Mining services company, PT Putra Perkasa Abadi (PPA) targets overburden removal (OB) volume to reach 420 million bank cubic meters (bcm) throughout 2023. In this year, the volume of land stripping Putra Perkasa is about 270 million bcm.This year, Putra Perkasa Abadi received many contracts from several large companies such as Adaro Energy, Dian Swastatika Sentosa, Kaltim Prima Coal, Borneo Indobara, ABP Energy, Bukit Asam and MHU Coal."We are targeting production next year to be 420 million bcm," said Director of PT Putra Perkasa Abadi, R Teguh Saptosubroto, in a media gathering forum, yesterday.Putra Perkasa since 2010 has started operating with a volume of 6.5 million bcm, then increased to 16.1 million bcm in 2011, 22 million bcm (2012), 27.8 million bcm (2013), 15.2 million bcm (2014), 27.5 million bcm (2015), 38.1 million bcm (2016).Furthermore, it is 88.8 million bcm (2017), 139.6 million bcm (2018), 191.4 million bcm (2019), 145.5 million tons (2020), 173.7 million tons (2021), and 272.4 million tons (as of December 25, 2022).As the volume of overburden removal increases, the management of Putra Perkasa Abadi also continues to increase heavy equipment and increase the number of workers.Teguh explained that his party has ordered more than 200 units of heavy equipment, which will come next year. Not only that, Putra Perkasa Abadi plans to continue to add another around 150 units of heavy equipment. "So if you order heavy equipment, it must be three years in advance," he said.Teguh said that currently with the increasing number of clients, the company has to prepare another workforce of around 4,000 employees. Currently, Putra Perkasa Abadi already has 11,000 employees. "We already have 2,000 heavy equipment for project purposes," he said.In addition to the coal segment, Teguh said, his party will also continue to expand into mineral mining services. Currently, Putra Perkasa Abadi is already a contractor for two nickel mines. "We are participating in the due diligence of nine bauxite mining companies," he said.Teguh said, Putra Perkasa Abadi charges mining service fees between US $ 1.8 to US $ 2.4 per bcm. With an estimated volume of 420 million bcm of stripping next year, they have the potential to earn US$ 756 million - US$ 1 billion in revenue. "We want to be the number two company in the industry," he said.On the other hand, Putra Perkasa Abadi spends about 250 million kiloliters of diesel fuel per year. Currently, they will also follow the government's rules regarding mandatory B40 next year. "We will coordinate with heavy equipment providers," Teguh said.He said that the current business growth cannot be separated from the appropriate compensation program, which is to provide allotment of shares to employees. "Employees get the opportunity to buy shares of the company for a total of 20%. If our profits increase, then the value of workers' shares will also increase," Teguh explained.Image source: Kontan.co.id/Aziz HusainiSource: https://industri.kontan.co.id/news/ingin-jadi-market-leader-putra-perkasa-abadi-bakal-genjot-produksi-420-juta-bcm

