PT Vale Indonesia Tbk (INCO) reported an increase in operational performance throughout 2023. INCO produced 70,728 metric tons of nickel in matte in 2023. The production increased by 18% from 2022's production of 60,090 tons of nickel matte."Despite facing various challenges throughout the year, we managed to exceed our production target for 2023," explained Febriany Eddy, CEO and President Director of Vale Indonesia in information disclosure on the Indonesia Stock Exchange (IDX), Sunday (11/12).The production in the fourth quarter of 2023 reached 19,084 tons of nickel in matte. This amount was 6% higher than the production volume recorded in the third quarter of 2023 which amounted to 17,953 tons of nickel matte. The realization was also up 18% year-on-year (YoY) at 16,183 tons in the fourth quarter of 2022.According to Febriany, the production increase was the outcome of an effective maintenance strategy and improved performance at the mine area and processing plant throughout 2023. This led to higher production quarterly.INCO estimates nickel matte production this year at 70,000 tons. This figure is unchanged from last year's production estimate.Bernardus Irmanto, Chief Financial Officer of Vale Indonesia, said that there are two factors why production tends to be similar. First, the maintenance level of mining equipment, in which the number of days used for equipment maintenance will increase this year. This condition will affect the equipment availability for mining production.Second, the levels of production also consider the nickel grade in the mining area affecting the output. "[If normalized,] we have the chance to produce more. But given these two factors, the feasible production level is at 70,000 tons," explained Irmanto.Irmanto claimed that INCO is striving to maintain its equipment optimally to increase the utilization rate of its equipment, which will lead to higher production in the coming year. INCO also strives to obtain better nickel ore grades for better production output.Mirae Asset Sekuritas Indonesia analyst Rizkia Darmawan gives a buy trading recommendation on INCO shares with a price target of IDR 4,900 per share. Such a target price implies an 11.7 times price-to-earnings (P/E) ratio for 2024.Rizkia sees INCO's upside potential to be limited in the short term until the completion of its smelter projects in 2026. However, Rizkia is positive about the development of INCO's projects, which will meet the needs of Indonesia's downstream nickel industry and will support the electric vehicle (EV) supply chain.Mirae Asset Sekuritas estimates nickel prices will remain high, although they will not rise higher. According to the firm, Indonesia has a large supply of grade II nickel, and global economic activity is still slow, mainly in China.The average selling price (ASP) historically reflects around 75% of the London Metal Exchange (LME) benchmark price. Therefore, Mirae Asset assumes that INCO's ASP will be around USD 13,850 per ton this year.However, risks are looming over this recommendation, including delays in project implementation, further nickel price declines coupled with rising fuel and energy prices, and changes in government regulations.Image source: Antara Foto / JojonSource: https://investasi.kontan.co.id/news/produksi-nikel-matte-vale-indonesia-inco-naik-18-sepanjang-2023 

Freeport-McMoran Inc (FCX) appointed Kathleen L. Quirk as President and Chief Executive Officer (CEO) to replace Richard C. Adkerson.This decision was announced on February 6, 2024, as reported by Freeport-McMoran's official website, effective at the annual shareholders meeting on June 11, 2024. Richard C. Adkerson will remain Chairman of the Board of Directors to support Freeport's leadership and business transition on strategic matters of importance to the company.Independent CEO Dusty McCoy said the company has been discussing the successor to Richard C. Adkerson for some time.Kathleen's 35-year track record within the company is considered to be one of her strengths. "During her 35-year career with the company, she has extensive knowledge of Freeport's business and operations, its human resources and culture, and is highly qualified to lead Freeport as CEO," McCoy said, quoted on Sunday (11/2).  