PT Bukit Asam (PTBA) has maintained its optimism about the future of its coal business, despite the growing restrictions on coal consumption by several developed countries, including China.Setiadi, Senior Vice President of the Project Management Office at PTBA, indicated that the company sees significant potential in emerging markets, particularly in Southeast Asia and South Asia. He cited countries like India, Bangladesh, and Pakistan as attractive markets due to their high demand for coal.“Countries like India, Bangladesh, and Pakistan are becoming increasingly attractive markets, as the demand remains quite strong,” Setiadi told the 2024 Public Expose, held virtually on Tuesday, August 27, 2024.Beyond international prospects, PTBA is also focusing on domestic projects to secure its coal usage in Indonesia.“In terms of energy and downstream processing, we are developing projects that will secure Bukit Asam’s coal usage domestically for the long term,” Setiadi added.He further discussed the potential demand for coal in the coming years, emphasizing that there is still a considerable demand for coal, especially from developing countries.“Countries in Southeast Asia and South Asia − particularly India, Pakistan, and Bangladesh − are attractive export markets because coal demand remains high in these areas,” he said.In the medium term, Setiadi remains hopeful about the demand for coal, both domestically and internationally, particularly in markets that are still open to the coal industry.“For the long term, we aim to secure demand both domestically and in regions that are relatively still receptive to the coal industry, such as the developing countries I mentioned earlier,” he said.Despite PTBA’s optimism, global coal demand is predicted to remain stable or even decline, primarily due to the rapid growth of renewable energy sources like wind and solar power.According to a recent report from the International Energy Agency (IEA), global coal consumption for power generation increased by 2.6 percent in 2023, reaching an all-time high driven by the two largest coal consumers, China and India.However, this increase was largely due to low hydroelectric power output amidst high electricity demand growth.“Our analysis shows that global coal demand is likely to remain stable through 2025, based on current policy settings and market trends,” Keisuke Sadamori, IEA’s Director of Energy Markets and Security, said as quoted by Reuters on July 24, 2024.He added that continued expansion of solar and wind power, combined with a recovery in hydroelectric output in China, is exerting significant pressure on coal usage.The IEA report also forecasts that coal demand growth in India will slow in the second half of 2024 due to seasonal weather conditions returning to normal and improvements in hydroelectric power generation.Meanwhile, coal-fired power generation in the European Union is expected to decrease by nearly the same amount in 2024 as it did in 2023, when it fell by more than 25 percent.In the United States, coal usage has significantly declined in recent years. However, stronger electricity demand and less switching from coal to natural gas could slow this trend in 2024.

Geo Energy aims to produce 25 million tonnes of coal a year from the acquired mineGeo Energy Resources has received USD 220 million in term loan facilities from Bank Mandiri to help fund acquisitions so that it can double down on the coal industry.The plans to secure the facilities, which will mature in five years, were first announced back in July 26 after a binding term sheet was signed.The loan is pegged to the Secured Overnight Financing Rate plus 3.25%, which works out to around 8.5% now based on current rates.Geo Energy's executive chairman and CEO Charles Antonny Melati calls the loan facilities a "key driver" for the company's growth following the "transformational acquisition" of a controlling stake in PT Golden Eagle Energy, a listed Indonesian coal mining group.The planned acquisition, first announced on July 26, will help increase Geo Energy's volume of coal reserves significantly, given how the PT Triayani mine now under Golden Eagle Energy has proved and probable reserves of almost 300 million tonnes."The loan facilities will provide the group with strong working capital and liquidity to unlock the value of these reserves," says Melati.The funding will help Geo Energy meet annual production target of 25 million tonnes."Securing these loan facilities at such significant quantum with competitive terms shows the strength of our financials and credit standing,” says Melati.Geo Energy closed on September 22 at 23 cents, unchanged for the day.