General chairperson of the Indonesian Chamber of Commerce and Industry (Kadin), Arsjad Rasjid, on Tuesday voiced support for the bauxite export ban, saying it will increase the added value of the nation’s natural resources.The ban on bauxite exports will come into effect from June 2023. The policy is in accordance with the mandate of Law Number 3 of 2020 on Mineral and Coal, Rasjid said."If we only export raw materials, well, we are actually at a disadvantage. It is our right as a nation to have added value. So this measure was pursued as a result of an evaluation by the government of the previous scheme, and also to encourage domestic industrialization," he said in a statement received here on Tuesday.However, the export ban policy would be even better if backed by a clear downstreaming road map, instead of just going on a spree of building as many smelters as possible with no aim nor purpose, he added.Currently, factories for bauxite ore processing and refining are located in Central and Southeast Sulawesi, East Halmahera and South Halmahera, Galang Batang Bintan Island, and West Kalimantan.According to Rasjid, the downstreaming effort undertaken by the government is aimed at encouraging an increase in the processing of other domestic natural resources."This is not only limited to nickel and bauxite, but also includes tin, copper, and especially gold as well. We must utilize our natural resource wealth to process it as best as possible and generate added value, which will be beneficial to the welfare of the Indonesian people," he said.It is also expected that bauxite downstreaming would be similar to that for nickel—integrated from upstream to downstream—so that it actually produces high added value and not just semi-finished goods, he added.He said he is confident that downstreaming will help promote the processing of bauxite into aluminum ingots by 2025. This would have an impact on the national economy through downstream bauxite, light industry and modern, environmentally friendly logistics."Aluminum ingots are required by the domestic industry, like plates, billets, scrap, and profile shapes necessary in industrial processes such as airplanes, ships, automotive, and construction," he pointed out.In the next few years, it is expected that these needs would be entirely met by the domestic aluminum industry. Indonesia can meet its aluminum needs for some decades to come with its current bauxite reserves. Image source: ANTARA/HO-KADINSource: https://en.antaranews.com/news/267504/bauxite-export-ban-will-generate-added-value-chamber

Coal issuer PT Indika Energy Tbk. (INDY) targets coal production to reach up to 34 million tons next year. This target is still the same as this year's production.Indika Energy's Head of Corporate Communication Ricky Fernando said Kideco had submitted the RKAB to the Ministry of Energy and Mineral Resources (ESDM)."Kideco's production plan in 2023 is still waiting for approval from the RKAB, but it is expected to be around 31-34 million tons," Ricky said to Bisnis, Tuesday (27/12/2022).For information, INDY's coal production is carried out through its subsidiary, PT Kideco Jaya Agung. In 2021, Kideco was recorded to be able to produce as much as 35.7 million tons of coal.As for this year, Kideco lowered its coal production target from the realization of 2021 to 34 million tons.Furthermore, INDY projects coal prices in 2023 to remain at positive levels.Previously, Ricky said INDY saw that the coal business until the end of 2022 is likely to remain stable. According to him, this is supported by high coal prices and is likely to remain at a high level until the end of this year.However, he said the main challenge in this sector is the high rainfall until the end of 2022.Image source: CEO Grup Indika EnergyAzis Armand - Istimewa.Source: https://market.bisnis.com/read/20221227/192/1612659/indika-energy-indy-targetkan-produksi-34-juta-ton-batu-bara-pada-2023

Repeated dipper-to-track strikes can reduce crawler shoe life and cause structural cracking and dipper damage, resulting in unplanned downtime and increased repair costs. Track Shield 2 is a new suite of control functions from Komatsu Mining that helps the operator decrease the number or severity of impacts between the dipper and the tracks or other parts of the shovel.This solution calculates the position of the dipper and modifies controls to mitigate collisions. Komatsu says that Track Shield 2 is ideal for a variety of mining operations and applications including but not limited to oil sands with wide path tracks; TRC dippers; wider dippers (76 cubic yards or greater); plus configurations where it is difficult to see potential strikes.Komatsu states: “Track Shield 2 has been engineered to substantially reduce the number or severity of costly collisions with the dipper on your valuable shovel asset. It’s a sophisticated technology upgrade that can help reduce maintenance costs and increase machine longevity from fewer incidents of damage or fatigue to the shoes, front idler, dipper components, cable reel and other components.”It adds: “We’ve worked with our valued customers to design a solution that minimises the impact on operator motions during tuck to maintain shovel productivity. Field tests have shown statistically no reduction in productivity while Track Shield 2 is in operation when properly tuned. It can also assist operators by guiding them to where they need to be with respect to the shovel’s structure and digging face while reinforcing best digging practices.”Tuning is an initial process that configures Track Shield 2 based on operational priorities and objectives. “We’ll work with you to pinpoint your optimal approach that aligns with your unique operation. For instance, Track Shield 2 can be custom tuned to focus on mitigating risk – avoid almost all collisions. Or it can be performance-configured – optimise productivity while reducing damage. It’s your choice. Komatsu service personnel provide one-time tuning in close collaboration with your mining operations and fleet maintenance teams.”Image source: Paul Moore Source: https://im-mining.com/2023/01/04/komatsu-reduces-severity-of-dipper-to-track-strikes-with-track-shield-2/

