Issuer mining contractor PT Golden Energy Mines Tbk. (GEMS) recorded an increase in performance until the first quarter of 2023. GEMS's net profit increased to US$229 million or the equivalent of IDR 3.43 trillion (JISDOR exchange rate of IDR 15,000 per US dollar) in the first quarter of 2023.Based on the company's financial report, GEMS recorded revenue from contracts worth US$838.6 million or the equivalent of Rp.12.58 trillion in the first quarter of 2023. This revenue increased 55.56 percent on an annual basis from US $ 539.12 million.This revenue was obtained from overseas sales of US$606.8 million and domestic sales of US$231.8 million. Meanwhile, based on the segment, revenue from coal mining was US$820.4 million and coal trading was US$18.2 million. This increase in revenue helped raise GEMS's cost of revenue to US$438.9 million, or an increase of 47.95 percent from US$296.7 million on an annual basis or year-on-year (yoy).Golden Energy Mines was also recorded to have recorded a gross profit of 64.89 percent from US$242.4 million in the first quarter/2022, to US$399.6 million in the first quarter/2023. As a result, GEMS posted a net profit of US$229 million or the equivalent of Rp.3.43 trillion during the first three months of 2023. This net profit jumped 71.65 percent from the same period last year of US$133.4 million. Until the end of March 2023, GEMS posted total assets of US$1.38 billion, up from the end of December 2022 which was valued at US$1.12 billion. GEMS cash and cash equivalents increased to US$474.4 million in the first quarter of 2023, from US$329.59 million at the end of December 2022. Then, GEMS's total liabilities also increased to US$591.2 million in the first quarter of 2023, from US$570.8 million in 2022. GEMS's total short-term liabilities were recorded at US$503.13 million, and long-term liabilities of US$88.09 million. GEMS equity was recorded to have increased to US$790.7 million at the end of March 2023, from US$558 million at the end of December 2022. Previously, GEMS President Director Bonifasius said GEMS hoped that this year's revenue and net profit could be the same as in 2022. According to him, GEMS's revenue and net profit will depend on the selling price of coal.Bonifasius said, this year GEMS's coal production target is expected to be better than last year's. In 2022, GEMS will record 39 million tonnes of production and this year production is expected to reach 42 million tonnes. "In the first quarter of 2023, the actual production is approximately 10 million, approximately 25 percent. It's still on schedule ," he said.Image source: goldenenergymines.comSource: https://market.bisnis.com/read/20230629/192/1670248/golden-energy-mines-gems-cetak-laba-bersih-rp343-triliun-pada-kuartal-i2023

PT Atlas Resources Tbk (ARII) targets the export value to the Asian market throughout 2023 to reach 3.28 million tons, while coal sales to the domestic market reach 1.09 million tons.ARII President Director, Andre Abdi explained, the Ministry of Energy and Mineral Resources has given Indonesia's coal export quota of 518 million tons in 2023, up 4.2 percent compared to 2022 which amounted to 497 million tons."This policy is a big opportunity for ARII to increase the Company's production, sales and revenue," he said in a public expose in Jakarta, Friday (30/6/2023).He continued, coal prices are expected to rise gradually until the 2023 quarter when it enters winter at an average level of USD 70-80/ton (ICI4)."We also hope that the price increase will be followed by an increase in coal demand by 30 percent per year for the next 3 years," he added.For this reason, he said, the company will improve the quality of the Hauling Road by using geocell and geotextile technology to increase the capacity of coal shipments from the mine site to the port.In addition, he explained, the company will use Fly Ash & Bottom Ash from the combustion residue of PLTU DSSP Sumsel 5 which can reduce costs by up to 50 percent compared to using split stone."We are targeting the volume of Fly Ash & Bottom Ash to be applied in 2023 of 100,000 tons (KM 60 - KM 130)," he said.Image source:Source: https://www.emitennews.com/news/ekspor-mendominasi-atlas-resources-arii-bidik-penjualan-batubara-43-juta-ton-di-2023

