TABLE OF CONTENTS. No. Title Media Source Page

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Daily News Update Page 1

CEO of PT Vale Indonesia Tbk. (INCO) Febriany Eddy stated that the company invested in the nickel ore mining and processing project located in Bahodopi Village because of the dynamics of the nickel business in Indonesia, which has progressed rapidly in the last eight years. "This makes PT Vale more determined to take a position in the map of the country's nickel industry as a nickel operator that promotes sustainable mining practices," she said during a dialogue with the Governor of Central Sulawesi Longki Djanggola, in the office of the Governor of Central Sulawesi, Monday (24/5/2021). She explained that currently the company's concession area in Central Sulawesi covers a work contract area of 22,699 hectares in Block 2 and Block 3 of Deda Bahodopi. "Our development project in the block consists of two main parts, namely a mine and factory or what we usually call a smelter," she said.

Mining activities, he continued, will be operated with an investment value of US$ 140 million to open a mine.

Meanwhile, for nickel ore processing, his company plans to build a smelter with an investment of US$ 1.8 billion.

Tambang Nikel di Morowali,

Vale (INCO) Akan Investasi

Rp28 Triliun

Author: Newswire

P

T VALE Indonesia Tbk. bekerja sama

dengan mitra dari China akan berinvestasi senilai US$ 1,94 miliar atau setara dengan hampir Rp28 triliun di Kabupaten Morowali, Provinsi Sulawesi Tengah pada proyek penambangan dan pengolahan bijih nikel. CEO PT Vale Indonesia Tbk. (INCO) Febriany Eddy menyatakan bahwa perusahaan berinvestasi pada proyek penambangan dan pengolahan bijih nikel yang terletak di Desa Bahodopi tersebut karena dinamika bisnis nikel di Indonesia yang kian maju sangat pesat dalam delapan tahun terakhir.

"Hal tersebut membuat PT Vale semakin mantap mengambil posisi dalam peta industri nikel Tanah Air sebagai operator nikel yang mengedepankan praktik-praktik penambangan berkelanjutan," katanya saat berdialog dengan Gubernur Sulteng Longki Djanggola, di ruang kerja Gubernur Sulteng, Senin (24/5/2021).

Dia menjelaskan saat ini wilayah konsesi perseroan di Sulteng mencakup area kontrak karya seluas 22.699 hektare di Blok 2 dan Blok 3 Deda Bahodopi.

"Proyek pengembangan kami di blok tersebut terdiri atas dua bagian utama, yaitu tambang dan pabrik atau yang biasa kita sebut smelter," ujarnya.

Kegiatan penambangan, lanjutnya, akan dioperasikan dengan nilai investasi pem-bukaan tambang sebesar US$ 140 juta. Sementara itu, untuk kegiatan pengolahan bijih nikel, pihaknya berencana membangun smelter dengan nilai investasi sebesar US$ 1,8 miliar.

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Daily News Update Page 4 "For the smelter construction, PT Vale

Indonesia has established a new business entity, namely PT Bahodopi Nickel Smelting Indonesia, which currently has obtained an industrial business license. This factory is planned to be built and operated with our partners from China," she also said.

Febriany said that the Bahodopi project had been proposed as part of a national strategic project for 2021. PT Vale's mining activities in the Bahodopi Block would absorb around 900 workers.

"As for activities at the smelter, we estimate that the workforce needs will reach 11,400 people during the construc-tion period, and around 3,700 when the smelter is operational," she said. Editor: Zufrizal

"Untuk pembangunan smelter, PT Vale Indonesia telah mendirikan badan usaha baru, yaitu PT Bahodopi Nickel Smelting Indonesia yang saat ini telah memperoleh izin usaha industri. Pabrik ini rencananya dibangun dan dioperasikan bersama mitra kami dari Tiongkok," ujarnya pula.

Febriany menyebut bahwa proyek Bahodopi telah diajukan sebagai bagian dari proyek strategis nasional untuk tahun 2021. Kegiatan penambangan PT Vale di Blok Bahodopi akan menyerap sekitar 900 tenaga kerja.

"Sementara untuk kegiatan di smelter, kami memperkirakan kebutuhan tenaga kerja mencapai 11.400 orang pada periode konstruksi, dan sekitar 3.700 orang ketika smelter sudah beroperasi," ujarnya. Editor : Zufrizal

Paying off the debt again, Bumi

Resources prepares US$15

million in funds

Rahajeng KH, CNBC Indonesia

P

T BUMI Resources Tbk (BUMI) will pay

tranche A debt worth US$ 15-20 million in July 2021 in tranche A. This amount considers the amount of tax to be paid as well as the 6.5% coupon and 1% accrual. The exact amount will be decided at the latest in May-June 2021, taking into account the existing developments in terms of the economy and coal.

"We hope to pay the principal and renew the Tranche A interest with the next installment on July 21, 2021," Dileep told CNBC Indonesia, Monday (24/05/2021).

Lunasi Utang Lagi, Bumi

Resources Siapkan Dana US$15

Juta

Rahajeng KH, CNBC Indonesia

P

T BUMI Resources Tbk (BUMI) akan

me-lakukan pembayaran utang tranche A senilai US$ 15-20 juta pada Juli 2021 pada tranche A. Jumlah tersebut mempertimbangkan dari jumlah pajak yang harus dibayarkan dan juga kupon 6,5% dan akrual 1%.

Adapun jumlah pastinya akan diputuskan paling lambat pada Mei - Juni 2021, dengan melihat perkembangan yang ada dari sisi ekonomi dan batu bara.

"Kami berharap utk membayar pokok dan mem-perbarui bunga Tranche A dengan angsuran berikutnya pada 21 Juli 2021," kata Dileep kepada CNBC Indonesia, Senin (24/05/2021).

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Daily News Update Page 5 Previously, he said debt repayment was

one of Bumi Resources' strategies to undergo recovery in 2021. By doing so, it could strengthen the company's capital structure.

The coal price improvement is also the right time for the company to maximize its cash position. This is because in this time of uncertainty, managing cash flow into managing the right time to pay obligations is also the key.

He said the company's best effort was to pay off tranche A debt which is targeted to be completed by the end of next year. Along with the market recovery and the increase in coal prices, according to him, it can accelerate BUMI to make payments. "Hopefully, with coal prices remaining at a good level, we can continue to continue paying the principal from the second quarter of 2021 onwards," said Dileep recently.

For this year, the amount of Tranche A debt that the company pays is estimated at US$ 100 million, for principal and interest. However, the amount of debt paid also depends on fluctuations in coal prices. With the increase in coal prices, previously Dileep said the company would maximize sales when prices were high. That way it is expected to increase the company's revenue, especially in early 2021.

"We hope we hope to increase the speed of payments during this year," he said. (rah/rah)

Sebelumnya, dia mengatakan pembayaran utang menjadi salah satu strategi Bumi Resources untuk menjalani pemulihan di 2021. Dengan begitu bisa memperkuat struktur modal perusahaan.

