Mitra Murni Perkasa (MMP), a subsidiary of MMS Group Indonesia (MMSGI) which is developing a nickel matte smelter project in East Kalimantan, has signed a cooperation agreement with China ENFI Engineering Corporation (China ENFI). The event was attended by all MMSGIMMP management, a number of Chinese ENFI delegates from Beijing and also representatives from Bank Negara Indonesia (BNI). The collaboration with China ENFI, which began 15 months ago, has gone through a feasibility study process to ensure that the MMP nickel smelter construction project can be implemented on a strong technical foundation. The construction of this project is targeted to be completed in the 4th quarter of 2024 and start operating in the 2nd quarter of 2025.The MMP matte nickel smelter is planned to have a production capacity of 27 thousand tons per year with a nickel content of more than 70 percent. The construction of this matte nickel smelter is intended to support the increasing demand for nickel as a raw material for making EV batteries used in electric powered vehicles (BEV). This is in line with global efforts to reduce carbon emissions.MMP President Director Adhi Dharma Mustopo said this signing was a historic moment for MMP and China ENFI."We support the government's program to build a matte nickel smelter which has a low carbon footprint and is entirely Domestic Investment (PMDN)," he said in a written statement, Tuesday, July 25, 2023.The construction of this matte nickel smelter is the beginning of MMSGI's collaboration with China ENFI, and opens the next MMSGI business development in harmony with China ENFI's technical expertise.“This cooperation has important meaning for our side. China ENFI believes the MMP matte nickel smelter will be a successful pilot project in Indonesia and provide broad benefits to all parties. What's more, the MMP project is close to IKN, the new center of government," said China ENFI Chairman of the Board Liu Cheng. The collaboration betweenMMP and China ENFI aims to ensure the development of a strong and competitive nickel matte smelter. With the increasing popularity of electric vehicles and demand for matte nickel as raw material for electric vehicle batteries, the MMP project is expected to have a positive impact nationally and support the battery industry program in Indonesia.Not only that, MMP's matte nickel smelter is one of the proofs of MMSGI's commitment to implementing ESG (Environment, Social, Governance) based business.Image source: MISource: https://www.medcom.id/ekonomi/bisnis/akWXzX0K-perusahaan-ri-tiongkok-kolaborasi-proyek-smelter-nikel-di-kaltim

Main Director of PT Trimegah Bangun Persada Tbk Roy Arman Arfandy revealed the reasons for the company to invest heavily in Indonesia. One of the NCKL mega projects, namely two integrated smelters on Obi Island, is currently under construction."The togetherness and wealth of Indonesia that attracted us is because it is simple and pure in Indonesia. The nickel industry is a good opportunity for nickel, so we are doing this (investment)," said Roy, at CNBC Indonesia's "Nickel Conference 2023" in Jakarta, Tuesday (25/07/2023).With plans to downstream mining and electric vehicle ecosystems, Indonesian nickel is now the prima donna. As is known, nickel is the main raw material in the manufacture of electric vehicle batteries. The nickel smelter, which is being built by a subsidiary of the Narita Group, is said to be the largest in Indonesia."In 2022 we made many breakthroughs. So we are doing this more to support government policies," he said.Roy added that nickel is the main component needed by the world. For this reason, the presence of a nickel industry ecosystem can support the industry in the future.Despite the intensive investment, he emphasized that NCKL still pays attention to the sustainability of the mining concession area and its surroundings. He also mentioned that the company is the main contributor to the presence of mines on Obi Island and is the largest nickel producer on the island.Image source: CNBC Indonesia/Faisal RahmanSource: https://www.cnbcindonesia.com/market/20230725131917-17-457112/nckl-ungkap-alasan-investasi-smelter-besar-besaran

