LX International Corp., the trading unit of South Korea’s LX Group, said on Tuesday it is slated to acquire a 60% stake in Indonesian miner PT Adhi Kartiko Pratama (AKP) at 132.9 billion won (USD 101.3 million) to produce nickel, a core material for electric batteries.PT AKP’s mines on Sulawesi Island, Indonesia, have proven mineable nickel estimated at about 36 million tons, which can be used for 7 million electric vehicles, LX International said in a press release on Nov. 7.“PT AKP’s mines have great infrastructure such as a haul road, a pit and a port. The location is also great – the mines are near the nickel industrial complex on the island,” an LX International official said.The trading company is planning to complete the transaction by Feb. 29, 2024, and raise the Indonesian firm’s annual nickel production capacity from its current 1.5 million tons to 3.7 million tons by 2028.LX International will continue to secure nickel and shift its major natural resource business from coal to EV battery minerals, an official from the trading firm said.In the third quarter, LX International’s operating profit reached KRW 63.6 billion on a consolidated basis, a 76.7% drop from a year earlier, as reported in its preliminary report on Tuesday.Meanwhile, LX International’s third-quarter operating profit reached 63.6 billion won on a consolidated basis, dropping 76.7% from a year earlier, according to its preliminary report on Tuesday.Its third-quarter revenue fell 22.3% on-year to 3.66 trillion won, while the quarterly net profit plunged 80.2% from a year earlier to 49 billion won.“The natural resource market boomed and logistics freight fares significantly rose last year. As they are on a downtrend this year amid the global economic slowdown, the base effect will occur in the third-quarter earnings,” an LX International official said.The company forecasts fourth-quarter results to show improvement, with more energy use in the winter season and recovery of air freight demand.LX International is investing the profits from its traditional businesses, such as coal and palm oil supplies, in future growth drivers such as EV battery materials, the company added.Image source: Getty ImagesSource: www.kedglobal.com/LX International to buy Indonesia's PT AKP for nickel mining

Thiess says it has demonstrated commitment to expanding its truck and component rebuilding capabilities on a large scale with the execution of a lease for a new facility at Kabil Integrated Industrial Estate on Batam Island, Indonesia.Thiess has an extensive fleet of mining haulage trucks in Indonesia and Australia, including more than 650 that will reach the end of their service life in the next eight years and require either replacement or rebuilding, it says.Thiess Group Executive Chair and CEO, Michael Wright, said: “The new truck rebuild facility at Kabil Estate is an integral part of a strategic initiative to equip Thiess with better control over our asset replacement and rebuild program, and deliver improved financial and sustainability outcomes for our clients and shareholders.“We are pleased to have secured this site that is centrally located between our Indonesian and Australian operations, with world class facilities and transport and logistics services – the professionalism and support from Kabil Estate has enabled swift mobilisation and we are on track for first production by December 2023.“This rebuild facility also establishes a platform for Thiess to explore decarbonisation and alternative fuel technologies, as well as the opportunity to provide these services for our clients in the future.”Kabil Integrated Industrial Estate Group Chairman, Kris Wiluan, said: “We are delighted to welcome Thiess as a valued addition to Kabil Estate. With state-of-the-art infrastructure, strategic location, and a focus on sustainability, we look forward to providing Thiess with a competitive advantage in its operations in Indonesia and Australia while supporting its ecofriendly initiatives.”Thiess Batam Engineering General Manager, Daryl Albury, said: “Our new facility at Kabil Estate will enable Thiess to reset the usage clock on up to 160 trucks per year to zero hours, through a complete overhaul, including all major components, a full refurbishment of electrical systems and returning all worn components to original equipment manufacturer specification.“The zero-hour rebuild is expected to extend the service life of each of Thiess’ Caterpillar mining trucks by a further 40,000 to 60,000 hours.”Thiess Group Executive Assets, Technical Services and Technology, Ramesh Liyanage, said: “Thiess’ reputation for certainty of delivery is built on our expertise in asset management and fleet maintenance, with component rebuild centres across our operations for decades.“This new truck rebuild facility is the next step up in the evolution of our capabilities and service offerings.”Thiess’ existing rebuild facilities in Perth, Brisbane and the Hunter Valley in Australia, and in Balikpapan in Indonesia, have a track record in rebuilds and refurbishments of trucks, dozers and components for the company’s fleet of mining assets, as well as limited fee-for-service rebuilds of client assets.Image source: ThiessSource: www.im mining.com/Thiess Ramps Up Truck Rebuilding Capability In Indonesia 

