Nickel prices hit a seven-month high on Friday, driven by market talk of Chinese plans to buy the metal for state stockpiles and worries about tighter supplies from top exporter Indonesia.Three-month nickel CMNI3 on the London Metal Exchange (LME) was up 3.7% at USD 19,250 a metric ton at y 1358 GMT. The metal, used in stainless steel and electric vehicle batteries, hit USD 19,440 earlier, which is its highest since September.Nickel was boosted by market talk that China’s stockpiler, the National Food and Strategic Reserves Administration, was planning to buy nickel pig iron (NPI), the main feedstock for stainless steel as industry sources said.One nickel industry source said they had heard China’s stockpiler was seeking 200,000 tons of NPI. The source, who asked not to be named, said it was not known how much China would pay or which firms would provide the nickel.However, two other industry sources said the number was significantly lower and put the amount China was seeking at 20,000 tons of NPI. NPI contains about 10% of nickel on average.The National Food and Strategic Reserves Administration did not immediately respond to a request for comment.Meanwhile, Indonesia, the world’s biggest nickel producer and a major supplier to China, is still reviewing applications for mining quota approvals and is yet to issue the permits in full.“Ore supplies are incredibly tight in Indonesia. That is again constricting production,” the first source said.Every week, nickel prices were heading for an 8% increase, their biggest weekly gain in ten months, due to upbeat sentiment towards base metals MET/L and supply concerns after Washington and London decided to prohibit the LME and CME from accepting newly-made Russian nickel, aluminum, and copper.Image source: doc. CME GroupSource: https://www.hellenicshippingnews.com/nickel-price-hits-seven-month-high-on-talk-of-chinese-government-buying/ 

Officials from the State-Owned Enterprises (SOEs) Ministry visited PT Timah in Bangka Belitung Islands province to ensure the smooth running of business processes in the state tin mining company."Our visit is to learn about the company's business, performance, and strategic steps, as well as the challenges faced in running business," said Muhammad Khoerur Roziqin, Assistant Deputy for Mineral and Coal Industry in a written statement on Saturday.He urged Timah to stay focused on its operations so that it can make an optimal contribution to the nation.Meanwhile, Akhmad Fazri, the finance director at the state mining industry holding company MIND ID, said that his company wants Timah to return to its former glory and current market dynamics."Given these dynamics, MIND ID and the SOEs Ministry want to see PT Timah recover with the government's regulatory support. Now, tin has been listed as a strategic mineral. This is to secure the mining business with the regulation," Fazri said.He expressed the hope that Timah's transformation can bring tin back to its golden days.Timah President Director Ahmad Dani Virsal spoke about the company's business processes, performance, global tin business map, Indonesian tin ecosystem, and the strategic issues faced.He also outlined proposals for improving tin governance."Indonesia is one of the world's tin producers, but there are many dynamics that have occurred in this tin mining business since a long time ago," he said.He also praised the government, which has supported the improvement of tin governance and industry in the country. Image source: ANTARA / HO-Humas PT Timah TbkSource: https://en.antaranews.com/news/311304/soes-ministry-visits-timah-eyes-smooth-tin-mining-operations 

Coal prices crept up again on Tuesday (26/3). The price increase is the result of increased demand as well as imports from China.Quoting Trading Economics, coal prices crawled up 2.06% to USD 136.50 per ton on Tuesday (16/4) at 16:30 WIB. In a week, coal prices have climbed 6.47%.Commodity observer and Founder of Traderindo.com, Wahyu Tribowo Laksono said, the increase in coal prices is still quite reasonable. The trigger is the increasing demand from coal-fired power plants in China and the surge in demand from India.Wahyu said that China's imports of all types of coal from the cross-sea market reached 97.43 million metric tons in the first quarter of 