PT Merdeka Battery Materials Tbk ( MBMA ), a company that implements downstream services in the electric motorized vehicle battery value chain, is optimistic about producing positive performance in 2023.The increase in revenue is projected to come from the operation of the ZHN Rotary Kiln Electric Furnace (RKEF) smelter factory. Where this factory will have an installed capacity target of 50,000 tons of Ni in the form of Nickel Pig Iron (NPI) per year.In addition, optimism is also driven by the AIM project and PT Huaneng Metal Industry (HNMI), a high-grade nickel matte (HGNM) conversion facility whose 60% stake was recently acquired by Merdeka Battery Materials.MBMA President Director Devin Ridwan explained that the RKEF ZHN smelter and the AIM project are expected to start production after the construction process is completed in the second half of 2023. "HNMI will produce HGNM which contains more than 70% nickel by processing low-grade nickel matte produced by the RKEF smelter," he said in an official statement received by KONTAN, Friday (30/6). Nickel matte is the main raw material for battery precursors and Class 1 Nickel. HNMI is currently in commercial operation and is expected to start making a positive contribution to MBMA's revenue in the second half of 2023.In 2022, MBMA's main source of revenue will come from NPI sales to foreign and domestic markets, amounting to US$ 270.33 million and US$ 185.4 million, respectively. The NPI production comes from the RKEF smelters owned by PT Cahaya Smelter Indonesia and PT Bukit Smelter Indonesia, each of which has an installed capacity of 19,000 tons of Ni in the form of NPI per year. "So that with the operation of the RKEF ZHN smelter, MBMA's total installed capacity will reach 88,000 tons of Ni per year," he said. MBMA has successfully implemented various business plans, especially the acquisition of downstream expansion projects and the process of building a new RKEF smelter. "So we are optimistic that this will increase MBMA's revenue potential this year. With the support of nickel raw material reserves which are one of the largest in the world, MBMA will continue to focus on optimizing every opportunity in the downstream business and the electric motor vehicle battery value chain which is also the commitment of the Government of Indonesia," Devin concluded.Image source: MBMASource: https://investasi.kontan.co.id/news/bangun-smelter-nikel-merdeka-battery-materials-mbma-targetkan-produksi-50000-ton

Indonesian officials have identified the Trenggalek project in East Java as one of the top three priority greenfield gold targets. Recently, Far East Gold (ASX: FEG) finalized the acquisition of Trenggalek, taking ownership of the project. The 12,813-hectare mining permitted tenement has excellent prospects for epithermal and porphyry-related gold and base metal deposits.Significant exploration work has already been carried out at the project, including 17,786 meters of drilling, 3.675 kilometers of airborne surveys, surface geochemistry samples, and geophysics surveys. Situated within the Sunda-Banda Arc, which is renowned for world-class mineral deposits, Trenggalek adds to the belt's significance.The acquisition of Trenggalek was a major step for Far East Gold, as the project has advanced status with a valid mining license until June 2029, extendable for another 20 years. The company still has outstanding payments of $575,000 to the vendors.CEO Shane Menere expressed excitement about the project's potential, citing its remarkable prospectivity and advanced development status. Four priority targets have been identified: Sentul-Buluroto, Sumber Bening, Jerambah, and Singgahan. These targets display characteristics of epithermal and porphyry copper-gold deposits, with extensive drilling and trenching work already conducted.Far East Gold's Woyla project in northern Sumatra is also an advanced copper-gold project. With the acquisition of Trenggalek and the progress made in exploration, Far East Gold is further solidifying its position in the mining industry.Image source: fareast.goldSource: https://smallcaps.com.au/far-east-gold-increases-indonesian-footprint-java-copper-gold-project/