The board thanked Richard for his 20 years of leadership, McCoy continued.Richard is recognized for establishing Freeport as a global leader in the copper industry, creating value for stakeholders, and building a strong organization and high-performance culture."Richard's continued commitment in supporting the company on the global issues of strategic importance to Freeport and the copper industry will continue to provide significant value," McCoy added. Kathleen joined Freeport in 1989 and was responsible for various corporate functions, including Tax, Investor Relations, Corporate Development, and Treasury, before being named Chief Financial Officer in 2003.Kathleen was appointed President of FCX in 2021 and became a member of the Board of Directors in 2023. As a senior member of the company's executive team for more than 20 years, Kathleen has been instrumental in Freeport's strategic planning and execution of corporate objectives. Kathleen expressed that she is excited to lead FCX with the support of the highly talented global team that is committed to the company's mission of providing copper and other metals necessary for life and the global economy responsibly and efficiently. "I look forward to continuing to enhance value for our stakeholders through the execution of our robust plan and the application of innovation and new technologies to improve efficiency and grow our business through expanding our large resource base to serve an ever-widening market for our products," Kathleen said. Meanwhile, Richard expressed his gratitude for the chance to lead Freeport for the past 20 years. While appreciating the team’s performance, Richard supported Kathleen's appointment as the new CEO. "Kathleen's strong and strategic business sense and increasing responsibilities over the years have demonstrated that she has the skills to lead our company and continue Freeport's tradition of excellence," Richard concluded.Image source: Ilustrasi KONTANSource: https://industri.kontan.co.id/news/freeport-mcmoran-tunjuk-kathleen-l-quirk-gantikan-richard-adkerson-sebagai-ceo 

Minister of Energy and Mineral Resources Arifin Tasrif said the bauxite alumina smelter facility currently developed by PT Indonesia Asahan Aluminum (Inalum) will be completed by the end of 2027.The statement was made after attending a closed meeting chaired by President Joko Widodo at the Presidential Palace, Jakarta, on February 5."We will build the smelter processing facilities at Inalum. It will be completed in 2027," Arifin said after the meeting, on Monday, February 5, 2024.The project will use clean energy supported by PLN. "It is full of clean energy," Arifin emphasized.Arifin did not specify the project in question. However, it is thought to be related to the Mempawah Smelter Grade Alumina Refinery (SGAR) in West Kalimantan, which is said to have reached 80 percent as of mid-December 2023. The project had been stalled for several years due to contractor disputes. The SGAR smelter is expected to produce one million tons of alumina annually with an estimated bauxite raw material of 3.3 million tons per year.Image source: Metro TV News / doc. MIND IDSource: https://www.metrotvnews.com/read/k8oC699A-indonesia-bakal-punya-smelter-bauksit-di-2027 

Managing Director of Energy Shift Institute Putra Adhiguna assessed that Indonesia needs to increase its battery production capacity, as it is estimated that it will only have 10 gigawatt hours (GWh) or less than 0. 4% of global battery production capacity by 2024."The Energy Shift Institute estimates that Indonesia will only have 10 gigawatt-hours (GWh) or less than 0. 4% of global battery production capacity, 2,800 GWh," Putra said, as reported by Antara, Friday, February 9, 2024.According to Putra, the added value of Indonesia's nickel products ranges from two to 11 times that of its raw products. However, this value is still far below the added value which is more than 60 times if it reaches battery production.Putra continued, that the policy construction aims to improve the competitiveness of Indonesian nickel rests on the promise of developing the battery and electric vehicle industries.Semi-Finished ExportersUnless Indonesia's battery production capacity is increased, Putra believes Indonesia will only shift from an exporter of nickel products for stainless steel to an exporter of semi-finished products for the battery industry."It is important for the various parties involved not to underestimate the scale of future growth because the world's battery-based electric motor vehicle revolution has just entered its early stages," he said.Regarding the rapid growth of nickel-free batteries and the debate over the future of nickel, Putra said that the global demand for nickel for batteries is likely to continue to soar.The increase, he said, could occur along with the rate of adoption of battery-based electric motor vehicles despite the presence of alternative technologies. "It is important to note that in a fast-growing sector, absolute growth figures are more important than market share," Putra said.Apart from nickel, Putra believes that what often goes unnoticed is the increase in cobalt production by Indonesia as the second-largest cobalt producer in the world. "This further emphasizes the importance of optimal natural resource management," he said.Image source: Medcom / AFPSource: https://www.medcom.id/ekonomi/sustainability/gNQ448vK-indonesia-perlu-naikkan-kapasitas-produksi-baterai 

