Coal mining company PT Golden Energy Mines Tbk (GEMS) terminated its coal sale and purchase agreement with GMR Coal Resources Pte Ltd.Golden Energy Mines Corporate Secretary Sudin SH explained that on January 31, 2024, the company signed a deed of termination of the coal sale and purchase agreement and the coal sale and purchase support agreement."The signing of the deed of termination of the coal sale and purchase agreement and the coal sale and purchase supporting agreement between the company, including several of its subsidiaries, namely PT Borneo Indobara, PT Bungo Bara Utama, PT Bara Harmonis Batang Asam, PT Berkat Nusantara Permai, PT Karya Cemerlang Persada, PT Kuansing Inti Makmur, PT Tanjung Belit Bara Utama and GMR Coal Resources Pte Ltd (formerly GMR Infrastructure Investments (Singapore) Pte Ltd.) (GMR)," he explained in an information disclosure quoted on Monday, February 5, 2024.He explained that the agreement refers to the coal sale and purchase agreement dated August 11, 2011, between the Company (as seller) and GMR (as buyer). Image source: Media Asuransi News / IstSource: https://mediaasuransinews.co.id/market/golden-energy-mines-gems-akhiri-kerja-sama-dengan-gmr-coal-resources/ 

PT Harum Energy Tbk (HRUM) and its subsidiary, PT Harum Nickel Industry (HNI), officially became the majority shareholder of PT Westrong Metal Industry (WMI), a nickel smelter company in Weda Bay Industrial Park, North Maluku.The acquisition was marked by the purchase of 1,214,000 WMI shares previously owned by Prime Investment Capital Limited (PICL) and Walsin Singapore Pte Ltd (WS).The acquisition represents 60.7% of the total issued and paid-up capital of WMI, with a transaction value of USD 215.21 million or approximately IDR 3.4 trillion (assuming an exchange rate of IDR 15,828).The result of this acquisition is that HNI's ownership in WMI increased from 20% to 80.7%, and HRUM, through HNI, became the majority shareholder of WMI.Ray A. Gunara, CEO of PT Harum Energy Tbk, revealed that WMI operates four electric rotary kilns with supporting infrastructure and converter facilities, which provide high-quality nickel-matte production."The installed annual production capacity is approximately 56,000 tons of nickel contained in high-grade products," Ray said during a disclosure session on the Indonesia Stock Exchange (IDX) on Tuesday (30/1/2024).The current WMI construction project, he said, is in its final stages and expected to commence commercial operations in the second quarter of 2024. The acquisition will hopefully support the company's diversification strategy."With WMI coming into operation soon, the company will have a more diverse product portfolio. We hope that WMI's high-grade nickel-matte products will bring added value to the company's nickel products," he said.After the deal is completed, WMI's financial statements, including its balance sheet and income statement, will be integrated into HRUM's main financial statements. He expects the financial statements will reflect the contribution of WMI's financial performance, both through the increase in the company's shareholding through HNI and the consolidation of WMI's financial results.Image source: Suara.comSource: https://www.suara.com/bisnis/2024/01/30/163003/hrum-perkuat-posisi-di-industri-nikel-resmi-kuasai-saham-smelter-di-weda-bay 

West Sumatra Province, which has extensive forest areas, is known to store large ore resources with fairly good iron (Fe) levels. The Head of the West Sumatra Energy and Mineral Resources Agency ( EMR), Herry Martinus, said that when it comes to iron ore mining, all authority, from permits to supervision, belongs to the central government. He admitted that West Sumatra EMR did not have definite data related to the distribution of iron ore mines because the provincial government did not have the authority to conduct field mapping of the iron ore potential.  