Indonesia aims to develop its EV industry and has for years been wooing Tesla to invest in battery making and car manufacturing in the country, trying to leverage its rich reserves of nickel, which can be processed for use in EV batteries.Indonesia plans to export nickel-based material used to make electric vehicle batteries to the United States next month, its energy minister said on Friday.Bahlil Lahadalia said Indonesia would provide the material, known as EV battery precursor, to U.S. electric carmaker Tesla , but did not give details on the volume involved."We will export precursor to the U.S. by next month to Tesla, from Weda Bay," Bahlil said.Previously, Indonesia has reported exporting EV precursor to China.Indonesia aims to develop its EV industry and has for years been wooing Tesla to invest in battery making and car manufacturing in the country, trying to leverage its rich reserves of nickel, which can be processed for use in EV batteries.Tesla did not immediately respond to a request for comment.

Director of Portfolio and Business Development at MIND ID, Dilo Seno Widagdo, mentioned that Spain expressed strong dissatisfaction following Indonesia's decision to halt copper concentrate exports. The export ban on raw mineral commodities is part of Indonesia's policy on downstream processing to increase the added value of products.“Usually, we export copper cathodes and copper concentrates to Japan and Spain. With the export halt, the Spanish side has started to express their frustration with us,” Dilo said during the *Strengthening SOEs Towards Golden Indonesia* event at Sarinah on Tuesday (15/10).According to Dilo, Spain was upset with the export ban because it threatens the closure of their factories. However, Spain has since secured a new copper supplier.“Their factory could be shut down, but now Spain is trying to source copper from Canada,” he added.Currently, two companies are prohibited from exporting copper concentrate: PT Freeport Indonesia (PTFI) and PT Amman Mineral Internasional Tbk.These copper concentrates will be processed domestically before being exported. The aim is to increase the value added to Indonesia’s export products.“We already have two agreements for copper cathodes. Most recently, we signed an MoU with IBC to collaborate on building a copper foil manufacturing plant. The copper cathodes will be used to produce copper foil,” Dilo explained.He estimated that the investment required for the copper foil plant could reach around USD 2 billion, with a production capacity of up to 300,000 tons of copper foil.“About 300,000 tons, and the investment might be around USD 1.5 to 2 billion. Once the MoU is signed, they need certainty about the supply,” Dilo concluded.

PT Merdeka Copper Gold Tbk (IDX:MDKA) has become the first mining company in Indonesia to successfully enhance the value of pyrite ore, a move that not only extends the lifespan of the mine but also increases its economic value.This initiative began in April 2024 with the operation of the Acid, Iron, Metal (AIM) plant located in the Indonesia Morowali Industrial Park (IMIP), operated by PT Merdeka Tsingshan (MTI), a joint venture between MDKA and Eternal Tsingshan Group Limited.Pyrite is an iron sulfide byproduct generated by copper mining at MDKA's Wetar mine in Southwest Maluku. Efforts to add value to pyrite have been part of the company’s plans since 2019. The smelting process at the Wetar mine previously only yielded copper, leaving byproducts that could not be further processed.MDKA partnered with Tsingshan to conduct metallurgical trials on the Wetar pyrite ore, leading to the joint venture established on February 19, 2020.According to the agreement, raw pyrite ore is transported 700 kilometers by sea from the Wetar mine to the AIM plant in IMIP. The AIM plant processes the pyrite into sulfuric acid, saturated steam, iron ore pellets, copper sponge, lead-zinc hydroxide, and potentially gold and silver. These products will be supplied to other subsidiaries for use in manufacturing high-quality electric vehicle batteries.In its initial phase, the AIM plant is expected to have a nominal processing capacity of approximately 1 million tons of pyrite ore per year. Studies conducted by MDKA and Tsingshan estimate that sufficient pyrite ore reserves are available to support the plant's operations.Based on existing stockpiles and untapped resources, management expects that the Wetar mine will be able to supply around 2 million tons of pyrite ore annually for at least 10 years.With the shipment of pyrite ore from Wetar to the AIM plant, the Wetar mine is now transforming into a long-term pyrite mining operation. The AIM plant represents MDKA’s commitment to mineral conservation and adding value to mining outputs, bringing positive impacts to the surrounding community.As a company with an ESG rating of A, according to Morgan Stanley Capital International (MSCI) since 2023, MDKA is dedicated to maintaining its reputation for high ESG performance. Therefore, managing environmental impacts and ensuring positive outcomes for both ecosystems and communities are essential principles for the company.

