The government, in this case, the Ministry of State-Owned Enterprises (BUMN) will later be involved in divestment of PT Vale Indonesia Tbk (INCO) shares.SOE Minister Erick Thohir said that President Joko Widodo (Jokowi) had held a limited meeting related to this matter with himself and related ministries such as the Minister of Energy and Mineral Resources, the Minister of Economic Affairs, the Coordinating Minister for Maritime Affairs and Investment, the Minister of Finance, and the Minister of Investment.As is known, Vale is obliged to divest its shares by 51% as a condition to extend its contract in Indonesia, from a Contract of Work (KK) to a Special Mining Business Permit (IUPK).Erick revealed that in the divestment process, his party will do what was done to PT Freeport Indonesia (PTFI) then."BUMN will play a role like Freeport used to," he said at the Ministry of SOEs in Jakarta, Monday (2/1).The involvement of the government in this matter, because Vale is important because it is a nickel producer. "Because of why, Indonesia is one of the countries that produces nickel," he said.Previously, the Ministry of Energy and Mineral Resources at that time said that the discussion on the divestment of Vale Indonesia to the country continued. Vale itself has divested its 20% stake to the MIND ID Mining SOE Holding.Acting Governor of Bangka Belitung (Babel) as well as Director General of Mineral and Coal of the Ministry of Energy and Mineral Resources Ridwan Djamaluddin at that time said that the House of Representatives would form a working committee or Committee to evaluate Vale Indonesia's contract of work (KK) mining permit into a Special Mining Business Permit (IUPK).Meanwhile, to get the extension process to IUPK, Vale is at least obliged to divest its shares by 51% to the state."It hasn't broken up earlier (51% shares like PTFI), it hasn't broken up. It will be discussed later," ridwan said at the capitol, Tuesday (5/7).Meanwhile, quoting from the Indonesian Stock Exchange (IDX), the portion of Vale Indonesia's share ownership is 20% PT Indonesia Asahan Alumunium (Persero), 43.79% Vale Canada Limited, 15.03% Sumitomo Metal Mining Co Ltd, and 21.18% public.Image source: Istimewa Agus Suparto via CNBC IndonesiaSource: https://www.cnbcindonesia.com/market/20230102144612-17-402118/duet-erick--jokowi-mau-bikin-vale-jadi-the-next-freeport

The government officially stipulates the imposition of production dues or zero percent (0%) royalties for downstream coal companies.This provision is contained in a Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 concerning Job Creation which was stipulated on December 30, 2022.In the discussion of the Sub-Energy and Mineral Resources (ESDM) Page 220 Paragraph 5, a number of provisions related to mineral and coal mining were amended.In Article 39 of this regulation, it is stated that between Article 128 and Article 129 in Law Number 3 of 2020, Article 128A is inserted. Meanwhile, Article 128A paragraph 2 reads, The provision of certain treatment to state revenue obligations as referred to in paragraph (1) for coal development and/or utilization activities can be in the form of imposition of production dues/royalties of 0% (zero percent).Tarumanegara University Energy and Mining Law Observer Ahmad Redi explained that this policy is quite ideal for business actors."The zero percent royalty policy is quite ideal as an incentive for companies that want to downstream coal," Redi said to Kontan, Monday (2/1).Redi explained, in substance, the provisions in the Job Creation Perppu are almost the same as the Job Creation Law. In addition, the substance related to the mineral and coal issue is also considered the same."This means that the downstream substance of coal is still considered important and strategic," explained Redi.Redi continued, coal downstreaming is very important for Indonesia because it can increase the added value of products, increase state and regional revenues and increase labor revenues. In addition, through coal downstreaming, it will create a fulfillment of domestic coal needs such as liquid coal and gas for fuel as well as the development of industrial estates.Until April 2022, there were at least 11 companies that were committed to implementing coal downstreaming until 2029. Of the 11 companies, as many as 3 projects from 3 companies have been producing.The three of them are the Semi Coke Project by PT Megah Energi Khatulistiwa with an input capacity of 1 million tons per year to produce semi-coke of 500 thousand tons per year. Then the Coal Upgrading-Briqueting Project by PT Thriveni has an input capacity of 130 thousand