PT Golden Energy Mines Tbk (GEMS) recorded coal production of 31.71 million tons in the third quarter of 2023. GEMS Corporate Secretary Sudin Sudiman revealed that the production achievement during the first nine months of this year has fueled the company's optimism for the remainder of the year."We are confident that the 2023 target of around 40 million tons will be achieved," Sudin told Kontan some time ago.Sudin explained, specifically for the third quarter of 2023, GEMS' coal production was 11.35 million tons. Meanwhile, total coal sales until the third quarter of 2023 reached 31.83 million tons where sales in the July-September 2023 period reached 11.62 million tons.Sudin disclosed that several factors have contributed to the production performance this year, including the readiness of the operational team and mining facilities."The weather until September also supported operations," Sudin added.Referring to Kontan's records, this year's production target of 40 million tons represents a 5% annual growth compared to the production in 2022.Image source: GEMSSource: www.industri.kontan.co.id/Golden Energy Mines Gems Yakin Bisa Penuhi Target Produksi Batubara Tahun Ini

Minister of State-Owned Enterprises (BUMN) Erick Thohir revealed Freeport McMoran's big plan to build a smelter in Fakfak, West Papua. This plan comes after the world's largest gold producer completes its smelting project in Gresik, East Java.Erick has not confirmed in detail when the start of the smelter project in Fakfak, West Papua. However, he confirmed that Freeport McMoran will increase its investment in Indonesia through the construction of a new smelter in Fakfak."In December, the first phase of Freeport's smelter in Gresik, East Java, will be inaugurated, and by the end of next year, the second phase will be completed. Freeport is committed to constructing another smelter in Fakfak, Papua," Erick stated through his Instagram account on Tuesday (14/11/2023).According to him, the development of projects in the energy and mining sectors aligns with President Joko Widodo's (Jokowi) downstreaming program, as it adds value to Indonesia.Not only that, but the investment from the U.S.-based company is also believed to generate new employment opportunities, ultimately driving local economic growth."This is in line with the downstreaming program to increase added value for Indonesia. We continue to encourage investment in Indonesia to create job opportunities in the homeland," he explained.The man who also serves as the Acting Coordinating Minister for Maritime Affairs and Investment notes that the handles and investment relationship between Indonesia and the U.S. are currently on the rise. Indonesia has recorded a trade surplus with the U.S. amounting to USD 16 billion.In fact, US investment in Indonesia is the fourth largest which has never happened before."Indeed, trade relations between Indonesia and the US continue to increase now, especially since our financial surplus with America is almost USD 16 billion," Erick explained. "And that's why the President is encouraging investment in Indonesia from the United States, including PT Freeport, because our state-owned company already controls 51 percent," he added.Image source: MNC MediaSource: www.idxchannel.com/Erick Sebut Freeport Mcmoran Bakal Bangun Smelter Di Fakfak Papua Barat

PT Perdana Karya Perkasa Tbk (PKPK) is set to acquire shares owned by PT Deli Pratama Batubara (DPB) in PT Bhakti Harapan Sentosa (BHS). The company plans to take over 14.9 million DPB shares.In its concise prospectus on Wednesday (1/11/2023), PKPK management stated its intention to purchase 14,991,000 shares, equivalent to 99.94% of the total fully paid-up and placed capital in BHS owned by DPB, amounting to IDR 165 billion. The funding for this acquisition will come from the unused portion of the public offering (rights issue).DPB holds the controlling shares directly in the company, as per the Shareholders List issued by PT Raya Saham Registra as of October 30, 2023. DPB owns 890,051,418 shares, constituting 74.17% of the total fully paid-up and placed capital in the company.Thus, DPB, as the seller in the transaction plan, is the controlling