 The Coordinating Minister for Maritime Affairs and Investment (Menko Marves), Luhut Binsar Pandjaitan, is scheduled to meet with officials from the International Monetary Fund (International Monetary Fund/ IMF ) in August 2023."Maybe there will be a meeting with the IMF in early August. We will try to arrange it on the sidelines of Pak Luhut's working visit to Washington DC in order to meet his partners there," said Spokesman for the Coordinating Minister for Maritime Affairs, Jodi Mahardi to Kompas. com, Monday (3/7/2023).There Luhut will explain the policy of the Government of Indonesia regarding the ban on the export of nickel ore. This is for the sake of encouraging domestic downstreaming.Although the IMF is still trying to get the Government of Indonesia to consider this policy, the firm stance that has been decided will remain consistent."I want to emphasize that the downstream policy implemented by the Indonesian government is part of the commitment to increase the added value of Indonesia's natural resources," said Jodi."We respect the views of the IMF, but as a sovereign country, the Government of Indonesia believes that this policy is the best for the people and the Indonesian economy. The government remains committed to continuing this program," he continued.Previously, the IMF asked the Government of Indonesia to consider gradually removing the nickel export ban policy .This was stated in the document IMF Executive Board Concludes 2023 Article IV Consultation with Indonesia.The document states that the Executive Director of the IMF is aware that Indonesia is focusing on downstreaming various raw commodities such as nickel.This step is considered to be in line with Indonesia's ambition to create added value to export commodities."Attract foreign direct investment and facilitate the transfer of skills and technology," the document said, quoted Tuesday (27/6/2023).However, the Executive Director of the IMF notes that policies must be based on an analysis of further costs and benefits. Then, policies must also be formed while minimizing the impact of spillover effects to other areas.Image source: KOMPAS.com/Isna Rifka Sri RahayuSource: https://money.kompas.com/read/2023/07/03/191559126/luhut-temui-imf-awal-agustus-bakal-sampaikan-ri-konsisten-larang-ekspor-nikel

President Joko Widodo (Jokowi) has informed that the government will make a decision this month regarding its plan to push the nickel mining company PT Vale Indonesia (INCO) to divest more its shares.The discourse on divestment came because the company's operational period and contract will expire on December 28, 2025."God willing, we will soon decide on that matter this month. Most importantly, we should prioritize national interests," Jokowi told reporters at Halim Perdanakusuma International Airport in Jakarta on Monday.A decision on the divestment will be reached in the interest of national interests and will be in line with the government's downstreaming and industrialization plans, he stated.He affirmed that the government has been looking for ways to become the majority stakeholder with 51 percent of INCO's shares without harming investors."We do not want to harm investors. We are looking for a win-win solution while ensuring that the industrialization and downstreaming efforts go as planned," he explained.The majority of INCO's shares are currently owned by foreign investors, namely Vale Canada Limited (VCL) (44.3 percent) and Sumitomo Metal Mining Co. Ltd (SMM) (15 percent).The Indonesian government has only 20 percent of shares through the state-owned mining holding company MIND ID. The remaining 20.7 percent shares are public shares listed on the Indonesia Stock Exchange (IDX).In order to extend its Special Mining Business Permit (IUPK), INCO needs to divest up to 11 percent of its shares, so the government's stake in the company will become 31 percent.However, a 31-percent stake would still not be sufficient to make the government a majority shareholder in the company since the shares released to the public are owned by foreign institutions, not domestic investors.The government's goal of becoming a majority shareholder in INCO would be a major achievement, as it would allow the country to regain control of its nickel wealth and create a suitable ecosystem for electric vehicles.The success of the divestment plan will follow the government's successful reclaiming of a 51 percent stake in mining company PT Freeport Indonesia.Image source: ANTARA/Mentari Dwi GayatiSource: https://en.antaranews.com/news/287016/government-to-decide-on-vale-divestment-this-month-jokowi

Indonesia has announced its intention to cease exporting copper concentrates once Freeport Indonesia and Amman Mineral Internasional complete the construction of their smelters next year. President Joko Widodo emphasized that with the establishment of these two major smelting facilities, raw copper exports would be replaced by domestic processing into copper cathodes. He anticipates that both smelters will commence production in May 2024.Following the success of nickel, copper is poised to become Indonesia's next focal point in its drive towards increased onshore refining, aiming to elevate the country's position in the commodities value chain. The government has faced delays in implementing its export ban plans on several occasions, primarily due to the local branch of Freeport McMoRan Inc., the world's leading copper producer, repeatedly seeking extensions for the completion of its smelter, which commenced construction in 2021.In a recent development, Indonesia has granted Freeport and Amman export recommendations, permitting them to continue shipping copper concentrates until their smelters are finalized. This temporary allowance acknowledges the progress made in establishing the necessary processing infrastructure and ensures a smooth transition towards a fully domestic copper refining industry.Image source: File ImageSource: https://www.mining.com/web/indonesia-to-ban-copper-exports-once-freeport-amman-plants-open/