tons to produce briquettes as much as 79-85 thousand tons.Finally, the Coal Briqueting Project has an input capacity of 30 thousand - 40 thousand tons per year to produce briquettes as much as 10,000 - 20,000 tons per year. A number of other projects are generally dominated by coal gasification by both PKP2B and IUP.First, the coal to dimethyl ether (DME) project by PT Bukit Asam Tbk (PTBA) with a production capacity of 1.4 million tons per year.The project is expected to start production in the second quarter of 2025. Second, the Coal to Methanol Project by PT Kaltim Prima Coal and PT Kaltim Nusantara Coal with a methanol production capacity of 1.8 million tons per year. This project is targeted to be completed in the second quarter of 2025.Third, the Coal to Methanol Project by PT Arutmin Indonesia with a product capacity of 2.95 million tons per year. This project is targeted to start production in 2026. Fourth, the Coal to Methanol Project by PT Kendilo Coal Indonesia with a product capacity of 300 thousand tons per year. This project is targeted to start production in 2029.Fifth, the Semi Coke Project by PT Multi Harapan Utama with a production of 500 thousand tons per year. The project is planned to start production in 2027. Sixth, the Coal to Methanol/DME Project Project by PT Adaro Indonesia is targeted to start production in 2026.Seventh, the Gasification / Underground Coal Gasification (UCG) Project by PT Kideco Jaya Agung with a production capacity of ammonia of 100 thousand tons per year and urea of 172 thousand tons per year. The project is planned for production in 2027.Finally, the Coal to Methanol / DME Project Project by PT Berau Coal with a semi-coking product capacity of 500 thousand tons per year. This project is targeted to start production in 2029.Image source: DOK/AIMSSource: https://industri.kontan.co.id/news/resmi-royalti-nol-persen-untuk-perusahaan-batubara-yang-lakukan-hilirisasi?page=2

PT Transcoal Pacific Tbk (TCPI) has obtained a coal transportation service contract worth IDR 1.5 trillion from its third-party user.Erizal Darwis, Director of PT Transcoal Pacific Tbk (TCPI), revealed that his company has signed a Joint Operation Agreement regarding the provision of vessel to transport coals owned by one of the coal trading companies. “The company is not affiliated with said user,” he reaffirmed in the information disclosure quoted Friday (23/12).The transportation service contract will be effective for the next five years, starting from when the contract was signed last Wednesday (21/12). “It is a proof in securing trust from our user to transport their coals,” Darwis said.The third-party users of TCPI are PT Arutmin Indonesia (AI) and PT Kaltim Prima Coal (KPC). As of September 2022, both companies contributed USD 706,684 and USD 393,192 to TCPI’s total revenue of USD 1.30 million. (LK/ZH)Image source: PT Transcoal PacificSource: https://www.idnfinancials.com/news/45510/transcoal-pacific-secure-idr-coal-transportation

Aumay Mining Pte Ltd reportedly has a claim over 22.5% of shares of PT Kalimantan Aluminium Indonesia (KAI), a subsidiary of PT Adaro Minerals Indonesia Tbk (ADMR). The ownership purchase takes effect following KAI’s decision to issue 925,748 shares earlier this week (20/12).Heru Gunawan, Corporate Secretary of ADMR, claimed that the proceds from those shares issuance will be utilised to advance KAI’s business. “The total value of issued shares clocks up to IDR 925.74 billion or approximately USD 59.65 million,” he said in the information disclosure quoted Friday (23/12).From said number, Aumay acquires 595,124 shares worth IDR 595.12 billion, or 22.5% of KAI’s entire issued and paid-up capital. Then, another 12.5% are claimed by PT Cita Mineral Investindo Tbk (CITA), as mentioned earlier in IDNFinancials.KAI is now building and maintaining an aluminium smelting facility with a capacity of 2 metric tons per annum (MTPA) in Kalimantan Industrial Park Indonesia, Bulungan, North Kalimantan.Aumay is an exempt private company based in Gateway West, Singapore. (LK/ZH)Image source: OIPSource: https://www.idnfinancials.com/news/45512/aumay-mining-claim-kalimantan-aluminium

