.

Central bank demand slowed in the second half – down 38% – in contrast with the first half’s 65% increase. However, the WGC says that this was partly owing to the sheer scale of buying that had been seen in the preceding few quarters.

Nevertheless, yearly buying still reached 650.3 t, the second-highest level for the 50-year period and only 6 t less than in 2018.

Gold-backed exchange-traded funds (ETFs) inflows bucked the general trend, with investment in these products holding up strongly throughout the first nine months of the year, reaching 255.5 t in the third quarter.

Momentum then subsided in the quarter thereafter, with inflows slowing to 26.4 t, marking a decline of 77% year-on-year.

The yearly supply of gold, meanwhile, increased by 2% to 4 776 t. However, the WGC says this growth came purely from recycling and hedging, considering that mine production slipped 1%

to 3 436.7 t.

For the fourth quarter in particular, gold demand fell 19% to 1 045.2 t, compared with the same quarter of the previous year, which saw very strong demand. According to the council, two of the main contributors to the year-on-year drop in the fourth quarter total were jewellery demand and investment in gold bars, largely in response to the elevated gold price.

Mulligan says this relatively sharp rise in the gold price caused some investors to wait before investing further. For 2020, the gold price is expected to “remain relatively stable,” and might lead to an increase in gold bar investment.

Inflows into gold-backed ETFs and similar products pushed global holdings to a record year- end total of 2 885.5 t, with holdings having grown by 401.1 t over the year. Of this 401.1 t, 26.8 t were added in the fourth quarter.

Inflows had also been heavily concentrated in the third quarter of 2019, the WGC says, noting that this was owing to the US dollar gold price having rallied to a six-year high.

Accommodative monetary policies and global geopolitical uncertainties, along with momentum buying, were the main factors driving inflows in the sector during 2019.

Central banks were net buyers for a tenth consecutive year as global reserves grew by 650.3 t, down 1% year-on-year, marking the second highest yearly total for the last 50 years.

Central bank buying slowed during the fourth quarter, a decline of 34% year-on-year, although this was partly a reflection of the sheer scale of buying in 2018, Mulligan comments.

China and India – which, combined, accounted for 80% of the year-on-year decline in the fourth-quarter jewellery and retail investment demand – continued to hold sway over global consumer demand, and were down 10% and 16%, respectively.

Higher, and more volatile, gold prices as well as a softer economic environment were the main causes for this.

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