However, based on existing data from several companies conducting iron ore resource surveys in the West Sumatra region, there are 75 million metric tons (MT) of iron ore resources or potential with 62% Fe content. "[The 75 million MT] is outside the preserved forest. If the resources are inside the preservation forest, it is estimated to be more than 100 million MT. However, no permit will be granted for mining in preserved forest areas," he said on Monday (29/1/2024). The current condition of the 75 million MT iron ore resource is that some companies have been working on it with permits owned by iron ore mining companies since 2015.According to the data owned by the West Sumatra EMR, the iron ore potential reached 35 million MT on 1,561.94 hectares of area across four regencies in West Sumatra and had been worked on by 8 companies, such as West Pasaman, Solok, Pasaman, and Dharmasraya regencies. Herry detailed that out of the four regions, the iron ore mines are currently running in two points in the Solok area and another in West Pasaman. "The data I have show that there are eight companies licensed (IUP / mining business license) to carry out iron ore mining activities in West Sumatra," he said. PT Karya Usaha Aneka Tambang, located in Solok, has 31 hectares of land with a mining output of 1.7 million MT. Then, in West Pasaman, PT Gamindra Mitra Kesuma cultivated 163.30 hectares of land and mined 560,649 MT of iron ore. Furthermore, PT Arosuka Mandiri in Solok has 198 hectares of land and 9,091,601 MT of iron ore. PT Dharmapower Bersama, also in Solok, has 190 hectares of land with 26,416,319 MT of iron ore. PT Mineral Sukses Makmur also works in Solok covering 73.70 hectares of land, and has mined 3,628,000 MT of iron ore.  Herry said that another company in Dharmasraya, PT Tambang Sungai Suir, will also work on iron ore resources with an area of 180 hectares and has a potential of 12,014,256 MT, but has yet to be worked on, despite already having a permit. "The calculation of iron ore resources is not the same once it has been mined," he explained.  He said the known amount of the resource would decrease when it was mined. Let's say the estimated potential is 2 million MT in an area, but it turns out that only 1.5 million MT after mining.  "This is reasonable because the potential is only an approximate figure," he said. As for other companies, PT Pancasona Jaya Pratama in Solok and PT Sumber Minera Bersama in Pasaman have obtained licenses yet have yet to exploit the existing potential."According to the data from the central government we got, the iron ore mining activity is also not frequent, for reasons from the company constrained by the cost of mining production, such as equipment costs and various other necessities," he said. According to him, the current condition is only about 50% of the iron ore potential in West Sumatra has been exploited by mining companies. The eight mining business licenses (IUP) are domestic companies. "It is indeed the domestic companies that work on it. However, it is only in West Pasaman that China is involved, but the license is domestic," he said. Addressing Environmental Impacts Herry does not deny that iron ore mining activities have an environmental impact as logging will occur. However, within the permit for iron ore mining activities, some measures must be adhered to by the mining company. Starting from reforesting, namely planting trees on ex-mining land or changing ex-mining land that can bring economic value, such as becoming a tourist attraction area. "The ex-mining management is evident in Sawahlunto's ex-coal mine, where a new tourist attraction has emerged. The iron ore mining company is obliged to handle it, so its condition returns to being green and beneficial," Herry explained. He said that due to the iron ore mining activities, the local government gets revenue-sharing funds (DBH) and employment for the people living around the company so the local economy can grow through guidance for MSME players. "The sharing fund to West Sumatra depends on the amount of iron ore obtained by the company, hence a percentage calculation. It may not be much since the largest revenue fund still depends on new coal mines, which reaches IDR 35 trillion, and a little of that value comes from iron ore mining, but I don't remember the detailed data," he said. The Mining License is Not a Regional Authority Herry mentioned that the authority for iron ore mining permits lies with the central government. The provincial government, in this case, is only an intermediary for investors who wish to work on the potential of iron ore. Therefore, they can only watch the mining activities occur in an area. “Our regional government can't do anything. Only the companies know how much iron ore has been mined, and the report is submitted to the Mining Inspector. Regarding whether it is only iron ore that is being mined or other things are being mined, we do not know because the central government is the one with the authority," he said.Image source: Sumatrabisnis.com / ckra.co.id Source: https://sumatra.bisnis.com/read/20240130/534/1736575/sumbar-disebut-menyimpan-potensi-75-juta-mt-bijih-besi 

