Chinese battery material maker CNGR Advanced Material Co (300919.SZ), opens new tab is planning to build an integrated production facility worth USD 10 billion in nickel-rich Indonesia, a local official for the company said on Wednesday.The investment will take place over 10 to 15 years and the company is looking for a suitable location for the plant, Magdalena Veronika, a director at CNGR Indonesia told reporters.She said the project has been granted national strategic project status from the government, which will provide certain benefits including land procurement. It will require 3,000 to 5,000 hectares (7,413 to 12,355 acres) of land, she added."The investment can reach USD 10.5 billion which will be divided into three stages," she said.The project is the latest venture by a Chinese-backed firm in top nickel miner Indonesia, which banned nickel ore exports in 2020 to try to establish a fully integrated battery industry and electric vehicle ecosystem at home.CNGR, which already produces Class-1 nickel product from Indonesia, aims to produce battery precursor products at the planned new facility, Veronika said.The company is also open to have their partners build a processing plant at their planned site."Our clients has said that once an integrated facility has been built, they would be happy to join us," she said, with CNGR focusing their investment in battery materials while other companies may invest in battery or other products.

Rows of robotic arms move with precision to assemble nickel-based battery cells on the production line at Indonesia's inaugural electric vehicle battery plant, the first in Southeast Asia.After being chosen by a joint venture of South Korea's Hyundai and LG for the USD 1.1 billion factory, Indonesia is now looking to boost investment to give it an edge in the race to become a regional EV hub.When he opened the West Java plant in July then-president Joko Widodo said such investments would make Southeast Asia's biggest economy an "important global player" in the EV supply chain.But while the country boasts the world's largest nickel reserves, analysts pointed out that it still faces a battle owing to its poor processing and refining capacity, environmental worries and the rise in other types of batteries.It also has some way to go to rival Thailand, which Krungsri bank said had market share of 78.7 percent of Southeast Asia's EV sales as of early 2023, with Indonesia following with eight percent.AFP was given rare access to the factory floor to get a glimpse of the plant's complex battery cell production, most of which will be shipped to Hyundai subsidiaries in South Korea and India.Hyundai said the new factory was a commitment to helping the archipelago become a supercharged Southeast Asian EV maker."It shows we are ready to support the government's desire to become a hub for Southeast Asia," Fransiscus Soerjopranoto, chief operating officer of Hyundai's Indonesian subsidiary, said.The government has unveiled a number of incentives to boost the EV market, including a luxury goods tax exemption that has boosted sales and seen a flurry of key brands entering Indonesia's 280 million-strong market, including China's BYD and Vietnam's VinFast.More than 23,000 battery-powered cars were sold to dealers between January and August this year, compared with 17,000 in all of 2023, Indonesian automotive association data showed.Under the regulations unveiled last year, EVs imported to Indonesia are free of duties until 2025 if companies commit to building production facilities and producing as many cars in the country as they import by the end of 2027.And Chinese automaker Wuling announced a plan last month to produce EV batteries at its Indonesia factory by the end of 2024, local media reported."We see a huge potential for EV purchase in Indonesia compared to other countries in Asia," said BYD Indonesia official Luther Panjaitan.Key to Jakarta's strategy has been luring automakers before they establish plants elsewhere, said Rachmat Kaimuddin, a government official who left in the transition to President Prabowo Subianto's administration last week."If they have already established factories in some countries, maybe they don't need to build in Indonesia," he said.Rachmat also pointed to Indonesia's nickel reserves as a difference-maker."It is possible to make a battery industry in Indonesia. That is what Thailand, Vietnam don't have," he said.However, the burgeoning industry faces challenges.While Indonesia aims to become one of the world's top three producers of EV batteries, investment in the sector remains relatively small.Realised nickel sector investment between 2020 and September 2024 was 514.8 trillion rupiah (USD 33.3 billion) and 19.14 trillion in the EV battery sector, investment ministry data showed.While Indonesia is number one for nickel reserves, it will be importing materials for the new factory including processed nickel from South Korea and China owing to its lack of related industries, said Hong Woo-pyoung, president director of the joint venture, PT HLI Green Power.And environmentalists warn nickel mining is one of the key drivers of Indonesian deforestation, while analysts added that the rise of cheaper lithium iron phosphate (LFP) batteries, widely adopted in China, could hurt demand.Andry Satrio Nugroho, researcher at the Institute for Development of Economics and Finance, said the policies were "not pro-nickel" because all carmakers got the same incentives.But Rachmat said Indonesia has raw materials to make LFP batteries as well.A global oversupply of batteries could make it harder for Indonesia to attract more investment, said Putra Adhiguna, managing director of think tank Energy Shift Institute.Yet as boxes of packed battery cells towered behind him, Hong was unfazed about the future."This factory and ecosystem is very important for Indonesia's future," he said, adding that in the "near future, the material will come from Indonesia to make a battery cell, to make EVs"."Indonesia is growing and growing every year about five percent," he said. "The automotive market will be growing as well."