The Indonesian Mining Industry Holding BUMN (MIND ID) recorded a positive performance in the S1 2024 supported by mining commodity production and an increase in commodity prices in the global market.President Director of MIND ID Hendi Prio Santoso said the holding performance was quite positive in the first half of 2024 as reflected in net profit which reached 38 percent year on year (YoY) and EBITDA grew by around 31 percent compared to the S1 2023."This achievement was driven by the performance of all managed commodities, especially gold, copper, tin, coal, and aluminum which were very positive in 2024," he said in an official statement quoted on Sunday, September 1.Hendi said that the positive performance was also strengthened by MIND ID's strategy to carry out smart operations through automation, digitization and innovation in order to create efficiency in terms of operations.The Centralized Commercial Function (CCF) marketing strategy to integrate sales in the export market of all MIND ID Group Members has also increased positive performance in the first incident this year.Hendi explained that the production growth of a number of critical and strategic commodities was supported by an increase in commodity prices in the global market."MIND ID through Holding Members improves operational performance, including in terms of increasing production of mining commodities and their derivatives," he said.Hendi explained that such as PT Aneka Tambang Tbk (ANTM), for example, producing gold metal from the company's mines of 439 kg, feronikel (TNi) 10,169 tons, and 4.19 million wet metric tons (wmt) nickel ore in the S1 2024.Furthermore, PT Timah Tbk (TINS) which also recorded a steady performance with tin ore production of 10,250 tons, an increase of 32 percent compared to the same period last year of 7,755 tons. Meanwhile, PT Timah's metal production rose 19 percent to 9,675 tons in the S1 2024, compared to the same period last year of 8,100 tons.Then the positive performance was also from PT Bukit Asam Tbk (PTBA) which posted coal production in the first half of 18.8 million tons. The company also recorded sales of up to 20.1 million tons, up 15 percent compared to the same period the previous year of 17.4 million tons.Similar conditions were also obtained by PT Freeport Indonesia (PTFI), recording an increase in copper production of up to 932 million pounds. This volume grew 26.8 percent from the same period in 2023 at the level of 735 million pounds.Not only that, Hendi said that PTFI contributed to increasing gold production in the first half of this year, namely 982,000 ounces, an increase of 11.46 percent compared to the achievement in the S1 2023.Similarly, PT Vale Indonesia Tbk (INCO) also posted operational performance growth by producing 34,775 tons of nickel in facilitation. This realization grew 3 percent compared to the same period in 2023, namely 33,691 tons. This realization is supported by increased productivity and a short maintenance duration.Hendi said that MIND ID continues to strive to continue to improve performance, including controlling operating costs to production cost structures. This step was taken to maintain the positive performance achieved in recent years."We continue to strive to maintain the company's performance by utilizing technology and innovation to create the company's operational efficiency," he said.

PT Vale Indonesia Tbk (PT Vale) held its 2024 annual public expose as a demonstration of transparency and accountability to the public, particularly to its shareholders.Similar to the previous year, the public expose was conducted online as part of the Public Expose Live 2024 event organized by the Indonesia Stock Exchange (IDX).During the presentation, PT Vale reiterated its operational achievements and financial performance for the S2 2024 and the S1 2024, as previously published.In S2 2024, production volume decreased by 9 percent compared to the strong performance achieved in S1 2024. "This is a testament to the company's commitment to quality and maintenance planning, which is crucial for the long-term success of our operations," said PT Vale Indonesia CEO Febriany Eddy in an official statement on Monday, August 26, 2024.Febriany noted that on a year-on-year basis, PT Vale's production in S2 2024 was slightly lower by 2 percent, reflecting consistent performance. However, PT Vale's production in 1H24 was 3 percent higher compared to 1H23. This growth resulted from PT Vale's planned maintenance strategy and higher calcine output in 2024."We are optimistic about our production prospects and expect smooth operations through the end of the year. Our goal is to achieve a production target of approximately 70,800 metric tons of nickel in matte in 2024, up from last year's target," Febriany stated.In S2 2024, PT Vale's sales reached 17,505 metric tons of nickel matte, generating revenue of USD 248.8 million. This figure represents an 8 percent increase compared to the previous quarter, driven by higher average realized nickel prices in S2 2024.The average realized nickel price increased by 12 percent to USD 14,214 per ton in S2 2024, up from USD 12,651 per ton in S1 2024."Despite uncertain market conditions, we remain committed to optimizing production capacity, improving efficiency, and reducing costs," Febriany Eddy reported.Febriany explained that in line with the decline in shipments during the quarter, PT Vale's cost of revenue decreased from USD 209.8 million in S1 2024 to USD 207.3 million in S2 2024. The reduction in total cost of revenue was also supported by lower fuel and coal consumption in S2 2024, along with a decrease in coal prices.