2024, up 16.9% from 83.36 million tons in the same period in 2023.China began implementing a surge in coal-fired power plant licenses in line with a wave of electricity shortages in 2021.Wahyu also estimates that coal prices will trade in the range of USD 100-USD 150 per ton at the end of the first quarter of 2024. Meanwhile, in the second quarter of 2024, coal prices will move at USD 80-USD 200 per ton.Meanwhile, Commodity and Currency Analyst Lukman Leong said, the increase in coal prices was also supported by high crude oil prices and concerns about the escalation of wars in the Middle East.If the war intensifies, the price of crude oil could reach USD 100 per barrel. "This will help hoist coal prices to the level of USD 150-USD 160 per ton," Lukman told KONTAN on Tuesday (16/4).However, Lukman said, if the war or geopolitical conditions are not intensive, then the strong US dollar, resulting from the reduced prospect of interest rate cuts by the Fed, will again pressure coal prices to the level of USD 120 per ton.With that assumption, coal prices at the end of 2024 could be at the level of USD 130-USD 140 per ton. Image source: ANTARA / Syifa YulinnasSource: https://investasi.kontan.co.id/news/laju-harga-batubara-tak-terbendung-di-tengah-menguatnya-permintaan 

PT Royaltama Mulia Kontraktorindo Tbk (RMKO) recorded an increase in operating revenue of 47.4% Year-on-Year (YoY), reaching IDR 272.4 billion. The revenue came from the mining services segment which accounted for 52.2% of total income, followed by rental and construction with respective contributions of 23.3% and 24.5%.RMKO President Director Vincent Putra said that until the end of the 2023 period, on average, the company has achieved 102.5% of the target, which has been adjusted in the second semester due to operational obstacles that occurred in the third quarter of 2023.In addition, RMKO also recorded an EBITDA growth of 64.0% YoY to IDR 76.1 billion. The company's net profit in the fourth quarter of 2023 increased sharply by 193.4% YoY to IDR 18.1 billion, bringing the net profit for the year to IDR 19.8 billion.In terms of capital, the company increased its capital by 111.3% YoY to IDR 246.3 billion. However, liabilities also increased drastically by 151.8% YoY to IDR 535.2 billion, mainly due to an increase in financial debt which reached 284.0% YoY to IDR 259.9 billion for investment and working capital purposes.Vincent added that along with these investment activities, the company's assets also increased by 131.4% YoY to IDR 535.2 billion.In 2023, RMKO faced operational bottlenecks as its main client, RMKE's in-house mine, was affected by administrative sanctions from the regulator. Nevertheless, RMKO managed to optimize its financial performance at the end of the year by working on a new business segment, namely the construction of hauling road mining support facilities."In the short remaining time, RMKO managed to optimize financial performance at the end of 2023 supported by a new business segment, namely the construction of hauling road mining support facilities," said Vincent Saputra.Nathania Pricilla Saputra, Finance Director of RMKO, highlighted the impact of operational constraints on the mining segment in 2023. "However, we are grateful that we can still maintain our financial performance in this investment phase with the rental and construction segments supporting our financial performance in 2023," she said.In 2024, RMKO plans to collaborate with potential mines in South Sumatra and surrounding areas to increase the volume of mining services and the performance of the rental and construction segment. Image source: Bisnis.com / Artha AdventySource: https://market.bisnis.com/read/20240419/192/1758673/pendapatan-royaltama-mulia-rmko-naik-47-ke-rp2724-miliar 

