PT Harum Energy Tbk (HRUM) is aiming to increase the performance of the nickel business line. Harum Energy's main director, Ray Antonio Gunara, said that his party is targeting an increase in the financial performance of the coal and nickel business lines. "The contribution from the nickel sector to the Company's net profit is expected to increase significantly in 2023, when compared to the previous year," said Ray to Kontan, Monday (20/2).Ray continued, the contribution from the nickel sector will be supported by PT Infei Metal Industry (IMI)'s first smelter, which has been operating since April last year. This year the smelter is targeted to operate at full capacity so as to contribute to HRUM's performance this year. Another contribution will be supported by HRUM's investment in the second smelter at PT Westrong Metal Industry which is targeted to operate commercially in the fourth quarter of 2023. "The smelter's annual production capacity is twice as large as the IMI smelter," said Ray. From the coal side, HRUM targets production to reach 5 million tons this year.Ray explained, coal still has good prospects this year. Even though a price correction is predicted, Ray confirmed that this year's price will still be relatively high compared to the average for the past 5 years. In addition, it is believed that domestic and export market demand will help maintain coal price movements this year. Meanwhile, regarding the nickel business line, Ray revealed, nickel has the potential as a raw material for various other derivative products that have high economic value. "The company is optimistic about the prospects for the nickel industry and hopes that global demand for nickel can grow rapidly in the future," said Ray.In order to smoothen this year's business plan, HRUM has allocated capital expenditure (capex) of US$ 52 million. Most of the capital expenditure will be used for the development of infrastructure and production facilities for the nickel mining area. While partly for the addition of coal mining properties, purchase of vehicles, purchase of heavy equipment to the maintenance of tugboats and barges. HRUM posted a net profit of US$ 237.43 million as of the third quarter of 2022.When compared to the net profit of the same period last year, HRUM's net profit skyrocketed 532.54%. HRUM's net profit for the January-September 2021 period was only US$ 37.53 million. Thus, HRUM's basic earnings per share also increased to US$ 0.01844 from the previous US$ 0.00297. Meanwhile, the increase in HRUM's net profit was in line with the increase in revenue. As of the end of September 2022, HRUM posted revenue of US$ 702.79 million. This realization shot up 241.91% of realized revenue in the same period in 2021 which was only US$ 205.54 million.Source: https://stocksetup.kontan.co.id/news/harum-energy-hrum-bidik-peningkatan-kinerja-dari-lini-bisnis-nikel

PT Amman Mineral Internasional, which owns the second-largest copper and gold mine in Indonesia, is considering an initial public offering in Jakarta that could raise as much as $1 billion, according to people with knowledge of the matter.The company is working with financial advisers to prepare for a listing, which could happen as soon as in the first half of the year, said the people, asking not to be identified as the information is private. Deliberations are ongoing and details including size and timing of the IPO could change, they said.Amman Mineral’s management continuously evaluates various opportunities and options for growth and will decide on the best option when conditions and timing are ripe, its representative said in response to a Bloomberg News query. She declined to comment on the IPO plans.At $1 billion, Amman Mineral’s IPO could be the largest in Indonesia since Mitratel’s $1.3 billion share sale in November 2021, according to data compiled by Bloomberg. Indonesia has been the most active IPO market in Southeast Asia so far this year, hosting about $656 million worth of deals. Thailand is the region’s second busiest market with first-time share sales that have raised $216 million to date.Indonesia could remain a buoyant IPO market for large listings this year. PT Pertamina Geothermal Energy is scheduled to list on Friday after raising 9.06 trillion rupiah ($596 million) in its first-time share sale. PT Nusantara Sejahtera Raya, the operator of Indonesia’s largest movie theater chain Cinema XXI, is considering an IPO that could raise as much as $1.1 billion, Bloomberg News has reported.Amman Mineral owns a total of 25,000 hectares of concession areas with 17.5 billion pounds of copper and 23.9 million ounces of gold reserves, according to its website. The firm’s Batu Hijau mine, located on the island Sumbawa, has produced 8.78 billion pounds of copper and 8.7 million ounces of gold since it commenced operations in 2000.Amman Mineral had explored a listing for its unit PT Amman Mineral Nusa Tenggara, which operates the Batu Hijau mine, Bloomberg News reported in 2019. Source: https://financialpost.com/pmn/business-pmn/gold-miner-amman-is-considering-1-billion-indonesian-ipo

