TABLE OF CONTENTS. No. Title Media Source Page

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Daily News Update Page 1

Metal production is targeted to reach 50,000 tons, with sales of around 92 percent of production. This production figure is in line with the growth in world refined tin consumption in 2021, which is predicted to increase by 3.6%, to 353,900 tonnes from 341,650 tonnes in 2020. Senior Vice President Corporate Secretary of PT Aneka Tambang Tbk (ANTM) Kunto Hendrapawoko said, ANTM continues to strive to increase production and sales of nickel in line with the increase in nickel prices. This is expected to make ANTM record better performance at the end of 2021.

"We are optimistic that ANTAM's nickel business commodity performance will remain optimal in 2021 through a selective and careful evaluation," said Kunto to Kontan.co.id, recently.

Simak rencana bisnis ANTM,

TINS, PTBA di tahun ini

Reporter: Akhmad Suryahadi | Editor:

Khomarul Hidayat

MEMASUKI

tahun 2021, emiten pertam-bangan milik pemerintah yang tergabung dalam holding MIND ID telah menyiapkan sejumlah rencana dan target bisnis tahun ini. PT Timah Tbk (TINS) misalnya, mengalokasi-kan belanja modal atau capital expenditure

(capex) berdasarkan Rencana Kerja dan Anggaran Perusahaan (RKAP) tahun 2021 sebesar kurang lebih Rp 1,9 triliun. Jumlah ini naik dari alokasi capex tahun lalu yang hanya Rp1,5 triliun.

Sekretaris Perusahaan PT Timah, Muhammad Zulkarnaen Dharmawi mengatakan, capex ini rencananya akan digunakan untuk biaya investasi di TINS dan anak perusahaan dengan persentase 94% berbanding 6%.

Adapun produksi logam ditargetkan sekitar 50.000 ton, dengan penjualan sekitar 92% dari produksi. Angka produksi ini seiring dengan pertumbuhan konsumsi logam timah dunia pada tahun 2021 yang diprediksi naik 3,6%, menjadi sebesar 353.900 ton dari sebelumnya sebesar 341.650 ton pada tahun 2020.

Senior Vice President Corporate Secretary PT Aneka Tambang Tbk (ANTM) Kunto Hendrapawoko mengatakan, ANTM terus berupaya meningkatkan pencapaian produksi dan penjualan komoditas nikel seiring dengan kenaikan harga nikel. Hal ini diharapkan dapat membuat ANTM mencatatkan kinerja yang lebih baik di akhir tahun 2021.

“Kami optimistis, kinerja komoditas bisnis nikel ANTAM akan tetap optimal di tahun 2021 melalui evaluasi yang selektif dan cermat,” ujar Kunto kepada Kontan.co.id, belum lama ini.

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Daily News Update Page 4 The Kompas100 Index constituents will also

continue to focus on the expansion of downstream mineral processing including nickel, expanding the reserve and resource base, forging partnerships to develop new processed mineral production from existing reserves, lowering cash costs and increasing power. cost competitiveness, as well as improving core business performance to increase revenue.

In addition, completing strategic projects is one of ANTM's priorities to support increased business competitiveness. Currently, ANTM is conducting technical studies on strategic development projects of the Company, including a study of data on reserves and mineral resources to support strategic plans for nickel, gold and bauxite-based develop-ment.

ANTM is also completing the construction of the FeNi Haltim factory, which currently construction has reached 98%. The Haltim line-1 Ferronickel Plant has a capacity of 13,500 tonnes of nickel in ferronickel (TNi). Later, when the construction has been completed, the Feni Haltim Factory will increase ANTAM's total annual production capacity portfolio to 40,500 TNi.

Meanwhile, Bukit Asam Corporate Secretary (PTBA) Apollonius Andwie has not been able to convey the production performance target this year. However, he said this year's production would certainly increase along with the increase in demand. Apollonius projects that the increase in demand for coal will continue to occur in line with the recovery of post-pandemic conditions. PTBA is also completing a number of down-stream projects, including coal gasification. Apollo said that the preparation for the construction of the coal gasification project to become DME will begin at the beginning of this year and the plant is targeted to operate in the second quarter of 2024.

Konstituen Indeks Kompas100 ini juga akan terus berfokus pada ekspansi pengolahan mineral bersifat hilir termasuk di komoditas nikel, melakukan perluasan basis cadangan dan sumber daya, menjalin kemitraan untuk mengembangkan produksi mineral olahan baru dari cadangan yang ada, menurunkan biaya tunai (cash cost) dan meningkatkan daya saing biaya, serta peningkatan kinerja bisnis inti untuk meningkatkan pendapatan. Selain itu, menyelesaikan proyek-proyek strategis merupakan salah satu prioritas ANTM guna mendukung peningkatan daya saing usaha. Saat ini ANTM tengah melakukan kajian teknis pada proyek-proyek strategis pengem-bangan Perusahaan, diantaranya studi data cadangan dan sumberdaya mineral untuk men-dukung rencana strategis pengembangan ber-basis nikel, emas dan bauksit.

ANTM juga tengah menyelesaikan pem-bangunan pabrik FeNi Haltim yang saat ini pembangunannya telah mencapai 98%. Pabrik Feronikel Haltim line-1 memiliki kapasitas 13.500 ton nikel dalam feronikel (TNi). Nantinya, jika pembangunan telah selesai, Pabrik Feni Haltim akan menambah portfolio kapasitas produksi total tahunan ANTAM menjadi 40.500 TNi.

Sementara itu, Sekretaris Perusahaan Bukit Asam (PTBA) Apollonius Andwie belum bisa menyampaikan ihwal target kinerja produksi tahun ini. Hanya saja, dia mengatakan pro-duksi tahun ini tentu akan meningkat seiring dengan peningkatan permintaan. Apollonius memproyeksikan peningkatan permintaan batubara akan terus terjadi seiring dengan pemulihan kondisi pasca pandemi.

PTBA juga tengah merampungkan sejumlah proyek hilir, diantaranya gasifikasi batubara. Apollo mengatakan, persiapan konstruksi proyek gasifikasi batubara menjadi DME ini akan dimulai pada awal tahun ini dan ditargetkan pabrik beroperasi pada triwulan kedua tahun 2024.

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Dit.Gen. of Minerba Explains

2020 Performance Achievements

and Work Plans in 2021

Gilar Ramdhani

FOLLOWING

the Ministry of ESDM and several Echelon 1 Units in other KESDM circles, the Directorate General of Mineral and Coal held a Press Conference to provide information to journalists/media colleagues.

Led directly by the Director General of Mineral and Coal, Ridwan Djamaluddin, the press conference was held through a zoom meeting which was attended by approxi-mately 30 print or online mass media crews. Also attending to accompany Echelon II officials in the Directorate General of Minerba, as well as Irwandy Arif as Special Staff of the Minister of ESDM. Ridwan explained the eight main points of the Minerba Sub-Sector Performance Achievements in 2020 which consist of, Regulations and Policies, Mineral and Coal Investment, PNBP Achievements, Domestic Mineral Production and Utilization, Domestic Coal Production and Utilization, Realization of Community Development and Empowerment, Development of Smelter Development, and Reclamation of Ex-Mining Land.

In 2020, Ridwan would like to thank all parties who have worked hard to continue to achieve the target despite many challenges.

"In general, all sectors in 2020 seem to have been hit by the Covid-19 pandemic, but I am grateful, because we continue to work until slowly the existing targets can be achieved," he said.