President Joko Widodo (Jokowi) has announced that he will ban the export of raw bauxite minerals starting in June 2023. This is also in line with Law No.3 of 2020 concerning Mineral and Coal Mining (Minerba Law).Based on the Mineral and Coal Law, no later than June 10, 2023, the export of raw minerals is officially prohibited. The mineral products that are allowed to be exported are those that have gone through the processing and refining process or downstream first in the country.So, what about PT Freeport Indonesia, which is currently still exporting copper concentrate? What about the progress of the construction of its new smelter in Gresik, East Java?President Director of PT Freeport Indonesia (PTFI) Tony Wenas said that his party is currently speeding up the completion of the construction of its new copper processing and refining facility (smelter) located in the JIIPE industrial area, Gresik, East Java.Tony said, until the end of November 2022, the progress of smelter construction had reached 47.4%. And by the end of this year, according to him, the development progress can reach 50%."This progress is now 47.4% by the end of November, it is expected that by the end of this year in 10 days it can reach 50%," he said in CNBC Indonesia's Mining Zone program, quoted on Friday (23/12/2022).He also said that by the end of 2023 the physical construction progress of this smelter has been completed, then it will be continued with a trial or commissioning test. And in May 2024 this copper smelter can be operated commercially."At the end of 2023, the physical construction mechanical completion has been completed, we just need to commission until May 2024, we have started production," he said.As is known, the beginning of the construction of the new Freeport smelter was carried out in October 2021 which was also witnessed by the President of the Republic of Indonesia Joko Widodo (Jokowi).The smelter with an investment value of US$ 3 billion or around Rp. 45 trillion is said to be the largest single-line smelter in the world. The new smelter will process 1.7 million tons of copper concentrate per year into a product of 600 thousand tons of copper cathodes per year.Currently, PTFI also has one smelter that has been operating - also located in Gresik. The company cooperated with Mitsubishi to form PT Smelting. The PT Smelting smelter, which has been built since 1996, produces 300 thousand tons of copper cathodes from the processed products of around 1 million tons of copper concentrate per year.PTFI's share ownership in PT Smelting is currently only 40%. Nevertheless, the company plans to increase its shareholding to 66%.The addition of shares is because PT Smelting is now also in the process of expanding or increasing capacity.Based on the company's report, PTFI has spoken to PT Smelting's majority shareholder, Mitsubishi Materials Corporation (MMC), for the expansion project. The increase in capacity at the existing smelter is planned to increase by 30% or around 300 thousand tons of concentrate per year.Thus, PT Smelting's copper concentrate processing capacity will increase to 1.3 million tons from the current 1 million tons per year.Image source: Tangkapan Layar Youtube Sekretariat PresidenSource: https://www.cnbcindonesia.com/news/20221223141004-4-399608/di-tengah-larangan-ekspor-freeport-kebut-pembangunan-smelter

The government still has homework to make the downstream program a success. Chairman of the Indonesian Mining Experts Association (Perhapi) Rizal Kasli said, there are no commodities that are 100% ready to be stopped from exporting in the context of downstreaming.For this reason, the government, according to Rizal, needs to encourage further industrial development to manufacturing in Indonesia."The strategy that can be done can be by special assignment to certain SOEs that are formed for it as a pioneer industry. This needs to be done if the private sector is not interested in it," Rizal told Kontan.co.id (22/12).Another challenge is that there are also licensing issues that need to be addressed to encourage industrial development."Another thing that the government must help is the issue of licensing that is still felt to be too long, such as amdal, and others. There are so many permits that must be taken care of both at the center and in the regions. This will be a handicap for the development of national industry," explained Rizal.As is known, the government is strengthening the downstream sector. This effort has previously given birth to a policy of banning the export of nickel ore which has been in effect since January 2020.Following this, the export ban is also planned to apply to bauxite ore in June 2023, as well as to other mineral commodities.President Joko Widodo (Jokowi) said that the government is still calculating which other commodities will follow to stop exporting raw materials. He emphasized that the export ban does not have to wait for the commodity industry to be fully prepared."For other commodities, it is calculated to calculate the readiness of the industry. Once the industry is half ready, we don't have