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23 Nov 2023, 12:00 PM

Inalum Increases Aluminium Production Capacity

PT Indonesia Asahan Aluminium (Persero) aims to increase its aluminum production capacity to 300,000 tons per day by 2026.Melati Sarnita, the Business Development Director of Inalum, stated that the increase in production capacity is intended to meet the demand for aluminum in the market."As information, the total domestic aluminum demand currently reaches 1.2 million tons per year, while Inalum is still the main supplier of aluminum in Indonesia with a capacity of only 250,000 tons per year," said Melati to on Friday (17/10).As part of Inalum's expansion agenda, the addition of aluminum production capacity from 250,000 to 300,000 tons is planned through an additional 25,000 from the Optimalization Pot Project and 25,000 from the Upgrading Pot Project, which is currently underway.Besides enhancing existing facilities, Inalum also plans to increase capacity by adding a new 600,000 tons per year smelter in Kuala Tanjung. Furthermore, the company is continuing the Alumina Refinery Expansion Phase 2 project in Mempawah, West Kalimantan."Currently, it is in the final investment decision (FID) preparation phase, scheduled for the second quarter of 2024," said Melati.Melati did not disclose the budget allocated for financing the company's expansion agenda. However, she confirmed that the funding source comes from Inalum's internal cash."This increase in production capacity uses Inalum's internal funding sources," concluded Melati.In line with Melati's statement, domestic aluminum demand exceeds domestic production capacity. Data from the Central Statistics Agency shows that Indonesia has been importing hundreds of thousands of tons of aluminum and related goods annually for at least the past five years. The import value has reached USD 1 billion each year.Specifically, the detailed import volume of aluminum and related goods in the last five years, according to BPS data, is as follows: 814,363.36 tons (or USD 2.17 billion) in 2018, 750,070.71 tons (USD 1.89 billion) in 2019, 606,730.26 tons (USD 1.41 billion) in 2020, 722,711.86 tons (USD 2.08 billion) in 2021, and 713,821.98 tons (USD 2.36 billion) in 2022.Cumulatively, Indonesia has imported 3.60 million tons of aluminum and related goods from 2018 to 2023, with a total import value of USD 9.92 billion from 2018 to 2022.It is not without reason that Indonesia still imports aluminum. Apart from the high demand, there is also the issue of limited processing capacity at the upstream level.Based on data from the Association of Indonesian Mining Professionals (PERHAPI), Indonesia has substantial bauxite resources, with 6.2 billion tons, and reserves of 3.2 billion tons. With these resource figures, PERHAPI estimates that the endurance of bauxite reserves could exceed 100 years, assuming current demand levels.For your information, Indonesia's annual bauxite production can reach up to 60 million tons. However, the domestic capacity to process or refine bauxite into alumina, a compound that can be further processed into aluminum, is still limited.Rizal Kasli, the Chairman of the Association of Indonesian Mining Professionals (PERHAPI), stated that bauxite ore processing in the country currently consists of Smelter Grade Alumina (SGA) with a total input capacity of 12 million tons per year and Chemical Grade Alumina (CGA) smelters with a total input capacity of 1-2 million tons per year.Thus, domestic bauxite ore processing facilities can currently absorb 13 million to 14 million tons of bauxite ore per year. This underscores the importance of investing in the development of smelters to maximize the potential of domestic bauxite ore."The (bauxite processing capacity) cannot (accommodate annual bauxite ore production) as long as there are no new smelters," said Ronald to on Wednesday (15/11).Image source: ANTARA FOTO/AdivaSource: Genjot Kapasitas Produksi Aluminium
23 Nov 2023, 09:00 AM