Perbaikan harga batu bara juga menjadi saat yang tepat bagi perusahaan untuk memaksimalkan posisi kas perusahaan. Pasalnya di masa yang masih penuh ketidakpastian ini, mengatur arus kas menjadi mengatur waktu yang tepat dalam pembayaran kewajiban juga menjadi kunci. Dia mengatakan upaya terbaik yang dilakukan perusahaan adalah melunasi utang tranche A yang ditargetkan selesai di akhir tahun depan. Seiring dengan pulih-nya pasar dan kenaikan harga batu bara menurutnya bisa mempercepat BUMI melakukan pembayaran.

"Mudah-mudahan dengan harga batu bara tetap pada level yang baik, kami dapat melanjutkan untuk melanjutkan pem-bayaran pokok mulai kuartal II-2021 dan seterusnya," kata Dileep belum lama ini. Untuk tahun ini jumlah utang Tranche A yang dibayarkan perusahaan diperkirakan mencapai US$ 100 juta, untuk pokok dan bunga. Meski demikian jumlah utang di-bayarkan juga bergantung pada fluktuasi harga batu bara.

Dengan peningkatan harga batu bara, sebelumnya Dileep mengatakan perusaha-an akperusaha-an memaksimalkperusaha-an penjualperusaha-an ketika harga tinggi. Dengan begitu diharapkan bisa meningkatkan pendapatan perusaha-an terutama di awal tahun 2021.

"Kami berharap kami berharap dapat meningkatkan kecepatan pembayaran selama tahun ini," ujar dia. (rah/rah)

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Here's the operational

performance of United Tractors

(UNTR) throughout April 2021

Reporter: Akhmad Suryahadi | Editor: Herlina Kartika Dewi

P

T UNITED Tractors Tbk (UNTR) recorded

various operational performances for each of its business segments throughout April 2021.

For coal sales run by PT Tuah Turangga Agung (TTA), UNTR recorded sales of 910,000 tons of coal throughout April 2021. This realization was down 17.72% from sales volume in March 2021 which reached 1.10 million tons.

Of the 910,000 tonnes of coal sold, 711,000 tonnes were thermal coal, and the remaining 199,000 tonnes was coking coal. In accumulation, UNTR through TTA has sold 4.62 million tonnes of coal during the first four months of 2021. This realization is up 1.7% from sales in the same period the previous year which was 4.54 million tonnes.

In the mining contractor segment through PT Pamapersada Nusantara (Pama), UNTR recorded a volume of overburden (OB) removal of 68.7 million bank cubic meters (bcm), down 0.72% from the previous 69.2 million bcm. Meanwhile, PAMA's coal production volume was 9.8 million tons in April 2021, tending to be the same as the previous month.

In accumulation, Pama's production volume during the first four months was 36.7 million tons, a decrease of 1.60% on an annual basis. OB Pama's production volume also decreased by 8.77%, from the previous 283.7 million bcm to 258.8 million bcm.

Begini kinerja operasional

United Tractors (UNTR)

sepanjang April 2021

Reporter: Akhmad Suryahadi | Editor:

Herlina Kartika Dewi

PT United Tractors Tbk (UNTR) mencatatkan kinerja operasional yang beragam untuk masing-masing segmen bisnisnya sepanjang April 2021.

Untuk penjualan batubara yang dijalankan oleh PT Tuah Turangga Agung (TTA), UNTR mencatatkan penjualan 910.000 ton batu-bara sepanjang April 2021. Realisasi ini turun 17,72% dari volume penjualan pada Maret 2021 yang mencapai 1,10 juta ton. Dari 910.000 ton batubara yang terjual, sebanyak 711.000 ton merupakan batubara thermal, sisanya sebanyak 199.000 ton merupakan batubara kokas atau coking coal. Secara akumulasi, UNTR melalui TTA telah menjual 4,62 juta ton batubara sepanjang empat bulan pertama 2021. Realisasi ini naik 1,7% dari penjualan di periode yang sama tahun sebelumnya yakni 4,54 juta ton.

Di segmen kontraktor pertambangan lewat PT Pamapersada Nusantara (Pama), UNTR mencatatkan volume pengupasan lapisan atau overburden (OB) removal sebesar 68,7 juta bank cubic meter (bcm), menurun 0,72% dari sebelumnya sebesar 69,2 juta bcm. Sementara itu, volume produksi batubara PAMA sebesar 9,8 juta ton di April 2021, cenderung sama dengan bulan sebelumnya. Secara akumulasi, volume produksi Pama sepanjang empat bulan pertama sebesar 36,7 juta ton, menurun 1,60% secara tahunan. Volume produksi OB Pama juga menurun 8,77%, dari sebelumnya 283,7 juta bcm men-jadi 258,8 juta bcm.

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Daily News Update Page 7 Not only the mining segment, UNTR's heavy

equipment sales segment also decreased in April 2021. Heavy equipment sales in April 2021 amounted to 221 units, down 18.75% from sales in March 2021 which reached 272 units. However, UNTR managed to sell 909 units of heavy equipment during the first four months of 2021.

This realization grew 26.77% from the realization of heavy equipment sales in the same period the previous year which was only 717 units.

The stagnant operational performance is shown by the gold mining segment run by PT Agincourt Resources. In April 2021, sales of gold through the Martabe Gold Mine amounted to 29,000 Gold Equivalent Ounces (GEOs), the same as sales in March 2021.

In accumulation, this subsidiary of PT Astra International Tbk (ASII) has sold 124,000 gold GEOs, up 9.83% from the realization in the first four months of 2020 which was only 112,900 GEOs.

Tak hanya segmen pertambangan, segmen penjualan alat berat UNTR juga menurun di April 2021. Penjualan alat berat di bulan April 2021 sebesar 221 unit, menurun 18,75% dari penjualan di bulan Maret 2021 yang mencapai 272 unit. Namun, UNTR berhasil menjual 909 unit alat berat sepanjang empat bulan pertama 2021. Realisasi ini tumbuh 26,77% dari realisasi penjualan alat berat di periode yang sama tahun sebelumnya yang hanya 717 unit. Kinerja operasional yang stagnan ditunju-kkan oleh segmen pertambangan emas yang dijalankan oleh PT Agincourt Resources. Pada April 2021, penjualan emas lewat Tambang Emas Martabe sebesar 29.000 Gold Equivalent Ounces (GEOs), sama dengan penjualan di bulan Maret 2021.

Secara akumulasi, anak usaha PT Astra International Tbk (ASII) ini telah menjual 124,000 GEOs emas, naik 9,83% dari realisasi empat bulan pertama 2020 yang hanya 112,900 GEOs.

Antam's Nickel Reserves for the

Battery Industry for Up to 30

Years

Editor: Nidia Zuraya

T

HE INDONESIAN government is

optimistic about the prospects for the electric vehicle battery industry. This is due to the fact that the trend of using vehicles using fossil fuels is decreasing as people have started to switch to using environmentally friendly recycled fuels, such as motorbikes and electric cars.