PT Kereta Api Indonesia (KAI), PT Bukit Asam Tbk (PTBA), and PT Semen Baturaja Tbk (SMBR) are collaborating to increase coal unloading capacity in the Kertapati area of Palembang, South Sumatra."KAI is working with PTBA and SMBR to enhance coal transportation capacity in Kertapati, aiming for completion by 2027," said KAI President Director Didiek Hartantyo in a statement on Wednesday in Jakarta.The three companies signed a Memorandum of Understanding (MoU) regarding the Plan to Increase Coal Unloading Capacity in the Kertapati Area.The MoU was signed by PTBA Business Development Director Rafli Yandra, KAI Business Development and Institutional Director Rudi As Aturridha, and SMBR Operations Director Muhammad Syafitri in Jakarta on Tuesday (22/10/2024)."This initiative addresses the critical need to expand coal and cement unloading areas in the Divre III Palembang region to support national energy and infrastructure requirements," Didiek stated.He further highlighted KAI’s positive performance in freight transport from January to September 2024, during which KAI transported 50,987,328 tons of goods, marking an 8% increase from the same period in 2023, which saw 47,174,683 tons.Coal transport led with 40,828,696 tons, representing 80% of KAI’s total freight. Rail freight offers advantages like timeliness, safety, large capacity, zero illegal fees, and is managed by professional personnel."Rail freight also supports significant cargo capacity. Each railcar can carry 50 tons, equivalent to two container trucks," he explained.In South Sumatra, one coal train can haul 61 cars or up to 3,000 tons, reducing the need for approximately 120 trucks."Rail freight also boosts logistical cost efficiency, reduces traffic congestion, and lowers pollution, supporting environmental sustainability," added Didiek.He also noted that the collaboration maximizes each company's potential with a mutually beneficial approach and good corporate governance principles.PTBA Business Development Director Rafli Yandra stated that the synergy is part of PTBA's efforts to boost coal transport capacity."This partnership is a strategic move for us to strengthen logistics and infrastructure pillars. By enhancing logistics capacity, we contribute more significantly to providing continuous energy for the nation," Rafli said.With coal reserves of 2.98 billion tons and resources of 5.81 billion tons, PTBA is one of Indonesia's largest coal resource managers.He added that increasing logistics capacity is essential for accelerating coal reserve monetization and supporting national energy security.SMBR President Director Suherman Yahya said the collaboration represents a strategic synergy among state-owned enterprises (BUMN).He emphasized that Semen Baturaja fully supports the partnership to ensure a sustainable supply of raw energy materials."This synergy also enhances operational efficiency and positively impacts the regional economy and national infrastructure development," Suherman stated.

PT Timah Tbk (TINS) will commence tin mining operations in the waters of Beriga, Bangka Belitung Islands Province. The company has secured a Mining Business Permit (IUP) to conduct mining activities.The Ministry of Marine Affairs and Fisheries (KKP) stated that the Beriga waters fall within a designated mining zone, as it is part of PT Timah Tbk’s IUP area.“When the area falls within a mining zone, the IUP holder can apply for a permit to manage that area in compliance with applicable regulations,” said Director of Marine and Coastal Area Management at KKP, Krishna Samudra, as quoted by Antara on Tuesday (22/10/2024).As an IUP holder, PT Timah, he added, may carry out operations and production if it has obtained all formal permits in line with existing regulations.“If a company has obtained a business permit that includes the Environmental Impact Analysis (Amdal) and other necessary permits, then it may proceed with its business activities,” said Deputy Secretary General of the Indonesian Advocates Association, Penta Peturun, in a statement.He explained that PT Timah’s planned tin mining activities are facing some challenges and should be handled prudently. As a state-owned enterprise, PT Timah is tasked with managing the country’s tin resources.“If the community is concerned about potential environmental pollution, there should first be evidence of such pollution. Should it be proven, the community can report it, and the government, as the permit issuer, would evaluate or impose sanctions on PT Timah,” he stated.According to him, PT Timah could establish partnerships with the local community to facilitate tin mining operations so that all stakeholders can benefit from the area’s natural resources.Regarding social conflicts among the community, he noted that PT Timah could foster partnerships to involve the community in the tin mining business process.In these circumstances, ideally, relevant parties would provide support and oversight for healthy tin mining practices and partnership programs between IUP holders and local miners.“Strategic communication should be established with stakeholders, including the government, community, and local groups, to reach a mutual agreement, given that legal requirements have been met,” he advised.Additionally, he emphasized that tin mining in the Bangka Belitung Islands should be approached in a way that serves public interests while safeguarding Indonesia’s natural resource assets.

