Indonesia is looking to propose a limited free trade agreement (FTA) with the US on critical minerals, reported Reuters. The South-East Asian nation does not currently have an FTA with the US. According to Reuters, Indonesian’s Coordinating Minister of Maritime Affairs and Investment Luhut Pandjaitan said: “We do not have an FTA with them. Now we’re proposing a limited FTA with them.” He plans to hold talks with Ford and Tesla executives on the issue during a US visit scheduled later this week.This move is aimed at helping Indonesian firms in the electric vehicle (EV) battery supply chain capitalise on US tax credits. On the part of the US, the move could reduce its dependence on China for its EV battery supply chain expansion. The latest proposal follows new guidance released by the US regarding EV tax credits under the Inflation Reduction Act (IRA).This calls for manufacturing or assembling a certain value of battery components in North America or a free trade partner. Pandjaitan’s deputy Septian Hario Seto said the FTA proposal was in a preliminary phase and is expected to be similar to the critical mineral trade deal between the US and Japan. Seto noted: “It’s the same in essence, that for critical minerals there will be free trade with requirements on processing, such as for nickel, aluminium, cobalt and copper.” Indonesia claims to currently hold the world’s largest reserves of nickel, which is a key element in EV batteries.The country is looking to capitalise on this prospect and attract battery and EV manufacturers such as US firms Tesla and Ford. In a recent development, Ford Motor collaborated with Vale Indonesia and China’s Zhejiang Huayou Cobalt to develop a $4.5bn nickel processing plant in Indonesia.Source: https://www.mining-technology.com/news/indonesia-free-trade-us/

Based on data from the Ministry of Energy and Mineral Resources (ESDM), bauxite ore production in 2022 will be 27.7 million tons and only 7.8 million tons will be absorbed. The remaining 20 million tons will be sold to the export market. This means that after the export of raw bauxite minerals will be carried out in June 2023, there will be 20 million bauxite ores that will be affected. Secretary General of the Association of Processing and Refining Industry Companies (AP3I), Haykal Hubeis explained, when comparing Indonesia's bauxite ore resources with the smelters that have been built, domestic absorption is still far from the capabilities of existing bauxite mines.However, reflecting on Law Number 4 of 2009 concerning Mineral and Coal Mining (minerba) it is clear that it requires mining companies to build smelters which will be implemented no later than 5 years after the Law was enacted or in 2014. Haykal explained, the obligation to build the smelter has been valid until now or 8 years. This reflects that the government continues to provide time for business actors to build refining and processing facilities. "I mean that the government's decision-making in this matter has been thought through quite carefully," he explained to Kontan.co.id, Friday (6/4).Haykal assessed that the government is getting more serious about downstreaming minerals in the country because the country wants to get added value from the natural resources (SDA) it has. In addition, even if this moratorium policy will have an impact on miners, the government has actually given the company quite a long time to prepare to build its smelter. Haykal emphasized that mineral downstreaming was already underway in Indonesia. There are already those who will build and operate smelters, be it state-owned companies, the private sector, and foreign investors."So it's been running, it's been proven. So no need to pull back again. For miners who are affected, they can sell their bauxite on a business to business basis with the smelter," he said. Another option, the sale of bauxite can also be left to the market mechanism. Or even better if the government is willing to facilitate and help mining business actors allocate their production to existing smelters. So after the export ban, the government can help business actors to have a mechanism for supply and demand for bauxite ore so that it is balanced.Haykal revealed that the ban on bauxite ore exports has actually received a positive response from investors because of the certainty of the supply of raw materials to the smelter being built. He said that the banks reacted positively because one of the main considerations for extending credit was the certainty of the supply of bauxite ore because the smelter must have a long life.Source: https://industri.kontan.co.id/news/20-juta-lebih-bijih-bauksit-akan-terdampak-pelarangan-ekspor-ini-tanggapan-ap3i

A subsidiary of PT Indika Energy Tbk (INDY), namely PT Kideco Jaya Agung (Kideco) recorded an increase in production and sales volume performance in the first 2 months of 2023. Indika Energy's Head of Corporate Communications, Ricky Fernando, said that Kideco's actual production during January-February 2023 reached 4.7 million tons. Meanwhile, Kideco's sales volume for the January-February 2023 period reached 5.1 million tons. A total of 1.6 million tonnes or around 31% of which was distributed for domestic needs."We are optimizing production to help meet domestic and global needs. We also focus on improving diversification performance in the non-coal sector and strengthening the Company's ESG (Environmental, Social, Governance) performance, said Ricky to Kontan.co.id, Saturday (8/4). As a comparison, Kideco recorded production of 4.6 million tons of coal in January-February 2022. Meanwhile, Kideco's realized sales volume for the January-February 2022 period amounted to 4.7 million tons with a portion of 1.8 million tons or 38% domestic demand. By the end of the year, Kideco is targeting a coal production target of 31 million tonnes. According to the plan, Kideco's export targets will target China, India, Japan, South Korea, and Southeast Asian countries, as well as domestic fulfillment.Source: https://industri.kontan.co.id/news/volume-penjualan-dan-produksi-batubara-kideo-naik-di-dua-bulan-pertama-2023