Ditjen Minerba Paparkan

Capaian Kinerja 2020 dan

Rencana Kerja di Tahun 2021

Gilar Ramdhani

MENYUSUL

Kementerian ESDM dan bebe-rapa Unit Eselon 1 di lingkungan KESDM lainnya, Direktorat Jenderal Mineral dan Batubara mengadakan Konferensi Pers untuk memberikan informasi kepada rekan-rekan jurnalis/media.

Dipimpin langsung oleh Direktur Jenderal Mineral dan Batubara, Ridwan Djamaluddin, konferensi pers dilaksanakan melalui zoom meeting yang dihadiri kurang lebih 30 awak media massa cetak atau daring. Turut hadir mendampingi pejabat Eselon II di lingkungan Ditjen Minerba, serta Irwandy Arif selaku Staf Khusus Menteri ESDM.

Ridwan memaparkan delapan poin utama Capaian Kinerja Sub Sektor Minerba di tahun 2020 yang terdiri atas, Regulasi dan Kebijakan, Investasi Minerba, Capaian PNBP, Produksi dan Pemanfaatan Mineral Dalam Negeri, Produksi dan Pemanfaatan Batubara Domestik, Realisasi Pengem-bangan dan Pemberdayaan Masyarakat, Perkembangan Pembangunan Smelter, serta Reklamasi Lahan Bekas Tambang. Di tahun 2020 ini, Ridwan berterima kasih terhadap semua pihak yang telah bekerja keras untuk terus mencapai target walau banyak tantangan.

"Secara umum, semua sektor di 2020 ini nampaknya terpukul karena pandemi covid-19, tapi saya berterima kasih, karena kita terus bekerja hingga perlahan-lahan target yang sudah ada bisa tercapai", ungkapnya.

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Daily News Update Page 6 The milestone for 2020, starting with the

issuance of Law Number 3 of 2020, or what can be referred to as the New Minerba Law. After going through several years of deliberation, this law was finally passed on June 10, 2020.

"The New Minerba Law is a milestone to improve mining governance that is environmentally sound, supports invest-ment, and prioritizes national interests", explained Ridwan.

Ridwan also highlighted related to the achievement of Minerba Non-Tax State Revenues which reached Rp. 34.6 trillion, exceeding the target set of Rp. 31.41 trillion. In addition, the development of smelter construction is still ongoing, in 2020 19 smelters have been operating and it is planned that by 2024 a total of 53 smelters will be built.

Priorities for 2021

For 2021, the Minerba Sub-Sector has four priority activities. First, from regulations, it is planned that 4 policies will be issued which regulate the Policy for the Acceleration of Increasing the Added Value of Coal and the Production and Utilization Plan for Mineral and Coal for Domestic Needs.

The second is the Monitoring of the Development of Domestic Mineral Refining Processing Facilities which targets 23 smelters to operate in 2021. After that is the Optimization of PNBP in the Minerba Sub-Sector.

Lastly is the Technology-Based Supervision and Assessment of Post-Mining Recla-mation.

Pijakan capaian tahun 2020, dimulai dengan terbitnya Undang-Undang Nomor 3 Tahun 2020, atau yang bisa disebut sebagai Undang-Undang Minerba Baru. Setelah melewati beberapa tahun pem-bahasan, akhirnya undang-undang ini dapat disahkan pada 10 Juni 2020.

"UU Minerba Baru menjadi milestone perbaikan tata kelola pertambangan yang berwawasan lingkungan, mendukung investasi, serta mengutamakan kepen-tingan nasional", terang Ridwan.

Ridwan juga menyoroti terkait dengan capaian Penerimaan Negara Bukan Pajak Minerba yang menyentuh angka Rp.34,6 triliun, melebihi dari target yang di-tetapkan sebesar Rp.31,41 triliun. Selain itu, perkembangan pembangunan smelter juga tetap berjalan, di tahun 2020 telah beroperasi 19 smelter dan direncanakan sampai dengan tahun 2024 akan ter-bangun 53 total smelter.

Prioritas Tahun 2021

Untuk di tahun 2021, Sub Sektor Minerba memiliki empat kegiatan prioritas. Pertama dari regulasi, direncanakan 4 kebijakan akan terbit yang mengatur tentang Kebijakan Percepatan Peningkatan Nilai Tambah Batubara dan Rencana Produksi dan Pemanfaatan Mineral dan Batubara Untuk Kebutuhan Domestik. Kedua adalah Monitoring Pembangunan Fasilitas Pengolahan Pemurnian Mineral dalam Negeri yang menargetkan 23 smelter dapat beroperasi di tahun 2021. Setelah itu adalah Optimalisasi PNBP Sub Sektor Minerba.

Terakhir adalah Pengawasan dan Penilaian Reklamasi Pascatambang yang Berbasis Teknologi.

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Give Subsidiary Loans, J

Resources (PSAB) Issues Rp257.26

Billion Bonds

Finna U. Ulfah

M

INERAL mining issuer, PT J Resources Asia Pasifik Tbk., Issued bonds with a principal amount of Rp257.26 billion. Citing the disclosure of information on the official website of the Indonesia Stock Exchange (IDX), the issuer coded as PSAB shares issued a sustainable bond I J Resources Asia Pacific Phase VII Year 2021 with a principal amount of Rp257.26 billion.

Meanwhile, the amount is determined after the end of the public offering period on January 21, 2021. PSAB originally targeted the principal amount of the bonds to be as much as IDR 384.09 billion with plans to issue in two series.

However, this time the bonds are not serialized and are offered at a value of 100 percent of the principal amount of the bonds and have a tenor of 370 calendar days from the date of issuance.

This bond has a 9.25 percent coupon and will be paid quarterly, with the first payment on April 26, 2021, while the last bond will also be paid off on February 6, 2022.

In addition, the bond repayment will be made on a bullet payment basis or in full upon maturity.

Acting as the underwriter for the PSAB bond issuance is PT Trimegah Sekuritas Indonesia Tbk and the trustee is PT Bank Rakyat Indonesia Tbk.

Beri Pinjaman Anak Usaha, J

Resources (PSAB) Terbitkan

Obligasi Rp257,26 Miliar

Finna U. Ulfah

E

MITEN pertambangan mineral, PT J Resources Asia Pasifik Tbk., menerbitkan obligasi dengan jumlah pokok sebesar Rp257,26 miliar.

Mengutip keterbukaan informasi di laman resmi Bursa Efek Indonesia (BEI), emiten berkode saham PSAB itu menerbitkan obligasi berkelanjutan I J Resources Asia Pasifik Tahap VII Tahun 2021 dengan jumlah pokok Rp257,26 miliar.

Adapun, jumlah tersebut ditetapkan setelah berakhirnya masa penawaran umum pada 21 Januari 2021. PSAB semula menargetkan jumlah pokok obligasi itu sebanyak-banyaknya Rp384,09 miliar dengan rencana penerbitan melalui dua seri.

Namun, obligasi kali ini tidak berseri dan ditawarkan dengan nilai 100 persen dari jumlah pokok obligasi dan bertenor 370 hari kalender sejak tanggal emisi.

Obligasi ini memiliki kupon 9,25 persen dan akan dibayarkan setiap triwulan, dengan pembayaran pertama pada 26 April 2021, sedangkan obligasi terakhir sekaligus pelunasan obligasi pada 6 Februari 2022.

Selain itu, pelunasan obligasi akan di-lakukan secara bullet payment atau secara penuh pada saat jatuh tempo.

Bertindak sebagai penjamin pelaksana emisi obligasi PSAB adalah PT Trimegah Sekuritas Indonesia Tbk dan wali amanat adalah PT Bank Rakyat Indonesia Tbk.

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Daily News Update Page 8 The bonds have a single A rating given by

Pefindo and are valid for the period March 10, 2020 to March 1, 2021.