PT PLN is supporting mineral downstream by supplying an additional 60 Megavolt Ampere (MVA) of power for PT Freeport Indonesia's copper smelter in Gresik Special Economic Zone (SEZ), East Java. PLN has also supplied the first phase of 30 MVA power in September 2023.PLN President Director Darmawan Prasodjo said that PLN fully supports the government's efforts to encourage the downstream of the mineral industry through the provision of reliable electricity at competitive prices. Downstream, he said, is a strategic step to increase the value of mineral commodities and boost national economic growth."PLN realizes that the presence of electricity is an important factor for industrial activities. Moreover, downstream of the mineral industry requires electricity with large and reliable power," Darmawan said in an official statement on Thursday (9/2).Darmawan added that his team is ready to meet the electricity needs of the mineral industry sector, which continues to increase every year. This is consistent with PLN's mission, not only to serve the community's needs but also to support the growth of the domestic industry."The availability of electrical energy is crucial in various business and industrial sectors. PLN is committed to meeting electricity needs with a high level of reliability. This is done by providing the best service to all customers, including the smelter industry sector," he added.General Manager of PLN East Java Distribution Unit (UID), Agus Kuswardoyo, explained that the electricity supply for PT Freeport Indonesia in East Java SEZ will take place in four stages. Phase I is 30 MVA, Phase II is 60 MVA, Phase III is 110 MVA, and Phase IV is 170 MVA. "PLN will continue to accelerate the addition of phase III and IV supplies by 2024," Agus said.PLN hopes that with sufficient electricity supply, PT Freeport Indonesia's smelter production can support other downstream industries such as cable factories, electric cars, and others. "PLN wants to support PT Freeport Indonesia's smelter project in Gresik Regency, one of the National Strategic Projects in improving the country's economy," Agus concluded.Image source: Jawa Pos / Doc. PLNSource: https://www.jawapos.com/ekonomi/014142073/dukung-hilirisasi-mineral-pln-pasok-tambah-daya-60-mva-untuk-smelter-tembaga-freeport-di-gresik 

Indonesia's battery production capacity in 2024 is estimated to reach only 10 gigawatt-hours (GWh), or less than 0.4% of the total global capacity of 2,800 GWh.According to Energy Shift Institute research, reported Friday (9/2/2024), Indonesia's battery production capacity, which lags far behind the global average, is inversely proportional to nickel production, which has jumped more than eight times since 2015.Indonesia's nickel downstream, in fact, was predicted by the government to increase nickel-added value and become a key player in the world's battery and battery-based electric motor vehicle (EV) industry."However, while Indonesia is slowly moving up the supply chain of the battery and EV industry, the race among other countries is already in full swing," the research said.This is reflected in the rapid growth of global battery production capacity, which is much faster than demand. In the first half of 2023, battery factories in China on average operated at less than 45% of their production capacity.As China continues to build capacity, coupled with aggressive pushes from the United States (US) and the European Union (EU) to develop their industries, competition for investment has intensified-even in a growing market."So far, the added value of Indonesia's nickel products ranges from two to 11 times that of its raw products. However, this is still far below the more than 60-fold added value for battery production," Energy Shift said.Accordingly, Energy Shift estimates that global nickel demand for batteries is likely to continue to soar in line with the pace of EV adoption despite the presence of alternative technologies."Based on existing developments, battery manufacturers are more inclined to place their factory investments following the development of the EV market, but the adoption of electric vehicles in Indonesia is still quite slow."The news of BYD's entry into Indonesia is also unlikely to have a major impact on the development of nickel-based battery factories because their vehicle models mostly use batteries without nickel.Not to mention, according to the institute, Indonesia's fierce competition with other ASEAN countries to provide incentives for EV and battery manufacturer investment also raises questions about the effectiveness of nickel downstream