Cadangan Nikel Antam untuk

Industri Baterai Hingga 30

Tahun

Redaksi: Nidia Zuraya

P

EMERINTAH Indonesia optimistis

me-lihat prospek industri baterai kendaraan listrik. Hal ini mengingat tren meng-gunakan kendaraan berbahan bahan bakar fosil kian menurun karena masyarakat mulai beralih menggunakan bahan bakar ramah lingkungan yang dapat daur ulang, seperti motor dan mobil listrik.

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Daily News Update Page 8 Chairman of the Electric Vehicle Battery

Development Team Agus Tjahajana said PT Aneka Tambang (Antam) has nickel reserves that can last up to 30 years to support the electric battery industry business in Indonesia.

"Antam is the owner of nickel reserves that will be used and has been calculated to be capable of up to 30 years," said Agus in an electronic discussion monitored in Jakarta, Monday (24/5).

As is well known, the government has officially announced the formation of the Indonesia Battery Corporation (IBC) on March 26, 2021. IBC is a joint venture of four companies, namely Inalum, Antam, Pertamina and PLN with each share ownership of 25 percent.

This state-owned corporation will manage an integrated battery industry ecosystem from upstream to downstream to strengthen energy security and the national economy. "We hope everyone supports the IBC. This is our goal to get at least 30 billion US dollars contributing to Indonesia's gross domestic product," said Agus.

In the domestic nickel mining industry, there are quite a lot of low grade nickel ore and high grade nickel available because Indonesia's nickel reserves account for 24 percent of the world's total nickel reserves. "The downstream embodiment does not only build the mining industry in the upstream but we process it until it becomes a battery," said Agus.

In 2021, the mining issuer with the stock code of ANTM has budgeted a capital expenditure of Rp 2.84 trillion with the largest portion for business development, one of which is to complete the ferronickel smelter project in East Halmahera.

Ketua Tim Pengembangan Baterai Ken-daraan Listrik Agus Tjahajana mengatakan PT Aneka Tambang (Antam) memiliki cadangan nikel yang dapat bertahan hingga 30 tahun guna menopang bisnis industri baterai listrik di Indonesia.

"Antam ini merupakan pemilik cadangan nikel yang akan digunakan dan sudah dihitung akan mampu hingga 30 tahun," kata Agus dalam diskusi elektronik yang dipantau di Jakarta, Senin (24/5).

Seperti dikatahui, pemerintah telah resmi mengumumkan pembentukan Indonesia Battery Corporation (IBC) pada 26 Maret 2021. IBC merupakan perusahaan patungan dari empat perusahaan, yakni Inalum, Antam, Pertamina, dan PLN dengan masing-masing kepemilikan saham sebesar 25 persen.

Korporasi pelat merah ini akan mengelola ekosistem industri baterai yang terintegrasi dari hulu hingga hilir untuk memperkuat ketahanan energi dan ekonomi nasional. "Kami berharap semua mendukung IBC. Ini cita-cita kami untuk mendapatkan paling tidak 30 miliar dolar AS menyumbang produk domestik bruto Indonesia," kata Agus.

Dalam industri tambangan nikel di dalam negeri, jumlah bijih nikel kadar rendah dan nikel kadar tinggi tersedia cukup banyak karena porsi cadangan nikel Indonesia men-capai 24 persen dari total cadangan nikel dunia.

"Pengejawantahan hilirisasi tidak saja membangun industri tambang di hulu tetapi kami proses sampai menjadi baterai," kata Agus.

Pada 2021, emiten tambang Antam berkode saham ANTM menganggarkan belanja modal senilai Rp2,84 triliun dengan porsi terbesar untuk pengembangan usaha, salah satunya menyelesaikan proyek smelter feronikel di Halmahera Timur.

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Daily News Update Page 9 The smelter construction project has

reached 98 percent and is targeted to be completed this year so that it can process 40,500 tons of nickel in the form of ferronickel. Antam targets nickel ore production to reach 8.44 million metric tons in 2021, almost one-fold increase from the realization of production in 2020 of 4.67 metric tons. Source: Antara

Proyek pambangunan smelter itu telah mencapai 98 persen dan ditargetkan rampung tahun ini agar bisa mengolah 40.500 ton nikel dalam bentuk feronikel. Antam menargetkan produksi bijih nikel dapat mencapai 8,44 juta metrik ton pada 2021, naik hampir satu kali lipat dari realisasi produksi sepanjang 2020 sebesar 4,67 metrik ton. Sumber : Antara

Measuring Vale Indonesia's

Potential

Parluhutan Situmorang

P

T VALE Indonesia Tbk (INCO) will face a

downward trend in production volume, in line with the repair of one of the electric furnaces (EF) towards the end of this year. This prompted a number of analysts to downwardly revise the company's financial performance projections this year. However, the expectation of an upward trend in the selling price of nickel is expected to be a positive sentiment. BRI Danareksa Sekuritas analyst Stefanus Darmagiri revealed that the rebuilding of one of the EFs is scheduled for November. The plan was postponed from the beginning in May 2021. This activity has the potential to reduce Vale Indonesia's nickel production volume to 64 thousand tons compared to the original estimate of 70 thousand tons.

"However, we hope that the decline in sales volume can be fulfilled from the increasing trend of selling prices, so that production volume cuts will not have a profound impact on the company's financial performance this year," he wrote in his research.

Menakar Potensi Vale

Indonesia

Parluhutan Situmorang

P

T VALE Indonesia Tbk (INCO) bakal

menghadapi tren penurunan volume produksi, seiring perbaikan salah satu electric furnace (EF) menjelang akhir tahun ini. Hal itu mendorong sejumlah analis untuk merevisi turun proyeksi kinerja keuangan perseroan tahun ini. Meski demikian, ekspektasi tren kenaikan harga jual komoditas nikel diharapkan menjadi sentimen positif.

Analis BRI Danareksa Sekuritas Stefanus Darmagiri mengungkapkan, pembangunan kembali salah satu EF dijadwalkan pada November. Rencana itu sempat ditunda dari semula pada Mei 2021. Kegiatan tersebut berpotensi menjadikan volume produksi nikel Vale Indonesia turun men-jadi 64 ribu ton dibandingkan perkiraan semula 70 ribu ton.

“Namun, kami berharap penurunan volume penjualan tersebut bisa terpenuhi dari tren kenaikan harga jual, sehingga pemangkasan volume produksi tidak berimbas terlalu dalam terhadap kinerja keuangan perseroan sepanjang tahun ini,” tulis dia dalam risetnya.

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Daily News Update Page 10 Stefanus has revised down Vale

Indonesia's net profit target from US$ 152 million to US$ 134 million. The company's estimated revenue is also cut from US$ 983 million to US$ 899 million in 2021.