The management of J Resources Asia Pasifik explained that the company will use the proceeds from the offer after deducting the emission costs to be channeled in the form of loans to the company's subsidiary, PT J Resources Nasional (JRN).

"Given to JRN, for the settlement of the Medium Term Notes (MTN) IV Phase I issued amounting to Rp. 300 billion, and the rest will be used for working capital and/or general JRN purposes," wrote the Management of J Resources Asia Pasifik, quoted on Friday (22/1 / 2021).

On the other hand, this bond is part of the sustainable public offering (PUB) of sustainable bonds I J Resources Asia Pacific with a target fund to be raised of Rp 3 trillion.

With this publication, PSAB has issued the PUB in 7 stages with a total offered fund of around Rp2.87 trillion. Editor: Hafiyyan

Obligasi itu memiliki peringkat single A yang diberikan oleh Pefindo dan berlaku untuk periode 10 Maret 2020 hingga 1 Maret 2021. Manajemen J Resources Asia Pasifik men-jelaskan bahwa perseroan akan mengguna-kan dana dari hasil penawaran itu setelah dikurangi biaya emisi untuk disalurkan dalam bentuk pinjaman kepada anak usaha perseroan, PT J Resources Nasional (JRN). “Diberikan kepada JRN, untuk pelunasan Medium Term Notes (MTN) IV Tahap I yang diterbitkan sebesar Rp300 miliar, dan sisa-nya akan digunakan untuk modal kerja dan atau keperluan umum JRN,” tulis Manajemen J Resources Asia Pasifik, dikutip Jumat (22/1/2021).

Di sisi lain, obligasi ini merupakan bagian dari penawaran umum berkelanjutan (PUB) obligasi berkelanjutan I J Resources Asia Pasifik dengan target dana yang akan di-himpun sebesar Rp3 triliun.

Dengan penerbitan kali ini, maka PSAB telah menerbitkan PUB tersebut 7 tahap dengan total dana yang ditawarkan sekitar Rp2,87 triliun. Editor : Hafiyyan

This is the progress of the Aneka

Tambang (ANTM) nickel

downstream project

Reporter: Dimas Andi | Editor: Khomarul Hidayat

M

INING issuer, PT Aneka Tambang Tbk (ANTM)

continues to strive to develop its business, especially in the downstream nickel sector. For information, ANTM as a subsidiary of the BUMN mining holding company or Mining Indonesia Industry (MIND ID) collaborates with PT Pertamina (Persero) and PT Perusahaan Listrik Negara (PLN).

Ini progres proyek hilirisasi

nikel Aneka Tambang (ANTM)

Reporter: Dimas Andi | Editor: Khomarul Hidayat

EMITEN

tambang, PT Aneka Tambang Tbk (ANTM) terus berupaya mengembangkan bisnisnya, terutama di sektor hilirisasi nikel. Sebagai informasi, ANTM sebagai anak usaha holding pertambangan BUMN atau Mining Indonesia Industry (MIND ID) berkolaborasi dengan PT Pertamina (Persero) dan PT Perusahaan Listrik Negara (PLN).

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Daily News Update Page 9 The three of them formed the holding

company for Indonesia Battery to develop an integrated production and processing facility for electric vehicle batteries from upstream to downstream.

SVP Corporate Secretary Aneka Tambang Kunto Hendrapawoko said the plan to develop a lithium-ion battery industry chain for electric vehicles in Indonesia is an initiative built by the government. The plan is to increase the added value of national nickel products and industriali-zation of mining products to development into the downstream sector.

The holding of this holding is also a strategic step that is being prepared to realize the aspirations of the government. "ANTM which is consolidated together with MIND ID will try to support the government's efforts to increase the added value of more strategic mineral commo-dities," he said, Friday (22/1).

In addition, ANTM also participates in nickel downstreaming through the construction of a ferronickel smelter in East Halmahera. Kunto said the Haltim line-1 ferronickel smelter built by ANTM has a capacity of 13,500 tons of nickel in ferronickel (TNi) per year.

To date, ANTM has completed a no load test of the plant and has achieved 98% construction progress. When it operates, the Haltim ferronickel plant will increase ANTM's annual production capacity portfolio to 40,500 TNi per year.

However, the smelter construction process is not easy considering that ANTM is still constrained by the supply of electricity. This ferronickel smelter requires 75 MW of electricity supply.

Currently, ANTM is still trying to solve the problem of providing a power plant for the ferronickel smelter. Unfortunately,...

Ketiganya membentuk holding Indonesia Battery untuk mengembangkan fasilitas produksi dan pengolahan baterai kendaraan listrik yang terintegrasi dari hulu ke hilir. SVP Corporate Secretary Aneka Tambang Kunto Hendrapawoko mengatakan, rencana pengembangan rantai industri baterai lithium-ion untuk kendaraan listrik di Indonesia merupakan inisiasi yang dibangun oleh pemerintah. Rencana tersebut untuk meningkatkan nilai tambah produk nikel nasional dan industrialisasi produk tambang hingga pembangunan ke sektor hilir.

Kehadiran holding tersebut juga merupakan langkah strategis yang sedang dipersiapkan untuk mewujudkan aspirasi pemerintah. “ANTM yang terkonsolidasi bersama MIND ID akan berupaya mendukung upaya pemerintah meningkatkan nilai tambah komoditas mineral yang lebih strategis,” ujar dia, Jumat (22/1).

Selain itu, ANTM juga berpartisipasi dalam hilirisasi nikel melalui proyek pembangunan smelter feronikel di Halmahera Timur. Kunto menyebut, smelter feronikel Haltim line-1 yang dibangun ANTM memiliki kapasitas sebesar 13.500 ton nikel dalam feronikel (TNi) per tahun.

Sampai saat ini, ANTM telah menyelesaikan uji coba tanpa beban atau no load test terhadap pabrik tersebut dan telah mencapai kemajuan konstruksi sebesar 98%. Ketika beroperasi, pabrik feronikel Haltim akan menambah portofolio kapasitas produksi tahunan ANTM menjadi 40.500 TNi per tahun.

Hanya memang, proses pengerjaan smelter tersebut tidak mudah mengingat ANTM masih terkendala penyediaan tenaga listrik. Smelter feronikel ini membutuhkan pasokan listrik sebesar 75 MW.

Saat ini, ANTM masih berupaya menyelesai-kan masalah penyediaan pembangkit listrik untuk smelter feronikel tersebut. Sayangnya,...

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Daily News Update Page 10 Unfortunately, Kunto has not been able to

reveal in detail the time to resolve the problem.

"The company ensures that governance and implementation of the fulfillment of the Haltim ferronickel plant power plant are pursued through the fastest mechanisms and methods in accordance with good Good Corporate Governance (GCG) practices," said Kunto.

Sayangnya, Kunto belum bisa membeber-kan secara detail kapan waktu penye-lesaian masalah tersebut.

“Perusahaan memastikan tata kelola dan pelaksanaan pemenuhan pembangkit listrik pabrik feronikel Haltim ditempuh melalui mekanisme dan metode yang paling cepat sesuai dengan praktik Good Corporate Governance (GCG) yang baik,” kata Kunto.

Oops, dizzy! World Coal Prices

Continue to Drop

Putra, CNBC Indonesia

THE PRICE

of the ICE Newcastle coal futures contract has fallen badly in trading this week. As of last Friday (15/1/2021), the coal contract price which is actively traded has dropped 3.23% to the price level of US$ 86.85/ton.

This week's correction for jet rock occurred after the coal contract price touched the level of US$ 90.5/ton earlier last week. This is the highest level in almost 2 years. The rapid increase in a short time triggered investors to take profit.