PT Merdeka Copper Gold Tbk (MDKA) has received securities for receivables from some of its subsidiaries worth a total of USD 225 million.The management of MDKA said that these collaterals are obtained from PT Merdeka Battery Materials (MBM), PT Merdeka Energi Industri (MEI), and PT Merdeka Industri Mineral (MIM). The collaterals given to MDKA by its subsidiaries are in various forms, including account mortgage, fiduciary assignment of receivables, and moratorium.These securities were given following the agreement between MDKA and MBM dated July 29, 2022. Based on this agreement, the company recorded receivables worth USD 225 million from MBM.“The transaction takes place after considering the way to reduce the risk of default of MBM’s debts owed to the company,” the management of MDKA added in the official release.For the record, this transfer of securities for receivables is categorised as an affiliate transaction as regulated by the Financial Services Authority (OJK). However, it is not a material transaction as the value of this transaction does not reach over 20% of MDKA’s total equity. Image source: KR/ZHSource: https://www.idnfinancials.com/news/45585/merdeka-copper-gold-secures-collaterals

PT J Resources Asia Pasifik Tbk (PSAB) is developing a number of gold mining projects to improve its business performance in the future.During 2022, PSAB is focusing on completing permanent and temporary access road work from and to the new Tapagale pit located in the company's Bakan gold mining project area in Bolaang Mongondow, North Sulawesi.The existence of the road will make it easier for PSAB to transport gold mining materials from the Bakan project. What's more, the gold hidden in Bakan has a fairly high grade of about 0.81 grams per ton.In addition, PSAB also carried out work in the form of the construction of three sediment ponds and a sewage channel in the Tapapagale pit.PSAB management has also poured capital expenditure (capex) of US$ 6.7 million as of November 2022 to develop the Bakan project."The overall capex for the Bakan project is around US$ 20 million," said Sanjaya J. Director of J Resources Asia Pacific in a public expose, Thursday (29/12).On the same occasion, Adi Maryono, Director of J Resources Asia Pacific said that the construction of the access road in the Tapagale Pit will be completed in the first quarter of 2023. When it goes down, PSAB can further optimize the gold production of the Bakan Project which is estimated at 80,000 tons per year.In general, the Bakan project has 1.1 million ounces of gold resources and 614,000 ounces of reserves. The Bakan project is considered to be able to continue to make a maximum contribution to PSAB's operational performance in the next few years.Furthermore, PSAB is also developing the Doup gold mine project which is also located in Bolaang Mongondow. Currently, PSAB is still working on a gold processing plant for the Doup project.PSAB also built a power over head line with a capacity of 20 MW for electricity supply needs from PLN to the Doup project. A water treatment facility was also built by PSAB in the project. Overall, the Doup project itself has a capex need of US$ 154 million."We will start preparations for gold mining at the Doup project in the fourth quarter of 2023 and it is expected that gold production can start in the first quarter of 2024," said Adi.He also said that the Doup project has 3.4 million ounces of gold resources, while its gold reserves reach 1.8 million ounces. The gold that can be produced from the mine is estimated to be around 60,000—70,000 ounces per year over the next 20 years.Image source: ANTARA FOTO/M RusmaSource: https://industri.kontan.co.id/news/j-resources-psab-fokus-kembangkan-proyek-tambang-emas-bakan-dan-doup-tahun-depan?page=2