PT United Tractors Tbk. (UNTR), a subsidiary of PT Astra International Tbk. (ASII), has achieved significant growth in its coal and gold businesses, with notable increases in production, overburden removal, and sales.UNTR's mining contractor division, operated by PT Pamapersada Nusantara (PAMA), reported an 18.07 percent rise in coal production volume from January to May 2023, reaching 47.7 million tons compared to the previous 40.4 million tons."As of May 2022, the volume of overburden removal (OB) work has increased by 20.29 percent to 426.3 million bank cubic meters (bcm) from the previous 354.4 million bcm," stated the UNTR management in their monthly report released on Monday (26/6/2023).In May 2023, the average stripping ratio improved to 8.7 times, up from 8.5 times in the previous month. Total coal production for May 2023 reached 10.7 million tons, compared to 10.2 million tons in the previous month, while OB volume increased to 93.4 million bcm from 87.2 million bcm in April 2023.UNTR's coal mine, operated by PT Tuah Turangga Agung (TTA), reported sales of 5.24 million tons as of May 2023, representing a 1.94 percent increase from the same period in 2022 when sales amounted to 5.14 million tons.In May 2023, coal sales reached 947,000 tons, consisting of 707,000 tons of thermal coal and 240,000 tons of metallurgical coal. However, coal sales slightly decreased from April 2023, which recorded 1.31 million tons.UNTR management further explained that as of May 2023, they sold a total of 2,669 units of heavy equipment under the Komatsu brand, marking an 11.21 percent increase compared to the same period last year when they sold 2,400 units. The surge in heavy equipment sales was driven by growing demand from the mining and construction sectors.Among the total heavy equipment sales, 64 percent were absorbed by the mining sector, 15 percent by the construction sector, 11 percent by the forestry sector, and the remaining 7 percent went to the plantation sector."Komatsu sales in May 2023 reached 553 units, and Komatsu's market share as of May 2023 accounted for 32 percent in the heavy equipment market," stated UNTR management.Additionally, UNTR's gold mining division, managed by PT Agincourt Resources, reported total gold sales equivalent from the Martabe gold mine amounting to 92,198 troy ounces as of May 2023. This figure represents a 23.68 percent decrease compared to the same period in 2022 when sales reached 120,806 troy ounces.Image source: dok. UNTRSource: https://market.bisnis.com/read/20230626/192/1669144/produksi-batu-bara-united-tractors-untr-meningkat-per-mei-2023

The world's largest copper factory owned by Indonesia presents some intriguing facts. PT Freeport Indonesia's copper smelter, located in the Java Integrated Industrial and Port Estate Special Economic Zone (JIIPE KEK) in Gresik, East Java, is poised to become a game-changer.With a processing and refining plant capacity of up to 1.7 million tons of copper concentrate per year, it surpasses the production capacity of any other copper smelter globally. For reference, according to Statista data (23/6), the Guixi Smelter owned by Jiangxi Copper Corp, currently the largest copper smelter, has a capacity of 900,000 metric tons per year as of June 2022.Following the Guixi Smelter, the Birla Copper factory in India and the Toyo factory in Japan rank as the second and third largest copper refining plants worldwide, respectively. Notably, Germany and Chile also feature in this ranking.On Tuesday (20/6), President Joko Widodo visited the PTFI copper smelter in Gresik to oversee its construction progress. The aim is for the factory to be fully operational by the end of 2024.There are more captivating facts about this remarkable factory. Let's explore them below.1. Impressive Investment ValueAccording to reports from Okezone.com (23/6), PT Freeport Indonesia has invested a staggering USD 2.2 billion, equivalent to IDR 33 trillion as of May 2023, for this project. The total investment in the smelter has reached USD 3 billion, around IDR 45 trillion. The Minister of Investment/Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, disclosed these figures during the president's inspection of the PTFI smelter construction in Gresik, East Java.2. Near CompletionDuring the same visit, President Jokowi stated that the construction progress of the smelter is nearly 72% complete, with a target for full completion before May 2023. The pre-commissioning and commissioning stages are scheduled for May 2024, followed by operation commencement at the end of May 2024. The project has generated employment for approximately 13,000 people.3. Surpassing China's Production CapacityOnce operational, the smelter will boast a total copper processing capacity of up to 1.7 million tons and a precious metal refinery with an annual capacity of 6,000. The factory will be capable of producing 600,000 tons of copper, 50 tons of gold, and 210 tons of silver per year.4. Driving Downstream DevelopmentThe Indonesian government envisions PT Freeport Indonesia's smelter as a catalyst for downstream development. Historically, Indonesia has been primarily known as an exporter of raw materials. President Jokowi hopes that the smelter's production will integrate with other mining commodities to create high-value final products."This smelter is the foundation for us to become a developed country because, instead of relying solely on consumption, we will now have a production base," affirmed the president.These are just a few fascinating facts about Indonesia's largest copper factory in the world, which is poised to leave a lasting impact on the industry.Image source: MNC MediaSource: https://www.idxchannel.com/economics/4-fakta-pabrik-tembaga-terbesar-dunia-milik-indonesia-kapasitas-kalahkan-china#google_vignette

