The Indonesian government is starting to encourage coal downstreaming in the energy transition.The Indonesian Minister of Energy and Mineral Resources, Bahlil Lahadalia, told coal producers that the use of coal as a superior commodity is in line with increasing added value through downstream programs. This can help the government’s target of achieving net zero emissions by 2060.Bahlil assured that the government continues to support coal as one of the main commodities. However, he emphasized the importance of a gradual energy transition.“I want to assure all of you that in the future the government will continue to encourage coal as one of the leading commodities in line with the ongoing energy transition. So, you must get sufficient capital first as an instrument to carry out the transition process to green technology. Because if we “Just force it without sufficient capital, we won’t be able to do it,” said Bahlil at the Coaltrans Asia 2024 event in Bali, Monday, September 9 2024.Just as the world community thinks creatively to increase growth without ignoring the global consensus regarding reducing emissions, Indonesia is also committed to reducing emissions to zero by 2060 in stages.“Almost all countries in the world continue to think creatively to create growth without ignoring the global consensus regarding net zero emissions (NZE) which must be implemented by 2050, and Indonesia itself has planned the same thing in 2060 in stages,” stressed Bahlil.Minister Bahlil asked coal producers to start increasing the added value of coal products through downstream programs.“We continue to provide space for national entrepreneurs, especially coal entrepreneurs, to continue mining by paying attention to environmental standards, governance and good community involvement. However, it is hoped that within a certain period of time, they will immediately make the transition because the state cannot do this continuously,” asked Bahlil.Bahlil also revealed that currently Indonesia is encouraging the downstreaming of coal into other products that have added value, such as Dimethyl Ether (DME), Liquefied Petroleum Gas (LPG), and fertilizer raw materials.“For coal in the future, we will not only export raw materials, but also encourage DME as a substitute for LPG. Because LPG imports reach 6 million tonnes per year, one of the raw materials to replace LPG is coal through DME, as well as as a raw material for fertilizer ,” said Bahlil.As one of the largest coal producers in the world, Indonesia contributes significantly to state income. In 2023, coal production will reach 775.2 million tons with total exports of 518.05 million tons. Based on the published Work Plan and Budget, coal production this year is estimated to reach 900 million tons.The Indonesian government itself has offered cooperation to the Chinese government to develop and increase the added value of coal in the form of other products, such as coal quality improvement (coal upgrading), coal briquetting, coke making and coal liquefaction. 

PT Pertamina Patra Niaga and mining company PT Vale Indonesia have formed a partnership to provide hydrotreated vegetable oil (HVO) as an eco-friendly fuel alternative.The partnership aims to support Indonesia's goal of achieving net-zero emissions by 2060 through decarbonization efforts, according to Riva Siahaan, CEO of Pertamina Patra Niaga, a subsidiary of state-owned energy company Pertamina."This collaboration demonstrates a shared commitment to reducing carbon emissions through the use of clean energy with HVO," Siahaan said in a statement on Monday.HVO, an environmentally friendly fuel, has the potential to reduce carbon emissions by up to 85 percent and greenhouse gas emissions by up to 90 percent.Pertamina Patra Niaga offers integrated energy solutions, including Pertamina One Solution, to meet the needs of various business partners, such as Vale Indonesia.These solutions include cleaner fuels, efficient logistics, and infrastructure support to ensure that businesses operate optimally and sustainably.As part of the partnership, both companies will jointly implement a community empowerment program to strengthen their environmental, social, and governance practices.The program aims to help create a positive and sustainable impact on the local community and promote social and environmental responsibility in collaboration with the Pertamina Foundation.Vale Indonesia CEO Febriany Eddy stated that this strategic partnership aligns with her company's decarbonization roadmap.She emphasized the importance of this collaboration in helping her company achieve and improve sustainability standards and reduce carbon emissions across its operations.She noted that products and services from Pertamina Patra Niaga would be invaluable in Vale Indonesia's decarbonization efforts.