Likewise, the sales estimate for nickel in matte will be lowered from 70 thousand tons to 64 thousand tons. Meanwhile, the projected average selling price is maintained at US$ 14,040 per ton this year. The research team of Samuel Sekuritas Indonesia also made a downward revision of Vale Indonesia's financial performance target. Analyst Samuel Sekuritas Dessy Lapagu said that the construction of furnace IV, which starts this year, is expected to reduce production volume. It is hoped that these improvements will be completed again by the end of this year, so that the company's productivity is expected to recover again in 2022.

"The construction of furnace IV, which is targeted to start in November this year, will disrupt the company's production activities. This has prompted the company's management to cut down its production volume target from 72 thousand tons to 64 thousand tons this year. Meanwhile, we project that the company's production is only 63 thousand tons this year, down 13 percent from last year,” wrote Dessy in her research.

Along with furnace IV improvements, the company will absorb more capital expenditures this year with an estimated US$ 135 million compared to last year's US$ 120 million allocation. Most of the budget is to finance furnace IV develop-ment, mining infrastructure developdevelop-ment, and equipment renovation. The source of capex financing comes from internal cash.

Stefanus merevisi turun target laba bersih Vale Indonesia dari US$ 152 juta menjadi US$ 134 juta. Estimasi pendapatan per-seroan juga dipangkas dari US$ 983 juta menjadi US$ 899 juta pada 2021.

Begitu juga dengan perkiraan penjualan nikel dalam matte diturunkan dari 70 ribu ton menjadi 64 ribu ton. Sedangkan proyeksi ratarata harga jual dipertahankan US$ 14.040 per ton sepanjang tahun ini. Revisi turun target kinerja keuangan Vale Indonesia juga dilakukan oleh tim riset Samuel Sekuritas Indonesia.Analis Samuel Sekuritas Dessy Lapagu mengungkapkan, pembangunan furnace IV yang dimulai tahun ini diperkirakan menurunkan volume produksi.

Perbaikan tersebut diharapkan kembali tuntas akhir tahun ini, sehingga produk-tivitas perseroan diharapkan kembali pulih pada 2022.

“Pembangunan furnace IV yang ditarget-kan mulai November tahun ini aditarget-kan mengganggu aktivitas produksi perseroan. Hal ini mendorong manajemen perseroan memangkas turun target volume produksi dari 72 ribu ton menjadi 64 ribu ton tahun ini. Sedangkan kami memberikan proyeksi produksi perseroan hanya 63 ribu ton tahun ini atau turun 13% dari tahun lalu,” tulis Dessy dalam risetnya.

Seiring dengan perbaikan furnace IV, perseroan bakal menyerap belanja modal lebih besar tahun ini dengan perkiraan US$ 135 juta dibandingkan alokasi tahun lalu US$ 120 juta. Sebagian besar anggaran untuk membiayai pengembangan furnace IV, pengembangan infrastruktur tambang, serta peremajaan alat. Sumber pembiayaan capex berasal dari kas internal.

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Summary of Vale Indonesia's Financial Performance (in million US$)

2019 2020 2021F 2022F 2023F

Revenue 782 765 899 983 1112

EBITDA 232 273 320 363 416

Net Profit 57 83 134 164 202

EPS (US$ cents) 0.6 0.8 1.4 1.6 2

Gross Margin (%) 15 16.3 21.9 24 25.7

PER (x) 53.5 37.1 22.9 18.7 15.2

PBV (x) 1.6 1.5 1.4 1.4 1.3

ROA (%) 2.6 3.7 5.6 6.4 7.4

Regarding the average selling price of nickel, he estimates it will be in the range of US$ 17,300-18,500 in 2021-2022. This price is better than the current price of US$ 16,963 per ton.

"The high positive sentiment from electric car batteries is a driving force for investor optimism about the nickel industry in the long run," he explained.

Even though the selling price is better this year, Dessy still revised down Vale Indonesia's net profit target to US$ 95 million this year compared to the original estimate of US$ 110 million. The target cut is in line with the company's lower revenue target for 2021 from US$ 870 million to US$ 868 million.

The downward revision prompted Samuel Sekuritas to cut the target price for INCO's share from Rp 6,730 to Rp 6,400. Currently, INCO's price is still at the average PE level in the last five years. Meanwhile, Vale Indonesia will distribute dividends of US$ 33.1 million, equivalent to US$ 0.00333 per share. This dividend was taken from the company's profit over the past year which reached US$ 82.81 million.

Mengenai rata-rata harga jual nikel, dia memperkirakan pada kisaran US$ 17.300-18.500 pada 2021-2022. Harga tersebut lebih baik dibandingkan saat ini yang mencapai US$ 16.963 per ton.

“Masih tingginya sentiment positif dari baterai mobil listrik menjadi pendorong optimisme investor terhadap industri nikel dalam jangka panjang,” jelasnya.

Meski harga jual lebih baik tahun ini, Dessy tetap merevisi turun target laba bersih Vale Indonesia menjadi US$ 95 juta tahun ini dibandingkan perkiraan semula US$ 110 juta. Pemangkasan target tersebut sejalan dengan penurunan target penda-patan perseroan tahun 2021 dari US$ 870 juta menjadi US$ 868 juta.

Revisi turun tersebut mendorong Samuel Sekuritas untuk memangkas target harga saham INCO dari Rp 6.730 menjadi Rp 6.400. Saat ini, harga INCO masih berada di level rata-rata PE dalam lima tahun ter-akhir.

Sementara itu, Vale Indonesia akan mem-bagikan dividen sebesar US$ 33,1 juta atau setara dengan US$ 0,00333 per saham. Dividen ini diambil dari keuntungan per-seroan sepanjang tahun lalu yang men-capai US$ 82,81 juta.

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Daily News Update Page 12 Chief Financial Officer (CFO) Vale

Indonesia Bernardus Irmanto said the dividend distribution had considered the amount of cash available to finance working capital, loan payments, and interest. This dividend decision has been approved by the Annual General Meeting of Shareholders (AGMS) on April 27, 2021. "This dividend payment will be made by the company on May 28, 2021," he explained in an official statement.

This year, Vale Indonesia has allocated a capital expenditure (capex) of US$ 130 million. The budget will be used for the reconstruction of furnace IV and renovation of heavy mining equipment as well as mine development. Editor: Gora Kunjana

Chief Financial Officer (CFO) Vale Indonesia Bernardus Irmanto mengatakan, pembagian dividen tersebut telah mem-pertimbangkan jumlah kas yang tersedia untuk membiayai modal kerja, pem-bayaran pinjaman, serta bunganya. Keputusan dividen ini telah disetujui Rapat Umum Pemegang Saham Tahunan (RUPST) tanggal 27 April 2021.

“Pembayaran dividen ini akan dilakukan perseroan pada 28 Mei 2021,” jelasnya dalam keterangan resmi.