PT Bukit Asam Tbk. (PTBA) is focusing on expanding its coal transportation capacity as part of its strategic plan for the next five years.Setiadi Wicaksono, SVP Management Office at PTBA, stated that this effort aims to accelerate the monetization of the company's coal reserves. According to company data, PTBA's coal reserves amount to 2.98 billion tons, with a resource base of 5.81 billion tons."As part of our efforts to accelerate coal monetization, we are focusing on the development of the Tanjung Enim to Keramasan project," Setiadi said during Pubex Live 2024 on Tuesday, August 27, 2024.Setiadi explained that the project is the result of a synergy between PTBA and PT Kereta Api Indonesia (Persero) or KAI. The partnership, formalized on October 12, 2023, focuses on developing the coal transportation route between Tanjung Enim Baru and Keramasan.This project is expected to increase PTBA's coal transportation capacity by up to 20 million tons per year. The groundbreaking for the coal handling facility was held on December 30, 2023."With this pipeline, we can add to the existing capacity, which currently stands at around 32 to 33 million tons per year, supporting the growth of both TE Tarahan and TE Kertapati," Setiadi added.For 2024, the company has set a coal production target of 41.3 million tons, accompanied by sales targets of 43.1 million tons and transportation targets of 33.7 million tons.To achieve these targets, PTBA has also entered into a partnership with PT Swarnadwipa Dermaga Jaya (SDJ), a subsidiary of PT Titan Infra Energy Group, which operates in the coal loading port services sector.Through this partnership, SDJ will provide logistics services for transporting coal from the Sungai Musi Loading Port to the mother vessel at Tanjung Kampeh Port. The coal transportation volume is targeted to reach approximately 2.5 million tons in 2024.

PT Aneka Tambang Tbk (Antam) through its subsidiary, PT Gag Nickel, is carrying out a significant strategic corporate action by acquiring part of the share ownership of Tsingshan Group’s subsidiary, Newton Internasional Investment Pte. Ltd.This step marks Antam’s strategic effort to strengthen its position in the global nickel industry.Antam’s Managing Director, Nicolas D. Kanter, confirmed this.“Antam plans to acquire ownership of the nickel processing smelter owned by the Tsingshan Group,” said Nicolas in an online public presentation held on Tuesday, August 27 2024.PT Gag Nickel, which operates as an exploration company and nickel mine operator on Gag Island, Raja Ampat, West Papua, has signed a Conditional Shareholders Agreement (CSPA) with Newton International Investment on May 3 2024.This step marks the beginning of an acquisition process aimed at to acquire partial share ownership in a nickel ore processing factory or smelter.Historically, the majority share ownership of PT Gag Nickel was previously controlled by Asia Pacific Nickel Pty. Ltd by 75%, while Antam only owns 25%. However, in 2008, Antam succeeded in acquiring all shares in Asia Pacific Nickel Pty. Ltd, so that PT Gag Nickel is completely under Antam’s control. Newton International Investment Pte. Ltd, a subsidiary of Tsingshan Group, is an entity focused on the stainless steel and nickel industries in China.With this corporate action, Antam is expected to strengthen its position in the global nickel value chain, especially in the context of increasing demand for nickel as the main raw material for the electric vehicle battery industry.Apart from this corporate action, Antam is also involved in a project to develop the electric vehicle (EV) battery ecosystem. This project involves strategic partnerships with Indonesia Battery Corporation and several international partners, such as the CBL Consortium (Contemporary Amperex Technology Co. Limited or CATL, Brunp, Lygend), as well as Hong Kong CBL Ltd. (HKCBL) which is a subsidiary of CATL.One of these development projects is located in Buli, East Halmahera, North Maluku, which has now entered the feasibility study finalization stage in July 2024.With these steps, Antam not only strengthens its position as a major player in the nickel industry, but also strengthens its role in the development of EV battery technology, which will be an important pillar in the global energy transition in the future.