The SOE Holding Mining Industry MIND ID or Mining Industry Indonesia continues to accelerate the downstream of the mining sector. One of them is through the construction of smelters or smelting plants carried out by members.Smelters are vital in the mining sector's downstream process. Through the construction of smelters, the value added to the mineral mining industry sector will continue to increase and provide many benefits.One of the smelter developments to be completed shortly is a copper ore smelter in the Java Integrated Industrial and Port Estate (JIIPE) area, Manyar, Gresik, East Java. The smelter is run by PT Smelting, a MIND ID Group member, a subsidiary of PT Freeport Indonesia (PTFI).MIND ID Corporate Secretary Heri Yusuf said that the construction of the copper ore smelter has reached 90.6 percent and is planned to start operating by the end of May 2024."[The smelter] means copper production can start in August 2024, as we need to prepare everything for operation for about 6 to 10 weeks, after which we can start to concentrate feeding," said Heri.Heri said PT Smelter will ensure the copper smelting plant is feasible in terms of infrastructure and the readiness of production equipment to avoid problems in the future, such as leaks and others.IDR 465 Trillion WorthThe smelter project, worth IDR 465 trillion, has a production capacity of 1.7 million tons of copper anodes or cathodes per year. According to Heri, based on this calculation, PT Smelting can produce up to 3 million tons per year."Of course, this provides additional value for Indonesia. There will be many copper derivative industries in the country thanks to the Manyar smelter, for example, copper foil and other copper derivative industries," he said.Downstreaming of natural resources is one of the main strategies for encouraging economic growth in the country. With downstream, Heri continued, it will contribute to job opportunities and create added value to the domestic economy."Downstreaming is one of the mandates given by the government to MIND ID, so we must carry it out in the mineral industry sector to provide more value for Indonesia," he said.Image source: Liputan6 / Dok. MIND IDSource: https://www.liputan6.com/bisnis/read/5519920/pembangunan-smelter-freeport-gresik-capai-906-mei-2024-siap-operasi 

Far East Gold Ltd (ASX:FEG) will keep the rigs turning in the current drilling program at Woyla in Aceh following some impressive assay results from recent drill holes in the Pertama vein zone at the Rek Rinti prospect area.The company plans to continue with a further 1,500 meters to test for lateral and depth extensions of the high-grade gold and silver it has struck.Significant resourceThe diamond drilling assays received to date demonstrate the potential to build a significant gold and silver resource within the Rek Rinti prospect area.Drill hole RRD034 intersected ‘bonanza’ grade gold of 0.9 meters at 32.65 g/t gold, 117 g/t silver (34.06 g/t gold equivalent) from 87.2 meters, which occurred within a 27.8-meter-wide mineralized zone of quartz vein and breccia that assayed at 2.49 g/t gold equivalent.Meanwhile, in hole RRD034R, drilling hit a significant 25.8-meter-wide zone of quartz vein and breccia that assayed at 3.28 g/t gold, 50.59 g/t silver (3.89 g/t gold equivalent) from 66.5 meters.Extended drill planThe company will continue to test the Pertama high-grade zone and the adjacent Susi vein with an 8-hole, 1,500-meter program.These holes will test the Pertama vein at 50-meter spaced holes along the vein strike southwest from RRD034. They will also test the vein and high-grade mineralization to depth.Four of the planned holes will also test lateral and depth