PT Freeport Indonesia (PTFI) ensures that it prioritizes Environmental, Social, and Governance (ESG) principles in carrying out its business operations. PTFI President Director, Tony Wenas, said this principle can be seen from the Grasberg mine which has been reclaimed after it was not operating. This condition, according to Tony, is also carried out in other areas if they are no longer mining production areas. Although he said, PTFI still has a Special Mining Business Permit (IUPK) until 2042. On the other hand, copper ore reserves managed in the PT Freeport Indonesia IUPK area can still be produced until 2054."Besides that, we also plant mangroves with a target of 10 thousand hectares in 2041, and also in 2041 we will already have mine closure documents at a cost of around Rp. Tony to the coil while visiting the Grasberg mining area, in Timika, Papua, Saturday (8/4). Meanwhile, PTFI's social investment funds for the last 29 years or from 1992 to 2021 have reached USD 1.9 billion. Going forward, PTFI will continue social investment of an average of USD 100 million per year until 2041. Tony explained that PTFI had also committed to reduce carbon emissions from mining operations by up to 30 percent. Even so, his party will try to reduce emissions can be above 30 percent."So we are doing it, ESG is not ordered or a necessity, but a necessity for operations anywhere, we always have the principle that there is no company that can prevail in the community and environment that fails, no company triumphs or continue better among communities and environments that fail," said Tony. Tony admits that the ESG effort is not easy. He emphasized that good synergy is needed with related parties, especially the Regional Government. Tony ensured that his party would also continue to make efforts to create programs that would benefit the people of Papua. "How do we make programs that can improve not only the nature of the people's lives themselves, but how can they catch up including the digitization program, among other things we also help the Papua Youth Creative Hub Center which in Jayapura we also support for the development of MSMEs," said Tony .Source: https://kumparan.com/kumparanbisnis/masih-akan-beroperasi-puluhan-tahun-ptfi-siapkan-rp-7-t-untuk-penutupan-tambang-20BCUeCRdAp/full

PT Aneka Tambang Tbk (ANTM) continues to strive to increase gold reserves, which is one of ANTM's mainstay commodities. Last year, gold products became the biggest contributor to ANTM's revenue, with a proportion of 69% of ANTM's total sales, with sales value reaching IDR 31.63 trillion. ANTM Main Director Nicolas D. Kanter said, his party is currently looking for potential mines to add to ANTM's gold reserves. “Pongkor, which is the main source of ANTM's gold mine, is depleting its reserves. Luckily yesterday (its age) could be extended because there were new reserves discovered," Nicolas told the media, Wednesday (6/4). Nicolas said, there are already several priority gold mines that are currently being tried to be acquired. However, to find a potential gold mine is not as easy as turning the palm of the hand. "(The new mine) is not only to increase reserves but also asset valuation," he continued. As an illustration, last year the level of unaudited gold production reached 1,268 kg or 1.2 tons or the equivalent of 40,767 troy oz. In 2021, ANTM's unaudited gold production will reach 1.69 tonnes. This means that ANTM's gold production decreased by 24.9% on an annual basis. However, ANTM posted an increase in gold sales volume performance. Throughout 2022, this state-owned metal mining issuer recorded unaudited gold sales of 34,967 kg or 1,124,215 troy oz in 2022. This realization rose 19.01% from last year's gold sales volume of 29.03 tons.Source: https://industri.kontan.co.id/news/tingkatkan-cadangan-aneka-tambang-antm-aktif-cari-tambang-emas-potensial-baru

PT Adaro Energy Indonesia Tbk (ADRO) has decided to repurchase its shares, known as buyback, amounting to 10% of its issued and paid-up capital at most with a maximum budget of IDR 4 trillion.In the information disclosure in Indonesia Stock Exchange (IDX) today (5/4), the management of ADRO claimed that the buyback will be carried out gradually within the next 18 months after the approval of Annual General Shareholders Meeting of the company. Meanwhile, the shareholders meeting is scheduled to take place on May 11, 2023. The buyback will use up ADRO’s internal cash as the company has recorded solid and adequate cash flow to fund the entire business and operational activities.Should the buyback plan be approved during the meeting, the shares will begin to be repurchased on May 12, 2023. Then, the buyback period will last for 18 months starting from said date, and the disclosure of the minutes of meeting will be issued on May 15, 2023.The management of ADRO also reaffirmed that should the budget run out, or if the number of repurchased shares had met the required amount, ADRO will announce the early termination of buyback period.In 2021, ADRO had reportedly bought back its shares during the significantly fluctuating market condition using POJK No.2/2013 as reference. Then, after going through 4 extended terms of buyback period, whose last period started from September 16, 2022, to December 16, 2022, ADRO had recorded a buyback of 1 billion shares, equivalent to 3.13% of ADRO’s total issued and paid-up capital. (AM/ZH)Source: https://www.idnfinancials.com/news/46546/adro-plans-buyback-preparing-idr