Indonesia’s value-add strategy has begun to attract attention from other metal-rich nations. According to a recent report, the Philippines is the latest country to consider a raw nickel export tax or even an outright ban. Reports indicate the government is currently eyeing a 10% tax on nickel ore exports. Apparently, this is just one part of a larger plan to increase government revenue from the mining sector. The government of the Philippines is also reportedly mulling a 3% royalty payment on output from large-scale miners.Like Indonesia, the Philippines aims to attract investments for downstream industries. According to Environment and Natural Resources Secretary Yulo Loyzaga, “we want to move out from being just part of the supply chain. We want to be part of the value chain.”Potential Impact on the Nickel Price and Global MarketIn terms of market impact, a tax from the Philippines would add support to the nickel price, albeit to a lesser extent. It would also tighten nickel supply for the foreseeable future, thus increasing production costs for downstream industries. However, it is likely more of a medium- or long-term threat. Any such plans would require both approval and implementation before markets see any impact.Moreover, should the Philippines attract the investments it seeks, it could take years for such industries to become operational. And should global economic pressures see demand for nickel drop, it could offset the potential impact. However, those pressures could also test the country’s resolve to continue the tax or ban. China would feel the brunt of the effects should the Philippines go forward with the policy, followed by Japan. China currently accounts for around 90% of the Philippines’ nickel exports.Many Experts Remain Critical of the PlanIt is worth noting that such considerations have come with strong opposition, which could still derail the government’s plans. In fact, the largest critics of the move include the Philippines’ own mining sector. President of the Philippine Nickel Industry and Global Ferronickel Holdings Inc., Dante Bravo, recently told Reuters, “the initial proposal in the House of Representatives was 10%. That will kill the industry.”Other critics have noted the flawed comparison between Indonesia and the Philippines. While Indonesia accounts for 48% of global supply, the Philippines accounts for just 11%. This gives Indonesia considerably more leverage in the market. According to the U.S. Geological Survey (USGS), the Philippines was the second largest producer in 2022. Still, its output sat markedly beneath that of Indonesia.Estimates have Indonesia producing 1,600,000 tons of nickel in 2022. In the same year, the Philippines produced just 330,000 tons. Moreover, the ore supplied by the Philippines is reportedly lower quality than that sourced from Indonesia. The Philippines sits at an even greater disadvantage considering its reserves. While it remains the second largest global supplier, the Philippines holds only the 6th largest reserves. This fact alone could cause hesitation among potential investors.Beyond the Philippines: Nickel Price ConcernsA tax or outright ban from the Philippines is not, at this point, a guarantee. However, such considerations do pose an interesting hypothetical going forward. Will other countries follow? How about those that boast a larger market share? Chile and Peru, for example, stand as the world’s largest and second-largest copper producers, respectively. What’s more, both have repeatedly attempted to levy royalties on their mining industries over recent years.Beyond that, estimates state that copper supply will experience a significant supply deficit in the coming years, partly due to growing demand. Projections like these could incentivize countries to adopt an Indonesian-style value-add strategy. This would prove especially tempting for those nations looking for ways to better exploit their resources. However, if this comes to fruition and other countries look to replicate Indonesia’s success, it will invariably reshape global market dynamics.By Nichole Bastin and Katie Benchina OlsenSource: https://finance.yahoo.com/news/philippines-looks-replicate-indonesia-nickel-190000787.html

PT United Tractors Tbk (UNTR) has channelled an extra credit worth IDR 180 billion to its shipping service business line, PT Patria Maritime Lines (PML).Sara K. Loebis, Corporate Secretary of UNTR, mentioned that in June 2019, the company had distributed a credit facility worth IDR 280 billion to PML. Thus, with this extra capital credit, the total facility granted by UNTR for PML reaches IDR 460 billion.“The company and PML have signed the addendum of the agreement,” Loebis confirmed in the official statement.According to IDNFinancials data, PML has been engaged in the domestic shipping business since 2008, boasting total assets before elimination of IDR 1.59 trillion. The entire shares of PML are under the control of UNTR through PT United Tractors Pandu Engineering (UTPE).Until September 30, 2022, UNTR reportedly stored IDR 43.41 trillion of cash and cash equivalent, while its total equity clocked up to IDR 83.77 trillion. (KR/ZH)Source: https://www.idnfinancials.com/news/46055/reinforcing-shipping-line-untr-inject-idr