Nickel Industries Limited, one of the world's largest nickel producers, addressed misconceptions about mining and deforestation at the International Critical Minerals & Metals Summit in Nusa Dua, Badung, Bali.During the event, Muchtazar, Head of Sustainability at Nickel Industries Limited, tackled the pressing issue of deforestation.His presentation challenged the widespread belief that mining is the primary cause of deforestation in Indonesia."Contrary to popular belief, mining is not the leading cause of deforestation," Muchtazar said in a statement received in Jakarta on Monday.He explained that in 2023, less than 1 million hectares of land in Indonesia were used for mining. To put this into perspective, Indonesia has a total land area of around 190 million hectares, with approximately 63 percent classified as forested areas, covering around 120 million hectares."This means mining activities account for only about 0.5 percent of the total land area or nearly 1 percent of the forested areas in the country," Muchtazar noted.Furthermore, he highlighted the significant economic contribution of the mining sector, which contributed more than 10 percent to Indonesia's national gross domestic product (GDP) in 2023."The mining sector provides essential materials and fuels that the world needs, playing a crucial role in our economy," he stated.Muchtazar called for evaluations based on accurate data and a balanced perspective to ensure sustainable development that aligns economic growth with environmental preservation."By basing our evaluations on accurate data, we can ensure sustainable development that harmonizes economic growth with environmental conservation," Muchtazar emphasized.He also mentioned that while companies focused on forest conservation and environmental sustainability have yet to receive premium pricing for their products in the market, responsible mining companies should not worry."Because they will have a better investment portfolio and the ability to sell mining materials to global markets with high sustainability standards, thereby reducing risks in their supply chains," he concluded.

PT Amman Mineral Internasional Tbk (AMMAN), one of Indonesia’s largest copper and gold mining companies, recently received the prestigious award of ‘World’s Most Trustworthy Companies 2024’ by Newsweek. AMMAN ranked 15th out of 53 companies across various countries in the ‘Materials and Chemicals’ category.Companies considered for the ‘World’s Most Trustworthy Company’ ranking are those listed on stock exchanges in 20 target countries, with revenues exceeding USD 500 million. Newsweek, in collaboration with global data research firm Statista, conducted surveys involving 70,000 participants from these countries. Participants rated companies they were familiar with based on three criteria: Trust of (potential) Investors, Trust of (potential) Customers, and Trust of (potential) Employees. The evaluation also included social listening by monitoring sentiment about the companies on the internet and social media.Kartika Octaviana, Vice President of Corporate Communications & Investor Relations at AMMAN, expressed her gratitude for the public's trust in AMMAN.“We always prioritize integrity in our business operations. AMMAN’s commitment to excellence and high-quality standards is consistently maintained through continuous improvements, which strengthens our reputation as a leader in operational performance within the mining industry. We believe this is key to building public trust,” Kartika said on September 9, 2024.As a globally significant copper and gold producer with large world-class reserves, AMMAN has undertaken various transformative efforts to boost productivity and operational efficiency.Kartika highlighted that one bold move AMMAN made shortly after its acquisition was to halt 40% of its mining capacity for three months in 2017 to reorganize its mining plan, resulting in more productive and efficient use of digging and hauling equipment.“This initiative significantly increased the production blasting volume with optimal fragmentation,” she noted.To achieve high productivity, AMMAN also operates 138 CAT793C trucks at the Batu Hijau mine. These trucks, capable of carrying up to 240 tons of mineral ore, require costly maintenance. To drive maintenance efficiency, AMMAN took over the Machine Rebuild Centre (MRC) and Component Rebuild Centre (CRC) from third-party operators in 2018.“As a result, AMMAN can now disassemble and reassemble each truck’s components in just 23 days at Batu Hijau. This has allowed AMMAN to reduce assembly costs by approximately 35% compared to previously conducting assembly in East Kalimantan, which took 9-12 months,” Kartika explained.AMMAN is currently undertaking various expansion projects, including a copper smelter and precious metal refinery, expanding processing plant capacity, and enhancing supporting facilities. These mega-projects are expected to further support AMMAN’s position as a growing and leading mining business.