China’s Zhejiang Huayou Cobalt said on Tuesday it will invest in a $200 million nickel sulfate project in Indonesia, expanding its production of the key battery raw material.Huayou subsidiary Huayao International Investment will build the 50,000 metric ton project in a joint venture with Singapore-based Strive Investment Capital and Lindo Investment PTE, according to the Chinese company.One of the world’s top battery material makers, Huayou has been expanding its capacity in ternary precursors and cathode materials both at home and overseas, said Susan Zou, a Shanghai-based vice president at Rystad Energy.“This is a strategic move to expand into the upstream supply chain for its product,” she said.The joint venture will be called Huaxiang Refining Indonesia, according to the company.Huayou also said on Tuesday that its mining unit Huayou International Mining plans to buy a 50.15% stake in privately owned Perlux Limited for $200.4 million.The deal will give Huayou ownership of two ferro-nickel production lines in Indonesia with annual output of 24,000 metric tons nickel content, it said.Huayou, a leading producer of nickel and cobalt, is also stepping up investment in lithium and commissioned a $300 million lithium plant in Zimbabwe earlier this month.Image source: Huayou CobaltSource: https://www.mining.com/web/huayou-cobalt-boosts-nickel-capacity-in-indonesia/

Indonesia is finalising a new set of incentives to attract investment from manufacturers of electric vehicles (EVs), a senior minister said on Tuesday, adding the government is still in talks with major companies like Tesla and BYD.Speaking at a nickel industry conference hosted by CNBC Indonesia, Coordinating Minister of Maritime Affairs and Natural Resources Luhut Pandjaitan said the incentives will be benchmarked against those offered by regional rivals Thailand and Vietnam, but did not provide details.Indonesia, the largest economy in Southeast Asia, has been trying to attract EV makers to invest in the country, enticing them with its rich nickel reserves - the world's biggest - which can be processed into EV batteries.However, some automakers like China's BYD have instead chosen to invest in Thailand, the region's automotive hub."Tomorrow we are going to finalise incentives that we are going to give to any EV investment in Indonesia," Luhut said, adding they were awaiting President Joko Widodo's approval.Hear from two of the key players in Web3 fintech and green finance on what makes Hong Kong tick...Luhut said he will meet BYD executives in China's city of Chengdu on Thursday, and a meeting is also scheduled on August 3 with Tesla's chief executive Elon Musk in California, United States.Indonesia has been wooing Tesla for years, hoping to host an Asian production hub for the American EV maker. Tesla has been in talks with Indian officials for an investment in an EV factory there.Image source: REUTERS/Willy Kurniawan/File PhotoSource: https://www.reuters.com/business/autos-transportation/indonesia-plans-incentives-ev-makers-sets-up-meeting-with-byd-tesla-2023-07-25/

Freeport-McMoRan Inc. (FCX) said that the construction progress of the PT Freeport Indonesia (PTFI) copper smelter project in Gresik, East Java has reached 75%. The largest copper project in the world is targeted for completion in 2024.Quoting the Freeport-McMoran (FCX) Performance and Operations Report for the second quarter of 2023, this copper smelter project continues to experience significant progress. As for the implementation of the project which has reached 75%, construction is targeted for completion in mid-2024."Construction is approximately 75% complete, with an estimated completion of construction in mid-2024 at an estimated cost of US$ 3.0 billion," quoted from the company's report, Wednesday (26/7/2023).The smelter, which is predicted to be the largest single-line smelter in the world, is claimed to be able to absorb as much as 1.7 million tons of copper concentrate per year. Later, the copper cathode product produced could reach 600 thousand tons per year.In addition to producing copper cathode products, this smelter will produce by-products including products contained in anode sludge, namely pure gold and silver as much as 6 thousand tons per year.Other by-products include 1.5 million tons of sulfuric acid per year, 1.3 million tons of copper slag and 150 thousand tons of gypsum per year.The absorption of labor in the new smelter is 150 thousand workers, of which 98% are Indonesian workers including 50% local workers.Meanwhile, for other projects such as PT Smelting's expansion, it is targeted to be completed by the end of this year. The costs incurred by PTFI to finance this project are around US$ 250 million, with the loan to be converted into equity and increasing PT-FI's ownership in PT Smelting to become majority ownership.Furthermore, the Precious Metal Refinery (PMR) project to process gold and silver from the Manyar Smelter and PT Smelting is currently in the construction stage. The US$ 525 million project is also targeted for completion in 2024.Image source: CNBC Indonesia/Verda Nano SetiawanSource: https://www.cnbcindonesia.com/news/20230726084839-4-457340/top-pabrik-tembaga-terbesar-dunia-di-gresik-capai-75