PT Petrosea Tbk (PTRO), a company engaged in mining contracting, plans to invest in new mining equipment as part of its business expansion.The company is set to allocate approximately USD 400 million in capital expenditure (capex) during 2024-2025."The purchase of mining equipment is being made to support new mining service projects and as a step toward business development and future sustainability," the company stated in its disclosure released on Friday, October 18, 2024.PTRO continues to implement its 5 Long-Term Strategic Pillars. These include Operational Efficiency and Enhancing Stakeholder Value, Increasing Value Creation for Clients, and Diversifying the Strategic Portfolio. Additionally, the strategy focuses on the Commitment to Enhancing Competence and Creating Excellence in Safety and Health.The company recorded a 16.06 percent year-on-year (yoy) increase in revenue for the first half of 2024 (1H24), driven by growth in engineering and construction revenues. Meanwhile, gross profit remained relatively stable despite the revenue growth.

Nickel mining company PT Vale Indonesia held a Kick Off Meeting to initiate the Phase I Watershed Rehabilitation (DAS) planting activities in Southeast Sulawesi (Sultra) at the Sampara Watershed Management Office (BPDAS) auditorium in Kendari on Monday (14/10/2024).During this event, PT Vale Indonesia presented its work plan for Phase I of the DAS rehabilitation, covering an area of 3,081 hectares. This reaffirms the company's commitment to successfully implementing the planting activities in Sultra.Based on a Decree from the Minister of Environment and Forestry regarding DAS Rehabilitation in Sultra, PT Vale Indonesia is mandated to rehabilitate 12,500 hectares of watershed.Freddy Toimby Limbong, Head of BPDAS Sampara, expressed his appreciation for PT Vale Indonesia's initiative in organizing this meeting.He stated that this is an initial step to ensure a solid foundation before beginning field planting activities. Moreover, the meeting is crucial for aligning perspectives and fostering familiarity, so that when field operations commence, the atmosphere will be more collaborative and align with the target and timeline set.Furthermore, he encouraged all relevant parties to collaborate and synergize in executing the DAS rehabilitation planting activities by PT Vale Indonesia."Everyone has a role to play, and we all need to ensure that the plans outlined in the Technical Design and supervised properly are executed in a collaborative and synchronized manner, meeting the timeline and quality standards that have been established," said Freddy.Meanwhile, La Ode Yulardhi Junus, Head of PDAS-RHL Division of the Southeast Sulawesi Forestry Service, emphasized the importance of involving local communities in the DAS rehabilitation efforts."We always stress the need to involve and empower local communities, especially farmer groups in the project areas, as this is part of our efforts to ensure that the rehabilitation work benefits the local economy and helps reduce inflation," Yulardhi asserted.He noted that the Southeast Sulawesi Provincial Government recognizes the significant support provided by IPPKH holders in restoring critical land in Sultra.Yulardi expressed hope that the DAS rehabilitation efforts would proceed smoothly and that stakeholders would continue to communicate with land managers at the local level to achieve the intended goals."We hope that our colleagues from PT Vale Indonesia and the contractors executing the work can establish good coordination, particularly with those at the KPH level, ensuring the success of the DAS rehabilitation," he added.Senior Project Manager for Watershed Rehabilitation at PT Vale Indonesia, Fuji, explained that PT Vale Indonesia's participation in the meeting was primarily to present their plan, as a Kick Off Meeting with contractors had already taken place two weeks prior. During that earlier meeting, the company introduced the contractors who would be involved in the rehabilitation activities in Sultra."We are presenting our future work plan in Southeast Sulawesi and introducing the contractors who will serve as PT Vale Indonesia's extended team in the field. PT Vale Indonesia is committed to providing regular updates on progress to all stakeholders," Fuji explained.He further elaborated that a team would regularly supervise field activities, as PT Vale Indonesia is conducting DAS rehabilitation in three provinces: South Sulawesi, Central Sulawesi, and Sultra."We also have DAS rehabilitation activities in Bali and West Java. Our teams will continue to move and monitor all areas. For the Sulawesi Tenggara activities, PT Vale Indonesia's DAS rehabilitation covers around 33,000 hectares," added Fuji.