Tahun ini, Vale Indonesia mengalokasikan belanja modal (capital expenditure/capex) US$ 130 juta. Anggaran tersebut akan digunakan untuk pembangunan kembali furnace IV dan peremajaan alat berat tambang serta pengembangan tambang. Editor : Gora Kunjana

IBC Battery Factory-LG

Consortium Rp140 Trillion

Groundbreaking Soon

Ferdi Rantung

T

HE GOVERNMENT's plan to build an

integrated electric battery industry is getting closer to realization with plans to install the groundbreaking of a factory owned by PT Industri Baterai Indonesia or Indonesia Battery Corporation (IBC) and the LG Consortium from South Korea (South Korea) in Kota Deltamas, Bekasi, West Java in time this close.

In the first phase, the battery factory will have a battery production capacity of up to 10 gigawatt hours (GWh), which will later be used for Hyundai electric vehicles.

Pabrik Baterai IBC-Konsorsium

LG Rp140 Triliun Segera

Groundbreaking

Ferdi Rantung

R

ENCANA pemerintah membangun industri

baterai listrik terintegrasi makin mendekati realisasi dengan rencana pemasangan tiang pancang (groundbreaking) pabrik milik PT Industri Baterai Indonesia atau Indonesia Battery Corporation (IBC) dan Konsorsium LG asal Korea Selatan (Korsel) di Kota Deltamas, Bekasi, Jawa Barat dalam waktu dekat ini.

Pada tahap pertama, pabrik baterai ini akan memiliki kapasitas produksi baterai men-capai 10 gigawatt hour (GWh), yang nantinya akan dipakai untuk kendaraan listrik Hyundai.

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Daily News Update Page 13 This stage is a follow-up to the signing of

the Head of Agreements (HoA) or Principal Agreement for the integrated battery investment project between PT Industri Baterai Indonesia and the LG Consortium last month (29/4) at the office of the Ministry of Investment/Investment Coor-dinating Board (BKPM), Jakarta.

Integrated with mining, smelter, refining and precursor and cathode industries, this electric battery production facility will be the first in Asia and even in the world. The investment value is estimated at USD9.8 billion (around IDR140 trillion).

The Minister of Investment/Head of BKPM Bahlil Lahadalia welcomed the progress of LG's investment, considering that the strategic effort to build a downstream metal mining industry is a long and difficult process, because it involves various stake-holders, both at home and abroad.

"After going through a long process, we are grateful that this groundbreaking process will finally begin. The work in the future will be even greater to build an integrated battery industry in Indonesia. We are committed to continuing to oversee this process and ask for support from all parties to realize the electric battery industry in Indonesia. Indonesia which is integrated and export-oriented," he said in Jakarta, Monday (24/5/2021).

As is known, the forerunner of the collaboration between PT Industri Baterai Indonesia and the LG Consortium began in 2019 when President Joko Widodo and South Korean President Moon Jae In met in Busan, South Korea on November 25, 2019. After going through a series of exploratory processes, negotiations and studies, Memo-randum A MemoMemo-randum of Understanding (MoU) was signed on December 18, 2020 in Seoul, South Korea between the Minister of Investment/Head of BKPM and the CEO of LG Energy Solution.

Tahap ini merupakan tindak lanjut penanda-tanganan Head of Agreements (HoA) atau Kesepakatan Pokok proyek investasi baterai terintegrasi antara PT Industri Baterai Indonesia dengan Konsorsium LG pada bulan lalu (29/4) di kantor Kementerian Investasi/ Badan Koordinasi Penanaman Modal (BKPM), Jakarta.

Terintegrasi dengan fasilitas penambangan, peleburan (smelter), pemurnian (refining) serta industri precursor dan katoda, fasilitas produksi baterai listrik ini akan menjadi yang pertama di Asia dan bahkan di dunia. Nilai investasi diperkirakan mencapai USD9,8 miliar (sekitar Rp140 triliun).

Menteri Investasi/Kepala BKPM Bahlil Lahadalia menyambut gembira kemajuan investasi LG tersebut, mengingat upaya strategis untuk membangun hilirisasi industri pertambangan logam merupakan proses yang panjang dan tidak mudah, karena melibatkan berbagai stakeholder, baik di dalam maupun luar negeri.

"Setelah melalui proses panjang, kami ber-syukur proses groundbreaking ini akhirnya akan segera dimulai. Pekerjaan ke depan akan semakin besar untuk membangun industri baterai yang terintegrasi di Indonesia. Kami berkomitmen untuk terus mengawal proses ini dan memohon dukungan dari semua pihak untuk mewujudkan industri baterai listrik di Indonesia yang terintegrasi dan berorientasi ekspor,” tuturnya di Jakarta, Senin (24/5/2021). Sebagaimana diketahui, cikal bakal kerja sama antara PT Industri Baterai Indonesia dan Konsorsium LG dimulai pada tahun 2019 ketika Presiden Joko Widodo dan Presiden Korsel Moon Jae In bertemu di Busan, Korsel pada 25 November 2019. Setelah melalui rangkaian proses penjajakan, negosiasi dan studi, Nota Kesepahaman atau Memorandum of Understanding (MoU) pun ditandatangani pada 18 Desember 2020 di Seoul, Korsel antara Menteri Investasi/Kepala BKPM dan CEO LG Energy Solution.

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Daily News Update Page 14 "The MoU negotiation process went through

25 document revisions, which we compiled and consulted with BUMN Minister Erick Tohir and agreed by both parties. This is one of the longest document drafting processes ever carried out by the Ministry of Invest-ment/BKPM. After that, it took 15 times. intensive meetings both at the leadership level and at the technical level. We really appreciate the extraordinary dedication of the team," said Bahlil.

After the HoA was agreed on April 29, 2021, the consortium then carried out a Joint Study, drafting shareholder agreements, and company establishment agreements. The three processes are targeted to be completed immediately, so that the factory groundbreaking can be carried out immediately in the near future.

Currently, the Ministry of Investment is finalizing an MoU between parties in Cikarang (Hyundai) to finalize a joint venture plan (JV) to build a cell battery factory for the electric vehicle. The investment that will be carried out for the construction of this factory is USD 1.2 billion. The factory is planned to occupy 33 hectares of land and absorb 1,000 Indonesian workers.

"Not only creating jobs in the regions, this investment cooperation project is projected to make Indonesia move up from a producer and exporter of raw materials to become an important player in the world supply chain for the electric vehicle battery industry," Bahlil added.

PT Industri Baterai Indonesia was formed by four state-owned companies, namely Mining and Industry Indonesia (Mind Id), PT Pertamina (Persero), PT PLN (Persero), and PT Aneka Tambang Tbk (Antam), which have a special mandate to manage the motor electric vehicle battery industry ecosystem (electric vehicle/EV battery) integrated from upstream to downstream.

"Proses negosiasi MoU ini melalui 25 kali revisi dokumen, yang kami susun dan kami konsultasikan dengan Menteri BUMN Erick Tohir dan disetujui kedua belah pihak. Ini merupakan salah satu proses penyusunan dokumen terpanjang yang pernah dijalankan Kementerian Investasi/BKPM. Setelah itu, perlu 15 kali rapat intensif baik di tingkat pimpinan maupun di tingkat teknis. Kami sangat menghargai dedikasi tim yang luar biasa," tutur Bahlil.