ITMG Talks Nickel Business Expansion Plans

JIBI/Bisnis/Eusebio Chrysnamurti
PT Indo Tambangraya Megah Tbk. (ITMG) is actively seeking potential nickel mines for acquisition, collaborating with strategic partners in this business venture. Somruedee Somphong, the Chief Executive Officer of Banpu Public Company Limited, the parent company of ITMG, expressed a willingness to collaborate with Indonesian companies, to become partners in green energy projects from upstream, midstream to downstream. In the mineral sector, ITMG is also targeting the nickel business. However, she clarified that if ITMG were to acquire a nickel mine, Banpu would not integrate it with the Durapower battery production facility."Durapower will focus on producing battery cells in southern China," stated Som, as quoted on Sunday (19/11/2023).She further explained that it would be impractical to transport Indonesian nickel to be processed elsewhere due to existing regulations. Consequently, ITMG cannot ship its nickel to Durapower.Nevertheless, Som expressed optimism that ITMG could establish partnerships with several Indonesian companies, creating a comprehensive battery value chain. "This will create great value for ITMG, and also Banpu," she said.Earlier, Yulius Gozali, the Corporate Communications and Investor Relations Director of ITMG, mentioned that the company is actively searching for potentially lucrative nickel mines for acquisition. Currently, ITMG has held talks with a number of nickel companies. "We are planning to diversify into the nickel business and are currently looking for mines to acquire," said Yulius.Yulius explained that ITMG's entry into the nickel business is part of its strategy to diversify its non-coal business activities while contributing to the development of the electric vehicle ecosystem. Therefore, the mine that will be acquired is expected to be able to provide products for battery raw materials.Image source: JIBI/Bisnis/Eusebio ChrysnamurtiSource: Tambangraya (ITMG) Bicara Arah Ekspansi Bisnis Nikel
23 Nov 2023, 08:00 AM

DOID Boosts Capital by IDR 62.01 Billion for Copper Expansion
PT Delta Dunia Makmur Tbk. (DOID) has increased its ownership stake to 34.5% in Asiamet Resources Limited (AIM) through a private placement transaction equivalent to USD 4 million or IDR 62.01 billion (JISDOR exchange rate of IDR 15,506).Ronald Sutardja, the President Director of Delta Dunia Group, stated that DOID has conducted a private placement of USD 4 million directly with Asiamet Resources Limited, listed on AIM."This placement adds 366,891,000 shares to the Delta Dunia Group's ownership, increasing the Group's ownership stake from 24.2% to 34.5% and reinforcing the Group's position as the largest shareholder in Asiamet," he said in an official statement, quoted on Thursday (16/11/2023).Meanwhile, Asiamet's flagship Copper Project BKM in Central Kalimantan has completed the Feasibility Study phase. Ronald mentioned that the funds from this private placement would facilitate the progress of the BKM project through the implementation of technical aspects, contractual work, and general working capital.He also claimed that DOID continues to support Asiamet in advancing the BKM Copper Project to the next technical stages. Copper remains a crucial and central metal for energy transition initiatives. Our diverse team collaborates closely with Asiamet, demonstrating Delta Dunia Group's commitment.Delta Dunia Group believes that its collaboration with Asiamet, leveraging the core expertise of PT Bukit Makmur Mandiri Utama (BUMA) in mining services in Indonesia, will be part of the broader Group's commodity diversification strategy.Delta Dunia Group remains committed to developing its ESG strategy, particularly in building the core competencies of Delta Dunia Group in providing resources needed by a transitioning world, in the most efficient and sustainable manner.The increased stake of DOID in Asiamet strongly supports the diversification strategy, particularly focusing on potential future commodities such as copper."This step reaffirms Delta Dunia Group's dedication to strategic growth and adaptation to the dynamic commodity landscape, emphasizing our commitment to long-term success by prioritizing sustainability initiatives," added Ronald.Image source: deltadunia.comSource: ke Tembaga, Delta Dunia (DOID) Tambah Modal di Asiamet Rp62,01 Miliar
22 Nov 2023, 12:00 PM