PT Astrindo Nusantara Infrastruktur Tbk (BIPI) has officially acquired PTT Mining Ltd (PTTML), a Hong Kong-based company which owns three coal mining concessions in Kalimantan, Indonesia, namely Jembayan, Sebuku and Penajam. "We are very grateful after obtaining approval from the holders, so that the acquisition of PTTML was completed today and PTTML officially became part of the Astrindo Group," said Main Director of Astrindo (BIPI) Ray Anthony Gerungan, Thursday (16/2/2023).According to him, currently, the Jembayan concession has 71 million tons of reserves and 493 million tons of coal resources, based on the JORC2020 report. This mine produces coal with an average caloric quality of 5,500 Kcal/kg (GAR) and produces an annual average of 6 million tonnes. In addition, he stated, Jembayan was projected to continue stable production of 6 million tonnes this year and would become Astrindo's main revenue contributor. It is believed that this acquisition will strengthen Astrindo's financial performance, especially with the still high reference coal price (HBA), currently at around US$277 per ton in February 2023 compared to US$188.38 as of February 2022."I am grateful for the hard work and dedication of our team to complete this transaction and appreciation for the PTT team for their commitment with Astrindo until completion," added Ray. According to him, this acquisition is a big step for the company as well as being the main driver for achieving the goal of decarbonization by building a coal downstream that can reduce carbon emissions in this sector.“The direct impact of the acquisition of PTTML on Astrindo's financial prospects has been tremendous. Financial performance in 2023 will increase sharply along with the completion of the PTTML acquisition process," said Astrindo Director (BIPI) Michael Wong. Furthermore, he said, Astrindo's revenue for the third quarter of 2022 reached US$ 6.28 million. Meanwhile, PTTML's revenue in that period reached US$ 244.64 million. Thus, on a pro forma basis, Astrindo's total revenue by including PTTML has increased sixfold. "We hope that PTTML's performance in 2023 can be stable, even increase, considering that the average coal price is still higher than in 2022. We believe that with a better balance and cash flow, Astrindo's fundamental prospects have changed to become a more attractive and profitable company. financially strong,” concluded Michael.Source: https://investor.id/market-and-corporate/322071/astrindo-nusantara-bipi-resmi-akuisisi-ptt-mining

PT Kaltim Prima Coal (KPC) is targeting coal production of 53 million tons this year. This figure is up about 8.2% from the 2022 product.Source: https://www.idxchannel.com/idxc-live/video-1/kpc-begini-produksi-53-juta-ton-batu-bara

PT Adaro Minerals Tbk (ADMR) has allocated capital expenditure (capex) of around US$ 70 million-US$ 90 million this year.Heri Gunawan, Director of PT Adaro Minerals Tbk (ADMR) said that the capex is only for metallurgical coal, not including capex for aluminum smelters. "In 2023, the company plans to enter a number of new markets and increase sales volume to the domestic market," he said in an information disclosure quoted on Thursday (16/2).In 2023, ADMR has set a sales volume target of 3.8-4.3 million tons of coal. This target is in line with the coal sales volume target in the medium term of 6 million tons per year.The stripping ratio is set at 3.8 times because mining at PT Lahai Coal (LC) will resume. The LC strip ratio is higher than the strip ratio at PT Maruwai Coal (MC).In 2022, this issuer recorded a strip ratio of 2.81 times, higher than the strip ratio in 2021 which was recorded at 2.14 times. (LK/LM)Source: https://www.idnfinancials.com/news/46027/admr-allocates-capex-metallurgical-coal

The Minister of Industry (Menperin) Agus Gumiwang Kartasasmita reported that currently Indonesia has 91 smelters or mineral refining plants, 48 smelters are operational, and the remaining 43 are still in the construction stage. "Based on data from the Ministry of Industry (Ministry of Industry), as of February 1, 2023 there were 91 smelters in Indonesia with details of 48 operating and the others in the construction phase," said Agus in a Joint Working Meeting with Commission VII DPR, Tuesday (14/2/2023).As for the smelter locations that are currently operating, most are in Central Sulawesi Province with 25 smelters. Then, Maluku Province with 22 smelters, Southeast Sulawesi with 12 smelters, West Kalimantan with 10 smelters, and others with 34 smelters located in various provinces throughout Indonesia. "Of the 48 smelters that have been operating cumulatively based on their commodity, these smelters have investment capacity as well as employment," he said.Investment capacity and employment by commodity. The nickel smelter has an annual production capacity of 262,560 tons, with a total investment of IDR 5.5 trillion, and a total employment of 2,327 people. Then, the steel smelter has an annual production capacity of 1.6 million tons with a total investment of IDR 15.96 trillion, and a workforce of 2,729 people. The copper smelter has an annual production capacity of 150 thousand tons with an investment so far of IDR 266 billion, and employs 525 people. Furthermore, the aluminum smelter has an annual production capacity of 544,563 tons with a total investment of IDR 15.66 trillion, and employment of 1,893 people.Source: https://www.cnbcindonesia.com/news/20230214155542-4-413758/kabar-terbaru-52-pabrik-smelter-di-ri-sudah-operasi