Setelah HoA disepakati pada 29 April 2021, selanjutnya konsorsium melakukan Studi Gabungan (Joint Study), penyusunan per-janjian pemegang saham, dan perper-janjian pendirian perusahaan. Ketiga proses ter-sebut ditargetkan segera tuntas, sehingga groundbreaking pabrik bisa dijalankan segera dalam waktu dekat ini.

Saat ini, Kementerian Investasi sedang melaku-kan finalisasi MoU antara pihak di Cikarang (Hyundai) untuk merampungkan rencana joint venture (JV) pembangunan pabrik baterai sel (cell battery) untuk kendaraan listrik tersebut. Investasi yang akan digelentorkan untuk pembangunan pabrik ini sebesar USD1,2 miliar. Pabrik tersebut rencananya akan menempati lahan seluas 33 hektare dan menyerap 1.000 tenaga kerja Indonesia. "Tidak hanya membuka lapangan kerja di daerah, proyek kerja sama investasi ini diproyeksikan menjadikan Indonesia naik kelas dari produsen dan eksportir bahan mentah, menjadi pemain penting pada rantai pasok dunia untuk industri baterai kendaraan listrik," imbuh Bahlil.

PT Industri Baterai Indonesia dibentuk oleh empat BUMN yaitu Mining and Industry Indonesia (Mind Id), PT Pertamina (Persero), PT PLN (Persero), dan PT Aneka Tambang Tbk (Antam), yang memiliki mandat khusus untuk mengelola ekosistem industri baterai kendaraan bermotor listrik (electric vehicle/EV battery) yang terintegrasi dari hulu hingga hilir.

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Daily News Update Page 15 Meanwhile, the LG consortium consists of

LG Energy Solution, LG Chem, LG International, POSCO and Huayou Holding. LG Energy Solution is currently one of the largest electric car battery manufacturers in the world. LG Electronics (LG Group) is the fifth largest company in South Korea in 2020 according to Fortune magazine. (fai)

Sementara itu, konsorsium LG terdiri dari LG Energy Solution, LG Chem, LG International, POSCO dan Huayou Holding. LG Energi Solution saat ini merupakan salah satu produsen baterai mobil listrik terbesar di dunia. LG Electronics (LG Group) merupakan perusahaan terbesar kelima di Korsel pada tahun 2020 menurut majalah Fortune. (fai)

Good news! Coal Price Breaks

New Highest Record Again

Tirta, CNBC Indonesia

T

HE PRICE of thermal coal at ICE

Newcastle is not tired of setting records. Earlier this week, the ICE Newcastle thermal coal futures contract price closed up 2.97% to US$ 111.1/ton and became the highest level this year, surpassing last week's closing level.

After successfully surpassing US$ 100/ton, the ICE Newcastle thermal coal futures contract price did not want to go down and instead continued to rally. In year to date (ytd), the price of the jet stone has increased by almost 36%.

The global coal market is underpinned by demand in Asia. However, it seems that the price increase does not reflect the rampant increase in Covid-19 cases in various countries such as India, Taiwan, Singapore and Malaysia.

As if the brakes failed, the price continued to accelerate. There is a tendency for market players, especially big money, such as hedge funds to enter the futures market and take long positions for various commodities. One of them is coal.

Good News! Harga Batu Bara

Tembus Rekor Tertinggi Baru Lagi

Tirta, CNBC Indonesia

H

ARGA Batu bara termal ICE Newcastle

tak bosan cetak rekor terus. Di awal pekan ini, harga kontrak futures (berjangka) batu bara termal ICE Newcastle ditutup naik 2,97% ke US$ 111,1/ton dan menjadi level tertinggi sepanjang tahun ini mengungguli level penutupan pekan lalu.

Setelah berhasil melampaui US$ 100/ton, harga kontrak futures (berjangka) batu bara termal ICE Newcastle belum mau turun dan malah lanjut reli. Secara year to date (ytd), harga si batu legam sudah naik hampir 36%.

Pasar batu bara global ditopang oleh permintaan di Asia. Namun tampaknya kenaikan harga tak mencerminkan marak-nya kenaikan kasus Covid-19 di berbagai negara seperti India, Taiwan, Singapura dan Malaysia.

Seolah rem-nya blong, harga terus melesat. Ada kecenderungan para pelaku pasar terutama big money seperti hedge fund masuk ke bursa berjangka dan mengambil posisi long untuk berbagai komoditas. Salah satunya batu bara.

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Daily News Update Page 16 The investment thesis they hold is a high

increase in inflation. Inflation is a common phenomenon in the economy. When prices increase, it means that the purchasing power of a currency decreases.

The depreciating trend of the US dollar amid ultra-loose monetary policy and countercyclical fiscal tends to depreciate the value of Uncle Sam's currency. Many have started running for protection (hedging) by buying assets whose supply the authorities cannot control at will, such as fiat currency.

The sentiment of the commodity boom has also contributed to the soaring prices of raw materials, which are widely used as economic inputs, from crude oil, coal to base metals, which have many applications in construction to the electronics industry. On the other hand, market players are also taking advantage of the momentum of China's tight coal supply which has caused domestic prices to soar. Last week, China's benchmark thermal coal price Qinhuangdao 5,500 Kcal/kg rose again and is getting closer to RMB 1,000/ton.

The increase in demand which exceeds the domestic production capacity is the reason behind the soaring coal prices in China. Even though the Newcastle coal price has reached US$ 100/ton, the positive and wide spread of Chinese coal prices provides room for coal to strengthen. While China's domestic coal price does not want to go down, Newcastle's thermal coal price is also reluctant to weaken.

(twg/twg)

Tesis investasi yang mereka pegang adalah kenaikan inflasi yang tinggi. Inflasi merupakan salah satu fenomena yang umum dalam perekonomian. Ketika harga-harga naik berarti daya beli (purchasing power) suatu mata uang turun.

Tren depresiasi dolar AS di tengah kebijakan moneter ultra longgar dan fiskal countercyclical cenderung mendepresiasi nilai mata uang Paman Sam. Banyak yang mulai lari mencari perlindungan (hedging) dengan membeli aset-aset yang suplainya tidak bisa dikendalikan sesuka hati oleh otoritas layaknya mata uang fiat.

Sentimen boom komoditas juga ikut men-jadi pendorong melesatnya harga bahan mentah yang banyak digunakan sebagai input perekonomian mulai dari minyak mentah, batu bara hingga logam dasar yang aplikasinya banyak untuk konstruksi hingga industri elektronik.

Di sisi lain pelaku pasar juga meman-faatkan momentum ketatnya pasokan batu bara China yang membuat harga domestik-nya melambung. Minggu lalu harga batu bara termal acuan China Qinhuangdao 5.500 Kcal/kg naik lagi dan semakin dekati RMB 1.000/ton.