The government, in this case, the Ministry of State-Owned Enterprises (BUMN) will later be involved in divestment of PT Vale Indonesia Tbk (INCO) shares.SOE Minister Erick Thohir said that President Joko Widodo (Jokowi) had held a limited meeting related to this matter with himself and related ministries such as the Minister of Energy and Mineral Resources, the Minister of Economic Affairs, the Coordinating Minister for Maritime Affairs and Investment, the Minister of Finance, and the Minister of Investment.As is known, Vale is obliged to divest its shares by 51% as a condition to extend its contract in Indonesia, from a Contract of Work (KK) to a Special Mining Business Permit (IUPK).Erick revealed that in the divestment process, his party will do what was done to PT Freeport Indonesia (PTFI) then."BUMN will play a role like Freeport used to," he said at the Ministry of SOEs in Jakarta, Monday (2/1).The involvement of the government in this matter, because Vale is important because it is a nickel producer. "Because of why, Indonesia is one of the countries that produces nickel," he said.Previously, the Ministry of Energy and Mineral Resources at that time said that the discussion on the divestment of Vale Indonesia to the country continued. Vale itself has divested its 20% stake to the MIND ID Mining SOE Holding.Acting Governor of Bangka Belitung (Babel) as well as Director General of Mineral and Coal of the Ministry of Energy and Mineral Resources Ridwan Djamaluddin at that time said that the House of Representatives would form a working committee or Committee to evaluate Vale Indonesia's contract of work (KK) mining permit into a Special Mining Business Permit (IUPK).Meanwhile, to get the extension process to IUPK, Vale is at least obliged to divest its shares by 51% to the state."It hasn't broken up earlier (51% shares like PTFI), it hasn't broken up. It will be discussed later," ridwan said at the capitol, Tuesday (5/7).Meanwhile, quoting from the Indonesian Stock Exchange (IDX), the portion of Vale Indonesia's share ownership is 20% PT Indonesia Asahan Alumunium (Persero), 43.79% Vale Canada Limited, 15.03% Sumitomo Metal Mining Co Ltd, and 21.18% public.Image source: Istimewa Agus Suparto via CNBC IndonesiaSource: https://www.cnbcindonesia.com/market/20230102144612-17-402118/duet-erick--jokowi-mau-bikin-vale-jadi-the-next-freeport

The government officially stipulates the imposition of production dues or zero percent (0%) royalties for downstream coal companies.This provision is contained in a Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 concerning Job Creation which was stipulated on December 30, 2022.In the discussion of the Sub-Energy and Mineral Resources (ESDM) Page 220 Paragraph 5, a number of provisions related to mineral and coal mining were amended.In Article 39 of this regulation, it is stated that between Article 128 and Article 129 in Law Number 3 of 2020, Article 128A is inserted. Meanwhile, Article 128A paragraph 2 reads, The provision of certain treatment to state revenue obligations as referred to in paragraph (1) for coal development and/or utilization activities can be in the form of imposition of production dues/royalties of 0% (zero percent).Tarumanegara University Energy and Mining Law Observer Ahmad Redi explained that this policy is quite ideal for business actors."The zero percent royalty policy is quite ideal as an incentive for companies that want to downstream coal," Redi said to Kontan, Monday (2/1).Redi explained, in substance, the provisions in the Job Creation Perppu are almost the same as the Job Creation Law. In addition, the substance related to the mineral and coal issue is also considered the same."This means that the downstream substance of coal is still considered important and strategic," explained Redi.Redi continued, coal downstreaming is very important for Indonesia because it can increase the added value of products, increase state and regional revenues and increase labor revenues. In addition, through coal downstreaming, it will create a fulfillment of domestic coal needs such as liquid coal and gas for fuel as well as the development of industrial estates.Until April 2022, there were at least 11 companies that were committed to implementing coal downstreaming until 2029. Of the 11 companies, as many as 3 projects from 3 companies have been producing.The three of them are the Semi Coke Project by PT Megah Energi Khatulistiwa with an input capacity of 1 million tons per year to produce semi-coke of 500 thousand tons per year. Then the Coal Upgrading-Briqueting Project by PT Thriveni has an input capacity of 130 thousand tons to produce briquettes as much as 79-85 thousand tons.Finally, the Coal Briqueting Project has an input capacity of 30 thousand - 40 thousand tons per year to produce briquettes as much as 10,000 - 20,000 tons per year. A number of other projects are generally dominated by coal gasification by both PKP2B and IUP.First, the coal to dimethyl ether (DME) project by PT Bukit Asam Tbk (PTBA) with a production capacity of 1.4 million tons per year.The project is expected to start production in the second quarter of 2025. Second, the Coal to Methanol Project by PT Kaltim Prima Coal and PT Kaltim Nusantara Coal with a methanol production capacity of 1.8 million tons per year. This project is targeted to be completed in the second quarter of 2025.Third, the Coal to Methanol Project by PT Arutmin Indonesia with a product capacity of 2.95 million tons per year. This project is targeted to start production in 2026. Fourth, the Coal to Methanol Project by PT Kendilo Coal Indonesia with a product capacity of 300 thousand tons per year. This project is targeted to start production in 2029.Fifth, the Semi Coke Project by PT Multi Harapan Utama with a production of 500 thousand tons per year. The project is planned to start production in 2027. Sixth, the Coal to Methanol/DME Project Project by PT Adaro Indonesia is targeted to start production in 2026.Seventh, the Gasification / Underground Coal Gasification (UCG) Project by PT Kideco Jaya Agung with a production capacity of ammonia of 100 thousand tons per year and urea of 172 thousand tons per year. The project is planned for production in 2027.Finally, the Coal to Methanol / DME Project Project by PT Berau Coal with a semi-coking product capacity of 500 thousand tons per year. This project is targeted to start production in 2029.Image source: DOK/AIMSSource: https://industri.kontan.co.id/news/resmi-royalti-nol-persen-untuk-perusahaan-batubara-yang-lakukan-hilirisasi?page=2

