Indonesia's President Joko Widodo launched a USD 941 million smelter-grade alumina refinery run by state miner Aneka Tambang (Antam) and state-owned aluminium producer Inalum in the country's West Kalimantan province on Tuesday.The production capacity of the refinery is 1 million metric tons of alumina per year, which would absorb 3.3 million tons input of bauxite.Resource-rich Indonesia is keen to develop its domestic mineral processing industries instead of exporting raw ores. It has successfully attracted massive investment for nickel processing plants since it banned exports of unprocessed nickel in January 2020.Indonesia banned the export of bauxite, the raw material for aluminium, last year in hopes of emulating the success in nickel."The domestic aluminium demand is 1.2 million tons, 56 per cent is imported while we have the raw material. When these are all completed, we can stop the import," Jokowi, as the president is commonly known, said in his remarks.The companies are planning to expand the plant's production capacity by another 1 million tons and build an aluminium plant to further process the alumina output, according to Hendi Prio Santoso, chief executive of MIND ID, the parent company of both Inalum and Antam.The second phase of the alumina plant may cost around another USD 900 million in investment, while the future aluminium plant is estimated to cost USD 2 billion, Hendi added.

Indonesia’s Ministry of Energy and Mineral Resources (ESDM) has announced plans to accelerate the downstream processing of nickel towards the development of an electric vehicle (EV) battery ecosystem amidst the risk of a looming steel industry bankruptcy in China.Julian Ambassadur Shiddiq, Director of Mineral and Coal Program Development at ESDM, stated that the government’s focus is not only on nickel downstreaming to produce stainless steel, which has been a key export product, but also on developing the EV battery ecosystem.“The government recognizes that the demand for nickel from China’s steel industry is significant, but the EV battery sector is a game changer that could shift market direction,” Julian told Bloomberg Technoz on Thursday, September 26, 2024.With global policies moving towards decarbonization and the acceleration of the energy transition, Julian noted that the demand for nickel as a key raw material for EV batteries is expected to rise significantly.In response, the Indonesian government has prepared mitigation strategies by developing new downstream markets and promoting nickel downstreaming through to the end product, including nickel processing for EV batteries.Julian emphasized that nickel is one of the key components in lithium-ion batteries used in EVs, and the global EV market is predicted to grow rapidly in the coming decades.“This initiative aims to minimize Indonesia's dependence on China’s steel market and diversify downstream nickel products,” he said.Going forward, the government will focus on developing supporting industries for battery cell manufacturing, such as anodes, electrolytes, and separators, Julian explained.It is noteworthy that 84.74% of Indonesia's nickel downstream products, such as nickel pig iron (NPI), ferronickel (Fe-Ni), nickel matte, stainless steel HRC, and ni-scrap, were exported to China in 2023.This means that should China’s steel demand for Indonesian nickel decline, it could lead to a nickel oversupply and a subsequent drop in global nickel prices, which could negatively impact Indonesia’s nickel industry and reduce export volumes, ultimately affecting the country’s trade balance and state revenue from nickel exports, Julian warned.As of Wednesday, September 25, 2024, nickel prices had risen by 0.51% to USD 16,796/ton, according to the London Metal Exchange (LME).The Central Bureau of Statistics (BPS) reported that Indonesia's nickel exports amounted to USD 4.94 billion from January to August 2024, showing an 8.83% year-on-year increase.Deputy Head of Distribution and Services Statistics at BPS, Pudji Ismartini, highlighted that nickel exports and related products (HS75) grew by 8.83% during the period compared to the same time in 2023.Meanwhile, ESDM noted that non-tax state revenue (PNBP) from the mineral and coal sector reached IDR 173 trillion, accounting for 58% of total PNBP in the ESDM sector.China’s steel industry, currently facing bankruptcy risks, is heading towards a wave of consolidation, according to Bloomberg Intelligence (BI). Nearly three-quarters of the country’s steel producers reported losses in the first half of the year, with many potentially facing bankruptcy, BI senior analyst Michelle Leung noted.The consolidation process is expected to help Beijing concentrate its steel industry, with the goal of having the top five companies control 40% of the market by 2025, and the top 10 companies controlling 60%.