Kenaikan permintaan yang melampaui kapasitas produksi domestik adalah alasan dibalik melejitnya harga batu bara di Negeri Panda.

Meskipun harga batu bara Newcastle sudah tembus US$ 100/ton, tetapi selisih (spread) harga batu bara China yang masih positif dan lebar memberikan ruang untuk batu bara semakin menguat.

Selagi harga batu bara domestik China belum mau turun, maka harga batu bara termal Newcastle juga enggan untuk melemah. (twg/twg)

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Huayou, EVE Energy to start $2bn nickel-cobalt smelter in Indonesia

Reuters

C

HINA’s Zhejiang Huayou Cobalt Co said on Monday it would partner with companies

including a unit of battery maker EVE Energy to set up a $2.08 billion nickel and cobalt smelting project in Indonesia.

Huayou will hold 20% of the venture and it is the cobalt supplier’s third major investment in a smelter in top nickel ore miner Indonesia, which is becoming an important centre for the nickel and cobalt chemicals used in electric vehicle batteries.

The latest site will be at Weda Bay on the island of Halmahera in North Maluku province where Huayou already partners with Tsingshan Holding Group in a nickel sulphate project. The project aims to produce around 120,000 tonnes of nickel and 15,000 tonnes of cobalt on a metal content basis, Huayou said in a filing to the Shanghai Stock Exchange.

EVE will have a 17% stake, while the other partners are Yongrui Holdings with 31%, Glaucous International Pte Ltd with 30% and Lindo Investment Pte Ltd at 2%.

Yongrui is wholly-owned by Yongqing Technology Co, a subsidiary of Tsinghan, the biggest nickel producer in Indonesia and the world’s top stainless steel maker.

“While Huayou is only holding a 20% stake in the project, we would like to highlight that this project is massive in size,” Daiwa Capital Markets said in a note.

Several other Chinese-backed nickel plants are under construction in Indonesia, including Huayou’s Huayue project on the island of Sulawesi with partners Tsingshan and China Molybdenum Co, which aims to produce 60,000 tonnes per year.

The first of the new plants, a venture between China’s Lygend Mining and Indonesia’s Harita Group, began production last week.

Huayou’s filing did not say when its latest Weda Bay project would begin operating. (By Tom Daly, Min Zhang and Mai Nguyen; Editing by Christian Schmollinger)

Ernest Henry Mine on the way to safer drill and blasting with Orica

WebGen™

Posted by Paul Moore

G

LENCORE’s Ernest Henry Mining (EHM) is one of the first mines in the world to trial Orica’s

Wireless Electronic Blasting as part of its move to improve safety and production by using innovative drill and blasting processes.

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Daily News Update Page 18 Over the past three years, EHM production engineers have been investigating opportunities to optimise drill and blast practices by trialling Orica’s Wireless Electronic Blasting System, WebGen™.

Wireless blasting is a relatively new innovation in the mining industry, in which encrypted firing signals are sent directly to an in-hole receiver attached to each individual detonator. This completely removes the need for physical leads. This technology delivers significant improvements in both safety and operational performance.

Previously, mine personnel would have to manually connect detonator leads underground but, as Orica Blasting Technician Luke Carlon says, the unique feature of WebGen™ technology is that the lack of detonator leads ensures reduced personnel exposure to the brow. “By removing the leads, you’re removing the main failure mechanism of an electronic detonator,” says Carlon. “This significantly improves underground safety, as it removes the need for a person to enter an area before and after it has been fired.”

Following the first trial of WebGen™ in 2017, the EHM team recognised that their existing design philosophies were not fully capitalising on the benefits of wireless detonator technology. Glencore and Orica engineers began investigating how to use the wireless initiation system to deliver extensive operational benefits to the mine. Glencore’s Lead Resource Engineer, Michael Hawtin, oversaw the trial at EHM, recognising that mining is adapting to changing dimensions and orebodies, and processes need to change with it. “Continuous improvement is very important for us, particularly with a focus on safety but also for efficiency and production improvements,” says Hawtin.

“In March 2020, a design was proposed utilising the WebGen™ technology, which has since significantly improved blasting performance. In fact, WebGen™-enabled designs have demonstrated recovery of approximately 95% of available tonnes, whereas previous shots were recovering roughly 80%.”

Orica’s WebGen™ technology has also allowed EHM to create independent drives and eliminate slot drives. This reduces lateral development in the main ore body, meaning less money is spent on building this infrastructure, which can instead be invested into other parts of the operation.

Hawtin says that eliminating the lateral development areas also reduces requirements for ground support and complex equipment interactions. “This minimises the wear and tear of mobile equipment and allows them to extract quicker tonnes due to the reduced path length. The implementation of WebGen™ has also created simpler ventilation requirements and means that operators are not exposed to potentially unsafe underground areas during blasting.”

While the immediate operational and safety benefits are clear, WebGen™ has also contributed to de-risking additional ore by improving the blasting performance. This provides EHM with an excellent opportunity to identify, execute and discover more opportunities in the future, in order to continuously improve and add value across its operations.

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China urges metals industry to curb price inflation

By JP Casey

Following an industry meeting on Sunday, the Chinese Government has urged its mining

sector to work together and step away from speculation and price inflation, with global

metal demand left in flux by the Covid-19 pandemic.

T

HE MEETING, chaired by China’s National Development and Reform Commission (NDRC)

and five other state bodies, included a number of private steel, iron and aluminium producers, who were urged to not further drive up metals prices, which have risen sharply this year. Between 4 January and 10 May, the price of aluminium on the London Metals Exchange (LME) jumped from $2,014 per tonne to $2,565. Meanwhile, the LME price of copper cracked $10,000 per tonne in May, with the metals industry’s leaders eager to benefit from uncertainty in the global mining supply chain.

This steady increase is not exclusively linked to the work of Chinese companies, with stalemates such as the China-Australia trade freeze helping to inflate prices. However, the Chinese Government is keen to see Chinese companies work to limit price inflation. Following the meeting, the NDRC published a statement on the commission’s website highlighting the need for strong legal compliance and mutually-beneficial cooperation.

“The meeting requested that relevant key enterprises should improve their positions, establish awareness of the overall situation, actively fulfil their social responsibilities, promote the coordinated development of upstream and downstream industries, and maintain a good industry ecology” said the NDRC in the statement. “Key industry associates must not collude with each other to manipulate market prices, fabricate and spread information about price increases, and must not hoard commodities and drive up prices.”

The commission also highlighted that authorities will be empowered to investigate and punish activities such as building monopolies and spreading false information, as part of the government’s “zero tolerance” approach to illegal industrial work.

The announcement appears to have had the desired effect, with the BBC reporting that the LME price of both copper and aluminium fell by 1.6% and 1% this morning, respectively. The statement and its impacts highlight the influence of China on the global metals industry, as one of few countries to have weathered the storm of Covid-19 unscathed, at least in terms of sheer production. The World Steel Association reported that while global steel production in 2020 fell by 0.9% compared to 2019 levels, Chinese production actually increased, reaching 1.053 billion tonnes. This represents 56.5% of the world’s total.