to be ready, half ready, we immediately stop it. We are forced to solve the industry immediately," said Jokowi in a Press Statement, Wednesday (21/12).At the same time, the government is also overseeing the development of the mineral processing and refining industry. Based on data from the Ministry of Energy and Mineral Resources (ESDM), until the end of December 2021, 21 mineral refining facilities have been completed, consisting of 15 Nickel mineral refining facilities, 2 Bauxite mineral refining facilities, 1 Iron mineral refining facility, 2 Copper mineral refining facilities, and 1 Manganese mineral refining facility.In 2022, there are 7 more new smelter projects scheduled to operate. Two of them are smelters that are integrated with mining activities, namely the East Halmahera Ferronickel (P3FH) plant of PT Aneka Tambang Tbk (ANTM) located in North Maluku, and the smelter owned by PT Sebuku Iron Lateritic Ores (SILO) in South Kalimantan.Meanwhile, the other five smelters are stand-alone smelters. The five include a smelter with Mixed Hydroxide Precipitate (MHP) products of PT Smelter Nickel Indonesia in Banten, a lead bullion smelter of PT Kapuas Prima Citra in Central Kalimantan, a Zinc Ingot smelter of PT Kobar Lamandau Mineral in Central Kalimantan, an alumina grade smelter of PT Well Harvest Winning AR (Phase II) in West Kalimantan, and a Pig Iron smelter of PT Alchemist Metal Industry in North Maluku.Image source: PERHAPISource: https://industri.kontan.co.id/news/sukseskan-hilirisasi-mineral-perhapi-pemerintah-perlu-bangun-industri-lanjutan

PT United Tractors Tbk (UNTR) has achieved heavy equipment sales growth. Where the company reported sales of Komatsu brand heavy equipment as many as 5,457 units as of November 2022, growing 84.98% compared to the January-November 2021 period of 2,950 units.Komatsu's sales in October 2022 amounted to 370 units, down from the realization of sales in October 2022 which reached 553 units. As in previous months, sales to the mining sector in November 2022 still dominated with a contribution of 63%.Then followed by the construction sector 23%, agribusiness 10% and forestry 4%. Cumulatively from January to November 2022, sales to the mining sector reached 61%, construction 19%, agribusiness 9% and forestry 11%.Komatsu's market share year to date as of November is at 28%. From the coal contractor segment, UNTR through Pamapersada Nusantara (PAMA) has produced 105.2 million tons throughout the 11-month period of 2022.This realization is lower than the production from January to November 2021 which reached 107.3 million tons. UNTR coal sales through Tuah Turangga Agung in November 2022 reached 645,000 tons, down from October 2022 of 733,000 tons.Throughout 2022 until November, UNTR's accumulated coal sales reached 9.15 million tons, up from the same period last year of 8.48 million tons. For gold commodities, UNTR reported Agincourt Resources sold 24,000 ounces of gold during November 2022. This volume is still the same compared to October 2022. During January-November 2022, total gold sales reached 263,492 GEOs, lower than last year's 307,327 GEOs.The company recorded net revenue in the third quarter of 2022 of IDR 91.5 trillion. An increase of 58% compared to the same period last year of IDR 57.82 trillion. All business units contributed to this achievement.To be precise, construction machinery is 30%, mining contractors are 36%, coal mining is 27%, gold mining is 6%, and the construction industry is 1% of the total consolidated net income. In detail, the coal mining business line rose 138% to IDR 24.36 trillion.The construction machinery business line recorded a growth of 74% to Rp27.4 trillion. Furthermore, the mining contractor business line recorded revenue of IDR 33.2 trillion, or an increase of 37% from the same period last year. United Tractors recorded profit after tax or net profit of IDR 15.9 trillion, up 103% from the same period last year of IDR 7.8 trillion.Net income per share rose 104% to Rp4,283 from the same period last year of Rp2,096. Total assets skyrocketed 25% to Rp140 trillion from the same edition in the year of Rp112 trillion. Total liabilities of IDR 56.39 trillion, a surplus of 38% from the same period last year of IDR 40.73 trillion.Image source: United TractorsSource: https://economy.okezone.com/read/2022/12/26/278/2734297/penjualan-alat-berat-united-tractors-untr-naik-84-98?page=2