extensions of the Susi vein.The Pertama vein intersections are consistent with other high-grade gold-silver zones intersected in the Agam and Rame veins within the Rek Rinti prospect area.High-grade mineralization is interpreted to occur within localized zones of vein thickening related to structural dilation.The highest grades come from zones showing well-developed ganguro bands containing visible gold and electrum.These intersections occur within wide zones of quartz vein and breccia containing lower-grade mineralization and demonstrate the potential to build a significant gold and silver resource within the Rek Rinti prospect area."Encouraged"Far East Gold CEO Shane Menere stated, “We are so encouraged by the observations from the recent drilling at Woyla, that we have decided to add circa 1,500 meters to the resource delineation program.“As more great results continue to emerge, we hope the resulting drill tip hits to lead to a significant increase in potential ounces for a maiden JORC resource.”Image source: proactive InvestorsSource: https://www.proactiveinvestors.com/companies/news/1040102/far-east-gold-extends-woyla-drill-campaign-following-strong-gold-and-silver-assays-1040102.html

The Indonesian government is pushing to accelerate the divestment of PT Vale Indonesia Tbk (INCO).The Minister of Energy and Mineral Resources (MEMR) Arifin Tasrif said that the Ministry of State-Owned Enterprises (SOEs) has also addressed a letter to request the acceleration of INCO's divestment process. However, Arifin did not explain to whom the letter was addressed."There has been a letter from the Minister of SOEs to quickly finalize the divestment process with several points that need to be resolved. We are currently processing this," explained Arifin at the Ministry of Energy and Mineral Resources on Friday (2/2).Arifin continued that the amount of value agreed upon will be a business matter between INCO and MIND ID. However, the government also sets a standard for the price."Regarding the value, anything, please go ahead. But the Ministry already has a benchmark," explained Arifin.Arifin ensured that his office expects the divestment process to be completed as soon as possible.Kontan noted that Commission VII of the Parliament left the negotiation process to the two companies as a form of business-to-business agreement between the two parties."The value is entirely a B2B discussion. We just agree to the two business actors," said Deputy Chairman of Commission VII DPR RI Eddy Soeparno.Member of Commission VII of the Indonesian Parliament, Mulyanto, added that following the agreement with the Minister of Energy and Mineral Resources, it is expected that the state's shares will become the majority by holding 51% of the shares.In addition, MIND ID must be given the right to control the company operationally and financially. " Otherwise, Vale's mining license will not be extended," Mulyanto asserted.Image source: Kontan / Dok. INCOSource: https://industri.kontan.co.id/news/pemerintah-minta-divestasi-vale-indonesia-inco-dipercepat

PT Bumi Resources Tbk. (BUMI), as the largest coal producer in Indonesia, recorded a total consolidated revenue of USD 4.8 billion until September 2023.The achievement comes with and is supported by several awards achieved by BUMI in ESG (Environment, Social, and Governance) over the past year.BUMI's prestigious awards include Champion for Coal Mining Large in the ASEAN Energy Awards 2023 through its subsidiary PT Kaltim Prima Coal (KPC). The award was presented by Cambodia's Deputy Minister of Mines and Energy, Victor Jona.KPC displayed the Good Mining Practice to Contribute Environmental, Social, and Governance Commitments for Sustainability application at the event. This application shows that KPC's operations are in line with the three pillars of ASEAN energy, which are sustainability, security, and interconnectivity.Coal Champion for ESG & Sustainability Business Principles-TrenAsia 2023 was the next award received by BUMI. This award is given to companies committed to implementing environmental, social, and governance (ESG - Environment, Social, & Governance) business principles.BUMI President Director Adika Nuraga Bakrie said Indonesians have become increasingly aware of the