Yet there is uncertainty as to China’s long-term ambitions, which stand at odds to its relentless productivity. This month China announced plans to suspend all trading under the once-influential China-Australia Strategic Economic Dialogue. Simultaneously, it introduced “international cooperation work” to the remit of the NDRC, suggesting a simultaneous decline in and expansion of its international influence.

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Daily News Update Page 20 The NDRC statement continues: “Participating companies and industry associations stated that they will seriously standardise production and operation behaviours in accordance with the requirements of the statement. They will earnestly perform social responsibilities, adhere to legal and compliance operations, and make positive contributions to creating a harmonious and stable market and price order.”

Coal price rise boosts New Hope

Nickolas Zakharia

N

EW Hope Group has flagged that the monthly average thermal coal price at its New South

Wales operations has increased by 78 per cent since September 2020.

The company aimed to establish demand in new markets following China’s ban of Australian coal last year.

The current price of Newcastle’s thermal coal sits at over $120 per tonne after it had dropped to around $50 per tonne last year.

New Hope owns 80 per cent the Bengalla Mining Company in New South Wales under a joint venture (JV) with Taipower.

The JV operates a single open cut coal mine that is operational 24 hours a day, seven days a week.

Bengalla’s quarterly run-of-mine (ROM) coal production was 2.8 per cent lower than the previous quarter at 2.3 million tonnes.

This was due to wet weather the state endured in March 2020.

However, Bengalla’s coal sales were 5 per cent higher at 2.58 million tonnes in New South Wales at an average price of $105.41 per tonne compared with $87.42 in the previous quarter.

New Hope’s New Acland coal mine in Queensland produced 5.4 per cent less coal than the prior quarter.

The company expects final coal to be extracted in late October or early November 2021 as the future of the site remains up in the air due to the stalled approval of its stage 3 expansion. A New South Wales Land Court Hearing on the approval is scheduled for November 2021, with the mine to be placed on care and maintenance until an outcome is reached.

In March, New Acland chief executive officer Reinhold Schmidt said further redundancies at New Acland will occur when stage 2 coal is exhausted.

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Daily News Update Page 21 “Redundancies continue as a result of nearing final stage two coal at New Acland,” Schmidt said.

“Despite the ongoing delays, brought about by a handful of vocal activists, the company remains committed to push for the approval of stage 3.”

Codelco strikes deal with Microsoft to fast-track digitization at its

copper mines

Reuters

C

HILE’s Codelco, the world’s largest copper producer, said on Monday it had struck a deal

with tech giant Microsoft to fast-track the digitization of its sprawling mining operations, helping it extend automation and improve analytics.

The joint project with Microsoft will beef up the company’s capacity to make its production processes more efficient and promote “sustainability” within its operations, Codelco said in a statement.

Codelco, like many Chilean miners, has fought in recent years to adopt new technologies to boost efficiency and keep down costs at its aging deposits, many of which suffer from declining ore grades.

“We are promoting profound changes so that different areas operate in a completely remote and automated way, reducing risks, improving productivity, safety and reliability of our operation,” said company executive Alvaro Garcia.

Mining companies worldwide are pushing forward with plans to operate mines remotely, reducing the risk of accidents and boosting efficiency.

The move towards automation however has led to confrontations with unions, who see it as a threat to their livelihoods.

The company said the project with Microsoft will include a training component for the company’s workers.

The state-run miner has recently ramped up its use of technology to ensure its copper is 100% traceable, a vital step in reducing its carbon footprint and boosting sustainability within its operations.

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World’s richest nations pledge to end investment in overseas coal

projects

By Melissa Coade

Melissa Coade is a senior journalist at The Mandarin.

A

COMMITMENT has been reached among the UK, the US, the EU, France, Italy, Germany and

Canada at a meeting of the G7 Environment and Climate ministers at the weekend to limit goal heating to 1.5 degrees Celsius and completely phase out coal in the 2030s.

The virtual meeting, hosted by the UK, saw the G7 group commit to reaching net zero carbon emissions by 2050 and to pursue ‘deep’ reduction targets for emissions this the 2020s.

One of the group’s signature action items is to end new finance for coal power by 2021, which the G7 says will ‘accelerate the transition away from unabated coal capacity and to an overwhelmingly decarbonised power system’ in about 10 years’ time. The move is a first step to transitioning to cleaner energy sources such as solar and wind power, the group said in a statement.

“We know we need to consign coal to history and the G7 has taken a major step towards a decarbonised power system,” COP26 President-Designate and British politician Alok Sharma said.

“We are acting abroad as we’re doing at home by agreeing to phase out international fossil fuel finance, starting with coal – another key milestone in this crucial year for climate action.” Australian energy and environment experts have warned that as a result of the weekend announcement, some parts of the national economy will feel the effects of the international pact to stop financing coal – but the risk of climate change poses a greater threat to our national interests.

University of Tasmania’s Professor Peter Strutton said the G7 decision showed that coal was now ‘obsolete’. He lauded the development, describing it as a significant step towards phasing out coal but that ongoing diplomatic efforts were needed to continue global progress towards net zero.

“We still need international diplomacy momentum and sound government policy to work in concert with the financial sector to achieve the rapid progress we need,” Strutton said.

Associate Professor Christian Downie from ANU’s School of Regulation and Global Governance noted that in 2015 Australia, along with other OECD countries, had committed to limiting the finance of coal. The latest G7 pledge was consistent with the goals of the Paris Agreement to address climate change, he added, saying it would help stop taxpayer dollars being wasted on bad investments.

“The G7 announcement that it will end public financing for overseas coal projects will make it very difficult for any country now to fund new coal plants,” A/Prof Downie said.

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Daily News Update Page 23 “It is also good news for taxpayers given that there is a real risk that any new coal projects could become stranded assets posing significant risks for affected countries.”

According to Associate Professor Ariel Liebman from Monash University’s Energy Institute, the world’s richest nations moving away from fossil fuel industries clearly spells out to other countries – like Australia – that they should stop investing, not only in coal, but other fossil fuels such as natural gas or oil derivatives. He said the commitment was a long time coming and ‘absolutely the right decision’.

“Australia should follow suit and additionally commit no new gas fired plant to abatement trajectories consistent with 1.5 degrees,” Liebman said.

At its weekend meeting, the G7 also backed a range of global biodiversity targets, secured measures to combat deforestation, and pledged extra support for sustainable supply chains which ‘decouple agricultural production from deforestation and forest degradation’. It is the first time that the group has committed to reversing the loss of biodiversity.

The UK’s Environment Secretary George Eustice said 2021 was a crucial year for global action on the environment and climate.

“We have seen tremendous progress this week and it has been great to see countries working together to raise our ambition and lead by example, each playing our part,” he said.

The agreement comes after a recent jump in coal consumption prompted the International Energy Agency to forecast that 2021 will experience the second biggest rise in emissions on record.

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