PT Freeport Indonesia (PTFI) ensures that it prioritizes Environmental, Social, and Governance (ESG) principles in carrying out its business operations. PTFI President Director, Tony Wenas, said this principle can be seen from the Grasberg mine which has been reclaimed after it was not operating. This condition, according to Tony, is also carried out in other areas if they are no longer mining production areas. Although he said, PTFI still has a Special Mining Business Permit (IUPK) until 2042. On the other hand, copper ore reserves managed in the PT Freeport Indonesia IUPK area can still be produced until 2054."Besides that, we also plant mangroves with a target of 10 thousand hectares in 2041, and also in 2041 we will already have mine closure documents at a cost of around Rp. Tony to the coil while visiting the Grasberg mining area, in Timika, Papua, Saturday (8/4). Meanwhile, PTFI's social investment funds for the last 29 years or from 1992 to 2021 have reached USD 1.9 billion. Going forward, PTFI will continue social investment of an average of USD 100 million per year until 2041. Tony explained that PTFI had also committed to reduce carbon emissions from mining operations by up to 30 percent. Even so, his party will try to reduce emissions can be above 30 percent."So we are doing it, ESG is not ordered or a necessity, but a necessity for operations anywhere, we always have the principle that there is no company that can prevail in the community and environment that fails, no company triumphs or continue better among communities and environments that fail," said Tony. Tony admits that the ESG effort is not easy. He emphasized that good synergy is needed with related parties, especially the Regional Government. Tony ensured that his party would also continue to make efforts to create programs that would benefit the people of Papua. "How do we make programs that can improve not only the nature of the people's lives themselves, but how can they catch up including the digitization program, among other things we also help the Papua Youth Creative Hub Center which in Jayapura we also support for the development of MSMEs," said Tony .Source: https://kumparan.com/kumparanbisnis/masih-akan-beroperasi-puluhan-tahun-ptfi-siapkan-rp-7-t-untuk-penutupan-tambang-20BCUeCRdAp/full

PT Aneka Tambang Tbk (ANTM) continues to strive to increase gold reserves, which is one of ANTM's mainstay commodities. Last year, gold products became the biggest contributor to ANTM's revenue, with a proportion of 69% of ANTM's total sales, with sales value reaching IDR 31.63 trillion. ANTM Main Director Nicolas D. Kanter said, his party is currently looking for potential mines to add to ANTM's gold reserves. “Pongkor, which is the main source of ANTM's gold mine, is depleting its reserves. Luckily yesterday (its age) could be extended because there were new reserves discovered," Nicolas told the media, Wednesday (6/4). Nicolas said, there are already several priority gold mines that are currently being tried to be acquired. However, to find a potential gold mine is not as easy as turning the palm of the hand. "(The new mine) is not only to increase reserves but also asset valuation," he continued. As an illustration, last year the level of unaudited gold production reached 1,268 kg or 1.2 tons or the equivalent of 40,767 troy oz. In 2021, ANTM's unaudited gold production will reach 1.69 tonnes. This means that ANTM's gold production decreased by 24.9% on an annual basis. However, ANTM posted an increase in gold sales volume performance. Throughout 2022, this state-owned metal mining issuer recorded unaudited gold sales of 34,967 kg or 1,124,215 troy oz in 2022. This realization rose 19.01% from last year's gold sales volume of 29.03 tons.Source: https://industri.kontan.co.id/news/tingkatkan-cadangan-aneka-tambang-antm-aktif-cari-tambang-emas-potensial-baru

PT Adaro Energy Indonesia Tbk (ADRO) has decided to repurchase its shares, known as buyback, amounting to 10% of its issued and paid-up capital at most with a maximum budget of IDR 4 trillion.In the information disclosure in Indonesia Stock Exchange (IDX) today (5/4), the management of ADRO claimed that the buyback will be carried out gradually within the next 18 months after the approval of Annual General Shareholders Meeting of the company. Meanwhile, the shareholders meeting is scheduled to take place on May 11, 2023. The buyback will use up ADRO’s internal cash as the company has recorded solid and adequate cash flow to fund the entire business and operational activities.Should the buyback plan be approved during the meeting, the shares will begin to be repurchased on May 12, 2023. Then, the buyback period will last for 18 months starting from said date, and the disclosure of the minutes of meeting will be issued on May 15, 2023.The management of ADRO also reaffirmed that should the budget run out, or if the number of repurchased shares had met the required amount, ADRO will announce the early termination of buyback period.In 2021, ADRO had reportedly bought back its shares during the significantly fluctuating market condition using POJK No.2/2013 as reference. Then, after going through 4 extended terms of buyback period, whose last period started from September 16, 2022, to December 16, 2022, ADRO had recorded a buyback of 1 billion shares, equivalent to 3.13% of ADRO’s total issued and paid-up capital. (AM/ZH)Source: https://www.idnfinancials.com/news/46546/adro-plans-buyback-preparing-idr