BUMI Expects 55 Million Tons Coal Output in Q3/2023

Artha Adventy-Bisnis
PT Bumi Resources Tbk. (BUMI) estimates that coal production volume will reach 54 million tons by the third quarter of 2023.BUMI's Director, Dileep Srivastava, estimates the company producing approximately 54-55 million metric tons of coal during the first nine months of 2023. "The performance of BUMI year-to-date September 2023 is likely to be released on November 30. My estimate is that production will reach 54-55 million metric tons of coal during this period," stated Dileep to Bisnis on Monday (20/11/2023).For the remainder of the year, Dileep predicts that BUMI could produce between 77 million and 78 million tons of coal. This production target represents an increase compared to the 2022 figure of 70 million tons.Up until the end of the first half of 2023, BUMI had recorded coal production of 34.5 million tons, marking a 2% increase compared to the same period in 2022.BUMI sold this coal at an average selling price (ASP) of USD 93.2 per ton. Meanwhile, BUMI's coal sales reached 34.6 million tons in the first half of 2023, representing a 2% increase compared to the first half of 2022.In the first semester of 2023, BUMI reported revenue of USD 3.3 billion, a 13.3% decrease compared to the first half of 2022, which amounted to USD 3.81 billion.BUMI's revenue in the first semester of 2023 fell due to the continuous heavy rain condition (La Nina).BUMI's attributable net profit also fell by 51.2 percent in the first semester of 2023, to USD 81.8 million from USD 167.7 million on an annual basis.Image source: Artha Adventy-BisnisSource: Resources (BUMI) Prediksi Produksi Batu Bara 55 Juta Ton Kuartal III/2023
22 Nov 2023, 09:00 AM

BESS Reported 46.39% Profit Increase in Q3 2023

PT Batulicin Nusantara Maritim Tbk (BESS) has reported an improvement in performance as of September 2023. BESS is optimistic about continuing its growth trend until the end of this year.According to the financial report as of September 30, 2023, BESS recorded a current period profit of IDR 51.07 billion. This represents a significant increase of 46.39% from IDR 34.89 billion in September 2022.Meanwhile, BESS successfully reduced liabilities by 49.77% as of September 2023, amounting to IDR 140.79 billion compared to IDR 280.31 billion at the end of 2022.BESS generated revenue of IDR 262.03 billion, compared to IDR 307.28 billion in September 2022. The company's entire income comes from domestic shipping services to third parties.During the same period, BESS managed to decrease the cost of goods sold by 22.55% in the third quarter of 2023, totaling IDR 177.68 billion, down from IDR 228.54 billion in the third quarter of 2022. As a result, BESS recorded a gross profit of IDR 84.35 billion, an increase from the previous year's IDR 78.74 billion.Director of Batulicin Nusantara Maritim, Yuliana, expressed that the positive performance of the coal and nickel business sectors contributed to BESS's success. In addition to achieving profit growth, BESS's net profit margin also increased to 19.58% in the third quarter of 2023, up from 11.35% in the same quarter of 2022."With the initiative to expand in the nickel industry, supported by the recovery in the coal industry, BESS can drive better company growth in 2023," she stated in a press release on Monday (20/11).Currently, BESS operates specifically with two sets of tugboats and barges to focus on providing nickel maritime transportation services in the North Morowali, Central Sulawesi.Yuliana mentioned that if necessary, BESS would consider adding new ship units focused on the nickel industry to support maritime transportation services in Indonesia.BESS currently operates 18 sets of tugboats and 18 barges, all of which are confirmed to be safe and reliable for operation. The company also possesses Landing Craft Tank (LCT), a vessel used for transportation in seas and shallow waters.LCTs are typically used for inter-island or inter-location shipments with large-sized cargo and heavy equipment. With LCTs, these tools and materials can be transported to remote areas that are difficult to reach with regular cargo ships.On the other hand, BESS remains optimistic that global demand for coal will remain high. Although coal prices experienced a correction at the beginning of the year, demand for coal is expected to increase significantly in the final months of the year, from October to December 2023."The coal industry is expected to rise in the fourth quarter of 2023 due to the winter season demand, which will also impact the recovery of coal prices," she emphasized.In terms of cash flow, BESS directed a net cash flow of IDR 200.57 billion towards investment, up from IDR 8.30 billion the previous year. Cash and bank balances at the end of September 2023 amounted to IDR 103.59 billion, down from IDR 148.40 billion.BESS has also increased its equity to IDR 544.59 billion compared to the previous IDR 492.35 billion. The total assets of BESS reached IDR 685.39 billion as of September 2023, compared to IDR 772.66 billion previously.Image source: BESSSource: Batulicin Nusantara Maritim (BESS) Naik 46,39% Hingga Kuartal III-2023
21 Nov 2023, 12:00 PM

The Minister of Energy and Mineral Resources Confirms Freeport Mining License Extended Until 2061