The company said Indonesian mining company PT Amman Mineral Nusa Tenggara had obtained a permit from the government to export 900,000 metric tons of wet copper concentrate by May next year.The company said in a statement issued late Monday that Amman, a subsidiary of PT Amman Mineral Internasional Tbk, obtained a license valid from July 24, 2023 to May 31, 2024.Indonesia banned the export of raw minerals such as copper and bauxite starting in June this year to attract investment in the mineral processing industry.However, the government has granted temporary exemptions to several companies such as Oman and Freeport Indonesia to allow them to complete construction of their smelters that were delayed due to the pandemic."We are targeting the smelter to be completed by the end of May 2024, which is the expiration date for the current export license," said Rahmat Makasso, President of Oman, adding that the copper smelter in West Nusa Tenggara is almost 60% complete.The company added, based on this progress, copper concentrate shipments in Oman will be subject to an export tax of 10%.Oman Mineral International Tbk raised 10.73 trillion rupiah ($714.38 million) in an initial public offering on July 7, Indonesia's largest this year.The company plans to use the funds to fund several projects, including a $980 million copper smelter. ($1 = Rs. 15,020,000) (Reporting by Ananda Theresia and Bernadette Christina; Editing by Kanupriya Kapoor)Image source: Bali CitizenSource: https://balicitizen.com/indonesia-beri-oman-izin-ekspor-mineral-yang-berlaku-hingga-mei-2024/

The Just Energy Transition Partnership (JETP) has suggested that emissions reductions from the early retirement of coal-fired power plants be marketed as carbon credits, and that funds be provided to facilitate the program.JETP secretary Paul Butarbutar noted that grants, concessional loans and public funding, including through the purchase of carbon credits, were all part of the JETP funding prepared by Indonesia’s partner countries.Tenggara Strategic, a think tank connected to The Jakarta Post, noted that a key aspect of PLN’s strategy to decrease carbon emissions was the early retirement of coal-fired power plants, which, according to PLN estimates, required US$4.2 billion in funding.Last year, the country received pledges totaling US$20 billion from several developed countries and global private lenders through the JETP.The Asian Development Bank’s (ADB) energy transition mechanism (ETM) is a similar scheme to phase out coal power.“The 5 gigawatts [of coal power generation capacity included in the phaseout], generate 6,132 GWh per year, so if the discontinued coal fired power plants produce 1,000 tons of CO2 per GWh, there will be a decrease of 61.3 million tones over the next 10 years. To prevent emissions, we can sell them as carbon credits through a business-to-business or government-to-government mechanism,” Paul said on Monday.Paul added that the government needed to provide guarantees to the market regarding the reduction in emissions from coal-fired power plants’ early retirement. This provision means the government has to ensure the coal-fired power plants are shut down for good, without a chance of resuming operations.Buyers would have to be assured “that the reduction in emissions is permanent. If one party wanted additional or high-integrity carbon credits, it could be presented as a business that is not a business-as-usual scenario,” Paul said.The government also had to guarantee that no greenwashing loopholes existed for parties to exploit the carbon credit trading system. The use of the proceeds from carbon credits should be overseen by the government, he said, adding that it had to be tied only to the advancement of renewable energy.“The suspension of coal-fired power plants is tied to worldwide pricing. However, there is currently no mechanism [for translating avoidance into carbon credits]. It is anticipated that [a mechanism] will be ready around November with an unconfirmed public consultation. There are still two unresolved issues at this time,” he said.The International Partners Group (IPG) and the government have been in negotiations but have yet to reach an agreement on the interest rate or tenor of the concessional loans.The funding of coal power plant retirement under the JETP could potentially place a burden on the state budget, according to Tenggara Strategics researcher Eva Novi Karina, because of the undetermined interest to be paid for subsidized loans under the public funding scheme.If the concessional loans’ interest rates were not significantly lower than the commercial loan interest rate, the JETP project would unduly increase Indonesia’s foreign indebtedness, Eva warned, adding that $10 billion of the JETP funds would be commercial loans with “exorbitant” interest rates.“Relying on private funds to attract foreign investment, the coal plant early retirement project faces hurdles. There are foreign investors who are still reluctant to invest in coal projects, including the early retirement of plants,” Eva said.“Early retirement of coal-fired power plants is still classified as a red category in the green taxonomy. Hence, there aren’t many investors who would include coal in their portfolio.”Previously, Coordinating Maritime Affairs and Investment Minister Luhut Panjaitan said he had traveled to Washington, DC, to meet US climate envoy John Kerry but had received no concrete answer about the funding.The early coal retirement plan would not be fundable if the grant amount was less than 1 percent of the total JETP funding, Eva said, because that amount was needed for feasibility studies and the interest rate on commercial loans was fairly high.Image source: Reuters/Willy KurniawanSource: https://asianews.network/indonesias-energy-transition-secretariat-suggests-using-carbon-credits-to-fund-coal-phaseout/