Gold mining company, PT J Resources Asia Pasifik Tbk (PSAB) found a new gold prospect in the working area of its subsidiary, PT J Resources Bolaang Mongondow (JRBM).President Director of PSAB, Edi Permadi said, this finding is from a review of regional data and initial field exploration results within the JRBM Contract of Work area for 2023.He explained that the finding is quite promising and has a significant opportunity to be continued to the detailed exploration stage up to the development of a new mining area or pit.The Bakan mine, which began operating in 2013, with the current number of resources, has a remaining 4-year mine life."The discovery of this new gold prospect is expected to be an option to increase the life of the Bakan Mine or even be developed as a new mine," said Edi in an official statement on Friday (19/4).Furthermore, initial exploration in the form of geological mapping, surface sampling, initial geophysical surveys, ASD (analytical spectral device) studies, metallurgical sampling, initial surveys with drones, and initial modeling was carried out in 2023.Edi said the initial exploration activities have been completed in an area that obtained a Borrow-to-Use Forest Area Permit (IPPKH) for exploration activities from the Ministry of Environment and Forestry (KLHK) in 2023.The results of geological mapping and surface sampling in 2023 show a large area of gold mineralization. In addition, the field mapping and surface sample analysis results show a fairly long mineralized area of more than 1.4 km.Some surface sample results show a 27-meter-long gold mineralization with an average grade of 1.3 g/t at the 1st channel sampling location. Similarly, the 3rd and 5th channel sampling sites show intense gold mineralization, 10m long with an average grade of 1.78 g/t and 5m long with an average gold grade of 2.64 g/t.A review of initial drilling results also showed good results, in both lateral spread, subsurface vertical spread, and gold mineralization grade. A total of 5 drill holes totaling 527.5m were completed during the initial exploration drilling phase.This initial drilling data resulted in a fairly long spread of gold mineralization and a fairly high average gold grade. Drill hole number 2 returned a 14m strike length of gold mineralization with an average gold grade of 2.25 g/t.Drill hole number 4 produced a very high grade, with a strike length of 11.1m and an average gold grade of 12.42g/t. Drill hole 5 also showed good results, with a strike length of 6.05m with an average gold grade of 2.07g/t.Resource modeling and preliminary metallurgical tests have also been carried out, and show very positive results, including a sizeable exploration target, leaching extraction >88%, and oxide-type gold with QLT (quick leach test) values of more than 80%. The preliminary data shows a very promising prospect to be developed into a mine."We hope this discovery can provide added value for PSAB, shareholders, and stakeholders," Edi concluded. Image source: Kontan / doc. J ResourcesSource: https://industri.kontan.co.id/news/j-resources-psab-temukan-prospek-tambang-emas-baru 

PT Freeport Indonesia (PTFI) has allocated around IDR 3.35 trillion of its net profit in 2023 to the Central Papua Provincial Government, producing districts, and other districts in Central Papua Province.PTFI's President Director, Tony Wenas, detailed the IDR 3.35 trillion funds divided into Central Papua Provincial Government around IDR 839 billion, and Mimika Regency Government around IDR 1.4 trillion. Meanwhile, other regencies in Central Papua province, namely Nabire, Paniai, Puncak, Puncak Jaya, Dogiyai, Deiyai, and Intan Jaya regencies each received IDR 160 billion."The payment of the regional share of net profit is the realization of the company's commitment to encourage economic improvement of local governments," Tony said in a written statement on Wednesday (17/4/2024).Tony explained that in 2023 PTFI managed to produce 1.65 billion pounds of copper and 1.97 million ounces of gold. From PTFI's operating performance, PTFI managed to score a net profit of USD 3.16 billion, equivalent to IDR 48.79 trillion (assuming IDR 15,439 per USD).Overall state revenue in the form of taxes, royalties, dividends, and other levies reached more than IDR 40 trillion in 2023, including contributions to the regions reaching more than IDR 9 trillion.Tony added that PTFI continues to be committed to providing benefits to communities around its operational areas through various social investment programs. In 2023, the value of PTFI's social investment reached nearly IDR 2 trillion and will continue to grow by around USD 100 million or IDR 1.5 trillion per year until 2041."Our success as a company is when the communities around our operational areas improve their standard of living and welfare. We will continue to grow and develop with Papua until the completion of mining operations in 2041," Tony said. Image source: CNBC Indonesia / Wahyu DanielSource: https://www.cnbcindonesia.com/news/20240417144243-4-531032/freeport-cetak-laba-rp-48-t-di-2023-rp-335-t-dibagi-ke-daerah 