The turning point of the paradigm in critical mineral management was discussed by related stakeholders during the Indonesia International Sustainability Forum (IISF) 2024 held in Jakarta on Sept 5-6.In the past, the mining industry was strongly linked to environmental damage owing to deforestation, water pollution, and biodiversity loss that were caused.Such activities often drew protests from the local community and environmental non-governmental organizations (NGOs). Many mines became the sources of prolonged social conflict, with local communities often marginalized by the exploitation of natural resources in their areas.Despite the ecological and social risks, it was undeniable that the mining sector played an important role in the national economy by providing significant state revenues and opening up thousands of jobs for the community.Amid discussions on the positive and negative impacts of mining, the world is now entering a new era that is highly dependent on critical minerals as a vital component in the global energy transition towards clean energy.Indonesia as 'home' of critical mineralsThe Indonesian Ministry of Energy and Mineral Resources defines critical minerals as a category of minerals that have important uses for the national economy but also have the potential for supply disruptions and do not have a viable substitute.This type includes several minerals, such as nickel, lithium, and cobalt, which are not only the main components in the production of electric vehicle (EV) batteries but also play an important role in other renewable technologies, such as solar panels and wind turbines.During the ISF 2024, Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan reiterated that currently, the global need for critical minerals was increasing, along with the massive campaign of developed countries to abandon fossil fuels and switch to more environment-friendly energy sources.Indonesia, with its abundant nickel reserves, actually has a strategic position in the global supply chain of this mineral. The country has vast potential in the development of rare earth elements that are key to future sustainable technology.According to Pandjaitan, it is time for Indonesia to be known not only as a major nickel producer but also as a pioneer in sustainable mining management among developing countries.Director cum Chief Sustainability and Corporate Affairs Officer of PT Vale Indonesia Tbk Bernardus Irmanto highlighted the importance of sustainable management of the vast potential of critical minerals in Indonesia."Having abundant critical mineral resources is a blessing for Indonesia, but it must also be managed properly," he emphasized.With proper management, critical minerals can provide long-term positive impacts on the economy, society, and the environment.Sustainable management of critical minerals can begin by building cross-sector partnerships, especially with the technology industry.However, Indonesian mining companies are currently unable to provide effective technology to manage critical minerals. Thus, cross-sector collaboration is key to managing critical minerals based on sustainable principles.As an example, Vale Indonesia has been collaborating with Ford Motor Co. and Zhejiang Huayou Cobalt Co. in the construction of a nickel smelter in Pomalaa, Southeast Sulawesi.This partnership allows Indonesia not only to mine but also to process minerals with sophisticated technology, thereby providing added value to mining results and expanding access to international markets.Reclamation as a long-term solutionBig challenges, including the social and environmental impacts of the mining industry, are still lurking in the business.Thus, active participation of local communities and government approval are essential to ensure the continuity of mining operations.Surrounding communities are often indirect victims of mining activities. Hence, community involvement is a crucial element in ensuring that mining projects can operate fairly and responsibly.Responding to this challenge, Vale Indonesia strives to show that responsible mining is possible. To date, the company has succeeded in reclaiming 67 percent of the land cleared for mining.Reclamation steps are considered part of the corporate social responsibility towards protecting and safeguarding the environment, with the hopes that former mining lands can return to functioning ecologically.Several mining companies are currently starting to realize that land rehabilitation is not only conducted in mining concession areas but also outside them.This approach is an example that the mining sector can go hand in hand with the efforts to preserve the environment, although mining activities cannot completely avoid the negative impacts.However, another point to be noted is how reclamation can be carried out progressively and sustainably.Mining companies can cut down trees during their operations, but the most important aspect is their commitment to restoring the damage caused to the environment. Such