The same thing happened at the end of last December. The coal price managed to touch the level of US$ 85.5/ton and then a landslide. However, not long ago, the price of coal rose and broke a new psychological level of US$ 90/ton.

Despite the drop in coal prices, there are still several positive catalysts for at least the first quarter of this year. Winter, especially in countries such as Japan and China, makes the consumption of electricity for heating increases.

Duh Pusing! Harga Batu Bara

Dunia Anjlok Melulu

Putra, CNBC Indonesia

HARGA

kontrak futures (berjangka) batu bara ICE Newcastle anjlok parahpada perda-gangan pekan ini. Terhitung sejak Jumat pekan lalu (15/1/2021) harga kontrak batu bara yang aktif diperjualbelikan drop 3,23% ke level harga US$ 86,85/ton.

Koreksi batu legam pada pekan ini terjadi setelah harga kontrak batu bara sempat menyentuh level US$ 90,5/ton awal pekan lalu. Ini menjadi level tertingginya hampir dalam 2 tahun terakhir. Kenaikan pesat dalam waktu singkat memicu investor melakukan aksi ambil untung.

Hal serupa juga pernah terjadi akhir Desember lalu. Harga batu bara berhasil menyentuh level US$ 85,5/ton dan kemudian longsor. Namun tak lama berselang harga batu bara bangkit dan tembus level psikologis baru di US$ 90/ton. Kendati anjlok harga batu bara masih mendapat berbagai katalis positif setidaknya untuk kuartal pertama tahun ini. Musim dingin terutama di negara-negara seperti Jepang dan China membuat konsumsi listrik untuk penghangat meningkat.

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Daily News Update Page 11 But unfortunately the limited gas supply

and the price that has soared in Japan are an obstacle. Meanwhile in China, to maintain its electricity supply, the government has even cut electricity in several provinces and asked people to save energy.

When gas supplies run low and prices soar, consumers will have the potential to switch from gas to coal, which is relatively cheaper even though it has also experienced significant price increases recently.

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

According to data from the National Bureau of Statistics (NBS), China produced 351.9 million tonnes of coal in December, up 3.2% compared to December 2019. This helped increase full-year production by 0.9% from 2019 to 3.84 billion tonnes, with growth in the second half offsetting a decline in the first half caused by the pandemic.

The increase in gas prices and the tight supply of Chinese coal will still be positive catalysts for coal prices in general. The increase that is too sharp does require a healthy correction as is the case at this time. After the correction, coal prices have the opportunity to strengthen.

Turning to the country, Indonesia's coal production will reach 558 million tonnes in 2020 or 9.5% lower than 2019 levels. Domestic coal sales through the Domestic Market Obligation (DMO) reached 108.5 million tonnes last year, 30% lower than its annual target and 28% lower than sales in 2019.

Namun sayang pasokan gas yang terbatas dan harganya yang sudah melesat tinggi di Jepang menjadi kendala. Sementara itu di China untuk menjaga pasokan listriknya pemerintah bahkan sampai memadamkan listrik di beberapa provinsi dan meminta masyarakat menghemat energi.

Ketika pasokan gas menipis dan harga melonjak, maka konsumen akan berpotensi beralih dari gas ke batu bara yang relatif lebih murah meski juga mengalami kenaikan harga yang signifikan belakangan ini.

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

Menurut data dari National Bureau of Statistics (NBS), China memproduksi 351,9 juta ton batu bara pada Desember, naik 3,2% dibandingkan dengan Desember 2019. Hal ini membantu meningkatkan produksi setahun penuh sebesar 0,9% dari 2019 men-jadi 3,84 miliar ton, dengan pertumbuhan pada semester kedua mengimbangi penurunan pada paruh pertama yang disebabkan oleh pandemi.

Kenaikan harga gas dan ketatnya pasokan batu bara China masih akan menjadi katalis positif bagi harga batu bara secara umum. Kenaikan yang terlalu tajam memang membutuhkan koreksi yang sehat seperti yang terjadi saat ini. Setelah koreksi harga batu bara berpeluang menguat.

Beralih ke dalam negeri, produksi batu bara Indonesia mencapai 558 juta ton pada tahun 2020 atau 9,5% lebih rendah dari level 2019. Penjualan batu bara domestik melalui Domestic Market Obligation (DMO) mencapai 108,5 juta ton tahun lalu, 30% lebih rendah dari target tahunannya dan 28% lebih rendah dari penjualannya pada 2019.

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Daily News Update Page 12 Indonesia exported 306 million tonnes in

2020, significantly lower than the annual target of 395 million tonnes, and 23% lower than last year. Coal exports in November and December bounced back dramatically after China finally relaxed its previously tight import quota. CNBC INDONESIA RESEARCH TEAM (trp/trp)

Indonesia mengekspor 306 juta ton pada tahun 2020, jauh lebih rendah dari target tahunan sebesar 395 juta ton, dan 23% lebih rendah dari tahun lalu.Ekspor batu bara di bulan November dan Desember bangkit kembali secara dramatis setelah China akhirnya melonggarkan kuota impornya yang sebelumnya diperketat. TIM RISET CNBC INDONESIA (trp/trp)

Northstar has the potential to

give up control in the Delta

Dunia Makmur

Farid Firdaus

([email protected])

N

ORTHSTAR Group, a company controlled by Patrick Walujo, has the potential to release the position of controlling shareholder of PT Delta Dunia Makmur Tbk (DOID). This is a consequence of the Northstar Tambang Persada Ltd (NTP) mandatory convertible note bond agreement with Souls Humanity Pte Ltd. On January 1, 2021, Soul Humanity signed an agreement that stated it would participate in the issuance of NTP convertible notes which could then be converted into non-voting C class NTP shares.

For information, NTP is controlled by a consortium of investors, such as Northstar Equity Partners, TPG Capital, GIC Pte Ltd, and China Investment Corp. Meanwhile, Souls Humanity is a company controlled by Ronald Sutardja and Ashish Gupta. Currently, Ronald is listed as the managing director of PT Bukit Makmur Mandiri Utama (BUMA), a subsidiary of Delta Dunia Makmur.

Northstar Berpotensi Lepas

Kendali di Delta Dunia Makmur

Farid Firdaus

([email protected])

NORTHSTAR

Group, perusahaan yang dikendalikan Patrick Walujo, berpotensi melepas posisi pemegang saham pengendali PT Delta Dunia Makmur Tbk (DOID). Hal ini sebagai konsekuensi atas perjanjian obligasi wajib konversi (convertible note) Northstar Tambang Persada Ltd (NTP) dengan Souls Humanity Pte Ltd.

Pada 1 Januari 2021, Soul Humanity me-nandatangani perjanjian yang menyatakan akan berpartisipasi dalam penerbitan convertible note NTP yang kemudian dapat dikonversi menjadi non-voting saham kelas C NTP.

Sebagai informasi, NTP dikendalikan oleh konsorsium investor, seperti Northstar Equity Partners, TPG Capital, GIC Pte Ltd, dan China Investment Corp. Sementara Souls Humanity merupakan perusahaan yang dikendalikan oleh Ronald Sutardja dan Ashish Gupta. Saat ini, Ronald tercatat sebagai direktur utama PT Bukit Makmur Mandiri Utama (BUMA), anak usaha Delta Dunia Makmur.

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Daily News Update Page 13 President Director of Delta Dunia Makmur

Hagianto Kumala said that if the convertible note was executed, Souls Humanity would become the owner of 44% of NTP shares and make Soul Humanity indirectly own 16.7% of the company's shares. This is predicted to happen in the first quarter of 2021.

"The company also understands that class A NTP shareholders and class B NTP shareholders have signed an option agreement with Souls Humanity," he said in an official statement, Friday (22/1).