Indo Tambangraya Megah Tbk (ITMG) said that coal mining activities from January to March 2024 were a continuation of activities carried out by 4 subsidiaries in the previous month period through their subsidiaries.Monika Ida Krisnamurti, Corporate Secretary of ITMG, in a written statement (8/4) said that the four subsidiaries, namely PT Indominco Mandiri, PT Trubaindo Coal Mining, PT Bharinto Ekatama, and PT Jorong Barutama Greston, spent IDR 11.85 billion.The exploration activities were carried out by the Geology Department with a focus on preproduction and development drilling activities using the Open hole drilling and Coring methods in PT Indo Tambangraya Megah Tbk (ITM)’s subsidiary.Trubaindo Coal Mining conducts exploration in the South Block area located in Muara Lawa District, West Kutai Regency, East Kalimantan Province has been carried out by the Drilling Service Contractor PT Cosyindo Teknik (CT).In the period January - March 2024, preproduction drilling activities have been carried out on South Block (SB2), while South Block (SB3) is still waiting for the Exploration PPKH permit to be approved by the Ministry of Environment and Forestry for IDR 1,099,625,486.Meanwhile, PT Indominco Mandiri's drilling operations are carried out in the West Block and East Block located in Sangatta District, East Kutai Regency, Marang Kayu District, Kutai Kartanegara Regency and North and South Bontang District, Bontang Regency, East Kalimantan Province, carried out by the Drilling Contractor PT Geryndo Utama (GU) using four (4) Jackro 175 units.In January - March 2024, PT Indominco Mandiri only conducted drilling activities in the West Block in the form of pre-production drilling of 78 holes with a depth of 5,857 meters in the form of open hole drilling of 54 holes with a depth of 5,672 meters and coring drilling of 24 holes with a depth of 185 meters in the area of pit 24, pit 13HWPB and pit SWB.Meanwhile, there was no drilling activity in the East Block. In the preproduction drilling activities, 149 ply samples were taken. To support mining activities during January - March 2024, 361 coal samples were taken from the existing pit and ROM areas. The total drilling cost for January - March 2024 is IDR 1,913,598,364.The Drilling Operations of PT Bharinto Ekatama are located in Damai Sub-district, West Kutai Regency, East Kalimantan Province and East Teweh Sub-district, North Barito Regency, Central Kalimantan Province with a working area of 17,311 Ha as contained in the attachment to the letter of the Director General of Mineral and Coal dated April 12, 2017 (the previous area was 22,000 Ha).The working area is divided into three main areas (blocks), namely the Biangan Block covering 4,707 Ha (East Kalimantan and Central Kalimantan), the Lempenang Block covering 7,943 Ha (East Kalimantan and Central Kalimantan), and the Tenaik Block (previously named Skidding Block) covering 4,661 Ha (all East Kalimantan).In the period January - March 2024, PT Bharinto Ekatama carried out pre-production drilling activities in the Lempanang Block in 130 drill holes with a depth of 7471 meters for the Open Hole and 9238 meters of the core drill (Coring) and exploration activities on the Tenaik Block with an Exploration PPKH permit in 2023, for drilling activities, exploration drilling has been carried out in 78 drill holes with a depth of 9341 meters for Open Hole and 506 meters of core drill (Coring) for IDR 8,844,936,194. Image source: doc. Indo Tambangraya Megah Tbk (ITMG)Source: https://emitennews.com/news/indo-tambangraya-itmg-rogoh-dana-eksplorasi-rp118m-ini-rinciannya 