The Prabowo-Gibran administration has committed to continuing the downstreaming of the mineral and coal sectors, with plans to expand implementation into other sectors.Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia stated that Indonesia will soon focus on optimizing downstream efforts beyond the nickel sector."One of our future responsibilities is to enhance downstreaming in other sectors, including bauxite," Bahlil said at the Ministry of ESDM on Monday (21/10).In his inaugural address, President Prabowo Subianto emphasized the Indonesian government's commitment to advancing downstreaming across all commodities.“To truly protect the most vulnerable and achieve genuine prosperity, we must implement downstreaming across all the commodities we possess,” Prabowo declared at the MPR/DPR RI building on Sunday (20/10).Prabowo added that increasing the added value of all commodities should positively impact the economy for both the people and the nation.Downstream ProjectsIn a separate statement, MIND ID CEO Hendi Prio Santoso noted that the downstreaming commitment has been a priority across the past two administrations.“We now have processing facilities, including smelters, and are moving toward the midstream, producing raw materials for the industry,” Hendi said on Sunday (20/10).Hendi highlighted that Indonesia’s mineral downstreaming could significantly accelerate industrial growth in the country.He pointed to bauxite as an example, where exporting raw bauxite ore previously brought in around USD 20 per ton. With downstream processing to alumina and aluminum, this value could increase to USD 2,400 per ton.The development of renewable energy and other industries is also projected to boost demand for processed mineral products.In an official statement, MIND ID confirmed the continuation of several downstream projects. Completed projects include the PT Freeport Indonesia (PTFI) copper concentrate refinery in Manyar, Gresik, East Java, with an investment of approximately IDR 58 trillion.This single-line copper smelter, one of the largest in the world, can refine 1.7 million tons of copper concentrate annually, producing around 650,000 tons of copper cathode, 50 tons of gold, and 210 tons of silver.Additionally, the Smelter Grade Alumina Refinery (SGAR) Phase 1 in Mempawah, West Kalimantan, with an investment of around IDR 16 trillion, will process about 3.3 million tons of bauxite annually to produce 1 million tons of alumina for aluminum production.MIND ID is committed to further investment in SGAR Phase 2, which will boost alumina production capacity and include a smelter to produce aluminum.Next year, MIND ID Group has several major projects in the pipeline, including the expansion of aluminum smelters, increased capacity for tin chemicals and tin solder, and the development of primary tin Block #1 and Block #2.

PT United Tractors (UNTR), a subsidiary of Astra Group, has announced its exploration budget for gold and silver mines in Sibolga, North Sumatra, and nickel mines in Konawe Utara, Southeast Sulawesi, for the period of July to September 2024.United Tractors’ Corporate Secretary Sara K. Loebis said the estimated exploration costs through its subsidiary, PT Stargate Dua Pasific Resources (SDPR), will reach IDR 4.24 billion (USD 274,290).“Exploration activities will focus on the Alenggo and Lameruru areas in the Langgikima District of Konawe Utara,” she stated in a disclosure to the Indonesia Stock Exchange on Friday, October 18, 2024.During this quarter, PT SDPR plans to conduct drilling at 128 locations, varying in depth. This exploration effort is supported by several subcontractors, highlighting the company’s commitment to developing mineral resources in the region.In addition to its mining operations, PT United Tractors is also expanding into the renewable energy sector. The company recently completed the acquisition of PT Supreme Energy Rantau Dedap (SERD), which focuses on geothermal energy development.This acquisition, carried out by UNTR’s subsidiary PT Energia Prima Nusantara (EPN), strengthens the company’s position in the renewable energy market. The process involved purchasing shares from major international firms such as Merit Power Holdings, Axia Power Holdings, Tohoku Power Investment Company, and INPEX Geothermal, Ltd., all of which play significant roles in geothermal energy development.EPN had to meet stringent requirements before finalizing the acquisition, which involved a payment of over USD 80 million (IDR 1.25 trillion). With this move, Astra Group is intensifying its presence in the geothermal power sector alongside other major players like PT Pertamina Geothermal Energy, PT Barito Renewables Energy, and PT Medco Energi Internasional.