The option agreement includes, among others, a call option to Soul Humanity and an appropriate put option to each NTP shareholder. The exercise price of the option will refer to the value of Delta Dunia Makmur's shares to the public.

If the option is exercised in accordance with the terms of the agreement, Souls Humanity will acquire 100% of NTP shares. As a result, Souls Humanity indirectly owns 37.9% of shares in Delta Dunia Makmur. This also allows Souls Humanity through the NTP to get the right to nominate three of the six members of the company's board of commissioners, and two of the three members of the company's board of directors, who are required to pass the general meeting of shareholders (GMS). Although NTP has not informed Delta Dunia Makmur's management about plans to change the structure of NTP's share ownership at a later date, he said, NTP could sell part of its shares in the company. In addition, one or more other NTP shareholders may sell part or all of NTP's shares to entities other than Souls Humanity. This can happen if the conditions stipulated in the option agreement are not fulfilled, or Soul Humanity can sell some of its shares in NTP. Editor: Parluhutan

Direktur Utama Delta Dunia Makmur Hagianto Kumala mengatakan, apabila convertible note tersebut dieksekuisi, Souls Humanity bakal menjadi pemegang 44% saham NTP dan membuat Soul Humanity memiliki secara tidak langsung 16,7% saham perseroan. Hal ini diprediksi akan terjadi pada kuartal I-2021.

“Perseroan juga memahami bahwa peme-gang saham kelas A NTP dan pemepeme-gang saham kelas B NTP telah menandatangani perjanjian opsi dengan Souls Humanity,” kata dia dalam keterangan resmi, Jumat (22/1). Perjanjian opsi antara lain, meliputi opsi beli kepada Soul Humanity dan opsi jual yang sesuai kepada masing-masing pemegang saham NTP. Harga pelaksanaan opsi tersebut akan mengacu pada nilai saham Delta Dunia Makmur kepada publik.

Apabila opsi tersebut dilaksanakan sesuai prasyarat perjanjian, maka Souls Humanity akan memperoleh 100% saham NTP. Alhasil, Souls Humanity secara tidak langsung memiliki 37,9% saham dalam Delta Dunia Makmur. Hal ini juga memungkinkan Souls Humanity melalui NTP mendapatkan hak untuk mencalonkan tiga dari enam anggota dewan komisaris perseroan, dan dua dari tiga anggota direksi perseroan, yang wajib melewati rapat umum pemegang saham (RUPS).

Meskipun NTP belum menginformasikan kepada manajemen Delta Dunia Makmur tentang rencana mengubah struktur kepe-milikan saham NTP di kemudian hari, dia mengatakan, NTP dapat menjual sebagian sahamnya atas perseroan.

Selain itu, satu atau beberapa pemegang saham NTP lainnya dapat menjual sebagian atau seluruh saham NTP kepada entitas lain selain Souls Humanity. Hal ini bisa terjadi apabila kondisi prasyarat yang diatur dalam perjanjian opsi tidak terpenuhi, atau Soul Humanity dapat menjual sebagian sahamnya di NTP. Editor : Parluhutan

(14)

Coal production and distribution

have been hampered by floods

in Kalimantan

Reporter: Ridwan Nanda Mulyana | Editor: Handoyo

THE BEGINNING

of 2021 was opened with floods that hit a number of areas, including Kalimantan. The flood in the main coal producing province inundated a number of areas, especially in South Kalimantan (Kalsel).

Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia revealed that weather factors, such as high rainfall, are an obstacle to coal mining operational activities. He said that flooding that occurred in almost all of South Kalimantan Province and in several areas of East Kalimantan Province (Kaltim) would have a significant impact on operational activities.

Operational constraints then have an impact on coal supply. "According to reports we received from several miners, nearly half of the mines in South Kalimantan were affected by flooding which inundated the pit (mine hole). The flood also disrupted access to coal transportation to the port, as well as access to logistics supply and employee mobility," explained Hendra to Kontan.co .id, Sunday (24/1).

As a result, the impact of the flood could disrupt supply for exports and could have an impact on the smooth supply of coal to several power plants (PLTU) and supply to other domestic industries.

Produksi dan distribusi

batubara tersendat banjir di

Kalimantan

Reporter: Ridwan Nanda Mulyana | Editor: Handoyo

AWAL

tahun 2021 dibuka dengan bencana banjir yang melanda sejumlah wilayah, termasuk di Kalimantan. Banjir di provinsi penghasil utama batubara itu merendam sejumlah daerah, terutama di Kalimantan Selatan (Kalsel).

Direktur Eksekutif Asosiasi Pertambangan Batubara Indonesia (APBI) Hendra Sinadia mengungkapkan, faktor cuaca seperti curah hujan yang tinggi menjadi penghambat kegiatan operasional penambangan batubara. Kata dia, banjir yang terjadi dihampir seluruh Provinsi Kalsel dan dibeberapa wilayah Provinsi Kalimantan Timur (Kaltim) akan berdam-pak cukup signifikan terhadap kegiatan operasional.

Hambatan operasional itu pun selanjutnya berdampak terhadap pasokan batubara. "Menurut laporan yang kami terima dari beberapa penambang, hampir separuh tambang di Kalsel terdampak banjir yang menggenangi pit (lubang tambang). Banjir juga berdampak terganggunya akses transportasi batubara ke pelabuhan, juga akses supply logistik dan mobilitas karyawan," terang Hendra kepada Kontan.co.id, Minggu (24/1).

Alhasil, dampak dari banjir tersebut bisa mengganggu pasokan untuk ekspor serta bisa berdampak terhadap kelancaran pasokan batubara ke beberapa pembangkit listrik (PLTU) dan supply ke industri domestik lainnya.

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Daily News Update Page 15 According to information that has been

received by APBI, it is reported that several companies have submitted force majeure notifications or force majeure conditions in fulfilling their coal sales commitments. However, Hendra emphasized that most coal companies holding permits in South Kalimantan are not members of APBI. "Our members total around 90 companies located in several provinces," he added. In Kontan.co.id's records, there are 91 coal producers who are members of APBI throughout Indonesia. Of that number, 17 companies holding PKP2B and IUP members of APBI are located in South Kalimantan. Meanwhile, the number of license holders in South Kalimantan as a whole is more than 180 companies.

South Kalimantan and East Kalimantan are the main provinces that contribute to national coal production. From the production plan in 2020, for example, coal production from South Kalimantan is planned to be 64.83 million tons. This figure is equivalent to 31% of the national production target in 2020, and ranks second. Only lost to East Kalimantan with a planned production of 82.2 million tons.

Menurut informasi yang sampai ke APBI, dikabarkan bahwa ada beberapa perusahaan yang sudah menyampaikan notifikasi force majeure atau keadaan kahar dalam me-menuhi komitmen penjualan batubara. Namun, Hendra menegaskan bahwa sebagian besar perusahaan batubara peme-gang izin di Kalsel bukan merupakan anggota APBI. "Anggota kami total sekitar 90-an perusahaan yang berlokasi di beberapa provinsi," imbuhnya.

Dalam catatan Kontan.co.id, ada 91 produsen batubara yang menjadi anggota APBI di seluruh Indonesia. Dari jumlah itu, ada 17 perusahaan pemegang PKP2B dan IUP anggota APBI yang berlokasi di Kalsel. Adapun, jumlah pemegang izin di Kalsel secara keseluruhan lebih dari 180 per-usahaan.