PT BUMI Resources, Tbk (BUMI) has announced that it contributes one-sixth of the coal used by PT Perusahaan Listrik Negara (PLN) as an energy source, making it one of the largest coal suppliers for power generation in Indonesia."Coal continues to play a significant role in ensuring the availability of affordable electricity in Indonesia. Within this framework, BUMI has made a considerable contribution, with its Domestic Market Obligation (DMO) for coal exceeding 25 percent," said BUMI's Director & Corporate Secretary, Dileep Srivastava, in a statement received in Jakarta on Friday.Currently, most power plants worldwide still rely on coal as the cheapest fuel, particularly in the Asian region. Similarly, in Indonesia, the production of affordable electricity still requires coal as the primary energy source.Dileep stated that through its subsidiaries, BUMI supplied approximately 21 to 22 million metric tons of coal for domestic needs in 2023, which accounted for about 28 percent of the company’s total production of 77.8 million metric tons for that year.With these figures, BUMI contributes roughly one-sixth of PLN's coal requirements to power the nation's electricity. In the S1 2024, BUMI produced 37.7 million metric tons of coal, marking a 7 percent increase compared to the previous year’s 35.4 million metric tons.It is worth noting that BUMI owns coal mining subsidiaries, including PT Kaltim Prima Coal (KPC) in East Kalimantan, PT Arutmin Indonesia in South Kalimantan, and PT Pendopo Energi Batubara in South Sumatra."As part of BUMI's contribution to the nation, we are committed to consistently maintaining and fulfilling domestic supply. In addition to other contributions such as taxes and royalties to state revenues, CSR (corporate social responsibility) activities in socio-economic empowerment of communities, and tangible steps for environmental sustainability continue to be our focus," Dileep explained.Data from the Ministry of Energy and Mineral Resources (ESDM) shows that BUMI's two subsidiaries, PT Kaltim Prima Coal and PT Arutmin Indonesia, were among the top five companies with the largest DMO obligations supplying coal to PLN's power plants in 2023.

Indonesia is open to expanding cooperation in critical minerals for electric vehicle (EV) battery production with African countries. The Foreign Affairs Ministry's Director General of Asia, Pacific, and Africa, Abdul Kadir Jailani, at the press conference of the Indonesia-Africa Forum (IAF) here on Sunday, explained that Indonesia needs lots of critical minerals to produce EV batteries."To produce EV batteries, we need a lot of critical minerals, not just nickel, and we know that some African countries have critical mineral potential," Jailani stated.He also mentioned the ongoing cooperation in lithium, namely between state-run mining industry holding Mining Industry Indonesia (MIND ID) and Tanzania.He emphasized that it is not enough if Indonesia only depends on minerals that exist in the country."This energy cooperation is very beneficial for us because Indonesia needs critical minerals for energy transition, and we know that the supply can not only come from us," he said.In addition to Africa's enormous potential for critical minerals, Jailani mentioned the opportunities in trade cooperation.He explained that Indonesia's business relationship with Africa is currently low. Therefore, he said that it is time for Indonesia to strengthen its business relations with countries in Africa."It is time for Indonesia to reach out to Africa. We are changing our orientation; where we now see the African market as an untapped potential, it is time for us to optimize it," he said.Previously, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said he is considering Africa as an EV battery market in expanding Indonesia's electric vehicle industry."The population in Africa will double by 2045. It will be a big market," Pandjaitan said at the International Battery Summit in Jakarta on July 29th.