The Indonesian government, along with members of parliament and the Ministry of Industry, is actively promoting the development of the stainless steel-based industry in the regency of Morowali. Following the successful establishment of the nickel downstream industry in the region, authorities are now seeking to attract investors and industrialists to invest in this sector.Eko S.A. Cahyanto, the Director General of the Industry Ministry, expressed his ministry's dedication to pursuing such investments during a parliamentary hearing on June 21, 2023. He emphasized the importance of expanding the nickel downstream industry in Morowali, stating, "This is what we continue to chase."Last year, the Ministry of Industry requested one of the tenants of the nickel's industrial estate, Indonesia Morowali Industrial Park, to provide raw materials for Jindal, an Indian kitchen appliance company. This partnership enabled Jindal to produce stainless steel for household appliances, marking a significant milestone.Indonesia Morowali Industrial Park (IMIP) serves as a major industrial park housing various nickel-related industries in Morowali Regency. It is the largest nickel processing site in Indonesia, which happens to be the world's top nickel producer. The park operates as a joint venture between Indonesian mining company Bintang Delapan Group and the Chinese firm Tsingshan Holding Group. Irsan Wijata, the Director of Operation at IMIP, highlighted that the industrial park's tenants and companies produce four clusters of products, including nickel pig iron, stainless steel slabs, stainless steel hot rolled coil, and stainless steel hot annealing pickling line.Cahyanto further explained that the development of nickel-based industrialization in Morowali would progress according to the industry ministry's roadmap. "We will develop industrialization gradually based on the roadmap," he stated.Liliek Widodo, the Director of Metal Industry at the Ministry of Industry, shared that the ministry has been actively encouraging producers of nickel-based products to meet the raw material demands of industries in Java, particularly the stove industry and electric-based product manufacturers. He added, "We will compile a plan for the development of downstream industry in Morowali as a follow-up to the development of the nickel downstream industry."Adian Napitupulu, a member of House Commission VII, previously highlighted the presence of nickel-based stainless steel production in Morowali for the past five years. However, there has been a lack of stainless steel-based industrialization in the region, with all stainless steel products being shipped to Java. Napitupulu emphasized the need for the Ministry of Industry to actively encourage and support the development of industrialization in Sulawesi.As a policy maker, Napitupulu expressed hope that the Ministry of Industry would facilitate industrialization in Morowali, including inviting small and medium enterprises to produce stainless steel-based kitchen utensils such as spoons and pans. He remarked, "We have been independent for 70 years, but we still import spoons."Sugeng Suparwoto, Chairman of the House's Commission VII, voiced concerns about Indonesia potentially depleting its natural resources, such as nickel, if the country solely focuses on exporting raw materials without developing local industries. He emphasized the need to add higher value to these resources and suggested that IMIP could collaborate with lithium and cobalt producers to manufacture batteries, considering nickel's significant role in energy storage.With the government's encouragement and support, Morowali aims to harness the potential of the nickel-based downstream industry, paving the way for economic growth, technological advancement, and increased self-sufficiency in the region.Image source: Enimtv.comSource: https://www.jakartadaily.id/resources/1629221987/indonesian-government-encourages-development-of-nickel-based-downstream-industry-in-morowali-central-sulawesi