Kalimantan Selatan dan Kalimantan Timur memang merupakan provinsi utama yang menyumbang produksi batubara nasional. Dari rencana produksi pada tahun 2020, misalnya, produksi batubara dari Kalimantan Selatan direncanakan sebanyak 64,83 juta ton. Angka itu setara dengan 31% dari target produksi nasional pada 2020, dan menempati urutan kedua. Hanya kalah dari Kalimantan Timur dengan rencana produksi 82,2 juta ton.

Observer: The 'Dig-Sell'

Paradigm of Tin Utilization Must

Be Changed

M. Ilham ramadhan Aviisne | Economy

A

N OBSERVER of the energy economy of

Gadjah Mada University Fahmy Radhi assesses that there is a need for a change in the 'buy-sell' paradigm in the utilization of tin commodity. It is intended that Indonesia can enjoy optimum utilization of tin.

Pengamat: Paradigma 'Gali-Jual'

Pemanfaatan Timah Harus

Diubah

M. Ilham ramadhan Aviisne | Ekonomi

P

ENGAMAT ekonomi energi Universitas

Gadjah Mada Fahmy Radhi menilai perlu adanya perubahan paradigma 'gali-jual' dalam pemanfaatan komoditi timah. Itu bertujuan agar Indonesia dapat menikmati pemanfaatan optimum dari timah.

(16)

Daily News Update Page 16 "Tin as a strategic natural resource has to

increase its added value, not only for export, but also to be developed to produce various derivative products, including lithium battery products for electric cars," he said in a written statement, Saturday (23/1).

Tin, added Fahmy, contains Rare Earth Element (REE), of which a number of LTJ elements can be used as raw material for the manufacture of lithium batteries for electric vehicles that are being developed in Indonesia.

"To produce tin derivative products, all stakeholders must change the paradigm of tin utilization from 'dig-sell' to 'dig-develop-sell'," he explained.

According to him, the development of tin products will increase added value that can contribute to the opening of new jobs and economic growth in Indonesia.

Apart from a paradigm shift, the govern-ment needs to intervene to accelerate the development of tin derivative products. Similar to the nickel commodity, the govern-ment can intervene through regulation by prohibiting the export of tin without downstreaming domestically through the development of tin derivative products. "In the short term, the ban on tin exports will indeed reduce the volume and value of Indonesia's tin commodity exports. However, in the long term, the development of tin products will be able to increase the added value of exports which is greater than just exporting tin commodity without downstreaming," said Fahmy.

He added that the ban on tin exports will cause resistance from various countries that have been importing tin products from Indonesia. Even the resistance will also be carried out by complaining to the World Trade Organization (WTO).

"Timah sebagai sumber daya alam strategis harus ditingkatkan nilai tambahnya, tidak hanya semata-mata untuk diekspor, tetapi juga harus dikembangkan untuk menghasilkan berbagai produk turunan, termasuk produk bateri litium untuk mobil listrik," ujarnya melalui keterangan tertulis, Sabtu (23/1). Timah, imbuh Fahmy, mengandung Logam Tanah Jarang (LTJ) atau Rare Earth Element (REE), yang sejumlah unsur LTJ dapat digunakan sebagai bahan baku pembuatan baterei litium untuk kendaran listrik yang sedang dikembangkan di Indonesia.

"Untuk menghasilkan produk turunan timah, semua stake holder harus mengubah paradigma pemanfaatan timah dari 'gali-jual' menjadi 'gali-kembangkan-jual'," jelasnya. Menurutbya, pengembangan produk timah akan meningkatkan nilai tambah yang dapat memberikan kontribusi bagi pembukaan lapangan pekerjaan baru dan pertumbuhan ekonomi Indonesia.

Selain perubahan paradigma, pemerintah perlu melakukan intervensi untuk memper-cepat pengembangan produk turunan timah. Serupa dengan komoditi nikel, pemerintah dapat melakukan intervensi melalui regulasi dengan melarang ekspor timah tanpa hilirisasi di dalam negeri melalui pengembangan produk turunan timah.

"Dalam jangka pendek, larangan ekspor timah itu memang akan menurunkan volume dan nilai ekspor komoditi timah Indonesia. Namun dalam jangka panjang pengembangan produk timah akan dapat menaikkan nilai tambah ekspor yang lebih besar dibanding hanya mengekspor komo-diti timah tanpa hilirisasi," jelas Fahmy. Dia menambahkan, larangan ekspor timah akan menimbulkan resistensi dari berbagai negara yang selama ini mengimpor produk timah dari Indonesia. Bahkan perlawanan itu juga akan dilakukan dengan mengadukan ke World Trade Organisation (WTO).

(17)

Daily News Update Page 17 Nevertheless, the government must persist

in facing this resistance in order to achieve greater domestic interests.

"The greater interest is the development of the tin commodity which can increase added value, in order to increase the yield of tin utilization as a natural resource for the greatest benefit of the people, as mandated by Article 33 of the 1945 Constitution," concluded Fahmy. (OL-7)

Kendati demikian, pemerintah harus tetap bersikeras menghadapi perlawanan ter-sebut untuk mencapai kepentingan dalam negeri yang lebih besar.

"Kepentingan yang lebih besar itu adalah pengembangan komoditi timah yang dapat meningkatkan nilai tambah, agar dapat memperbesar hasil pemanfaatan timah sebagai sumber daya alam untuk sebesar-besarnya bagi kemakmuran rakyat, sesuai yang diamanahkan oleh konstitusi pasal 33 UUD 1945," pungkas Fahmy. (OL-7)

Last Week Coal Prices Dropped

3%, This Week May Go Up!

Hidayat Setiaji, CNBC Indonesia

COAL

prices moved up in trading at the end of last week. This gives a signal that the black stone price may still go up this week.

On Friday's trade (22/1/2021), the benchmark coal price on the ICE Newcastle (Australia) market for the contract ending February 26, 2021 was at US$ 86.85/ton. It raced 1.82% compared to the previous day.

Over the past week, coal prices fell 3.23% on a point-to-point basis. This happened after the previous week the price jumped 5.92%.

In the last three trading days of last week, coal prices have started to creep up after five days of pressure. This is a sign that market players are doing enough profit taking and are starting to buy up these commodities again.

Minggu Lalu Harga Batu Bara

Anjlok 3%, Minggu Ini Naik

Plis!

Hidayat Setiaji, CNBC Indonesia

H

ARGA batubara bergerak naik pada perdagangan akhir pekan lalu. Ini memberi sinyal bahwa harga si batu hitam mungkin masih bisa naik pada minggu ini.

Pada perdagangan Jumat (22/1/2021), harga batu bara acuan di pasar ICE Newcastle (Australia) untuk kontrak yang berakhir 26 Februari 2021 berada di US$ 86,85/ton. Melesat 1,82% dibandingkan hari sebelumnya.

Sepanjang pekan lalu, harga batu bara ambles 3,23% secara point-to-point. Ini terjadi setelah pada pekan sebelumnya harga melonjak 5,92%.

Dalam tiga hari perdagangan terakhir pekan lalu, harga batu bara terlihat mulai merangkak naik setelah lima hari tertekan. Ini menjadi tanda bahwa pelaku pasar sudah cukup melakukan ambil untung (profit taking) dan mulai kembali mem-borong komoditas tersebut.

(18)

Daily News Update Page 18 "Our view is very bullish on the price of

thermal coal in the short term due to the decline in supply due to seasonal factors while demand increases over the winter in the northern hemisphere. In addition, demand in China and India is also increasing due to the continuous re-opening of community activities. gradually," said Toby Hassall, Refinitiv Analyst.

Until now, coal imports by China for the January 2021 period reached 24.58 million tons. Although this month is not yet finished, it has been the highest since June 2020.

Meanwhile, new imports of coal by India were recorded at 18.69 million tons this month. Highest imports in at least the last year.