National coal production has increased in the first 6 months of 2023. Minerba One Data Indonesia (MODI) data from the Ministry of Energy and Mineral Resources (ESDM) shows that the volume of national coal production during January-June 2023 reached 359.42 million tons.This amount exceeds the realization of national coal production for the January-June 2022 period amounting to 294.37 million tons.In the same period, 116.7 million tons of coal were sold to the export market, while 71.06 million tons of coal were deposited for domestic market obligations (DMO). Executive Director of the Indonesian Coal Mining Association (APBI), Hendra Sinadia, said that the increase in coal production in the first half of 2023 was driven by a number of things.Apart from the weather factor, demand from export markets, namely China and India, was also quite strong in the first half of 2023. "Then last year in January 2022 there was an export ban which also affected production in January even though the overall realization of 2022 production exceeded the target," Hendra told Kontan.co.id, Monday (10/7).Until the end of the year, the government is targeting national coal production to reach 694.50 million tons throughout 2023. Meanwhile, coal exports are planned at 460.00 million tons, while the DMO is 176.80 million tons.Image source: KONTAN/MuradiSource: https://newssetup.kontan.co.id/news/volume-produksi-batubara-nasional-capai-35942-juta-ton-pada-semester-i-2023

Mining firm Merdeka Copper Gold recently reaffirmed its commitment to protecting the planet.The company has set a goal to support climate mitigation efforts while minimizing its mining operations' environmental impact. According to a press statement, Merdeka Copper Gold prioritizes three environment-related sustainable development goals (SDGs): water management, climate action, and land rehabilitation. Merdeka Copper Gold adopts the ISO 14001:2005 environmental management system to balance production and environmental management in every mining operation.Merdeka ensures that the water used in its mining operation does not lead to water scarcity for the local communities.The ore processing at the Tujuh Bukit gold mine —managed by Merdeka's subsidiary Bumi Suksesindo (BSI)— adopts a closed process water system. This system helps eliminate the need for water from rivers or other bodies of water. BSI uses rainwater and groundwater from drilled wells for its domestic markets, including employee accommodation and office facilities. These wells have already secured groundwater extraction permits. Merdeka has a roadmap for reaching net zero emissions by 2060, encompassing renewable energy use and energy efficiency. The roadmap is in line with the Indonesian government's net-zero commitment. Since Nov. 2022, the Tujuh Bukit gold mine has been running entirely on renewable energy produced by state-owned utility firm PLN's geothermal-fired power generation in Kamojang, West Java.Merdeka has also made land rehabilitation efforts in line with SDG 15: Life on Land. BSI, in 2022, rehabilitated its operational lands spanning 4.19 hectares at the Tujuh Bukit Gold Mind by planting 8,233 trees. As of 2022, the accumulated rehabilitated land has amounted to 67.54 hectares. Land rehabilitation at the Wetar Mine reached 3.11 hectares in 2022.BSI also gradually hands over the reforested compensation land in Bondowoso, East Java, and Sukabumi, West Java. Compensation land refers to reforested lands that forest area utilization permit holders must hand over. Land already used for the Tujuh Bukit Gold Mine operation needs