importance of ESG.Therefore, the company is currently not only pursuing large profits, but also important to think about how these profits contribute positively to the environment and society."Indonesians are increasingly aware of the importance of ESG. BUMI is not just chasing big profits, but it is equally crucial to consider how these profits can provide positive contributions to the environment and society," he said in his statement on Friday (2/2/2024).BUMI received two more awards in the TOP GRC Awards 2023, which are the 4-star TOP GRC Awards 2023 for BUMI as a corporation and The Most Committed GRC Leader 2023 for Adika Nuraga Bakrie as BUMI's President Director.This award is an appreciation for companies that excel in implementing governance, risk management, and compliance (GRC/Governance, Risk and Compliance)."The positive performances achieved by BUMI are a joint commitment of the business unit in supporting the government program to succeed in the SDGs activities. It is not just a commitment, but a core competence of the company and goes beyond compliance to perform best practices and contribute to creating community independence that will contribute to the realization of SDGs and ESG)," Adika explained.Image source: Tribunnews / HOSource: https://www.tribunnews.com/bisnis/2024/02/02/bumi-resources-raup-pendapatan-48-miliar-dolar-as-dan-raih-penghargaan-bidang-esg-di-2023 

The Indonesian Bauxite and Iron Ore Entrepreneurs Association (APB3I) revealed that since the enactment of the bauxite ore export ban policy in June 2023, the process of building smelters or bauxite refining and processing facilities in Indonesia has not shown positive development.Plh. Chairman of APB3I Ronald Sulistyanto revealed that, currently, there are 10 bauxite smelters planned to be built in Indonesia. However, only two smelters have been produced. Those are operated by PT Aneka Tambang Tbk (ANTM) and PT Well Harvest Winning Alumina Refinery (WHW)."Well, those ten of them have been produced by Antam and WHW. What will increase capacity? If Antam is indeed a new thing. And if I'm not mistaken, it hasn't been produced yet. There are two kinds of Antam. One of them chemically related that is CGA and SGA," Ronald explained to CNBC Indonesia in the Mining Zone program, quoted Tuesday (1/23/2024).So he said there were still eight smelters whose construction process was hampered or stagnant. Ronald said the reason for the stagnation in the construction of the tower was none other than financial problems.Ronald said that to build a bauxite smelter, it is necessary to spend up to IDR 1.2 billion, equivalent to IDR 18.8 trillion (assuming an exchange rate of IDR 15,670 per USD). "I have often said that the problem is only financial. Because of what? Because the cost is huge. For 2 million tons (capacity), yes, but not more than approximately USD 1.2 billion. And it's not light," he explained.He considered that to accommodate the entire bauxite production in Indonesia, it actually only requires as many as six smelters. "And if we make 8-8, Indonesia needs maybe five or six. That's enough. If there are also many problems later, it will become a new problem," he said.Previously, Special Staff of the Minister of Energy and Mineral Resources for the Acceleration of Mineral and Coal Governance, Irwandy Arif, explained that at least of the 8 smelter projects that are under construction, 7 smelter projects have not shown significant results."Not yet, so the name of bauxite ore is still 7; 1 is about to progress, while the 7 has not made significant progress. (It's still like a football field, among others," Irwandy said when meeting at the Ministry of Energy and Mineral Resources Building on Friday, January 19, 2024.Irwandy assessed that bauxite entrepreneurs would certainly be harmed if they did not immediately complete the construction of their smelter project. Moreover, the government has imposed a ban on the export of bauxite ore abroad. "Yes, you won't be able to sell them later. The production will definitely adjust. They will definitely stop later because it doesn't sell," he said.Image source: CNBC Indonesia/Muhammad Choirul Anwar.Source: www.cnbcindonesia.com/Ekspornya Dilarang Sejak Juni 2023, Smelter Bauksit Masih Mandek!