A subsidiary of PT Indika Energy Tbk (INDY), namely PT Kideco Jaya Agung (Kideco), has applied for a contract extension to the Ministry of Energy and Mineral Resources (ESDM).Currently, the holder of the Coal Mining Concession Work Agreement (PKP2B), which will expire on March 13, 2023, is waiting for the results of the evaluation of the contract extension application."Kideco's contract will expire on March 13, 2023. Currently, Kideco has applied for an extension to the Ministry of Energy and Mineral Resources," INDY's Head of Corporate Communications, Ricky Fernando told Kontan.co.id, Thursday (22/12).As is known, the Contract of Work (KK) and PKP2B are given a guarantee of extension to a Special Mining Business Permit (IUPK) as a Continuation of the Operation of the Agreement Contract after fulfilling the requirements.This is contained in Article 169 A of the Mining Law (minerals and coal) which is currently in force, namely Law Number 3 of 2020.Currently, the total area of the Kideco concession is 47,000 hectares (Ha) with an operational area of about 15 thousand Ha. It has not been found out, how much kideco land area after the contract extension will be."Currently, Kideco has applied for a contract extension where a review of the land area will be included," explained Ricky.Arguably, Kideco has played an important role in sustaining INDY's performance in recent years. During January-September 2022, for example, the coal company whose shares are 91% owned by INDY (data September 30, 2022) contributed revenue of US$ 2.21 billion, equivalent to around 70% of INDY's consolidated revenue in the period which amounted to US$ 3.13 billion.Understandably, in terms of operational performance, Kideco is indeed one of the main pillars of INDY's coal production performance, as is the case in 2022.Just so you know, based on Kontan.co.id records, INDY is pursuing a coal production target of around 35.8 million tons. According to the plan, as many as 34 million tons of which will come from Kideco, while the remaining 1.8 million tons will come from PT Multi Tambangjaya Utama (MUTU).In addition to applying for a contract extension, Kideco has also taken steps to carry out production activities next year. Ricky said, Kideco had submitted a Work Plan and Cost Budget (RKAB) to the Ministry of Energy and Mineral Resources."Kideco's production plan is still waiting for approval from the RKAB, but it is expected to be around 31 - 34 million tons," said Ricky.A little information, the performance of Kideco's main top line and bottom line, namely INDY, is compact uphill in the first nine months of 2022.INDY's interim financial report shows that INDY's consolidated revenue increased by 57.15% on an annual basis or year-on-year (YoY) from US$ 1.99 billion in January-September 2021 to US$ 3.13 billion in January-September 2022.According to the climbing revenue, INDY managed to book a profit for the current period attributable to owners of the parent entity aka net profit of US$ 338.39 million in January-September 2022.Previously, INDY posted a loss for the current period attributable to owners of the parent entity aka a net loss of US$ 5.95 million in January-September 2021.Image source: ANTARA FOTO/Nova Wahyudi/nymSource: https://industri.kontan.co.id/news/kideco-jaya-agung-kideco-ajukan-perpanjangan-kontrak-ke-kementerian-esdm

PT Freeport Indonesia (PTFI) has appointed Black & Veatch to design and manage the delivery of a seawater desalination plant for its Manyar Smelter in East Java, Indonesia, as part of its sustainable development commitments.The seawater desalination plant will support the processing of mine concentrates from the Grasberg mine in West Papua. The new domestic copper smelter and refinery supports Indonesia’s downstreaming strategy to further refine the processed mine concentrates and brings additional economic value to the local community and Indonesia.“Reducing water consumption is critical to our sustainable development commitments. Using alternative water supplies is key to resource conservation. Black & Veatch’s extensive experience with alternative water technologies helps position us for continued sustainable business growth,” said Horst-Dieter Garz, Executive Vice President, Corporate Planning and Business Strategy, PTFI.Black & Veatch, in collaboration with its joint operating agreement (JOA) partner PT Wika, will perform the engineering, procurement, construction and commissioning responsibilities for the seawater desalination plant.