shareholder of PKPK, making this an Affiliated Transaction in accordance with OJK regulations under POJK 42/POJK.04/2020.BHS has a subsidiary, namely PT Tri Oetama Persada (TOP), with a 70% ownership stake in the fully paid-up and placed capital of TOP. TOP holds a Mining Business License for Production Operations (IUPOP) covering a 10,000-hectare coal mine. The Transaction Plan does not result in a change of control, either directly over BHS or indirectly over TOP.PKPK management has considered that the transaction plan could contribute by increasing the investment value of shares and yielding better returns for the company. They will seek approval from shareholders in an Extraordinary General Meeting (EGM) scheduled for December 15, 2023.Image source: PKPKSource: www.emitennews.com/Perdana Karya Perkasa PKPK Akuisisi 149 Juta Saham Deli Pratama Batubara

The discussion regarding the divestment and contract extension of PT Vale Indonesia Tbk (INCO) has now reached the Ministry of State Owned Company (BUMN) led by Erick Thohir. The Ministry of Energy and Mineral Resources (ESDM) claims to have completed the evaluation, which was their responsibility.Arifin Tasrif, the Minister of ESDM, emphasized that discussions on divestment and contract extensions have been completed on their end. The next steps involve finalizing the process with the Ministry of BUMN, which will execute the divestment through Mineral Industry Indonesia (MIND ID)."It's just a finalization with the Ministry of BUMN. If it's from the Ministry of ESDM, it's not an issue anymore. As for the extension regarding their land, it's our concern, but the business matters are there (Ministry of BUMN)," said Arifin during an interview at the Ministry of ESDM on Thursday (26/10).Earlier, Arifin revealed that Vale agreed to release 14% of its shares, an increase from the initial 11%."The last percentage is 11 + 3. So, with this 14%, MIND ID composition will be increase" he said.Divestment is a crucial requirement for Vale, currently in the process of extending its contract, which is set to expire in 2025. The obligation to divest 51% of shares is carried out progressively by the central government, local governments, SOEs, regional SOEs, or national private business entities. If there are no interested parties, the divestment offer is conducted through the Indonesia Stock Exchange to manage the extension of Vale's Contract of Work after December 29, 2025. This aligns with Article 147 of Government Regulation No. 96 of 2021 concerning the Implementation of Mineral Mining Business Activities, where PT Vale is required to divest an additional 11% of its shares.The valuation of the divestment share price is calculated based on a fair market value without taking into account mineral reserves, except those that can be mined during the contract extension period of the Special Mining Business License (IUPK).However, it has been revealed that MIND ID also desires control over Vale's shares, as they believe that the 14% shares do not include control rights.Image source: Dunia EnergiSource: www.dunia energi.com/Keputusan Final Divestasi Vale Indonesia Ada Di Tangan Erick Thohir

PT Merdeka Copper Gold Tbk (PT MCG), the parent company of PT Bumi Suksesindo (PT BSI), has emerged as the holder of the highest MSCI ESG (Environment, Social, and Governance) rating in Indonesia.MSCI upgraded the ESG rating of this gold mining company located in Desa Sumberagung, Pesanggaran District, Banyuwangi, East Java, as of October 2023, elevating it from BBB to A.With an MSCI rating of A, PT MCG automatically stands out as the mining company with the highest rating for metals and minerals in Indonesia.It's important to note that MSCI Inc. is an international research, data, and technology institution with over 50 years of experience, guiding the global investment community in understanding and analyzing the key drivers of risk, profit, and building more effective portfolios.As stated on MSCI's official website, the ESG rating aims to measure the management of financially relevant risks and opportunities. The measurement is based on a rule-based methodology to identify the outperformance or underperformance of an industry based on ESG risk exposures and how well the industry manages its risks compared to others.President Director of PT BSI, Adi Adriansyah Sjoekri, expressed pride in this achievement. Particularly noteworthy is the fact that in September, PT BSI also received four awards for the implementation of good mining practices at the GMP (Good Mining Practice) Award 2023. These awards were in the categories of Technical Mining Management (Primary), Mining Conservation (Primary), Environmental Mining Protection (Primary), and Standardization and Mining