an effort sets a good example for other mining companies in the country.Government oversight and social challengesThe role of the government is crucial in the management of critical minerals.According to Co-Chief Operating Officer and Director of Social Performance at the International Council on Mining and Metals (ICMM) Danielle Martin, the government must continue to ensure that every mining activity follows strict social and environmental standards."Public trust in the mining sector is very important," Danielle stated.Danielle cautioned that without the active involvement of the government and local communities, it would become increasingly difficult to ensure that mining projects run consistently with sustainability standards.Deputy Minister of State-Owned Enterprises Kartika Wirjoatmodjo emphasized the government's commitment to environmental preservation.It is a crucial aspect to always maintain a balance between economic interests and environmental preservation, he remarked."Actually, if we really think about it with a pragmatic approach, if mining companies have a broader paradigm, then they can see biodiversity as a long-term economic benefit rather than short-term accumulation of economic wealth," he explained.Currently, innovative steps are being carried out by mining companies in Indonesia to start preserving biodiversity.The steps include the issuance of mining licenses that cover social and environmental aspects as a whole. If a company is keen to carry out mining operations, it must remain committed to the license contract.In this case, collaboration between the Ministry of Energy and Mineral Resources and the Ministry of Environment and Forestry is the spearhead in ensuring sustainable mining operations.Director of the Project on Critical Minerals Security at the Center for Strategic and International Studies (CSIS) Gracelin Baskaran agrees that the right approach can ensure that Indonesia remains economically competitive while preserving the environment.“A good mining company always has a good biodiversity conservation plan,” she remarked.After all, critical minerals will be the backbone of the future. However, on the one hand, Indonesia realizes that mineral exploitation must be carried out wisely.Sustainability is the main goal, where every step taken by a mining company is not only oriented towards profits but must also be focused on preserving the nature and lives of the surrounding community.This turning point is a reflection of the hope that the mining industry, despite the plethora of challenges, can turn into a force that supports a greener and more sustainable future.

The Indonesian Coal Mining Association (APBI/ICMA) has emphasized that the reduction in coal consumption for power generation in Australia has not significantly impacted Indonesia.Acting Executive Director of APBI/ICMA, Gita Mahyarani, confirmed that coal usage for power plants in Australia has indeed dropped below 50% — precisely at 49.2% — over the past two weeks.Australia is currently striving for an energy transition by reducing the share of fossil fuels in its domestic power generation mix."This transition has also made Australia one of the most unstable electricity markets in the world, leading to an unprecedented suspension of spot trading in June 2022," Gita explained in a statement on Wednesday (September 4, 2024).For comparison, she added, the use of coal-fired power plants in Australia decreased from a peak of 87% in 2006 to 56% last year. In 2023, wind and solar energy together contributed 31% of the country's total electricity output. Meanwhile, over the past two weeks, wind power generation accounted for slightly more than 25% of total capacity during this period.Gita pointed out that Australia's actions have not directly impacted global coal stockpiles or prices. Likewise, Indonesia's export market has not been affected by the decline in coal consumption in Australia.Australia, Gita noted, primarily produces and exports high-calorie coking coal to Japan. In August, Australia exported 7 million tons of coking coal to Japan and only around 5.5 million tons to China, which is one of the largest markets for Indonesia's thermal or lower-calorie coal."Compared to Indonesia, in July, Indonesia exported 18.80 million tons to China and 2.4 million tons to Japan. This indicates a difference in the quality of coal offered. [Therefore], there has been no significant impact on Indonesia yet," she emphasized.As of Tuesday (September 3, 2024), coal prices on the ICE Newcastle market for this month's delivery were priced at USD 142/ton, down by 1.32%, marking the lowest level since July 31, or more than a week.Coal prices had rallied, reaching USD 150/ton in mid-August, which was the highest price in 2024.From a fundamental perspective, news from Australia appears to be a negative sentiment for coal prices. Bloomberg previously reported that, for the first time in history, Australia recorded coal usage falling below 50% in its energy mix.