The government is mulling allowing companies whose smelter construction is affected by Covid-19 to export unprocessed ores and partially processed minerals (concentrates) past the deadline on June 10, 2023.The decision to allow ore exports beyond June 10 is still in finalization. According to Energy Minister Arifin Tasrif, the Covid-19 pandemic has hindered smelter construction completion. But the minister denied that giving companies a chance to export minerals past June 10 is a form of relaxation to the government policy.“There is actually no need for relaxation. We are simply taking into account the Covid-induced delay [in the smelter project]. That is what we are finalizing,” Arifin was quoted as saying by Investor Daily.The government has begun assessing the Covid-19 impact on smelter construction since late 2022. But miners such as Freeport Indonesia and Amman Mineral Industri have long expressed their concerns, even since April 2020.At the time, the government insisted on punctual construction completion. The government even sent a letter of reprimand to Freeport Indonesia in Sep. 2020. Freeport Indonesia had to pay a $57 million fine due to the delay in its smelter project.The Energy Ministry has allowed Freeport to export 2.3 million tons of copper concentrates until June 10, 2023. Freeport Indonesia president director Tony Wenas gave the latest updates on the project in a hearing at the House of Representatives on March 27. According to Tony, the company’s smelter project in Manyar, Gresik, has reached 54.5 percent completion, exceeding the targeted 52.9 percent.The project is set to finish later this December. It will then enter pre-commissioning and commissioning until May 2024. Production would begin in phases, and get into full swing on Dec. 2024.“We are committed to finishing the smelter construction,” he said.The special mining permit, also known as the IUPK, given to Freeport stated that the miner should construct smelters no later than five years after the permit issuance in 2018. Freeport has also informed the government that the smelter could finish in 2024 or a year later than expected due to Covid-19.Investor Daily reported that the IUPK permit also includes a force majeure provision regarding the smelter construction. In other words, smelters are expected to complete by 2023 provided there are no force majeure events. The government has declared Covid-19 as a non-natural force majeure. The permit also states that Freeport can still export concentrates during the construction of the smelter.Source: https://jakartaglobe.id/business/govt-mulls-allowing-mineral-export-due-to-smelters-constraints

PT Agincourt Resources plans to reduce the volume of gold production in 2023 in order to realize the principles of sustainable mining. Deputy President Director of PT Agincourt Resources Ruli Tanio said, this year, his party is targeting 200 thousand ounces of gold production from the Martabe Gold Mine in Tapanuli, North Sumatra. This figure is lower than the actual production in 2022 which reached 286 thousand ounces. "This year we are trying to figure 200 thousand ounces, a decrease from last year's around 286 thousand ounces," he said when met at the Alana Hotel, Yogyakarta, quoted Monday (3/4/2023). He revealed that the reduction in the rate of gold production from the Martabe Mine was expected to improve the quality of several other aspects, such as staff training, standard operating procedures (SOPs), and others. Nevertheless, Ruli is optimistic that PT Agincourt Resources still has a higher net profit compared to the previous year. According to him, the movement of the gold price which is predicted to be better this year will allow his party to achieve the financial target even though the production rate has decreased.Meanwhile, he said that the achievement of gold production at the Martabe Mine until now was still in line with Agincourt's expectations. Throughout the first quarter of 2023, the Martabe Mine was able to produce as many as 50 thousand ounces of gold or around 2.5 percent of this year's production target. “Currently the commodity price of gold is good. We are optimistic that this year will be better than last year. The price may be in the range of US$1,800 per ounce," he continued.Source: https://ekonomi.bisnis.com/read/20230403/44/1643115/agincourt-resources-turunkan-produksi-emas-tahun-2023