Services Efforts (Primary).Adi encouraged all employees to continue improving so that the achievements of PT BSI and PT MCG continue to grow in the future.As part of PT MCG, PT BSI is also proud of this achievement, especially since PT BSI serves as a role model for other sites and projects owned by PT MCG."Let us continue to contribute to running this mining operation to the best of our ability. We build a safe and comfortable working environment by consistently applying the GREATNESS company values (Growth, Respect, Accountability, Collaboration, Excellence, Safety, Sustainability)," he said on Thursday (2/11/2023).The implementation of ESG principles is one of the solutions to global demands for the implementation of good corporate governance, making it a crucial factor for investors in effectively and efficiently conducting environmentally conscious mining operations."Our achievements in ESG and GMP are strong evidence of our commitment to Good Corporate Governance," said Adi.Image source: MDKASource: www.timesindonesia.co.id/Rating MSCI Perusahaan Tambang PT Merdeka Copper Gold Tertinggi Di Indonesia

U.S. lawmakers have expressed concern about signing a limited free trade agreement with Indonesia, seeking to block the Southeast Asian nation's critical minerals from benefitting indirectly from subsidies created under the Inflation Reduction Act (IRA).In a letter sent last week to U.S. Trade Representative Katherine Tai, Treasury Secretary Janet Yellen, Energy Secretary Jennifer Granholm and Commerce Secretary Gina Raimondo, a bipartisan group of senators argued that the country's mining and refining industry is dominated by companies from China."Given the extraordinary taxpayer resources at play, we strongly believe that eligibility for the critical minerals credit must prioritize domestic producers and existing free trade agreement partners," such as Canada and Australia, the lawmakers wrote.The senators acknowledged that Indonesia plays a strategic role in the Indo-Pacific region and has the potential to become a partner through the Indo-Pacific Economic Framework for Prosperity, but wrote "if expansion is deemed necessary, it should be directed toward countries with strong labor, human rights and environmental standard."The bipartisan authors of the letter include Sens. Kevin Cramer (R-North Dakota), Joe Manchin (D-West Virginia), Amy Klobuchar (D-Minnesota) and Lisa Murkowski (R-Alaska).Influential U.S. senator Joe Manchin (D-WV) is one of the signatories to the letter opposing a limited free trade agreement with Indonesia. The opposition throws a wrench in the Biden administration's plans to host President Joko Widodo at the White House this month, to coincide with the Indonesian leader's attendance at the Asia-Pacific Economic Cooperation summit in San Francisco.It also stands as a major obstacle for Indonesia's ambitions to leverage its position as the world's largest producer of nickel to be a major hub in the electric-vehicle supply chain. Nickel, along with lithium, and cobalt is a key component in EV batteries. Unlike lithium, which can mostly be sourced domestically, the U.S. will need to import nickel to meet demand.When U.S. Vice President Kamala Harris visited Indonesia in September 2022, she promised Jokowi that Washington will work with Jakarta to build resilient supply chains, including for the critical minerals.Her visit came just after the passage of the USD 430 billion U.S. Inflation Reduction Act, which included a USD 7,500 credit for the purchase of each new clean energy vehicle. Part of a strategy to get more EVs on the road, the credit is conditioned on the critical minerals used being sourced from within the U.S. or a country with which it has a free-trade agreement."It's a demand side incentive that all of the auto companies are lobbying furiously about, at a time when EV sales are slowing," an industry source said.Negotiations are reportedly underway between Washington and Jakarta to sign a limited FTA which would allow Indonesian critical minerals, primarily nickel, to be covered by the subsidies."The idea behind the IRA was that free trade agreement countries have high standards and was a proxy for saying 'let's build up a supply chain outside of China and to do it with allies that have free-trade agreements,'" said Todd Malan, chief external affairs officer at Talon Metals, a Toronto Stock Exchange-listed mining company that focuses on the development of high-grade nickel mines in the U.S."The point of the letter is to say that giving a free trade agreement to Indonesia is just a backdoor for Chinese companies and that U.S. taxpayers should not be giving a subsidy to Chinese miners in Indonesia," he added.Canada and Australia are investing to expand