The Ministry of Energy and Mineral Resources (ESDM) is exploring collaboration with PT Eramet Indonesia Mining to discuss further cooperation regarding the study and exploration of critical minerals in Indonesia.This collaboration is being undertaken by the ESDM’s Center for Mineral, Coal, and Geothermal Resources (PSDMBP).Head of PSDMBP, Agung Pribadi, stated that they are working to establish partnerships with several foreign companies, focusing on in-depth studies of critical mineral potential.He explained that critical minerals such as nickel, cobalt, and lithium are essential commodities for the development of future technologies, particularly for electric vehicle batteries."With a comprehensive study, we hope to discover larger reserves of critical minerals with high economic value," Agung said in an official statement on Thursday (17/10/2024).Agung elaborated that the collaboration between PSDMBP and Eramet will cover several aspects. This includes the study and investigation of prospective critical mineral areas that have not yet been developed in Indonesia.Additionally, the collaboration will involve the investigation of ore characterization and metallurgical processes related to nickel, as well as lithium exploration from geothermal brine.Agung mentioned that this partnership also opens opportunities for knowledge exchange regarding lithium exploration, mineral inventory, and joint scientific publications.He disclosed that there is a planned lithium investigation in Grobogan Regency, Central Java, which is scheduled to begin on October 21, 2024. This investigation follows the lithium brine study initiated in 2023 in the Bleduk Kuwu area and its surroundings.The activities will involve geophysical and geochemical methods, with PSDMBP and Eramet contributing different equipment and techniques.“In this regard, the geophysical methods to be used include gravity, ground magnetic, and magnetotelluric by PSDMBP, as well as geoelectric, self-potential, and passive seismic by Eramet,” Agung stated.Preparations for this activity have been underway since August 2024. Agung noted that the next steps include obtaining permits and conducting outreach to local government authorities on October 21, 2024.Moreover, geochemical methods involving the collection of brine water samples will be carried out by the PSDMBP team for further laboratory analysis.As part of the collaboration's implementation, a delegation from the Geological Agency and PSDMBP is scheduled to visit Eramet’s R&D facility in Paris, France, in early December 2024.Agung mentioned that the visit aims to learn about lithium extraction technology from geothermal brine, currently being developed by Eramet. The visit will also strengthen knowledge transfer to support the development of the critical mineral industry in Indonesia.