bargaining power in driving the battery and EV industry in the country."With the current trajectory, Indonesia is likely to shift only from an exporter of nickel products for stainless steel to an exporter of semi-finished products for the battery industry," according to the institute.As the world's nickel demand continues to grow, the parties involved must not underestimate the scale of future growth as the world's EV revolution has just entered its first phase.Competing with CanadaSigns that competition for global battery and EV manufacturers is intensifying amid massive nickel production from Indonesia can be seen in the news that mining company Canada Nickel Co Inc. plans to develop a nickel processing plant in Ontario that will cost USD 1 billion and be the largest in North America once completed.The plant will have the capacity to produce more than 80,000 tons of nickel annually and will begin operations in early 2027, the Toronto-based mining company said in a press release. According to Chief Executive Officer Mark Selby, the company also plans to build a stainless steel and alloy production plant to process nickel and chromium concentrates, which will cost an additional USD 2 billion.The plan aims to fill the gap in the electric vehicle supply chain in North America, which generally lacks the infrastructure to process and refine key materials such as nickel, copper, and lithium.Most of the metals extracted from mines in the region are shipped to China for processing before being shipped back to North America for domestic automakers.Canada Nickel's market capitalization was about USD 166 million as of market close on Wednesday, local time. The company plans to seek funding from the Canadian and Ontario governments to help build the plant, Selby said.Nickel prices have seen a dramatic drop in recent months as new supply from Indonesia floods the market - driven by Chinese investment and major technological breakthroughs. Nickel mines around the world are at risk of closure, while others are seeking state bailouts or going bankrupt.Selby, whose company is developing nickel deposits in northern Ontario, expects North American nickel demand to grow as governments and automakers push for domestic battery metal sourcing."Nickel has always been viewed as a strategic metal," Selby said in an interview."Given the current geopolitical conditions and China's control of Indonesia's resources, which makes Indonesia and China solely dependent on nickel, I don't think there are many end users and governments here that want that [nickel raw material supply from Indonesia]."Image source: BloombergSource: https://www.bloombergtechnoz.com/detail-news/29307/ada-hilirisasi-nikel-produksi-baterai-ev-ri-hanya-0-4-global/2 

PT Amman Mineral Internasional Tbk (AMMN), through its subsidiary PT Amman Mineral Industri, is targeting the copper and gold smelter commissioning in June 2024. Commissioning is the act of assessing the readiness and feasibility of mining equipment or operational testing of the smelter before it operates commercially. AMMN Vice President of Corporate Communications and Investor Relations, Kartika Octaviana, said Amman is fully committed to completing the national strategic project of the copper smelter and precious metal refining (PMR) facilities. The quarterly progress verification results for October 2023 to December 2023 of AMMAN's copper smelter construction progress have reached 76.1% of the construction plan of 72.4% (105.1%). Meanwhile, the PMR construction progress has reached 72.7% of the construction plan of 72.1% (100.7%). The company is confident that the smelter and PMR physical construction progress is going well to reach the construction completion target at the end of May 2024 and start the commissioning process in June 2024. "[This achievement] is AMMAN's commitment as one of the largest copper and gold mining companies in Indonesia to always be involved in the development of the national mining industry that benefits the regional and national economy," Kartika explained in a press release on Monday (5/2/2024).When fully operating, AMMAN's total copper smelter and PMR facility input capacity is estimated at 900,000 kilotons per annum (ktpa) of concentrate from the Batu Hijau mine and Elang project. The products of this processing will be copper cathode that reaches 222 ktpa and sulfuric acid that reaches 830 ktpa. Meanwhile, the PMR facility will produce 18 tpa of gold bars, 55 tpa of silver bars, and 70 tpa of selenium.In September last year, AMMAN signed a Preliminary Agreement with PT Pertamina (Persero) to ensure the supply of a more environmentally friendly energy source, liquified natural gas (LNG). The gas and steam power plant facilities are currently under construction to support the operations of the copper smelter and PMR facilities. On Monday (5/2/2024) at 09.47 WIB, AMMN shares fell 0.99% or 75 points to IDR 7,525. The market capitalization reached IDR 545.70 trillion with a PER valuation of 421.32 kli and a PBV of 8.18 times. Throughout 2024, AMMN shares are still up by 15.27%.Image source: Bisnis.com Source: https://market.bisnis.com/read/20240205/192/1738292/amman-mineral-ammn-targetkan-smelter-tembaga-dan-emas-pmr-comissioning-juni-2024 