United Tractors, a heavy equipment distributor, forecasts that coal prices this year will remain slightly above USD 100 (IDR 1.56 million), a decline from last year's USD 170 average due to slowing demand from China and India.Frans Kesuma, President Director of United Tractors, revealed that after experiencing high price volatility with an average Global Coal Newcastle Index (GCNI) price of USD 360 per ton in 2022, coal prices continued to decline and reached a new low in 2023.The GCNI coal price touched USD 122 per ton in November 2023, down 72 percent from the peak price of USD 434 per ton in September 2022, before experiencing an increase in December 2023 driven by rising natural gas prices due to tensions in the Middle East as a result of the Israel-Hamas conflict."The drop in coal prices is mainly due to a decrease in import demand from China and India, the two largest coal consumers in the world," explained Frans Kesuma in United Tractors' (UNTR) 2023 annual report.He said that China, still experiencing an economic slowdown, is trying to reduce imports and fulfill most of its coal needs from domestic mining production. The same situation also applies to India.The decrease in natural gas prices has also caused a decline in coal demand in Europe. Gas prices have gradually returned to normal since late 2022, prompting several European countries to reactivate gas-fired power plants to replace coal-fired power plants.Despite the continued decline, Frans mentioned that the average GCNI coal price in 2023 still stood at USD 173 per ton, higher than USD 142 in 2021.Based on the existing trends, analysts believe coal prices will reach a new equilibrium. The higher average GCNI coal price in 2023 compared to pre-pandemic levels suggests that a new price equilibrium will be formed above the psychological threshold of USD 100 per ton. During January-March, the average coal price ranged between USD 110 and USD 120 per ton."For coal mining businesses, this price level is still quite profitable as long as mine productivity and efficiency can be managed properly," said Frans.Frans also noted that coal prices strengthened starting from November 2023, nearing USD 130 per ton. If the Middle East conflict remains stable, prices are expected to dip in 2024 and 2025 but stay above pre-pandemic levels. This projection factors in slowed consumption growth in those years, with rising demand from China and India but declining demand in the US and Europe.Frans stressed that Turangga Resources, United Tractor's coal mining arm, will navigate market uncertainties by optimizing sales prices and quantities while staying prepared for further price declines.In 2023, Turangga Resources recorded coal sales of 11.8 million tons, including 2.5 million tons of coking coal, a 19 percent increase from 2022's 9.9 million tons.United Tractors' coal mining division reported a net income of IDR 30.5 trillion in 2023, down 2 percent from IDR 31.1 trillion in 2022.Indonesia targets coal production of 922.14 million tons this year, following a record-high output of 775 million tons in 2023, exceeding the target of 694.5 million tons. Coal exports totaled 518 million tons, with the rest allocated for domestic demand. However, export values dipped by 29.76 percent in January 2024 compared to the previous year, amounting to USD 2.41 billion.  Image source: Antara Photo/Andri SaputraSource: https://jakartaglobe.id/business/united-tractors-predicts-coal-prices-to-hover-above-100 

PEFINDO assigned an idA rating to Bond I Year 2024 issued by PT Merdeka Battery Materials Tbk (MBMA) with a value of IDR 1.5 trillion. Simultaneously, PEFINDO affirmed the idA rating for MBMA. The outlook for the company's rating is stable. The rating reflects MBMA's vertically integrated operations, strong synergies with the group and strategic partners, and adequate mining reserves and resources. However, the ratings are limited by the risk of developing new projects and exposure to fluctuations in nickel prices. PEFINDO stated that the ratings could be upgraded if MBMA strengthens its business diversification, including adding downstream projects in the electric vehicle battery raw material value chain business.  