The Ministry of Energy and Mineral Resources (ESDM) through Plt. Director General of Mineral and Coal Bambang Suswantono offered to develop and increase the added value (PNT) of coal to China.The forms of downstreaming offered are in the form of other products, such as coal quality improvement (coal upgrading), coal bridging, layoffs making and coal liquefaction."One of the policies in coal management is to reduce the use of coal along with the end of the coal power plant and develop it into another form, especially gas to meet the needs of LPG and other chemical industries such as fertilizers," said Bambang in The 7th Indonesia China Energy Forum (ICEF) quoted Wednesday, September 4.To accelerate the downstream program and coal PNT, Bambang continued, the government offers various parties so that this program can run as expected."We offer investment in the development of coal downstream in Indonesia in the form of methanol, DME and others," Bambang continued.Bambang explained that coal can be processed into derivative products, both as industrial raw materials and energy sources.The six coal development products that can be done today are improving the quality of coal upgrading, coal briquettes, kokas, liquid coal, and coal gasification, including underground coal gasification.In order to support the acceleration of the development of the program, in addition to providing three incentives, the government also requires the extension of the Coal Mining Concession Work Agreement (PKP2B) to become a Special Mining Business License (IUPK), business entities must submit plans for coal development and/or utilization."Currently, there are 6 IUPKs that have planned the development of coal into gas, fertilizer and kokas. The status is currently conducting economic studies and feasibility studies and hopefully by 2030 it will be able to commission," said Bambang.For information, Indonesia currently has 97.29 billion tons of coal resources and 31.71 billion tons of reserves, of which 70 percent of the total resources are low quality coal and the remaining 30 percent are high quality and medium coal.Most of the resources and reserves are spread across East Kalimantan, South Sumatra, South Kalimantan, Central Kalimantan and Jambi. The rest are scattered in Jambi, Riau, North Kalimantan, Aceh, Bengkulu, West Sumatra and Papua, West Sulawesi, western Java.

Indonesia, with its abundant mineral wealth, stands at the forefront of addressing global environmental challenges.The Indonesia International Sustainability Forum (ISF) 2024, held in Jakarta on September 5-6, 2024, highlighted Indonesia’s critical role in advancing the green economy.PT Vale Indonesia Tbk (PT Vale) reaffirmed its dedication to sustainability and Environmental, Social, and Governance (ESG) practices, showcasing the positive outcomes of its efforts.PT Vale's participation in ISF 2024 underscored tangible achievements from the company's commitment to sustainability. Recent initiatives include signing a joint venture agreement with Ford and forming strategic collaborations with leading European automotive manufacturers.These partnerships not only reflect market confidence in PT Vale's commitment but also open significant business opportunities, solidifying PT Vale's position as an industry leader.Bernardus Irmanto, Director and Chief of Sustainability and Corporate Affairs Officer at PT Vale, emphasized that the company’s dedication to sustainability has strengthened its business relationships and unlocked new opportunities previously unimaginable."Sustainability is key to unlocking new opportunities in the global market," Bernardus stated.In a panel discussion titled 'Uncovering Energy Storage Solutions: The Critical Role of Critical Minerals', he emphasized that ESG is at the core of the company's strategy"For us, ESG is more than just a slogan. It is an integral part of our culture and operations, driving us to continuously innovate and enhance our practices," he said.Bernardus further highlighted PT Vale's commitment to making ESG principles a fundamental aspect of every operation."Sustainability is not just a challenge, but also an opportunity. We view every step in sustainability as a chance to innovate and adapt to the ever-evolving demands of the global market.With this approach, PT Vale strives to minimize environmental impact while pursuing long-term profitability through responsible practices," he added.He underscored the importance of critical minerals in supporting Indonesia’s renewable energy transition."Indonesia’s critical mineral resources are valuable assets, but their management must align with the energy transition," he noted.He further emphasized the need for collaboration with various partners, including the technology and financial sectors, as well as the involvement of local communities and the government.Bernardus explained that sustainability principles must be applied comprehensively."For instance, in one of our nickel development projects, our automotive manufacturing partner requested PT Vale to conduct an assessment for IRMA certification six months after the mining operations began," Bernardus explained.He also acknowledged that mining operations often require land clearing, which can alter landscapes and affect biodiversity.Therefore, it is crucial to mitigate the impact through progressive land rehabilitation, biodiversity protection programs, and comprehensive mine water management.He noted that uncertainty in meeting these criteria could pose challenges in critical mineral development."Sustainability can be a limiting factor, but on the other hand, it presents a huge opportunity. That’s why ESG practices are not just jargon; they are an essential part of Vale’s culture," he emphasized.Indonesia's Green Energy DreamPresident Joko Widodo, in his opening remarks at ISF 2024, highlighted the importance of global collaboration in tackling climate change."Addressing climate change requires a collaborative approach between developed and developing nations.Indonesia is committed to working together to find inclusive and sustainable solutions," President Jokowi said."The green economy is not just about environmental protection; it’s about creating sustainable prosperity for the people."The Indonesian government's vision in supporting sustainability aligns with PT Vale’s commitment.The company fully supports mineral downstreaming with sustainability principles, aiming to improve the quality of life for the people of Indonesia, including those living around PT Vale’s operational areas. 