Coal mining company PT Golden Energy Mines Tbk (GEMS) terminated its coal sale and purchase agreement with GMR Coal Resources Pte Ltd.Golden Energy Mines Corporate Secretary Sudin SH explained that on January 31, 2024, the company signed a deed of termination of the coal sale and purchase agreement and the coal sale and purchase support agreement."The signing of the deed of termination of the coal sale and purchase agreement and the coal sale and purchase supporting agreement between the company, including several of its subsidiaries, namely PT Borneo Indobara, PT Bungo Bara Utama, PT Bara Harmonis Batang Asam, PT Berkat Nusantara Permai, PT Karya Cemerlang Persada, PT Kuansing Inti Makmur, PT Tanjung Belit Bara Utama and GMR Coal Resources Pte Ltd (formerly GMR Infrastructure Investments (Singapore) Pte Ltd.) (GMR)," he explained in an information disclosure quoted on Monday, February 5, 2024.He explained that the agreement refers to the coal sale and purchase agreement dated August 11, 2011, between the Company (as seller) and GMR (as buyer). Image source: Media Asuransi News / IstSource: https://mediaasuransinews.co.id/market/golden-energy-mines-gems-akhiri-kerja-sama-dengan-gmr-coal-resources/ 

PT Harum Energy Tbk (HRUM) and its subsidiary, PT Harum Nickel Industry (HNI), officially became the majority shareholder of PT Westrong Metal Industry (WMI), a nickel smelter company in Weda Bay Industrial Park, North Maluku.The acquisition was marked by the purchase of 1,214,000 WMI shares previously owned by Prime Investment Capital Limited (PICL) and Walsin Singapore Pte Ltd (WS).The acquisition represents 60.7% of the total issued and paid-up capital of WMI, with a transaction value of USD 215.21 million or approximately IDR 3.4 trillion (assuming an exchange rate of IDR 15,828).The result of this acquisition is that HNI's ownership in WMI increased from 20% to 80.7%, and HRUM, through HNI, became the majority shareholder of WMI.Ray A. Gunara, CEO of PT Harum Energy Tbk, revealed that WMI operates four electric rotary kilns with supporting infrastructure and converter facilities, which provide high-quality nickel-matte production."The installed annual production capacity is approximately 56,000 tons of nickel contained in high-grade products," Ray said during a disclosure session on the Indonesia Stock Exchange (IDX) on Tuesday (30/1/2024).The current WMI construction project, he said, is in its final stages and expected to commence commercial operations in the second quarter of 2024. The acquisition will hopefully support the company's diversification strategy."With WMI coming into operation soon, the company will have a more diverse product portfolio. We hope that WMI's high-grade nickel-matte products will bring added value to the company's nickel products," he said.After the deal is completed, WMI's financial statements, including its balance sheet and income statement, will be integrated into HRUM's main financial statements. He expects the financial statements will reflect the contribution of WMI's financial performance, both through the increase in the company's shareholding through HNI and the consolidation of WMI's financial results.Image source: Suara.comSource: https://www.suara.com/bisnis/2024/01/30/163003/hrum-perkuat-posisi-di-industri-nikel-resmi-kuasai-saham-smelter-di-weda-bay 

West Sumatra Province, which has extensive forest areas, is known to store large ore resources with fairly good iron (Fe) levels. The Head of the West Sumatra Energy and Mineral Resources Agency ( EMR), Herry Martinus, said that when it comes to iron ore mining, all authority, from permits to supervision, belongs to the central government. He admitted that West Sumatra EMR did not have definite data related to the distribution of iron ore mines because the provincial government did not have the authority to conduct field mapping of the iron ore potential.  