PT PLN (Persero) has introduced the Renewable Energy Certificate (REC) service as part of its efforts to support the use of environmentally friendly energy.This initiative has been gaining traction, as evidenced by the growing number of REC customers.Most recently, PLN provided 275 REC units to PT Agincourt Resources, a gold mining company. This amount is equivalent to 275 Megawatt hours of electricity generated from renewable energy sources.The agreement was formalized with a power purchase agreement between PLN's North Sumatra Distribution Main Unit (UID Sumatra Utara) and PT Agincourt Resources in Medan on Tuesday, August 13.PLN President Director Darmawan Prasodjo stated that this collaboration demonstrates PLN's commitment to working with industry players to support the clean energy transition in Indonesia."This REC sale not only shows PLN's commitment to supporting green energy but also strengthens its position as a key partner in realizing a green industry in Indonesia," said Darmawan.Darmawan emphasized that PLN is fully committed to supporting the competitiveness of national industries by promoting the use of environmentally friendly clean energy."We are offering a 100% green electricity service option, supplied by our renewable energy power plants through REC," he added.He also noted that REC is a service that simplifies the process for customers to gain recognition for using renewable energy in a transparent, accountable, and internationally recognized."Each REC certificate verifies that the electricity used by the customer comes from renewable energy sources. We highly appreciate companies that initiate the use of REC as part of their efforts to support the energy transition in Indonesia," Darmawan stated.Saleh Siswanto, General Manager of PLN UID North Sumatra, expressed appreciation for PT Agincourt Resources' decision to use PLN's REC service.He noted that this demonstrates the positive reception of PLN's green product innovation by customers, including PT Agincourt Resources.Saleh highlighted that the use of REC aligns with the company's commitment to reducing carbon emissions and supporting the creation of a green industry in North Sumatra."With a purchase of 275,000 units, this is the largest achievement outside of Java.We thank PT Agincourt Resources for their trust in PLN," Saleh said.He further assured that PLN is prepared to meet the electricity needs of customers participating in the use of clean energy."We are confident in delivering high-quality and reliable electricity supply in every production process.PLN is also ready to support PT Agincourt Resources' electricity needs to help increase their production," Saleh added.Jingga Ajani, Senior Manager Commercial of PT Agincourt Resources, stated that the purchase of REC is a demonstration of Astra Group's support for the government's program towards Net Zero Emissions by 2060."The purchase of these Renewable Energy Certificates (RECs) is in line with Astra Group's target to achieve Net Zero Emissions (NZE) by 2060 and decarbonization by 2030."We are committed, together with PLN, to using clean energy and fostering a better environment for the future," said Jingga.

The coal mining company jointly owned by the Salim Group and the Bakrie Group, PT Bumi Resources Tbk. (BUMI), reported coal reserves of approximately 2.4 billion tons as of mid-2024, with an estimated resource potential reaching 6.81 billion tons.These figures come from BUMI's subsidiaries, PT Kaltim Prima Coal (KPC), PT Arutmin Indonesia (Arutmin), and assets in Pendopo."Our total reserves are 2.4 billion tons, and with the current production level of 80 million tons annually, this reserve will last for a considerable period, offering significant potential for further development," said BUMI's VP of Investor Relations & Chief Economist, Achmad Reza Widjaja, during a webinar hosted by Indonesia Investment Education (IIE) on Saturday (August 24, 2024).Specifically, KPC reported coal reserves of 721 million tons, while Arutmin recorded reserves of 327 million tons. Additionally, BUMI's assets in Pendopo are estimated to have reserves of around 1.3 billion tons.Reza also mentioned that the company continues to conduct further exploration on several concessions currently held by BUMI's business entities."We are still conducting exploration studies to determine whether the economic value of the coal justifies its development," he said.Earlier, BUMI reported an increase in net profit for S1 2024, despite a significant decline in revenue. According to the financial report, BUMI's net profit was recorded at USD 84.91 million (approximately IDR 1.38 trillion, using the JISDOR exchange rate of IDR 16,294 per USD).This profit represents a 3.76% year-on-year (YoY) increase compared to S1 2023, which was USD 81.82 million (around IDR 1.33 trillion).However, the company's revenue decreased by 32.76% YoY to USD 595.84 million (around IDR 9.70 trillion) in the first six months of 2024, compared to the same period last year, which was USD 886.27 million (approximately IDR 14.44 trillion).In line with the revenue decline, BUMI's cost of goods sold also decreased by 30.3% to USD 542.1 million, compared to USD 777.61 million during the same period in 2023.As a result, BUMI's gross profit dropped by 50.5% to USD 53.74 million, compared to USD 108.65 million in S1 2023. The company's cash and cash equivalents at the end of the period were recorded at USD 55.77 million, down from USD 87.21 million in the same period the previous year.According to the balance sheet, BUMI's total assets were recorded at USD 4.21 billion at the end of June 2024, compared to USD 4.20 billion at the end of December 2023.The company's liabilities amounted to USD 1.34 billion, down from USD 1.42 billion at the end of 2023. Meanwhile, BUMI's equity stood at USD 2.86 billion, compared to USD 2.77 billion at the end of 2023.