PT Trimegah Bangun Persada Tbk (NCKL), also known as Harita Nickel, and PT Timah Tbk (TINS) are projected to be two promising metal issuers in the industry, driven by operational strengthening at NCKL and the declining tin ore exports from Myanmar to China, which benefits TINS.BRI Danareksa Sekuritas analysts Timoty Wijaya and Christian Sitorus predict that NCKL's performance during the first nine months of this year will remain robust, despite the slowdown in China’s industrial and manufacturing activities. NCKL's resilience is supported by a 3% quarter-on-quarter increase in the price of nickel pig iron (NPI), or low-grade ferronickel.In addition to this, NCKL’s solid performance is further reinforced by its sales of limonite to PT Obi Nickel Cobalt (ONC), which have been ongoing from May to August 2024. The two analysts estimate that NCKL’s nine-month performance in 2024 will generate profits of Rp 4.5 trillion, representing approximately 85% to 86% of consensus expectations."Therefore, we maintain an overweight rating on the metals sector. NCKL remains our top pick in the nickel category due to its strong operational performance and solid profit visibility," wrote Timothy and Christian in their recently published research.NCKL’s operational strength is already reflected in its performance during the first half of 2024, with Harita Nickel producing 63,414 tons of nickel in FeNi, exceeding its production capacity. Similarly, the production of Mixed Hydroxide Precipitate (MHP) nickel reached 38,334 tons, a 28% increase compared to the same period last year.Nevertheless, Timothy and Christian caution market participants about the potential for a temporary correction in NPI prices toward the end of the year, as restocking demand for NPI has decreased."We estimate that the NPI benchmark price will remain within the range of USD 11,500 to USD 12,000 per ton," the analysts noted.Commenting on NCKL’s projected performance, Harita Nickel’s Director of Health, Safety, and Environment (HSE), Tonny H. Gultom, stated that the company’s performance is progressing smoothly and on track, aligned with its previously set targets.This year, the company, listed under the NCKL ticker symbol, aims to produce 120,000 tons of nickel per year in MHP and 120,000 tons of nickel per year in FeNi. "We hope that everything continues to run smoothly until the end of the year," Tonny briefly told Investor Daily on Tuesday (October 15, 2024).TINS is equally noteworthy, with Timothy and Christian projecting it as another promising metal issuer due to increased production. "We anticipate TINS' profitability will rise, driven by operational cost efficiency from the Top Submerge Lance (TSL) Ausmelt smelter technology," the two analysts explained.Additionally, they forecast a 5 kiloton, or 5%, quarter-on-quarter increase in TINS' sales volume, which should start reflecting in the third quarter of 2024. "We favor TINS, as tin ore exports from Myanmar to China are decreasing, causing global supply constraints," they added.It is important to note that China is one of the largest export markets for metals globally, with its industrial and manufacturing activities surging. The country has even introduced a stimulus package aimed at boosting economic growth, addressing the slowdown, and maintaining stability.According to the Executive Director of the Center for Energy and Mining Law Studies, Bisman Bakhtiar, the stimulus package reflects the Chinese government’s serious efforts to bolster its economy and industrial performance.“As a result, this will positively impact the demand for several Indonesian mining commodities that have been supplying China,” Bisman told Investor Daily on Tuesday (October 15, 2024).In other parts, Harita Nickel is targeting a 300 megawatt-peak (MWp) Rooftop Solar Power Plant (PLTS) megaproject worth IDR 6.84 trillion to be completed next year. The project is touted as NCKL's biggest initiative in supporting Indonesia's clean energy transition.“This rooftop solar project is part of our efforts to reduce carbon emissions, in line with Indonesia's target to achieve Net Zero Emission (NZE) by 2060,” NCKL Head of Investor Relations Lukito Kurniawan Gozali explained.Lukito explained that NCKL is working on the project in two stages. The first involves the construction of a rooftop solar power plant with a capacity of 40 MWp, which is targeted to be completed by the end of 2024. Meanwhile, the second phase of construction will expand the capacity to 260 MWp by 2025.This project also marks NCKL's significant shift from using conventional energy to renewable energy in the company's operations. Because, until now, Harita Nickel still relies on coal-fired power plants (PLTU) to support operational activities in the mining and downstream sectors.

PT Bumi Resources Tbk (BUMI) is currently conducting a study on coal downstreaming, with targeted products being methanol or ammonia.Bumi Resources Director, Rio Supin, stated that the company has signed a strategic partnership agreement with a new investor following the exit of Air Products & Chemical Inc (APCI) from the coal gasification project with its subsidiary, PT Kaltim Prima Coal (KPC). However, Rio did not provide full details about the new investor's name or country of origin in the coal downstreaming project."We signed the strategic agreement last year as a replacement for APCI. APCI withdrew, and we have a new replacement," Rio said in South Jakarta, quoted on Tuesday (15/9/2024).Rio mentioned that Bumi Resources is finalizing plans for the coal downstreaming industry, aiming to complete the study by 2025.Market FocusAccording to Rio, although the feasibility study (FS) has been completed, the company continues to assess market dynamics to determine which downstream product to focus on. BUMI notes that other coal mining companies with special mining licenses (IUPK) as extensions of the Coal Mining Work Agreement (PKP2B) are also producing similar downstream products, such as methanol.“If everyone produces methanol, what's the demand in Indonesia? If everyone produces methanol, where will it go? What's the market?” he asked.He added that coal-based methanol faces challenges competing in foreign markets due to its higher capital expenditure (capex) requirements compared to methanol production from natural gas. BUMI would have to invest heavily in infrastructure, including logistics and power plants, to produce methanol from coal.Aside from methanol, BUMI is also exploring ammonia production, which is more export-oriented. This product has a large market, especially if Japan succeeds in using ammonia in its power plants. However, BUMI faces the dilemma of whether Japan will accept grey ammonia from Indonesia, which still generates carbon emissions.“If current products lack CCUS (Carbon Capture, Utilization, and Storage) and green energy linkage, they will be considered grey products,” Rio explained.“Grey products might survive temporarily, but when regulations mandate blue and green ammonia, it will be challenging. Our industry is still young, and when the plant hasn’t yet paid off, debt isn’t repaid, and we haven’t reached the break-even point, it will be hard to compete when new regulations emerge.”0% Royalty AssuranceDuring the discussion, BUMI also raised the issue of 0% coal royalty for companies engaging in downstreaming activities.“The 0% coal royalty law exists, but further regulations on how to obtain it haven’t been issued,” Rio added.This regulation is included in Government Regulation in Lieu of Law (Perpu) No. 2 of 2022 on Job Creation. Article 128A Paragraph 2 of the law stipulates that special treatment for state revenue obligations related to coal development and/or utilization activities can include a 0% royalty.