PT Freeport Indonesia (PTFI) currently holds a special mining business license (IUPK) until 2061, although it is scheduled to expire in 2041. To extend PTFI's license, the company will construct a smelter in Fak-Fak, West Papua, and increase the government's ownership stake by 10%.On Friday (17/11/2023), Minister of Energy and Mineral Resources (MEMR) Arifin Tasrif affirmed that the government is set to renew the mining company's IUPK, with Indonesia holding the majority of shares.Speaking to the press on Friday (17/11/2023), Minister Arifin Tasrif disclosed that one of the topics discussed after President Joko Widodo's visit to the United States was the extension of Freeport Indonesia's mining contract in Papua, scheduled to conclude in 2041.Minister Arifin stated that the IUPK for PTFI could be extended until 2061, because the calculated mineral resource reserves still exist and can continue to be utilized.Mineral resource reserves that can still be utilized by PTFI are underground or underground mining. For this reason, the current focus of mineral resource utilization is focused on underground mining.Meanwhile, PTFI's VP Corporate Communication, Katri Krisnawati, mentioned that to obtain the extension of the IUPK operation in Papua, PTFI will build a mineral refining and processing facility (smelter) in Fak-Fak, West Papua. In addition, it will add a 10% government stake.During a recent visit to the United States, President Jokowi also met with Freeport McMoran CEO Ricard Adkerson, besides President Joe Biden. The meeting discussed the increase in Freeport's shares in Indonesia, as well as the extension of mining licenses."I am pleased to hear that discussions on a 10% increase in Freeport's shares in Indonesia and a 20-year extension of mining permits have reached the final stage," Jokowi said to Richard Adkerson in a statement on Tuesday (14/11/2023).President Jokowi also expects that the matter can be finalized by the end of November this year. "Complete at the end of this month."Image source: SINDOnewsSource: ESDM Pastikan Izin Tambang Freeport Sudah Diperpanjang Hingga 2061
21 Nov 2023, 09:00 AM

Pioneering the Future of Sustainable Nickel – TGEM and BGM’s Strategic Joint Venture in the US a...

In a landmark agreement, Trinitan Green Energy Metals (TGEM), headquartered in Jakarta, Indonesia, and Battery Grade Materials (BGM), headquartered in Joplin, Missouri, USA, have formalized their collaboration through a Memorandum of Understanding (MoU) dated November 13, 2023. This MoU marks a significant step in developing a sustainable Class 1 Nickel supply chain, crucial for the burgeoning Electric Vehicle (EV) market in the US and Europe.The collaboration establishes a 50/50 Joint Venture (US JV) in the United States, integrating TGEM's innovative Step Temperature Acid Leach Technology (STAL Technology) for Nickel Laterite processing with BGM's expertise in Nickel/Zinc battery materials and its connections within the US defense, infrastructure, and battery materials industries.The US JV will focus on two concurrent phases:1. Development of a Research & Development Center of Excellence in the US, colocated with the JV Processing Facility. This center will drive advancements in Nickel/Zinc technologies for applications in EV batteries, infrastructure, defense, energy, and related sectors; and,2. Creation of a Class 1 Nickel downstream production facility (JV Processing Facility), producing Nickel Hydroxide, Nickel Sulphate, and high-purity Nickel Powder. These products will cater to diverse industries, including the US EV battery supply chain, energy storage, electronic components, and special programs under the US Department of Defense.TGEM will supply the JV Processing Facility with Mixed Hydroxide Precipitate (MHP) for refinement into primary products, supporting the US EV battery supply chain and related industries. Additionally, BGM will provide land adjacent to the Æsir Technologies Nickel/Zinc Gigafactory targeted to open in 2025, for the establishment of the R&D Center and JV Processing Facility.Parallel to the US JV, TGEM and BGM are committed to developing a Class 1 Nickel processing facility in Albania (the Albania Project), utilizing TGEM’s STAL Technology. This project aims to produce MHP for the EU and Western European EV supply chains.Richard Tandiono, Executive Chairman of TGEM, stated, “This strategic partnership with BGM not only strengthens our position in the global Nickel supply chain but also reinforces our commitment to sustainable practices and innovation. The US JV and Albania Project represent significant strides in our mission to support the EV transition in the US and Europe.”Craig Wilkins, President and CEO of BGM, expressed enthusiasm about the partnership adding “TGEM’s technology aligns with our commitment to sustainable mineral extraction processes while aligning with the Western market’s commitment to securing a supply of critical minerals under the US Inflation Reduction Act (IRA).”This MoU evidences the intent of both parties to proceed rapidly towards these ambitious projects, setting a new standard in the sustainable production and supply of Class 1 Nickel products.About BGMBattery Grade Materials (BGM) is a specialty materials supplier to the battery and advanced electronics industry. The Company has developed proprietary processes to produce low-costNickel Hydroxide, Cobalt, Zinc Oxide and Calcium Zincate that meet the needs of the battery industry. To learn more about Battery Grade Materials, go to TGEMWith over 50 years of experience in energy solutions, Trinitan Green Energy Metals (TGEM) is an innovative, R&D and technology-driven provider of metal and mineral processing services. TGEM is determined to create efficiency while delivering sustainability and social responsibility to Indonesian communities and the Company’s customers around the globe. To learn more about Trinitan Green Energy Metals go to source: TGEMSource: TGEM
21 Nov 2023, 08:00 AM