However, investors need to be careful because in the future, the prospect of a slightly volatile coal price tends to be grim. Refinitiv's projection for the median price of thermal coal in the first quarter of 2021 is at US$ 63.37/ton. Then in the second quarter of 2021 it decreased to 59.42/ton, in the third quarter of 2021 it fell again to US$ 58.79/ton, and in the last quarter of 2021 it increased to US$ 61.5/ton.

Although it increased in the fourth quarter of 2021, it is still lower than the position in the first quarter of 2021. This means that this year's coal price is likely to be minus on a year-to-date basis. CNBC INDONESIA RESEARCH TEAM (aji/aji)

"Pandangan kami sangat bullish terhadap harga batu bara termal dalam jangka pendek karena penurunan pasokan akibat faktod musiman sementara permintaan meningkat sieing musim dingin di belahan bumi utara (northern hemisphere). Selain itu, per-mintaan di China dan India juga meningkat karena pembukaan kembali aktivitas masya-rakat secara bertahap," sebut Toby Hassall, Analis Refinitiv.

Hingga saat ini, impor batu bara oleh China untuk periode Januari 2021 mencapai 24,58 juta ton. Meski bulan ini belum kelar, tetapi sudah menjadi yang tertinggi sejak Juni 2020.

Sementara impor baru bara oleh India tercatat 18,69 juta ton pada bulan ini. Impor tertinggi dalam setidaknya setahun terakhir. Akan tetapi, investor perlu hati-hati karena ke depan prospek harga batu bara agak fluktuatif cenderung suram. Proyeksi Refinitiv untuk median harga batu bara termal kuartal I-2021 berada di US$ 63,37/ton. Kemudian pada kuartal II-2021 turun menjadi 59,42/ton, kuartal III-2021 turun lagi ke US$ 58,79/ton, dan pada kuartal pamungkas 2021 naik ke US$ 61,5/ton.

Meski naik pada kuartal IV-2021, tetapi masih lebih rendah dibandingkan posisi kuartal I-2021. Artinya, harga batu bara tahun ini kemungkinan akan minus secara year-to-date. TIM RISET CNBC INDONESIA (aji/aji)

Argentina’s mining output fell by 70% in 2020

MINING.COM Staff Writer

THE ARGENTINE

Chamber of Mining Entrepreneurs (CAEM in Spanish) reported that the country’s mining output fell by 70% y-o-yin 2020 due to the effects of the covid-19 pandemic.

(19)

Daily News Update Page 19 According to state-owned news agency Télam, CAEM also said that small and medium-sized mining operations, which tend to be family-owned, saw a 40-50% fall in production.

In the Chamber’s view, certain “unjustified” restrictions that some provinces have imposed on mining operations are in part to blame for the lower output. Thus, the industry group encouraged regional governments to launch an informed dialogue that could lead to the restarting of the projects that have been halted.

In particular, CAEM expressed concern over operations in the southern Chubut province, which hosts copper and silver-lead projects such as Pan American Silver’s Navidad project. The western-central Mendoza province was also pointed out by the Chamber as an area of concern, given that many of the 130 mining and related companies working on gold, silver, copper, and potash projects remain inoperative.

Despite the negative balance, the organization reckoned that the federal government’s efforts to support the mining industry via the Work and Production Assistance Program (ATP in Spanish) have been key in keeping some mines operative and gradually increasing production.

For the Argentine Chamber of Mining Entrepreneurs, the ATP also provided a first glance at the possibility of state, community, industry, and unions working together towards a common goal. Thus, the group is working on a proposal aimed at maintaining unity among these actors and designing a long-term strategy for the recovery of the country’s mining industry.

Gruyere JV elevates production output

Nickolas Zakharia

G

OLD Fields and Gold Road Resources have improved the production rates at the Gruyere joint venture (JV) in Western Australia, while flagging the potential for further increases in 2021.

At Gruyere, 2.1 million tonnes of ore was processed while plant throughput was raised after completion of mine to mill optimisation and improvements to the processing circuit.

The company increased its quarterly production from 55,919 ounces in the September 2020 quarter to 70,794 ounces in the December 2020 quarter.

Gold Road expects an increase in plant utilisation to coincide with production improvements. “Plant utilisation averaged 82 per cent through the quarter (September quarter: 82 per cent). Despite the continued low utilisation, the production rate improved quarter on quarter, highlighting the potential for improvements in production as plant utilisation increases,” the company stated.

The Gruyere JV previously embarked on a renewable energy initiative that will boost plant throughput to 10 million tonnes per annum by commissioning an additional 4-megawatt gas engine, 13-megawatt solar farm and 4.4-megawatt battery energy storage system.

(20)

Daily News Update Page 20 Phase 1 of the initiative will be completed by mid-2021 while phase 2 is expected to be completed by the end of the year.

Gold Road achieved production of 258,173 ounces of gold in the 2020 calendar year, in line with the company’s 250,000 to 270,000-ounce guidance.

Sales for the December quarter reached 34,554 ounces at an average price of $2412 per ounce.

The company is scheduled to an its guidance for the 2021 calendar year in the March quarter. The Gruyere gold project was discovered by Gold Road in 2013 who entered a JV with Gold Fields in 2013.

It remains one of the largest underdeveloped gold deposits in the country with a mineral resource defined as 148 million tonnes at 1.2 grams per tonne for 6.2 million ounces of gold.

China Gold exceeds 2020 production guidance

By Vladimir Basov

CHINA

Gold International Resources (TSX: CGG; HKEx: 2099) yesterday provided preliminary full-year production results for 2020 and announced annual production guidance for 2021.

The company said that its consolidated gold production was approximately 234,700 ounces, exceeding the 2020 production guidance of 212,000 ounces by about 10%. The copper production was approximately 176 million pounds, exceeding the 2020 production guidance of 145 million pounds by more than 21%.

China Gold anticipates production of approximately 235,000 ounces of gold and 177 million pounds of copper in 2021.

China Gold is incorporated in British Columbia, Canada and operates both profitable and growing mines, the CSH gold mine in Inner Mongolia Autonomous Region, and the Jiama copper-polymetallic mine in Tibet Autonomous Region of the People’s Republic of China.

Northern Coalfields to surpass production target of 113.25 MT

for FY21

COAL

India-arm Northern Coalfields Ltd has said that it will easily achieve and surpass the production target of 113.25 million tonnes (MT) for the current fiscal.

(21)

Daily News Update Page 21 Northern Coalfields Ltd (NCL) CMD P K Sinha said that the company has set the new benchmarks in the field of production, productivity and integration of research and innovations. The PSU is firmly committed to the energy security of the nation.

Presently, NCL contributes about 15 per cent to the domestic coal production which is equivalent to more than 10 per cent of power generation of the country, the PSU said in a statement.

Sinha was addressing the third International Conference on Opencast Mining Technology and Sustainability (ICOMS-2020) on Friday.

He also said that as far as demand of domestic coal is concerned, it will increase in upcoming decades in order to bridge the gap between demand and supply of the dry-fuel, subsequent reduction in coal import of the country, improving the plant load factor (PLF) of existing thermal power plants (TPPs) and to feed upcoming new TPPs.

NCL is aiming 130 MT production by 2023-24 in order to contribute in one billion tonnes (BT) output target of Coal India and to make the country self-reliant in the coal sector, the company said.

With a planned road map, NCL is investing about Rs 7,000 crore to upgrade its infrastructure and amenities to boost the required production. This will also generate huge employment opportunities.

NCL is also working on nine first mile connectivity projects with investment of about Rs 2,700 crore to dispatch the coal through mechanised, digitalised and eco-friendly mode.