However, based on existing data from several companies conducting iron ore resource surveys in the West Sumatra region, there are 75 million metric tons (MT) of iron ore resources or potential with 62% Fe content. "[The 75 million MT] is outside the preserved forest. If the resources are inside the preservation forest, it is estimated to be more than 100 million MT. However, no permit will be granted for mining in preserved forest areas," he said on Monday (29/1/2024). The current condition of the 75 million MT iron ore resource is that some companies have been working on it with permits owned by iron ore mining companies since 2015.According to the data owned by the West Sumatra EMR, the iron ore potential reached 35 million MT on 1,561.94 hectares of area across four regencies in West Sumatra and had been worked on by 8 companies, such as West Pasaman, Solok, Pasaman, and Dharmasraya regencies. Herry detailed that out of the four regions, the iron ore mines are currently running in two points in the Solok area and another in West Pasaman. "The data I have show that there are eight companies licensed (IUP / mining business license) to carry out iron ore mining activities in West Sumatra," he said. PT Karya Usaha Aneka Tambang, located in Solok, has 31 hectares of land with a mining output of 1.7 million MT. Then, in West Pasaman, PT Gamindra Mitra Kesuma cultivated 163.30 hectares of land and mined 560,649 MT of iron ore. Furthermore, PT Arosuka Mandiri in Solok has 198 hectares of land and 9,091,601 MT of iron ore. PT Dharmapower Bersama, also in Solok, has 190 hectares of land with 26,416,319 MT of iron ore. PT Mineral Sukses Makmur also works in Solok covering 73.70 hectares of land, and has mined 3,628,000 MT of iron ore.  Herry said that another company in Dharmasraya, PT Tambang Sungai Suir, will also work on iron ore resources with an area of 180 hectares and has a potential of 12,014,256 MT, but has yet to be worked on, despite already having a permit. "The calculation of iron ore resources is not the same once it has been mined," he explained.  He said the known amount of the resource would decrease when it was mined. Let's say the estimated potential is 2 million MT in an area, but it turns out that only 1.5 million MT after mining.  "This is reasonable because the potential is only an approximate figure," he said. As for other companies, PT Pancasona Jaya Pratama in Solok and PT Sumber Minera Bersama in Pasaman have obtained licenses yet have yet to exploit the existing potential."According to the data from the central government we got, the iron ore mining activity is also not frequent, for reasons from the company constrained by the cost of mining production, such as equipment costs and various other necessities," he said. According to him, the current condition is only about 50% of the iron ore potential in West Sumatra has been exploited by mining companies. The eight mining business licenses (IUP) are domestic companies. "It is indeed the domestic companies that work on it. However, it is only in West Pasaman that China is involved, but the license is domestic," he said. Addressing Environmental Impacts Herry does not deny that iron ore mining activities have an environmental impact as logging will occur. However, within the permit for iron ore mining activities, some measures must be adhered to by the mining company. Starting from reforesting, namely planting trees on ex-mining land or changing ex-mining land that can bring economic value, such as becoming a tourist attraction area. "The ex-mining management is evident in Sawahlunto's ex-coal mine, where a new tourist attraction has emerged. The iron ore mining company is obliged to handle it, so its condition returns to being green and beneficial," Herry explained. He said that due to the iron ore mining activities, the local government gets revenue-sharing funds (DBH) and employment for the people living around the company so the local economy can grow through guidance for MSME players. "The sharing fund to West Sumatra depends on the amount of iron ore obtained by the company, hence a percentage calculation. It may not be much since the largest revenue fund still depends on new coal mines, which reaches IDR 35 trillion, and a little of that value comes from iron ore mining, but I don't remember the detailed data," he said. The Mining License is Not a Regional Authority Herry mentioned that the authority for iron ore mining permits lies with the central government. The provincial government, in this case, is only an intermediary for investors who wish to work on the potential of iron ore. Therefore, they can only watch the mining activities occur in an area. “Our regional government can't do anything. Only the companies know how much iron ore has been mined, and the report is submitted to the Mining Inspector. Regarding whether it is only iron ore that is being mined or other things are being mined, we do not know because the central government is the one with the authority," he said.Image source: Sumatrabisnis.com / ckra.co.id Source: https://sumatra.bisnis.com/read/20240130/534/1736575/sumbar-disebut-menyimpan-potensi-75-juta-mt-bijih-besi