What’s going on here?Sumitomo Metal Mining forecasts a nickel surplus by 2025, as Indonesia boosts its nickel pig iron production to reach new levels.What does this mean?Indonesia is fast-tracking its nickel pig iron production by 11.3%, hitting 1.67 million tons, contributing to an expected supply surplus in the nickel market. Global nickel demand is projected to grow by 7.1% to 3.55 million tons, yet supply might exceed demand with a 7.4% increase to 3.65 million tons. This surplus largely stems from Indonesia's new smelters, boosting the Class 1 nickel supply. Nickel is crucial for stainless steel and electric vehicle (EV) batteries, underscoring its role in the electric energy transition. Sumitomo, supplying materials for Panasonic, helps Tesla with battery production. However, challenges in the EV market outside China could temper nickel demand growth.Why should I care?For markets: A surplus of opportunity or caution.The upcoming nickel surplus could lead to more volatile prices, affecting investment strategies in commodities and related industries. Since nickel is essential for EV batteries and stainless steel, this surplus presents both risks and opportunities, especially for stakeholders in these sectors. Investors should watch the shifting dynamics and demand trends, particularly as the EV market outside China faces possible challenges.The bigger picture: Balancing growth and innovation.The interaction between rising nickel supply and the growing demand from EV production marks a vital stage in the global energy shift. As nations push for greener solutions, how the market adapts to these supply dynamics will shape long-term energy policies and economic strategies related to sustainable technology innovation. Indonesia's role is increasingly crucial, possibly reshaping global supply chains and economic alliances in metal commodities.

PT Vale Indonesia Tbk has set a target to achieve Net Zero Emission (NZE) by 2050, implementing various steps to meet this goal.Chief Sustainability and Corporate Affairs Officer of Vale Indonesia, Bernardus Irmanto, stated that one of the efforts is reducing CO2 emissions in Sorowako, South Sulawesi, by 33 percent by 2030."When we talk about technology and all partnerships for new projects, we all share the same goal of achieving net zero by 2050," said Bernardus during a presentation at the second day of the Investor Daily Summit held at the Jakarta Convention Center (JCC) Senayan on Wednesday, October 9, 2024.In addition to this, Vale Indonesia is committed to maintaining and even enhancing its use of lower-energy technologies in its new projects.Moreover, to support the target for renewable energy (EBT) mix, PT Vale Indonesia Tbk, as a member of the state-owned mining holding (MIND ID), has been a pioneer in renewable energy usage since the 1970s. Vale has also constructed hydroelectric power plants (PLTA)."Currently, we operate three hydroelectric power plants in Sorowako with a green energy capacity of around 365 megawatts. The four smelting furnaces operated by Vale are 100 percent powered by hydropower," he explained.According to Bernardus, this is what makes PT Vale's plant in Sorowako have the lowest carbon emissions in Indonesia, earning recognition from various parties.Thus, PT Vale Indonesia Tbk continues to develop a roadmap to meet its goals and responsibilities.