In the step diversification of its portfolio, NCL is in the final stage of establishing 50 mw solar power plant at Nigahi Project and has target of 280 mw solar power by FY 2023-24 to become net zero energy company.

South32 records a dip in local coal sales in past six months

By Dineo Faku

S

OUTH32 yesterday recorded a 5 percent dip in domestic coal sales volumes during the six months ended December after demand from state-owned power utility Eskom softened and placed its metallurgical coal project in Australia on ice while it explored joint venture options. South32 said South Africa Energy Coal (SAEC) saleable production fell in the December quarter following reduced demand from Eskom.

The Australian headquartered South32, which is selling SAEC to Seriti Resources, reported that saleable production had declined to 11.2 million tons in the December 2020 half year, down from 11.7 million tons a year earlier.

“Export sales were also lower, following the suspension of activity from loss-making pits in response to market conditions,” said the group.

(22)

Daily News Update Page 22 South32 said operating unit costs were expected to be about 10 percent above the top end of its guidance range of $39 (R582) a ton in the December 2020 half-year following a strengthening of the rand.

The rand firmed to R14.81 against the dollar yesterday, amid optimism that the incoming administration of US President Joe Biden will move comprehensively to support the US and the world through the ongoing Covid-19 pandemic.

Chief executive Graham Kerr said the group was in a strong financial position and had resumed its on-market share buy-back program in October. “Our unchanged capital management framework and disciplined approach to capital allocation is designed to reward shareholders as supportive market conditions translate to financial performance,” adding that the group continued to focus on exiting lower returning businesses and was working towards increasing its base metals exposure.

In terms of the Eagle Downs Metallurgical Coal project in Queensland, Australia, South32 said it had determined not to proceed with development with the project.

The group completed a feasibility study in the December 2020 quarter and decided to walk away from the project for now.

“While the study indicated the potential for a long-life operation, the expected returns do not currently support the allocation of capital in accordance with our capital management framework,” said South32.

Eagle Downs coal project is a joint venture between South32 and Aquila Resources, which is a subsidiary of Chinese company BaoWu, with both companies holding a 50 percent interest in the asset. The decision reportedly followed recent trade tensions that had resulted in an Australian coal import ban in China.

Hillside Aluminium recorded a 1 000 ton decline in saleable production to 361 000 tons in the December 2020 half year.

South32 shares closed 0.59 percent lower at R30.32 on the JSE yesterday. BUSINESS REPORT

Ukraine’s Coal Industry in Crisis

The devastating effect of decades of neglect and corruption have been exacerbated by

conflict.

By Yulia Abibok

WHEN

miners in the town of Antratsyt in the east of Ukraine decided to go on strike over unpaid wages in June 2020, they were met with a fierce response.

The authorities in the self-proclaimed Luhansk Peoples’ Republic quickly launched a clamp down that saw the imposition of a quarantine due to an alleged Covid-19 outbreak and internet access blocked.

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Daily News Update Page 23 The protest lasted for several days – with some miners going on hunger strike - and although salaries were eventually paid, dozens of protesters were arrested. Some were kept in custody for months.

Decades of neglect of Ukraine’s once vital coal-mining industry in the country’s east have had a devastating effect on both workers’ rights and the environment. The ongoing conflict with Russia, which has left many of these mines in conflict zones, has only exacerbated the issue. There are 148 coal mines in Ukraine, 95 of them in areas outside the control of the Ukrainian government. According to the de facto minister of economy in Donetsk, the local coal industry accounts for more than 65 per cent of wages.

Out of 35 state-owned coal mines in the government-controlled part of the east and west of the country,19 are in the process of being dismantled. Corruption is endemic throughout the industry, while coal mining communities live in poverty, with crumbling infrastructure and no attempts at redevelopment or economic diversification.

In Donbas - the oldest coal mining region of the former Soviet Union where miners were once an elite enjoying high salaries and social benefits - almost all local mines are loss-making and rely on heavy subsidies to function.

Mining equipment is extremely outdated and the whole process is highly ineffective and dangerous. After the war in the east of Ukraine began in 2014, some mines within the self-proclaimed republics were hit by indiscriminate shelling and flooded, causing enormous damage to the environment in areas far beyond the war zone. Others were sealed because of the lack of resources to pump out flood water.

Non-payment of wages remains a persistent problem, in areas under rebel and government control alike, and there is much discussion of this issue on social media groups. In one, The Donbas Miners on VK, the popular Russian social network, there are constant enquiries about ways to access backdated wages. In January, people were still discussing how to obtain even part of what they earned in November or earlier.

There have also been strikes in areas under Kyiv’s authority. In the city of Pokrovsk, in the part of Donetsk under Ukrainian government control, miners have been protesting and setting up roadblocks for more than a year over persistently delayed payment.

Most Donbas mines were seized by Russians and pro-Russian rebels in late 2014 causing a sudden shortage of electricity in Ukraine, where some power stations had to be reequipped for gas and oil use instead of coal.

Due to the Covid-19 economic downturn and an unusually warm winter, demand for coal has decreased. The domestic coal and electric power market is open to cheaper Russian imports, so despite the Ukrainian 2017 trade ban regarding the self-proclaimed republics, it has been hard to sell coal from the remaining mines internally.

This in turn has increased potential dangers to workers and the environment.

Andriy Silych, the mayor of the coal mining Donetsk town of Vugledar, said that without coal revenue it was impossible to keep the mines safe.

Vugledar is a young town, and its mines are among those with potential. They contribute three-quarters of the town’s entire revenue, the mayor continued.

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Daily News Update Page 24 But throughout 2020, the mines were under constant threat of having their electricity supplies cut off because of this government failure to pay on time.

"The worst that could happen is happening," Silych said.

If the mine ventilators stopped working, he explained, highly explosive methane would concentrate in underground passages. And if pumps were to be disconnected, the mines would be irreparably flooded.

In November, Silych posted a public appeal on the municipal web page to the central authorities over the “chronic lack of payments for delivered coal”.

Some mines in the region are connected to each other by underground passages, and others are still close enough to be flooded if the neighbouring works are abandoned without water pumping.

In the Luhansk region, the town of Pervomaisk and its satellite Zolote are divided by the frontline but still connected underground. When the two Pervomaisk mines at the territory under control of the self-proclaimed Luhansk republic were flooded in 2018, so was the closest mine in Zolote.

Denis Shakhbasian, a human rights lawyer in Luhansk, told IWPR that the Zolote mine had to constantly pump water, adding, “If it stops pumping, the other mines will be flooded, they are like communicating vessels.”

Flooding brought with it catastrophic effects, he continued, including sinkhole collapses and soil and water pollution. The Seversky Donets, the region main river and its primary water supply, was already been severely polluted.

In spring 2020, efforts were launched to reorganise the industry in both statelets. The Ukrainian government presented its own framework for coal mining reform in October that year, which included the liquidation of some coal mines and the possible establishment of an integrated energy provider.

Germany, which has repeatedly advocated the transformation of the Ukrainian coal mining sector, has offered expertise and financial backing to do so.

Vugledar mayor Silych said that one of the first decisions the government should take is to close mines that are no longer viable.

"By supporting inefficient mines, they ruin those efficient ones,” he said.

Vugledar’s future also depends on wider issues. Ukraine is a part of the Paris Agreement on climate change, which means it needs to decarbonise its energy sector, reducing the economy’s carbon dioxide output. Silych, along the mayors of other towns in a similar situation, want the government to set out reliable plans for this process, as well as how they subsequently plan to revitalise local communities.

"In Germany, they lost about 60 per cent of the population in some towns as the result of decarbonisation,” Silych said. “I shudder to imagine how it would look like in Ukraine.

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