“The mining industry plays a critical role in the global shift to a decarbonized and sustainable future. Accessing water from the ocean saves freshwater resources for the local community and ecosystems and ensures a more sustainable, resilient and reliable water future. It also improves efficiencies and reduces operational risks and downtime that affect business profitability,” said Narsingh Chaudhary (pictured), Executive Vice President & Managing Director, Asia Pacific, Black & Veatch. The seawater desalination plant will be located adjacent to the Manyar Smelter Project. It will produce over 1,400 m3/h of desalinated seawater to support the copper smelter and precious metals refinery. Designed to process 1.7 Mt/y of copper concentrate, the $3 billion Manyar Smelter is anticipated to be the world’s largest designed single line copper processing facility.BHP previously hired Black & Veatch to serve as designer and engineer of record on the Escondida Water Supply Expansion (EWSE) project at its Minera Escondida mine in Chile. The project supplies the world’s largest copper mine with 100% desalinated water, removing the need for groundwater.Image source; PT Freeport IndonesiaSource: https://im-mining.com/2022/12/22/black-veatch-to-design-and-deliver-desal-plant-for-freeport-indonesias-manyar-smelter/

PT PLN (Persero) ensures that the operation of the Suralaya steam power plant (PLTU) in Cilegon, Banten during the Christmas and New Year (Nataru) 2023 holiday period is safe. The readiness is because the primary energy supply has been met for up to 30 days of operation (HOP).During his visit to PLTU Suralaya, Sunday (25/12/2022), the Minister of Energy Resources and Minerals (ESDM), Arifin Tasrif, represented by the Secretary General of the Ministry of Energy and Mineral Resources, Rida Mulyana, ensured that the energy supply for the community in this Nataru moment was guaranteed.Moreover, according to Rida, PLTU Suralaya in particular is one of the backbones of the Java Madura and Bali (Jamali) electricity system. The reliability of primary energy supply for plant operations is one of the keys to the safety of electricity availability today."Its significant role is for the Jamali system so we ensure that the supply chain starts from primary energy to the readiness of its operators to the provision of electricity to the community, we can ensure that it is achieved," said Rida in a press statement, Monday (26/12/2022).Also present at the visit were PLT Director General of Electricity of the Ministry of Energy and Mineral Resources, Dadan Kusdiana, Director of Generation of PLN, Adi Lumakso and President Director of PLN Indonesia Power, Edwin Nugraha Putra.On a different occasion, President Director of PT PLN (Persero) Darmawan Prasodjo said he was optimistic that the plant with a total capacity of 3,400 megawatts (MW) could operate to meet the electricity needs of the Jamali system during Nataru 2023. With this capacity, the Suralaya power plant supplies around 12% of the electricity needs in the Jamali system, so this power plant has a vital role for Jamali's electricity."If Nataru last year the condition of coal supply in Suralaya was a bit critical, this year is very good, and it has become the best HOP in history. This achievement is the fruit of collaboration between the Government, PLN and all stakeholders," said Darmawan.In Nataru 2022, the condition of coal supply at the Suralaya power plant was in a crisis point with a HOP of less than 7 days. Meanwhile, in Nataru 2023, coal supply reaches 30 HOP.According to Darmawan, this achievement is the result of PLN's efforts together with the Government and stakeholders in the domestic coal industry, always synergizing and coordinating to make efforts to ensure the availability of primary energy is met.In terms of supervision, since the beginning of 2022, PLN has made a paradigm shift in monitoring and controlling coal supply. Originally, supervision only focused on the estimated time of arrival (ETA) now it has become focused on the loading point.Supervision steps are carried out not only through physical in the field but also by integrating the digital monitoring system between the PLN system and the system at the Directorate General of Minerals and Coal of the Ministry of Energy and Mineral Resources. This system provides information on loading targets and is integrated with the system at the Directorate General of Minerals and Coal of the Ministry of Energy and Mineral Resources which records the realization of loading from each supplier."With a system like this, if there is a potential supply failure due to the availability of coal and its transportation fleet, it will be detected earlier. Not only that, corrective action can be carried out as early as possible so that certainty of supply can be better maintained," concluded Darmawan.Image source: PT PLNSource: https://investor.id/business/317410/stok-batu-bara-aman-pln-pastikan-operasional-pltu-suralaya-selama-libur-nataru