production. Last month, Australian Prime Minister Anthony Albanese said Canberra will double financing for the critical minerals sector with a boost of USD 1.26 billion, as the country looks to reduce reliance on China.Cheap supply from Indonesia may undercut such investments.Luca Giacovazzi, CEO of Australian mining company Wyloo, told Nikkei, "A U.S. free-trade agreement on nickel with Indonesia, would significantly reduce the attractiveness of investing in countries with higher ESG (environmental, social, and corporate governance) standards and leave consumers with no choice but to use dirty nickel."Australian nickel is at a cost disadvantage compared to other jurisdictions like Indonesia, Giacovazzi said, "But it has the world's best environmental standards and, as a U.S. free-trade partner, is an IRA-compliant supplier. If the world wants batteries and EVs to be both affordable and environmentally sustainable, investment in Australian and Canadian production must be encouraged."Image source: ReutersSource: www.asia.nikkei.com/U.S. senators oppose Indonesia FTA that paves way for nickel subsidies

PT Bumi Resources Minerals Tbk (BRMS), through its subsidiary PT Citra Palu Minerals, has recently discovered additional mineral resources and reserves in Block 1 (Poboya) in Palu, Central Sulawesi.The added mineral resources come from the River Reef prospect, Hill Reef 1 prospect, and a new prospect in Watuputih located west of River Reef. This discovery increases the mineral resources at CPM by 50%, from the previous 28.4 million tons of ore to 42.7 million tons of ore, with an average gold grade of 2.6 g/t.The managed mineral reserves by CPM also see a 38% increase, from the previous 22.8 million tons of ore to 31.5 million tons of ore, with an average gold grade of 2.4 g/t.Agus Projosasmito, the President Director of Bumi Resources Minerals, stated that the additional mineral resources and reserves will extend the production life of the company's gold mine in Poboya, Palu."We also hope to increase our gold production in the second half of 2023 from our newly completed second gold processing facility. This increase in gold production will positively impact the company's financial performance in 2023," he said.Financial Performance in Q3 2023Additionally, the company reported positive financial performance until September 2023. PT Bumi Resources Minerals Tbk recorded growth in revenue and net profit at the end of the third quarter of 2023.The company reported a revenue of USD 32.74 million until September 2023, a 294% increase compared to the same period the previous year, which was USD 8.32 million. This revenue growth led to a 65% year-on-year increase in net profit, reaching USD 10.66 million until September 2023, compared to USD 6.47 million in the same period the previous year.The improved financial performance is supported by the production of 511 kg of gold in the first nine months of 2023. Revenue from gold sales surged by 340%, reaching USD 31.74 million until the end of September 2023, compared to USD 7.22 million in the same period the previous year.Operation of the PlantAgus Projosasmito, the President Director of Bumi Resources Minerals, mentioned that the improved production performance is due to the operation of the second gold plant, which continues to increase toward full capacity."We hope to continue increasing our gold production in line with the second plant, which is expected to reach full capacity in the fourth quarter of 2023," he said.BRMS's subsidiary, PT Citra Palu Minerals (CPM), completed the construction of its second gold plant in Palu in November 2022, with a capacity of 4,000 tons of ore per day. In addition, CPM operates a smaller gold plant with a capacity of 500 tons of ore per day in Palu. In the first nine months of 2023, both gold plants operated with an average processed tonnage of 1,500 tons of ore per day.Performance in H1 2023In the first half of 2023, PT Bumi Resources Minerals Tbk announced significant growth in both revenue and profit. The company reported revenue of USD 15.84 million or approximately IDR 239.01 billion.This revenue increased by 185.93% compared to the same period the previous year, which was USD 5.54 million. Alongside this, the cost of revenue for Bumi Resources Minerals rose to USD 6.93 million compared to June 2022's position of USD 3.12 million.As a result, the company earned a gross profit of USD 8.9 million, still an increase compared to the first half of 2022, which was USD 3.12 million. Operating expenses in this period also increased to USD 3.89 million from USD 2.31 million in the first half of 2022. However, the company's operating profit still grew by 523.13% to USD 5.02 million from USD 804,968 in the first