The ratings could also be upgraded if MBMA successfully operates its new projects on time and generates higher revenue than projected by improving profitability indicators, which will positively impact its financial profile on a sustainable basis. However, PEFINDO also emphasized that the ratings could be downgraded if MBMA records lower revenue and profit margins than projected due to the non-achievement of performance targets from the new projects or a significant decline in nickel prices. The ratings could also be downgraded if MBMA adds substantial debt to finance new projects without being offset by higher revenues and EBITDA. MBMA is the parent company of several entities operating in the Indonesia Morowali Industrial Park (IMIP), including three Rotary Kiln Electric Furnace (RKEF) smelters, one nickel matte converter, and an Acid Iron Metal (AIM) project, as well as a nickel mine in Konawe. The company is also working on building High Pressure Acid Leaching (HPAL) plants at IMIP and Konawe. Data as of September 30, 2023, shows that MBMA's shareholders consist of PT Merdeka Energi Nusantara (50.03%), Huayong International (Hong Kong) Limited (7.55%), Winato Kartono (5.43%), and the rest is owned by the public (27.57%).Image source: doc. PT Merdeka Battery Materials Tbk (MBMA)Source: https://www.emitennews.com/news/pefindo-sematkan-ida-obligasi-merdeka-bettery-mbma 

The Ministry of Energy and Mineral Resources (ESDM) is targeting the divestment process of 14% of PT Vale Indonesia Tbk (INCO) shares to finish in July 2024.Minister of Energy and Mineral Resources Arifin Tasrif said that before completing the divestment process, the government will finalize the extension of Vale Indonesia's Special Mining Business License (IUPK) first.According to him, there are several considerations related to the issuance of the IUPK, namely if it does not have one, it will be difficult to get approval from the Financial Services Authority (OJK) due to high uncertainty."(Both) parties (MIND ID and PT Vale Indonesia) agreed that the IUPK should be issued before the divestment of shares, the conditional sales and purchase agreement is binding, and there is anti-trust approval from several countries to see the government's seriousness in issuing the IUPK for PT Vale Indonesia," Mr Arifin said in a press release on Sunday (7/4).Arifin continued, that the draft IUPK license extension has been sent to the Minister of Investment/Head of the Investment Coordinating Board through letter number T-154/MB.04/MEM.S/2024 dated March 22, 2024, regarding Introduction to the Granting of IUPK as a Continuation of PT Vale Indonesia's Contract / Agreement Operations.Previously, the Ministry had conducted an evaluation related to the technical administrative aspects of the environment, finance, and company performance. Arifin added that as one of the approvals for the determination of the entire area development plan (PPSW) to apply for a contract extension to IUPK, PT Vale Indonesia is obliged to carry out investment commitments and their financing. "What has been agreed is the investment project for the Sorowako nickel mine and HPAL of USD 2 billion which will start-up in 2027, then investment in the nickel mine and HPAL in Pomalaa of USD 4.6 billion which will start-up at the end of 2026, and investment in the Bahodopi nickel mine and RKEF of USD 2.6 billion which will start-up in 2026," he added. The flow of the divestment process is expected to be completed in July 2024 with several milestones, namely on April 19, 2024, an extraordinary general meeting of shareholders (EGMS) will be held. Then, on June 5, 2024, there will be a rights issue confirmation by the OJK. June 21-27, 2024 is the rights issue period, and July 1, 2024, is the allotment of share distribution. Kontan noted that Vale Indonesia Management hopes that the IUPK document from the government can be issued soon. With this IUPK, certainty related to the company's future investment plans will be guaranteed. Vale Indonesia Senior Manager Communication Bayu Aji said that Vale has not received the IUPK document, but all the requirements have been fulfilled. Vale is still waiting for the IUPK document as it is still in the hands of the government."At the moment, we have not received the documents and it is hoped that it will be soon," said Bayu in Jakarta, some time ago. He explained that the IUPK will provide assurance and certainty of investment plans amid Vale Indonesia's efforts to develop three new nickel smelter projects with a total investment of USD 9 billion in South Sulawesi (Sorowako), Southeast Sulawesi (Polamaa), and Central Sulawesi (Bahodopi). Image source: KONTAN / doc. INCOSource: https://investasi.kontan.co.id/news/divestasi-vale-indonesia-inco-ditargetkan-kelar-pada-juli-2024-1