French miner Eramet SA will buy back Tsingshan Holding Group Co.’s stake in an Argentinian lithium project, marking a rare retreat for the Chinese conglomerate from an expansion beyond its core nickel business.Eramet will buy out the Chinese stainless steel conglomerate’s 49.9 percent interest in Eramine Sudamerica assets, the company said in a statement on Thursday. The purchase will have a USD 699-million net cash impact, the miner said, without giving further details.The move comes amid a slump in lithium prices that is affecting the sector at large. Earlier this month, Rio Tinto Plc agreed to buy Arcadium Lithium Plc for USD 6.7 billion, its biggest purchase in almost two decades. In August, Australia’s Pilbara Minerals Ltd. took over a project in Brazil, marking its first international expansion.For Tsingshan — the world’s top nickel producer — the sale represents an unusual pullback from its rapid diversification into the broader battery space. The conglomerate had been developing lithium assets in Africa and South America, while also looking to set up plants in Indonesia and enter the US storage market.“Tsingshan came as a financial partner,” Eramet CEO Christel Bories said on a call with analysts, adding that the group is used to being the operator of processing plants. “We have decided together that as we regained some flexibility it was time for them to leave,” she said.The company’s billionaire founder Xiang Guangda said in the statement it would support a smooth and constructive handover of the assets to Eramet. The two firms also jointly run the world’s biggest nickel mine in Indonesia.Eramine Sudamerica’s plant runs a direct extraction technology with a capacity to produce 24,000 tons of lithium carbonate equivalent a year, Eramet said in the statement. The Centenario brine deposits it draws from could support more than 75,000 tons of output a year, the company said.The French government, which is one of Eramet’s biggest shareholders, reacted positively to the deal.“This strengthens our critical raw materials sovereignty,” Energy and Climate Minister Agnès Pannier-Runacher said on Franceinfo radio on Thursday.Eramet posted third-quarter adjusted turnover of €809 million, down 17% year-on-year. The company said it expects profits for the second half of 2024 to be higher than the first.

PT Trimegah Bangun Persada (TBP) Tbk (NCKL) or Harita Nickel is targeting nickel production from its two operational smelters using rotary kiln electric furnace (RKEF) technology, Megah Surya Pertiwi (MSP) and Halmahera Jaya Feronikel (HJF), to reach 120,000 tons of nickel content in ferronickel.Head of Investor Relations Harita Nickel Lukito Gozali stated that as a sustainable, integrated nickel mining and processing company operating on Obi Island, North Maluku, Harita Nickel has two operational nickel mines.These two mines are TBP and a nickel mine operated by its subsidiary, PT Gane Tambang Sentosa (GTS). TBP and GTS play a role in supplying nickel ore to NCKL’s RKEF smelter and High-Pressure Acid Leaching (HPAL) refinery.

PT Bukit Makmur Mandiri Utama (BUMA), the principal subsidiary of PT Delta Dunia Makmur Tbk (Delta Dunia Group), has secured a long-term contract extension with PT Indonesia Pratama (IPR), a subsidiary of PT Bayan Resources Tbk (Bayan Group).The contract extension period spans 11 years, from 2024 to 2035, and will significantly contribute to BUMA’s revenue, amounting to approximately USD 7.8 billion.The agreement includes a substantial increase in overburden removal, reaching 1.827 billion bank cubice metres, and an increase in coal production to 465 Mt over the contract period.Ronald Sutardja, President Director of Delta Dunia Group, said: “We are proud of our long-standing relationship with Bayan Group, one of the leading coal producers in Indonesia. This contract extension reflects BUMA’s track record in delivering safe, efficient and reliable mining services to Bayan Group. It also reaffirms Delta Dunia Group and BUMA’s commitment to continue strengthening our presence and growing our core business in Indonesia while deepening our long-term relationships with all of our partners.”Indra Kanoena, President Director of BUMA, stated, “This amendment agreement reflects Bayan Group’s trust and long-term commitment to strengthening our strategic and sustainable relationship, which has grown strong for over 17 years. It also underscores BUMA’s dedication to always prioritising mutual success with our clients. With this amendment agreement, we are committed to continuously enhancing our operational excellence and supporting sustainable growth for BUMA and Bayan Group.“At BUMA, we are committed to consistently creating optimal value for all stakeholders while generating a positive impact on the communities and environment. We hope to sustain this positive momentum, seizing growth opportunities for both our company and our stakeholders.”

Indonesia aims to develop its EV industry and has for years been wooing Tesla to invest in battery making and car manufacturing in the country, trying to leverage its rich reserves of nickel, which can be processed for use in EV batteries.Indonesia plans to export nickel-based material used to make electric vehicle batteries to the United States next month, its energy minister said on Friday.Bahlil Lahadalia said Indonesia would provide the material, known as EV battery precursor, to U.S. electric carmaker Tesla , but did not give details on the volume involved."We will export precursor to the U.S. by next month to Tesla, from Weda Bay," Bahlil said.Previously, Indonesia has reported exporting EV precursor to China.Indonesia aims to develop its EV industry and has for years been wooing Tesla to invest in battery making and car manufacturing in the country, trying to leverage its rich reserves of nickel, which can be processed for use in EV batteries.Tesla did not immediately respond to a request for comment.