half of 2022.During the first half of 2023, the company recorded other income of USD 217,572. Additionally, the company benefited from income tax of USD 402,765. With these details, the company achieved a net profit attributable to the owner of the parent entity of USD 5.56 million or approximately IDR 83.92 billion.This profit increased by 45.60% compared to the first half of 2022, which was USD 3.82 million. The company's assets as of June 30, 2022, increased to USD 1.1 billion compared to the end of the previous year's position of USD 1.08 billion. Liabilities also increased to USD 134.78 million from USD 125.17 million in December 2022.Gold ProductionAgus Projosasmito, the President Director of Bumi Resources Minerals Tbk, added that the company recorded gold production of 236 kg or 7,611 oz in the first half of this year."Our second plant in Palu is gradually increasing its production capacity. We hope that the plant can reach full capacity of up to 4,000 tons of ore per day in early September 2023," he said.Bumi Resources Minerals' subsidiary, PT Citra Palu Minerals (CPM), recently completed the construction of its second gold plant in Palu with a capacity of 4,000 tons of ore per day in November 2022. In addition, CPM also operates a smaller gold plant with a capacity of 500 tons of ore per day in Palu.In the first half of 2023, both gold plants operated with an average capacity of 1,000 tons of ore per day. However, since July 1, 2023, both plants have increased their operations to around 2,400 tons of ore per day.Image source: Laman Bumi Resouces MineralsSource: www.liputan6.com/Bumi Resources Minerals Temukan Tambahan Cadangan Di Tambang Emas Proboya Palu

Several coal companies maintain optimism about achieving their production targets for 2023.These coal firms have affirmed their commitment not to revise their production plans or Budget and Expenditure Work Plans (RKAB) for the year 2023.Dileep Srivastava, the Director of PT Bumi Resources Tbk (BUMI), expresses confidence that the production target for this year can reach between 75 million and 80 million tons. "As of the end of September 2023, we believe our production falls within the range of 55 million tons," mentioned Dileep in a conversation with Kontan on Monday (6/11).The company has opted not to make any alterations to its production plan for this year, citing market dynamics and weather impacts as factors influencing production both to date and until the year's close.Similar sentiments are echoed by PT Bukit Asam Tbk (PTBA), anticipating coal production to reach 41 million tons this year. Niko Chandra, PTBA Corporate Secretary, disclosed that the coal production target for this year represents an 11% increase from the 2022 realization of 37.1 million tons."As of now, we have not submitted a revision for RKAB; total production in Q3-2023 reached 31.9 million tons," affirmed Niko to Kontan on Monday (6/11).Niko explained that coal production during the initial nine months increased by 15.2% from the same period in the previous year, reaching 27.7 million tons.With the increase in production, PTBA's coal sales until Q3-2023 also witnessed a 14.9% year-on-year increase to 27 million tons."The company remains optimistic about sustaining positive performance in alignment with the 2023 year-end target," added Niko.Meanwhile, Director of PT ABM Investama Tbk ( ABMM ) Adrian Erlangga explained that the company's coal production achievements were still in line with the targets set."(Realization) is according to plan. We are not proposing a revision to the RKAB so we are still sticking with the original schedule," said Adrian to Kontan, Monday (6/11).For your information, ABMM is aiming for a production and sales target of around 12.4 million tons this year.Meanwhile, PT Adaro Energy Tbk ( ADRO ) also still adheres to the same production guidelines. This means that there have been no changes to production plans for the remainder of this year."Until now there have been no changes to Adaro's guidance for 2023. Adaro's coal sales target for 2023 is 62 million tons - 64 million tons," said Head of Corporate Communication Adaro Energy Febriati Nadira to Kontan, Monday (6/11).It is recorded that ADRO's coal production until the third quarter of 2023 reached 50.73 million tons. Along with the increase in production, ADRO recorded coal production sales reaching 49.12 million tons.Referring to Minerba One Data Indonesia (MODI), the Indonesian government targets coal production at 694.5 million tons. To date, coal production has reached 635.57 million tons or the equivalent of 91.51% of the target.Image source: ANTARA FOTO/Prasetyo UtomoSource: www.industri.kontan.co.id/Jelang Tutup Tahun Penambang Batubara Optimistis Target Tercapai