This year, PT Bayan Resources Tbk. (BYAN) targets revenue to reach USD 3.6 billion, or around IDR 55.80 trillion, in line with the increase in coal production and sales. The information was conveyed by the company in its press release in Jakarta yesterday.Bayan targets revenue in 2024 to reach USD 3.3 billion–USD 3.6 billion, or around IDR 51.15 trillion–IDR 55.80 trillion (estimated exchange rate of IDR 15,500 per US dollar). The estimated EBITDA ranges from USD 1.2 billion-USD 1.4 billion or around IDR 18.6 trillion-IDR 21.7 trillion. It is stated that coal production in 2024 will be 55 million–57 million tons, up from the estimated realization in 2023 of 48 million tons.In addition, the company also predicts that Newcastle coal prices in 2024 will be around USD 110 per ton, and ICI4, on average, will reach USD 58 per ton. It is expected that the coal price will be more stable after declining last year from its peak in 2022. The average selling price (ASP) of BYAN coal in 2024 is estimated to range from USD  60-USD  65 per ton, corrected from USD  76 per ton in 2023, USD  118 tons in 2022, and USD  71 per ton in 2021. However, the selling price is still better than in 2020 at USD 39 per ton and USD 48 per ton in 2019.To maximize profits, Bayan will keep the cost at around USD 40–43 per ton. These costs include the cost of goods sold (COGS), or all costs incurred by the company in each production activity; selling, general, and administrative expenses (SGA), or operational, business, and royalty costs. In 2024, BYAN will allocate a capital expenditure (capex) of USD 230–USD 260 million, or around IDR 3.56 trillion–4.03 trillion (estimated exchange rate of IDR 15,500 per US dollar).The capex allocation is 74% for development and infrastructure, 13% for equipment and machinery, and 13% for other equipment purchases. BYAN management said it would spur coal production in 2024 to 55 million-57 million tons. Thus, BYAN's production volume continues to increase from 2023 48 million tons, 2022 39 million tons, 2021 38 million tons, and 2020 30 million tons. It is mentioned that coal production volume in 2024 has the potential to increase by 15%-20% due to the expansion of the North Pakar mine in Tabang.BYAN is the third largest coal producer in Indonesia, below PT Bumi Resources Tbk. (BUMI) with around 80 million tons of production, and PT Adaro Energy Indonesia Tbk. (ADRO), with around 64 million tons. On a quarterly basis, BYAN's production volume in the first quarter of 2024 is estimated at 10 million-11 million tons, the second quarter of 2024 13 million-14 million tons, the third quarter of 2024 16 million-17 million tons, and the fourth quarter of 2024 14 million-15 million tons.In terms of sales volume, BYAN also targets coal marketing of 55 million-57 million tons in 2024, up 15%-20% from the estimated sales realization in 2023 of 47 million tons. Meanwhile, last year coal sales also rose from the realization in 2022 of 40 million tons. As of September 2023, Bayan Resources' coal market composition is the Philippines 32%, Indonesia 22%, South Korea 10%, China 9%, India 8%, Bangladesh 6%, Malaysia 5%, and other markets 8%.Until the end of 2023, BYAN has pocketed a sales commitment of up to 45.5 million tons for the 2024 period with a calorie specification of 4,324 GAR Kcal/kg. About 84% use floating prices, and 16% use fixed prices. "The sales commitment has reached 80%-82% of sales plans throughout 2024," explained BYAN's management.Image source: www.neraca.co.idSource: www.neraca.co.id/Produksi Tambang Tumbuh - Bayan Resources Targetkan Pendapatan US$ 3,6 Miliar

PT Merdeka Battery Materials Tbk. (MBMA) made an affiliate transaction with PT Merdeka Industri Anantha (MIA) by providing a USD 100 million loan. The transaction will take place on January 22, 2024.PT Merdeka Industri Anantha (MIA) is a subsidiary with 99% of the shares owned by MBMA.Citing from the information disclosure of the Indonesia Stock Exchange (IDX), the loan is to support MIA's business activities by providing debt, depositing capital, and/or downpayment of capital deposits."The company and MIA have agreed that we provide a USD 100,000,000 loan." MBMA management wrote on Wednesday (24/1).For every outstanding financing provided by the Company to MIA interest is subject to the sum of the Secured Overnight Financing Rate and 4.75% per annum.With the implementation of this transaction, MBMA will experience a positive impact, which in turn can create added value for the Company's shareholders indirectly.The transaction has also been assessed using internal procedures with the same terms and conditions if the transaction is carried out with an unaffiliated party so that the terms and conditions of the transaction are carried out in accordance with generally accepted business practices.Image source: Bisnis.comSource: www.cnbcindonesia.com/Merdeka Battery (MBMA) Beri Pinjaman ke Anak Usaha US$ 100 Juta