Coal issuer PT TBS Energi Utama Tbk. (TOBA) announced an affiliated transaction, disbursing funds to its subsidiary in the amount of IDR 19.06 billion. Based on information disclosure on the Indonesian Stock Exchange (IDX) TOBA's subsidiary, PT Toba Bumi Energi (TBUE), has increased its issued and paid-up capital which will be taken over entirely by the company. TOBA Director Alvin Sunanda said, on 9 February 2023, TBUE made a capital increase of IDR 19.06 billion, which was carried out by issuing new shares in a portfolio of 3,812 shares, each worth IDR 5 million."All of the new shares were taken up by TOBA so that in the future TBUE's issued and paid-up capital will be 32,814 shares or a value of IDR 164.07 billion," he explained in an information disclosure, Monday (13/2/2023). This transaction is an affiliate transaction because TOBA owns 99.99 percent of TBUE's shares. Meanwhile, the purpose of this affiliate transaction is to provide financial support to TBUE to support the implementation of TBUE's business plan until TBUE can generate its own income. "Currently there is still no other alternative to conduct transactions with other parties besides shareholders to achieve TBUE's business objectives," said Alvin.For information, TBUE is engaged in coal mining investment which was established in 2007 and is domiciled in East Kalimantan. Previously, TOBA also injected capital into its subsidiary PT Energi Baru TBS (EBT) to increase its capital of IDR 125.241 billion by issuing 125,241 new shares worth IDR 1 million per share, bringing the total to 270,602 shares or IDR 270.602 billion. In addition, EBT also took new shares issued by its subsidiary, PT Karya Baru TBS (KBT), which increased its authorized capital by 98,968,570 shares or a value of IDR 98.96 billion and increased issued and paid-up capital by 35,775,000 shares with a value of IDR 1,000 per share or a total value of IDR 35.77 billion. However, EBT only deposited IDR 35.77 billion or 35,775,000 shares. With this transaction, the portion of KBT's shareholder becomes PT Toba Bara Energi 51.96 percent, EBT 48.03 percent, and TOBA 0.000001 percent.Source: https://market.bisnis.com/read/20230213/192/1627666/tbs-energi-toba-suntik-modal-anak-usaha-tambang-batu-bara

PT Merdeka Copper Gold Tbk underground copper mining project. (MDKA) is estimated to be ready to operate in 5 years or starting in 2028. MDKA Corporate Communication GM Tom Malik said, the Tujuh Bukit copper mine project, under the Tujuh Bukit gold mine, in Banyuwangi, East Java, will operate in 2028. The copper project is being prepared to be one one of the largest copper projects in the world. Based on MDKA data, the mine's mineral resources total 1,784 Mt of ore containing around 8.2 million tonnes of copper and 28.6 million ounces of gold, including an indicated resource of 372 Mt.Tom said the ore content could be compared to the Batu Hijau gold copper mine in Sumbawa owned by PT Amman Mineral Nusa Tenggara and the Grasberg Mine owned by PT Freeport Indonesia in Mimika Regency, Papua. "So if this copper mine starts production it can increase Indonesia's copper production by 30-40 percent. It is planned to operate in 2028," said Tom during a media visit to Bisnis Indonesia, Thursday (9/2/2023).Since 2018, MDKA has invested nearly US$150 million to conduct exploratory studies. Later, copper production from the Tujuh Bukit mine will be further processed following the ban on the export of copper concentrates. “We see what alternatives to process the concentrate that will be produced. Because if the copper from our mine in Wetar is already operating, it can still be exported because it is in the form of plates.Last year the production was almost 20,000 tons," he explained. Merdeka has appointed Stantec and DRA as the main technical consultants to complete the pre-feasibility study (PFS) in the first quarter of 2023. The PFS will include technical and economic feasibility checks of an initial 4 million tonnes per annum sub-level cave (SLC) focusing on the high grade upper portions of the deposit. The potential expansion of SLC's operations will enable Merdeka to significantly reduce its up-front pre-production capital investment and reach production earlier before moving on to the development of the larger 24 million tonnes per annum cave block operation envisaged in the scoping study.The SLC operation will make the high grade Seven Bukit copper ore accessible earlier enabling MDKA to apply SLC's operational understanding and enhance understanding of the ore to minimize risks and optimize block expansion. With the licensing process starting with the Government of Indonesia's feasibility study having been completed and approved in mid-2022, MDKA targets the next process, namely environmental licensing, to be completed in September 2023, and construction can start in early 2024.Source: https://ekonomi.bisnis.com/read/20230209/44/1626526/tambang-tembaga-bawah-tanah-merdeka-copper-mdka-beroperasi-2028