The government is mulling allowing companies whose smelter construction is affected by Covid-19 to export unprocessed ores and partially processed minerals (concentrates) past the deadline on June 10, 2023.The decision to allow ore exports beyond June 10 is still in finalization. According to Energy Minister Arifin Tasrif, the Covid-19 pandemic has hindered smelter construction completion. But the minister denied that giving companies a chance to export minerals past June 10 is a form of relaxation to the government policy.“There is actually no need for relaxation. We are simply taking into account the Covid-induced delay [in the smelter project]. That is what we are finalizing,” Arifin was quoted as saying by Investor Daily.The government has begun assessing the Covid-19 impact on smelter construction since late 2022. But miners such as Freeport Indonesia and Amman Mineral Industri have long expressed their concerns, even since April 2020.At the time, the government insisted on punctual construction completion. The government even sent a letter of reprimand to Freeport Indonesia in Sep. 2020. Freeport Indonesia had to pay a $57 million fine due to the delay in its smelter project.The Energy Ministry has allowed Freeport to export 2.3 million tons of copper concentrates until June 10, 2023. Freeport Indonesia president director Tony Wenas gave the latest updates on the project in a hearing at the House of Representatives on March 27. According to Tony, the company’s smelter project in Manyar, Gresik, has reached 54.5 percent completion, exceeding the targeted 52.9 percent.The project is set to finish later this December. It will then enter pre-commissioning and commissioning until May 2024. Production would begin in phases, and get into full swing on Dec. 2024.“We are committed to finishing the smelter construction,” he said.The special mining permit, also known as the IUPK, given to Freeport stated that the miner should construct smelters no later than five years after the permit issuance in 2018. Freeport has also informed the government that the smelter could finish in 2024 or a year later than expected due to Covid-19.Investor Daily reported that the IUPK permit also includes a force majeure provision regarding the smelter construction. In other words, smelters are expected to complete by 2023 provided there are no force majeure events. The government has declared Covid-19 as a non-natural force majeure. The permit also states that Freeport can still export concentrates during the construction of the smelter.Source: https://jakartaglobe.id/business/govt-mulls-allowing-mineral-export-due-to-smelters-constraints

PT Agincourt Resources plans to reduce the volume of gold production in 2023 in order to realize the principles of sustainable mining. Deputy President Director of PT Agincourt Resources Ruli Tanio said, this year, his party is targeting 200 thousand ounces of gold production from the Martabe Gold Mine in Tapanuli, North Sumatra. This figure is lower than the actual production in 2022 which reached 286 thousand ounces. "This year we are trying to figure 200 thousand ounces, a decrease from last year's around 286 thousand ounces," he said when met at the Alana Hotel, Yogyakarta, quoted Monday (3/4/2023). He revealed that the reduction in the rate of gold production from the Martabe Mine was expected to improve the quality of several other aspects, such as staff training, standard operating procedures (SOPs), and others. Nevertheless, Ruli is optimistic that PT Agincourt Resources still has a higher net profit compared to the previous year. According to him, the movement of the gold price which is predicted to be better this year will allow his party to achieve the financial target even though the production rate has decreased.Meanwhile, he said that the achievement of gold production at the Martabe Mine until now was still in line with Agincourt's expectations. Throughout the first quarter of 2023, the Martabe Mine was able to produce as many as 50 thousand ounces of gold or around 2.5 percent of this year's production target. “Currently the commodity price of gold is good. We are optimistic that this year will be better than last year. The price may be in the range of US$1,800 per ounce," he continued.Source: https://ekonomi.bisnis.com/read/20230403/44/1643115/agincourt-resources-turunkan-produksi-emas-tahun-2023