PT Transcoal Pacific Tbk (TCPI) has obtained a coal transportation service contract worth IDR 1.5 trillion from its third-party user.Erizal Darwis, Director of PT Transcoal Pacific Tbk (TCPI), revealed that his company has signed a Joint Operation Agreement regarding the provision of vessel to transport coals owned by one of the coal trading companies. “The company is not affiliated with said user,” he reaffirmed in the information disclosure quoted Friday (23/12).The transportation service contract will be effective for the next five years, starting from when the contract was signed last Wednesday (21/12). “It is a proof in securing trust from our user to transport their coals,” Darwis said.The third-party users of TCPI are PT Arutmin Indonesia (AI) and PT Kaltim Prima Coal (KPC). As of September 2022, both companies contributed USD 706,684 and USD 393,192 to TCPI’s total revenue of USD 1.30 million. (LK/ZH)Image source: PT Transcoal PacificSource: https://www.idnfinancials.com/news/45510/transcoal-pacific-secure-idr-coal-transportation

Aumay Mining Pte Ltd reportedly has a claim over 22.5% of shares of PT Kalimantan Aluminium Indonesia (KAI), a subsidiary of PT Adaro Minerals Indonesia Tbk (ADMR). The ownership purchase takes effect following KAI’s decision to issue 925,748 shares earlier this week (20/12).Heru Gunawan, Corporate Secretary of ADMR, claimed that the proceds from those shares issuance will be utilised to advance KAI’s business. “The total value of issued shares clocks up to IDR 925.74 billion or approximately USD 59.65 million,” he said in the information disclosure quoted Friday (23/12).From said number, Aumay acquires 595,124 shares worth IDR 595.12 billion, or 22.5% of KAI’s entire issued and paid-up capital. Then, another 12.5% are claimed by PT Cita Mineral Investindo Tbk (CITA), as mentioned earlier in IDNFinancials.KAI is now building and maintaining an aluminium smelting facility with a capacity of 2 metric tons per annum (MTPA) in Kalimantan Industrial Park Indonesia, Bulungan, North Kalimantan.Aumay is an exempt private company based in Gateway West, Singapore. (LK/ZH)Image source: OIPSource: https://www.idnfinancials.com/news/45512/aumay-mining-claim-kalimantan-aluminium