PT RMK Energy Tbk. recorded an operating profit of IDR 404.1 billion last year. This profit reached a record high during the company's operation. Finance Director of RMK Energy, Vincent Saputra, said the company is targeting operating revenues of IDR 2.5 trillion and operating profits of IDR 398.2 billion in 2022. This target has been achieved with a respective percentage of 105.3 percent and 101.5 percent. The operating profit target in 2022 is IDR 398.2 billion and 101.5 percent has been achieved, so that RMK Energy's operating profit exceeds the target to IDR 404.1 billion."Achieving this target supports the company to maintain financial ratios (EBITDA to liability), above the minimum credit covenant requirements, which is 14.3 times," Vincent said in a press conference 'Full year 2022 Performance Announcement' in Jakarta on Monday, 3 April 2023. In addition, Vincent said that RMK Energy had also succeeded in reducing financial debt by 49.9 percent to IDR 217.1 billion and was able to manage a Debt to Equity (DER) financial ratio of 0.2 times which also met the minimum credit covenant requirements. "The improvement in financial ratios was also supported by an increase in the Company's equity which increased by 50.3 percent year on year to Rp 1.2 trillion," he said.Furthermore, Vincent assesses that the company's cash flow is getting healthier on an ongoing basis with the increase in the contribution of coal services. He is also optimistic that RMK Energy can achieve a bigger target with the support of PT Bukit Asam Tbk. as partners. As is known, RMK Energy has collaborated with PT Bukit Asam Tbk, a company that is part of the MIND ID mining BUMN holding, which is currently in the finalization process. "Until March 2023, the company has identified a growth in coal service volume of 55.6 percent year on year compared to the same period last year," said Vincent. Meanwhile, Director of Operations at RMK Energy, William Saputra, said that energy security is an opportunity for the company to meet energy needs, both at home and abroad."In 2022, the company targets the volume of coal barge loading and unloading services to reach 7.8 million metric tons, respectively, and has achieved 149.5 percent and 100.2 percent of the 2022 target," said William. For the coal sales segment, said William, management is targeting a volume of 2.5 million tons of which 50 percent of the target will come from PT Truba Bara Banyu Enim's in-house mine. "At the end of 2022, the sales volume of coal is 2.5 million metric tons or has reached 100 percent of this year's target. This year the company has also managed to maintain zero fatality for the last 3 years," said William. Meanwhile from the coal sales segment, RMK Energy recorded operating revenues of IDR 2.1 trillion, an increase of 45.3 percent year on year. This increase in revenue was supported by an increase in coal sales volume which increased 45.1 percent year on year to 2.5 million tonnes.Revenue from this segment contributes 77.3 percent to RMK Energy's total revenue. The gross profit from this segment was IDR 406.7 billion, an increase of 75.8 percent year on year and contributing 69.1 percent of the company's total gross profit. From the coal services segment, RMK recorded operating income of IDR 620.5 billion, an increase of 51.2 percent year on year. The increase in revenue for this segment was supported by an increase in the volume of rail loading and unloading services for coal barges, which increased 94.8 percent year on year and 31.3 percent year on year. Revenue from this segment contributes 22.7 percent to the company's total revenue. Meanwhile, the gross profit from the coal services segment was IDR 181.9 billion, an increase of 89.9 percent year on year, and contributed 30.9 percent of the company's total gross profit.Source: https://bisnis.tempo.co/read/1710685/cetak-rekor-tertinggi-selama-beroperasi-rmk-energy-catat-laba-rp-4041-miliar-pada-2022?page_num=3

The Ministry of Energy and Mineral Resources (ESDM) and the Ministry of Finance have not yet reached an agreement regarding the scheme for collecting and distributing the Coal Compensation Fund because it relates to the imposition of Value Added Tax (VAT). Minister of Energy and Mineral Resources Arifin Tasrif admitted that his party had discussed this matter with the Minister of Finance Sri Mulyani, but had not yet reached an agreement. "It's still necessary, we need an agreement," Arifin said when met at the Jakarta Presidential Palace Complex, Monday. Arifin explained that the scheme for collecting and distributing coal funds was carried out to mutually compensate mining companies.The funds are collected from coal players who cannot meet the domestic market obligation (DMO). Then this compensation fund is given to coal companies that meet the DMO. This scheme aims to cover the difference between the selling price of domestic coal and the international/market price. However, the levy scheme and the distribution of compensation funds are subject to VAT. In fact, according to Arifin, VAT has already been imposed on buying and selling transactions. "If the withdrawal of the channel is not imposed (VAT), it is compensating for what carries the DMO. So, the compensation is withdrawn, then distributed to those who fulfill (DMO). He should have been taxed first," said Arifin. The coal fee collection scheme will initially be collected by the Public Service Agency (BLU). But then BLU was replaced with Government Agency Partners (MIP) because the compensation funds were not related to Non-Tax State Revenues (PNBP).Source: https://www.antaranews.com/berita/3469425/esdm-dan-kemenkeu-belum-capai-kesepakatan-soal-pungutan-batu-bara