Macmahon Holdings Limited says it has been selected by PT Citra Palu Minerals (CPM), a subsidiary of PT Bumi Resources Minerals Tbk, as the mining services contractor for the Poboya gold project in Sulawesi, Indonesia.The scope for Macmahon will include open-cut mining activities including drilling, loading, hauling, equipment maintenance and mine site development. Macmahon will also work with CPM to explore various options to develop its mines in the future.The contract has commenced and is expected to complete in September 2026, adding approximately USD 54 million to Macmahon’s secured order book, with minimal capital expenditure expected to be incurred during the period.Macmahon CEO and Managing Director, Michael Finnegan, said: “We are delighted to be selected by CPM as the mining contractor for its Poboya gold project in Indonesia which will add to our secured work in hand. Indonesia presents a great landscape for us to grow, given our existing relationships and strategy to work with preferred partners that have world-class projects. I would like to thank the Macmahon team who have worked closely with our client over the past 12 months to build a strong relationship and support the development of their Poboya gold project. We are excited about the future growth prospects of this project.”

President Joko Widodo held a bilateral meeting with Vice President of Zimbabwe, Kembo Dugish Campbell Muleya Mohadi, in the Casablanca Room of the Mulia Hotel, Nusa Dua, Bali, on Monday, September 2, 2024. In his opening remarks, President Jokowi warmly welcomed Vice President Mohadi and extended congratulations on the re-election of President Emmerson Mnangagwa as President of Zimbabwe."Welcome to Indonesia, and thank you for Your Excellency's presence. I would also like to extend my congratulations on the re-election of President Emmerson Mnangagwa," said President Jokowi.President Jokowi then highlighted three main issues in the cooperation between Indonesia and Zimbabwe. Firstly, regarding economic cooperation, President Jokowi emphasized the importance of a preferential trade agreement to strengthen the trade sector between Indonesia and Zimbabwe."Indonesia is also interested in collaborating in the pharmaceutical sector. The support of the Government of Zimbabwe is highly appreciated," stated the President.Concerning the mining sector, President Jokowi revealed that Indonesia is currently exploring cooperation in lithium mining in Zimbabwe. He mentioned that he would instruct the Minister of Energy and Mineral Resources, Bahlil Lahadalia, to expedite the finalization of the memorandum of understanding on this matter.Regarding development cooperation, President Jokowi reiterated Indonesia's readiness to enhance collaboration with Zimbabwe through programs tailored to the country's needs via the Indonesia Aid mechanism. President Jokowi also sought Vice President Mohadi's support to ensure the smooth and successful implementation of these strategic partnerships."The development of e-procurement in Zimbabwe has the potential to become one of our strategic projects. I request Your Excellency's support on this matter," the President added.Accompanying the President in the meeting were Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, Minister of Foreign Affairs Retno Marsudi, Minister of Investment/Head of BKPM Rosan Roeslani, and Minister of State Secretary Pratikno.