Indonesian President Joko Widodo on Monday oversaw the launch of copper cathode production at Freeport Indonesia’s smelter in East Java province.The new $3.7 billion smelter has annual input capacity of 1.7 million metric tons of copper concentrate, which could produce around 900,000 tons of copper cathode, 50 tons of gold and 210 tons of silver a year, Widodo said.

PT Arutmin Indonesia (Arutmin), a subsidiary of PT Bumi Resources Tbk (BUMI), remains committed to preserving the environment around its mining operations and minimizing the impact on land and ecosystems. The company focuses on environmental management through protection, conservation, and monitoring of forests and ecosystems.This commitment has led Arutmin to receive several prestigious awards for environmental performance. In early August, Arutmin’s Asamasam Mine received two ENSIA Awards 2024 for its commitment to social and environmental innovation. The Environmental and Social Innovation Awards (ENSIA), organized by PT Sucofindo since 2022, recognize companies in Indonesia that develop sustainable innovations in the environmental and social sectors.The awards received include the Platinum category for social innovation through the Gen Permata Program and the Gold category for environmental innovation through the Undirect Non-Invasive Method Program as an Integrated Effort to Support Black Eagle Conservation.The Gen Permata Program is a community empowerment initiative focused on improving the quality of life for young generations around the mining operational area. This program involves various educational activities, skills training, and economic empowerment, which have significantly positively impacted local communities.Meanwhile, the Undirect Non-Invasive Method Program aims to support the conservation of the Black Eagle, an endangered species, through an integrated approach that minimizes disturbances to its natural habitat. This method has proven effective in preserving the Black Eagle population and serves as a best practice example in wildlife conservation.“This is proof of our dedication to continually innovate in supporting social and environmental sustainability. ENSIA is not just a symbol of recognition but also an inspiration to create better and more sustainable changes globally,” said Asamasam Mine Manager, Novriyadi, in a written statement on Friday, September 20, 2024.In the same month, Arutmin received two 2024 ProKlim (Climate Village Program) Support Awards from the Ministry of Environment and Forestry (KLHK). These awards were presented at the peak of the LIKE Festival titled "10 Years of Working for Sustainability." The awards were given to Arutmin’s Asamasam Mine at the Sustainable level for Pandansari Village, Kintap District, and Arutmin’s Batulicin Mine at the Main level for Bulurejo Village, Mentewe District, Tanah Bumbu Regency, South Kalimantan Province.These awards are a form of appreciation to those supporting the implementation of climate change adaptation and mitigation actions at the grassroots level through ProKlim. The success of Asamasam and Batulicin Mines in achieving these awards reflects Arutmin’s commitment to implementing various environmental initiatives focused on sustainability, including actively supporting climate change adaptation and mitigation actions and empowering local communities to be more responsive and resilient to climate change."These awards motivate us to continue innovating and strengthening programs that support environmental sustainability and community welfare. We believe every small step we take today has a significant impact on a better future," said Novriyadi.

PT Petrosea Tbk (IDX: PTRO) announced that the company received a corporate rating of idA+ (Single A Plus; Stable Outlook) from PT Pemeringkat Efek Indonesia (PEFINDO) on Tuesday, September 17, 2024. The rating was based on data and information from the Company, as well as the Audited Financial Statements as of June 30, 2024, and December 31, 2023.“This rating result reflects our increasingly strong financial fundamentals, sustainable capital structure, and prudent capital expenditure on newly acquired contracts,” said Kartika Hendrawan, Chief Investment Officer of PT Petrosea Tbk.“PEFINDO has assigned an idA+ rating with a stable outlook to PT Petrosea Tbk. The rating reflects Petrosea's strong business position, integrated services, and solid financial profile,” she continued.According to PEFINDO’s rating, an obligor with an idA rating has a strong capacity relative to other Indonesian obligors to meet its long-term financial commitments. However, this capacity may be more vulnerable to adverse changes in economic conditions than higher-rated obligors. The plus (+) sign indicates that the rating is relatively strong and above the average within its category.All of Petrosea’s operational and financial performance targets are supported by a strong culture of Occupational Safety, Health & Environment (K3L) through the implementation of zero accident targets, operational excellence, continuous improvement, as well as risk management and Good Corporate Governance (GCG) as the backbone of the Company’s sustainability.