to be replaced elsewhere.Merdeka Copper Gold's chief of external affairs, Boyke Poerbaya Abidin, said that environmental management had been part of the company's commitment to promoting sustainability and abiding by government regulations."We are executing our environmental policies through identification, planning, risk management, and environmental monitoring that adhere to the laws," Boyke said.To this end, the company is implementing the sustainable development goals program, according to Merdeka Copper Gold's GM for corporate communications Tom Malik. "The Merdeka Group is committed to becoming part of the Indonesia Global Compact Network (IGCN) and embraces a more environmentally friendly mining system," Boyke said.In the future, Merdeka and all related business entities will continue to work on its commitment to sustainability. So they can produce minerals that are pivotal to the advancement of human life while protecting the planet for a better future for the coming generations.Image source: Merdeka Copper GoldSource: https://jakartaglobe.id/special-updates/merdeka-copper-reaffirms-commitment-to-protecting-the-planet

Kalla Group together with Eramet, PowerCo SE and Stellantis NV formed an international consortium for the development of environmentally friendly electric vehicle centers or "Responsible Green Electric Vehicles" (RGEV) in Indonesia.The signing of the cooperation was witnessed directly by the Minister of Investment/Head of the Investment Coordinating Board, Bahlil Lahadalia.Eramet is a mining company from France; PowerCo is a subsidiary of the German Volkswagen group focused on developing the EV battery value chain, and Stellantis NV is one of the world's leading automotive companies.The Kalla Group, one of the largest business groups in Eastern Indonesia, is engaged in the construction, automotive and energy sectors.In the future the consortium will become the backer of the GOWA Project—the planned premier greenfield nickel project in Indonesia—which will serve as the cornerstone of the "RGEV Hub" and the associated value chain it aims to achieve. "The consortium is ready to complete all administrative and technical requirements needed to obtain assignment permits and other exploration and mining permits related to the GOWA Project, as well as mobilize the resources needed to start exploration activities in accordance with Environmental, Social and Governance (ESG) extractive standards. the highest," said the consortium's official statement, Wednesday (12/7).The GOWA Project aims to integrate responsible mining and processing practices in accordance with the principles set out by The Initiative for Responsible Mining Assurance (IRMA). This project aims to become a flagship project that promotes sustainable extraction and processing practices, in line with Indonesia's vision to make the country a leading tier-one electric vehicle industry ecosystem.The entire GOWA Project industrial chain is planned to be supported by the potential of a hydroelectric power network originating from Sulawesi's abundant hydrological resources. This innovative approach, leveraging state-of-the-art national expertise, will position the industrial estate as one of the most low carbon dioxide (CO2) nickel-based integrated operations in Indonesia.Through the GOWA Project, consortium members also focus on driving sustainable growth, technological innovation and social progress in the Indonesian region.Image source: www.inews.idSource: https://www.fortuneidn.com/news/friana/kalla-group-gandeng-3-perusahaan-eropa-kembangkan-proyek-nikel-di-gowa