Thiess Breaking Ground at HSM

Leading the ceremony was Ika Zuly Irawati, the Project Manager who made history as Thiess Indonesia's first female mining Project Manager. Ika waved the Thiess flag, symbolizing the commencement of operations and the official start of the first dig.The celebration continued at the Plant Workshop, where Ika addressed the Plant team, emphasizing their integral role in the operations. She stressed the importance of collaboration, encouraging the Plant team to work closely with their counterparts in Mining to succeed together.Joining the ceremony at the camp area were representatives from HSM, including Chief Mine Officer Jimmy Darvid. Jimmy said that he was delighted at the partnership with Thiess, hoping for a successful collaboration.From Thiess side, Mining Operations Manager for HSM Willem Dique gave a speech praising the team's efforts, rallying everyone to continue working together to achieve Thiess's shared objectives. Head of Mining Peter Cory highlighted the significance of the HSM project. As Thiess Indonesia's first full nickel mining contract which not only supported Thiess's diversification strategy but also highlighted Thiess's capability in handling diverse commodities.Closing out the event, Thiess and HSM’s representatives joined hands in tree planting activities, displaying Thiess's commitment towards a sustainable future.The HSM project is Thiess Indonesia's first full nickel mining project which the AUD 240 million contract was awarded in late August 2023. The project is located in Central Halmahera, North Maluku, Indonesia.Image source: ThiessSource: ground at HSM
17 Nov 2023, 12:00 PM

EcoPro expands nickel supply with new GEM deal

EcoPro agreed to invest a total of USD 86 million into a nickel processing facility in Indonesia, operated by China’s Green Eco-Manufacture (GEM), to expand its nickel supply chain. This is EcoPro’s second phase of investment made in the Indonesian plant QMB, which is situated at the industrial complex on Sulawesi island. The company has not disclosed exact figures for either phase but did state on Wednesday that the additional investment will increase the amount of nickel that it receives from QMB.The company secured a 9 percent stake in the Indonesian production plant, as well as an annual provision of 6,000 tons of nickel, with its initial round of funding, which took place in March 2022. “We cannot reveal the investment figure due to a confidential agreement that was part of the deal,” an EcoPro spokesperson said. “The amount of stake stays the same. The recent deal was made to secure a larger nickel supply.” The second deal will equip QMB with the infrastructure to annually produce 50,000 tons of nickel annually. It can currently produce 30,000 tons. EcoPro imported its first 400 tons of nickel from QMB through Pohang in August.Nickel is a key material in the production of secondary batteries. Indonesia has the world’s largest nickel reserves; they are estimated at 21 million tons and account for 22 percent globally. EcoPro CEO Song Ho-jun and GEM Chairman Xu Kaihua met at the Indonesian facility last week to sign the deal.EcoPro will use the QMB-supplied nickel to make battery precursor, which it will then supply to affiliates such as EcoPro BM and EcoPro EM. “Through investment in QMB, the supply value chain for the raw material to process precursor was strengthened,” EcoPro CEO Song Ho-jun said in a statement. “EcoPro, as the EcoPro Group’s holding company, will focus on securing stable supplies to make our business more lucrative.”Image source: ECOPROSource: expands nickel supply with new GEM deal


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