Indonesia's State-Owned Mining Holding Company, MIND ID, is optimistic about becoming a market leader and a global price setter for commodities in the future.This optimism is supported by the fact that Indonesia possesses vast mineral and coal reserves and has the capability to form strategic alliances that can support price regulation efforts in the future.MIND ID CEO, Hendi Prio Santoso, explained that Indonesia currently relies on commodity indices from other countries. For instance, in the coal sector, Indonesia still depends on indices from Australia or other nations, despite being the world's largest coal producer.Similarly, Indonesia has not yet become the price setter for tin globally, despite its abundant tin resources. Together with China and Peru, these leading tin-producing countries could emulate the Organization of the Petroleum Exporting Countries (OPEC) model to set prices.Hendi stated that MIND ID is proactively enhancing exploration activities aggressively and selectively to optimize resource management in response to global demand.MIND ID is also working to enhance its current capabilities, further develop downstream business scales and industrialization, thereby continuously increasing the value-added from the minerals managed.In addition, MIND ID is actively building strategic alliances for new downstream business expansions, which will further strengthen Indonesia’s position in the global supply chain."We hope that, in the not-too-distant future, we can become a global price setter. This is one of the main goals we aim to achieve together within the MIND ID Group," said Hendi in a written statement on Tuesday, September 17, 2024.Becoming a Global Key PlayerHendi noted that most of the mineral commodities managed by MIND ID are traded on the London Metal Exchange in the UK. Indonesia is also continuously enhancing its bargaining position as a global player for critical and strategic mineral commodities.MIND ID continues to collaborate with relevant stakeholders to establish a stringent national production quota, which will serve as a production benchmark for all mineral mining industry players in Indonesia. Ultimately, this will help Indonesia influence pricing.Furthermore, as a global-class company, MIND ID prioritizes optimal mineral reserve management and adheres to the principles of sustainable mining."Thus, our efforts to become a market leader and global price setter will significantly impact and benefit the prosperity of all Indonesian people," emphasized Hendi.

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia officially inaugurated Tri Winarno as Director General (Dirjen) of Mineral and Coal (Minerba).The appointment of Tri Winarno as Director of Mineral and Coal is contained in the Decree of the President of the Republic of Indonesia Number 130/TPA of 2024 concerning Dismissal and Appointment of Middle High Leadership Positions within the Ministry of Energy and Mineral Resources."I, the Minister of Energy and Mineral Resources, have appointed a brother (Tri Winarno) as the official of the Ministry of Energy and Mineral Resources' high leadership," said Bahlil when inaugurating Tri Winarno at the Ministry of Energy and Mineral Resources Building, Friday, September 20.Before being appointed as Director General of Mineral and Coal, Winarno held the position of Director of Development of the Mineral Concession Program from 2022 to 2024.Previously, from 2017 to 2022 he served as Head of the Supervision Sub-Directorate for Minerba Revenue (Civil Expert Policy Analyst).Then in August 2022 Tri Winarno was also appointed as Commissioner of PT Borneo Alumina Indonesia.Tri Winarno obtained a Doctorate degree or S-3 Mining Engineering degree from Freiberg University of Mining and Technology in 2016, Geological Masters from Gadjah Mada University Yogyakarta in 2006 and Mining Engineering Bachelor from UPN Veteran Yogyakarta in 1997.Based on VOI records, Tri Winarno was questioned by the Corruption Eradication Commission (KPK) as a witness in the corruption case of former North Maluku Governor Abdul Gani Kasuba."The TW examination is related to the mining WIUP recommendation process in North Maluku issued by the Governor of AGK," said KPK spokesman Tessa Mahardika to reporters in a written statement, Wednesday, August 14.

The Asian Development Bank (ADB) has approved a $500-m policy-based loan to fund the Affordable and Sustainable Energy Transition Program that will help Indonesia in its transition to clean energy.In a statement, ADB said the programme will support various policy measures for the country to achieve its enhanced nationally determined contribution (NDC) and net-zero power emission targets by 2050. It will also focus on establishing a framework for the energy transition.“A key measure is the development of a Comprehensive Investment and Policy Plan (CIPP), supported by the Indonesia Just Energy Transition Partnership, which identified the investment requirements and opportunities to deliver on the just energy transition,” ADB said.“Other key measures include regulatory improvements for scaling up renewable energy capacity, as well as initiatives to strengthen the capacity and governance of energy state-owned enterprises in areas such as the promotion of gender equality,” it added.The programme is a joint effort by ADB and cofinancing partners, Agence Française de Développement  and German Development Cooperation through KfW, to support the government’s leadership in energy transition.