PT RMK Energy Tbk. recorded an operating profit of IDR 404.1 billion last year. This profit reached a record high during the company's operation. Finance Director of RMK Energy, Vincent Saputra, said the company is targeting operating revenues of IDR 2.5 trillion and operating profits of IDR 398.2 billion in 2022. This target has been achieved with a respective percentage of 105.3 percent and 101.5 percent. The operating profit target in 2022 is IDR 398.2 billion and 101.5 percent has been achieved, so that RMK Energy's operating profit exceeds the target to IDR 404.1 billion."Achieving this target supports the company to maintain financial ratios (EBITDA to liability), above the minimum credit covenant requirements, which is 14.3 times," Vincent said in a press conference 'Full year 2022 Performance Announcement' in Jakarta on Monday, 3 April 2023. In addition, Vincent said that RMK Energy had also succeeded in reducing financial debt by 49.9 percent to IDR 217.1 billion and was able to manage a Debt to Equity (DER) financial ratio of 0.2 times which also met the minimum credit covenant requirements. "The improvement in financial ratios was also supported by an increase in the Company's equity which increased by 50.3 percent year on year to Rp 1.2 trillion," he said.Furthermore, Vincent assesses that the company's cash flow is getting healthier on an ongoing basis with the increase in the contribution of coal services. He is also optimistic that RMK Energy can achieve a bigger target with the support of PT Bukit Asam Tbk. as partners. As is known, RMK Energy has collaborated with PT Bukit Asam Tbk, a company that is part of the MIND ID mining BUMN holding, which is currently in the finalization process. "Until March 2023, the company has identified a growth in coal service volume of 55.6 percent year on year compared to the same period last year," said Vincent. Meanwhile, Director of Operations at RMK Energy, William Saputra, said that energy security is an opportunity for the company to meet energy needs, both at home and abroad."In 2022, the company targets the volume of coal barge loading and unloading services to reach 7.8 million metric tons, respectively, and has achieved 149.5 percent and 100.2 percent of the 2022 target," said William. For the coal sales segment, said William, management is targeting a volume of 2.5 million tons of which 50 percent of the target will come from PT Truba Bara Banyu Enim's in-house mine. "At the end of 2022, the sales volume of coal is 2.5 million metric tons or has reached 100 percent of this year's target. This year the company has also managed to maintain zero fatality for the last 3 years," said William. Meanwhile from the coal sales segment, RMK Energy recorded operating revenues of IDR 2.1 trillion, an increase of 45.3 percent year on year. This increase in revenue was supported by an increase in coal sales volume which increased 45.1 percent year on year to 2.5 million tonnes.Revenue from this segment contributes 77.3 percent to RMK Energy's total revenue. The gross profit from this segment was IDR 406.7 billion, an increase of 75.8 percent year on year and contributing 69.1 percent of the company's total gross profit. From the coal services segment, RMK recorded operating income of IDR 620.5 billion, an increase of 51.2 percent year on year. The increase in revenue for this segment was supported by an increase in the volume of rail loading and unloading services for coal barges, which increased 94.8 percent year on year and 31.3 percent year on year. Revenue from this segment contributes 22.7 percent to the company's total revenue. Meanwhile, the gross profit from the coal services segment was IDR 181.9 billion, an increase of 89.9 percent year on year, and contributed 30.9 percent of the company's total gross profit.Source: https://bisnis.tempo.co/read/1710685/cetak-rekor-tertinggi-selama-beroperasi-rmk-energy-catat-laba-rp-4041-miliar-pada-2022?page_num=3

The Ministry of Energy and Mineral Resources (ESDM) and the Ministry of Finance have not yet reached an agreement regarding the scheme for collecting and distributing the Coal Compensation Fund because it relates to the imposition of Value Added Tax (VAT). Minister of Energy and Mineral Resources Arifin Tasrif admitted that his party had discussed this matter with the Minister of Finance Sri Mulyani, but had not yet reached an agreement. "It's still necessary, we need an agreement," Arifin said when met at the Jakarta Presidential Palace Complex, Monday. Arifin explained that the scheme for collecting and distributing coal funds was carried out to mutually compensate mining companies.The funds are collected from coal players who cannot meet the domestic market obligation (DMO). Then this compensation fund is given to coal companies that meet the DMO. This scheme aims to cover the difference between the selling price of domestic coal and the international/market price. However, the levy scheme and the distribution of compensation funds are subject to VAT. In fact, according to Arifin, VAT has already been imposed on buying and selling transactions. "If the withdrawal of the channel is not imposed (VAT), it is compensating for what carries the DMO. So, the compensation is withdrawn, then distributed to those who fulfill (DMO). He should have been taxed first," said Arifin. The coal fee collection scheme will initially be collected by the Public Service Agency (BLU). But then BLU was replaced with Government Agency Partners (MIP) because the compensation funds were not related to Non-Tax State Revenues (PNBP).Source: https://www.antaranews.com/berita/3469425/esdm-dan-kemenkeu-belum-capai-kesepakatan-soal-pungutan-batu-bara