The Astra Group entity, PT United Tractors Tbk (UNTR) has begun to boost the gold mining segment. One of them is by preparing a gold mine in Sumbawa to operate in 2023. United Tractors Corporate Secretary Sara K. Loebis said the UNTR gold mine in Sumbawa was somewhat ready to operate, currently her party is focusing on development. "Now the focus is on infrastructure development. Production will start next year.Its contribution will have an impact on 2024 performance," he said when met with Kontan last weekend. As a reminder, UNTR through its subsidiary, PT Pamapersada Nusantara, acquired a 75.5% stake in PT Sumbawa Jutaraya (SJR), a gold mining exploration company in Sumbawa, West Nusa Tenggara (NTB) in 2015. Sarah said that SJR's gold product would be lower than that of the Martabe gold mine, Tapanuli. It is estimated that the gold mine in Sumbawa can produce around 60,000 ounces per year. "Compared to Martabe, production is not that big. Approximately around the level of 60,000 ounces per year, of course that will be in stages in Sumbawa," he said. In addition, Sarah explained that UNTR's Martabe gold mine which is run by PT Agincourt Resources will continue to explore to ensure the stability of gold reserves. For this year, UNTR allocated US$ 190 million from capital expenditure (capex) to develop the gold mining segment. Mainly will be used for infrastructure development. "This year the infrastructure work is bigger, in Martabe we are building a tailings storage facility," said Sarah. Just so you know, until December 2022, total sales from the Martabe gold mine reached 286,000 ounces. Realization fell 13% on an annual basis from 330,000 ounces in 2021. The decrease was due to a decrease in the level of gold mined. The net income of the gold mining business unit as of December 2022 fell by 8% to IDR 7.7 trillion.Source: https://industri.kontan.co.id/news/tambang-emas-united-tractors-untr-di-sumbawa-ditargetkan-beroperasi-2024

Macmahon Holdings Limited (ASX: MAH) (Macmahon or the Company) is pleased to confirm that it has extended its appointment by PT Agincourt Resources (PTAR) as the mining contractor for the Martabe gold project in North Sumatra, Indonesia.  Macmahon has been working to support PTAR at the Martabe mine site since 2016 and in that time our workforce on site has grown to over 600. The scope for Macmahon on the next stage of development will involve open cut mining activities including drilling, loading, hauling and mine site development.  The contract extension commences on 1 April 2023 for a seven-year period with the option to extend for a further two years. It is expected to generate revenue of US$350 million in the first seven years, adding to Macmahon’s secured order book.   The Company’s FY23 underlying earnings guidance of $105 million to $125 million remains unchanged. Contract extension capital expenditure is included in the FY23 sustaining capex budget. However, prepayments relating to FY24 sustaining capex in the amount of $4 million have been made to secure long lead time FY24 equipment deliveries.  Macmahon will continue to integrate safety, environmental and social considerations into our operations at Martabe and looks forward to continuing this work in partnership with PTAR and the local communities on all these areas.  The contract value of the successful extension at Martabe and other recent contract awards in FY23 total approximately $2.5 billion which exceeds Macmahon’s FY23 order book run off. As a result, the Company is better positioned to strategically pursue low capital intensity opportunities. CEO and Managing Director Michael Finnegan said:  “We are delighted to be re-appointed by PTAR as the mining contractor for its Martabe  gold project and believe this reflects the significant efficiencies delivered on the project. Since 2016 we have built, and continue to build, a strong relationship with the PTAR team and look forward to being part of the further successful development of the mine. I would like to thank our Macmahon team at the Martabe project in Indonesia. Their continued dedication and support are what makes this project successful.” Source: https://www.listcorp.com/asx/mah/macmahon-holdings-limited/news/macmahon-extends-contract-for-the-martabe-gold-project-2856137.html

SOROWAKO. U.S. carmaker Ford Motor Co signed a final investment agreement with PT Vale Indonesia, and China's Zhejiang Huayou Cobalt on Thursday to build a $4.5 billion nickel processing plant in Indonesia's Southeast Sulawesi. The high-pressure acid leaching (HPAL), located in Pomalaa where Vale operates a nickel mine, is expected to produce 120,000 tonnes a year of mixed hydroxide precipitate, material extracted from nickel ore that is used in batteries for electric vehicles. Indonesia, which has the biggest nickel reserves in the world, has been trying to develop downstream industries for the metal, with ambitions to eventually produce batteries and electric vehicles.Vale and Huayou commenced construction of the plant in November and commercial operation is expected to start in 2026. Febriany Eddy, chief executive of Vale Indonesia, said the deal is unique as it brings the U.S. automaker into an upstream nickel business. She said Vale has a 30% stake in the project with the remainder being controlled by Ford and Huayou. "Ford can help ensure that the nickel that we use in electric vehicle batteries is mined, produced within the same ESG standards as part of our business around the world," Christopher Smith, Ford's chief government affairs officer, said at the signing. The investment is Ford's first in the Southeast Asian country. Indonesia's government has since 2020 banned exports of unprocessed nickel ore to ensure supply for existing and potential investors. The government is currently courting global EV makers such as Tesla and China's BYD Group to invest in the country. Source: https://english.kontan.co.id/news/ford-vale-indonesia-huayou-sign-deal-for-us-45-billion-ev-battery-material-plant