Indonesia’s Coordinating Minister for the Economy, Airlangga Hartarto, appreciated Neo Energy for realizing its investment by building the first High-Pressure Acid Leaching (HPAL) smelter in Indonesia that completely uses renewable energy.The smelter will process nickel limonite ore into Mixed Hydroxide Precipitate (MHP) as a precursor for Electric Vehicle (EV) battery cathodes.The Neo Energy HPAL battery project is expected to be able to increase the national MHP capacity by 120 thousand MT per year. This HPAL facility is located in the Neo Energy Morowali Industrial Estate (NEMIE), an industrial area designed to be a green energy-based mineral processing center.All operations in the area will use 100% renewable energy, including hydropower and solar, making it the most environmentally friendly industrial practice in Indonesia.For the Industrial Area, NEMIE itself has obtained an Industrial Area Business Permit (IUKI) in August 2024, and this provides legal certainty and confidence for potential investors.“I monitor the heavy equipment operated here which is all electrically based. We appreciate that this region supports the target of zero emissions in its mining and industry. Because of its status as a National Strategic Project, of course cooperation with the military and police is important because this is a national asset. I hope that this collaboration can support our industry to transition from fossil energy to new energy,” said Airlangga at the “Groundbreaking of HPAL Neo Energy” in the Neo Energy Morowali Industrial Estate (NEMIE) area, Morowali Regency, Central Sulawesi Province, Saturday, September 14, 2024.Airlangga emphasized that the downstreaming of critical minerals is one of the main policies of the Indonesian Government in strengthening national economic competitiveness, improving community welfare, and utilizing environmentally friendly technology.The industrial downstream program also aims to obtain a multiplier effect, such as increasing the added value of domestic raw materials, attracting investment into the country, generating export foreign exchange, and absorbing more workers.“Nickel downstreaming has succeeded in increasing the export value of nickel derivative products. “This can be seen from the export value which has increased eightfold from USD 4.31 billion in 2017 to USD 34.44 billion in 2023,” explained Airlangga.Based on data from the Ministry of Investment, until June 2024 total investment for downstream nickel, especially those related to the construction of smelters and electric vehicle battery factories, has reached USD 30 billion.In the last five years, more than 2,000 GWh of lithium-ion battery capacity has been deployed globally, to power 40 million electric vehicles and thousands of energy storage projects. In this regard, Indonesia has the potential to become a key global player in EV battery production, namely being able to supply 210 GWh of EV batteries per year, because Indonesia has a wealth of mineral resources, especially nickel.“Therefore, various countries see it as important for Indonesia to be part of critical minerals. Indonesia is talking with the United States regarding the critical minerals agreement, also talking with the European Union.“And also with other countries such as Canada and Australia, where if Indonesia-Canada and Indonesia-Australia join forces, the strength of the EV ecosystem will be strong, whether in the form of lithium or nickel, and now there are even ones being developed that are based on sodium or salt,” said Airlangga.

Under the terms of a memorandum of agreement (MoA) signed in 2021, Nickel Industries purchased the majority interest through a milestone payment of 4 million of its company shares, following a 24-month exploration at Siduarsi.The acquisition was contingent on an initial mineral resource at the project of more than 50 million dry metric tonnes (dmt) at 1.1% nickel. Nickel Industries announced an initial mineral resource of 52 million dmt of 1.1% nickel and 0.1% cobalt, equivalent to 561,000 tonnes of contained nickel metal and 31,000 tonnes of cobalt.The MoA also gives Nickel Industries the option to increase its stake in Sudarsi to 82.5% upon completion of a feasibility study that is accepted by the Indonesian mining department.Nickel Industries confirmed that it has submitted the feasibility study, proposing a 3 million wet metric tonnes direct shipping operation at Siduarsi. Upon acceptance of the feasibility study, the company said the contract of work (CoW) will move to a 30-year mining operation license.Nickel Industries can eventually increase its interest to 100% ownership in the project, following a third-party valuation on the Siduarsi resource.Nickel Industries shares lowered 0.9% to 84 cents at market open on the ASX.The context: The Siduarsi project is a CoW held by PT Iriana Mutiara Mining and is one of four active nickel CoWs in Indonesia.