PT United Tractors Tbk (UNTR) announces the distribution of extra capital investment to one of its subsidiaries, PT Tuah Turangga Agung (TTA) worth IDR 217.23 billion. TTA is a company that owns nine coal mining concessions, controlled by UNTR through PT Pamapersada Nusantara (PAMA). Total coal reserves of TTA are estimated to reach 254 million tons.Sara K. Loebis, Corporate Secretary of UNTR< mentioned that the said capital injection was made through claiming the issuance of 217,191 new shares of TTA. These entire new shares were acquired by PAMA, allowing PAMA’s stock portion in TTA to jump to 6.08 million units worth IDR 6.08 trillion in total.“PAMA’s reason behind the raise of its stock ownership in TTA is to grant extra working capital for TTA’s operational activities,” Loebis revealed. For the record, TTA has four companies engaged in the coal trading industry. TTA’s products are then sold through those four subordinate companies to users in the domestic and international markets alike.Source: https://www.idnfinancials.com/news/43038/united-tractors-channel-extra-idr-subsidiary

PT Kapuas Prima Coal Tbk (“ZINC”), posted growth in performance both in terms of sales and net income during 2021. ZINC recorded sales of IDR838.8 billion, an increase of 38% compared to 2020 which was recorded at IDR608.1 billion. Meanwhile, ZINC's net income also shot up 165% to reach IDR77.2 billion from IDR29.1 billion in the same period in the previous year. This achievement was driven by additional sales of iron concentrates amounting to IDR126.3 billion and sales of ZINC iron ore which increased very significantly in 2021 reaching 734% or IDR61.8 billion. ZINC Director Evelyne Kioe explained, “The year 2021 had been quite challenging for the dynamics of the domestic and global industry. Because several new variants of the Covid-19 virus emerged that year, slightly hampering the economic recovery. However, we are grateful that we were able to go through this challenging year with satisfactory results. Supported by rising commodity prices and increasing demand for concentrates, ZINC's sales had still been able to grow in 2021. We hope that in 2022, ZINC's sales can grow even better with a sales target of around IDR1.2 trillion.” During 2021, ZINC's sales were still dominated by sales of zinc concentrate (Zn) amounting to IDR386.8 billion or an increase of about 27% compared to the same period in 2020 which was recorded at IDR304.9 billion. Then ZINC silver sales also increased by 10% to IDR185.4 from IDR168.8 billion in 2020. Meanwhile, sales for lead concentrate (Pb) were recorded at IDR134.0 billion or increased by 5% from IDR127.0 billion in 2020. Evelyne continued, seeing that 2022 economy has started improving compared to the previous year, ZINC is optimistic that this year it can achieve the performance targets that have been set, with ZINC projecting to produce 550,000–642,000 tonnes of ore. As for sales, ZINC targets to sell around 31,980 tonnes of lead concentrate and 61,245 tonnes of zinc concentrate in 2022. We also have a target for iron ore of 180,000 tonnes by the end of the year. Source: https://www.idnfinancials.com/news/42978/zinc-sales-grew

The Ministry of Energy and Mineral Resources (ESDM) has asked nickel business actors, both miners and smelter entrepreneurs, to comply with the applicable Mineral Benchmark Prices (HPM). This was revealed in a copy of the Letter of the Directorate General of Mineral and Coal (Ditjen Minerba) Number T-1780/MB.04/DJB.M/2022 obtained by Kontan.co.id.The letter, dated April 26, 2022, contains the obligation to use metal HPM in the sale and/or purchase of nickel commodities. This letter, which was signed by the Director General of Mineral and Coal, Ridwan Djamaluddin, is addressed to the Board of Directors/Management of Nickel Commodity Mining Business License Holders and Directors/Management of Nickel Commodity Industrial Business License Holders/Facilities for Processing and/or Purification of Nickel Commodities.Meanwhile, the points in the letter relate to the implementation of the provisions of the Regulation of the Minister of Energy and Mineral Resources Number 07 of 2017 concerning Procedures for Setting Standard Prices for Metal and Coal Mineral Sales as amended several times, most recently by Regulation of the Minister of Energy and Mineral Resources Number 11 year 2020. In addition, it is also related to the issuance of the Decree of the Minister of Energy and Mineral Resources Number 67.K/HK.02/MEM.B/2022 concerning Reference Metal Mineral Prices and Reference Coal Prices for April 2022."The calculation of the nickel metal HPM formula for April 2022 must use the Reference Mineral Price (HMA) determined based on the Decree of the Minister of Energy and Mineral Resources Number 67.K/HK.02/MEM.B/2022 concerning Reference Metal Mineral Prices and Coal Prices. Reference for April 2022," said Ridwan as quoted from the first point in the letter, Tuesday (10/5).Furthermore, holders of nickel commodity mining business permits and holders of industrial business permits/processing and/or refining facilities for nickel commodities in selling and/or purchasing nickel ore must refer to the HPM for nickel metal. Meanwhile, the holder of a nickel commodity mining business permit and the holder of an industrial business permit/processing and/or refining facility for nickel commodities selling and/or purchasing nickel ore without referring to the metal HPM will be subject to sanctions in accordance with the provisions of the legislation.Previously, the polemic on the selling price between the miners and the smelter industry did occur, especially in the midst of high nickel ore prices. Secretary General of the Indonesian Nickel Miners Association (APNI) Meidy K. Lengkey explained that the HPM for nickel metal in April 2022 reached US$ 80 per wet metric ton (wmt). This value is higher than the March 2022 HPM which was only US$ 50 per wmt. In this condition, many smelter business actors wish to enter into contracts with miners at prices in March and not at prices in April.This condition is also considered to be burdensome for mining business actors. This is because business actors will pay their obligations to the state in accordance with the applicable HPM. This means, if the miner sells at a price of US$ 50 per wmt, then the amount of liability that must be paid refers to the applicable HPM of US$ 80 per wmt."The year-end tax, corporate income tax will be extraordinary because the price has been set," explained Meidy to Kontan, Tuesday (10/5). Meidy also hopes that in the future all business actors can follow the rules that have been set.Source: https://industri.kontan.co.id/news/kementerian-esdm-minta-pelaku-usaha-nikel-ikuti-ketentuan-harga-patokan-mineral

Far East Gold (ASX: FEG) has begun a revised scoping study for its Wonogiri copper-gold project in Indonesia’s south central Java region, as survey work continues at Woyla. The company has engaged Mining One Consultants to update former owner Augur Resources’ scoping study that was prepared in 2016.As part of this, Mining One has begun metallurgical test work on porphyry and epithermal drill core samples, and will reassess the study based on current commodity prices, and an optimal processing flow sheet. The previous scoping study was based on a 2016 gold price of US$1,350 per ounce and copper attracting US$5,500 per tonne.Far East noted Mining One had already provided it with a pit optimisation study for Wonogiri, which included a high-level open-pit and underground mining scenario for the Randu Kuning deposit.Initial metallurgical resultsThe metallurgical test work is looking at gold and copper samples of Wonogiri porphyry ore, which has head grades ranging from 0.8-1.7 grams per tonne gold and 0.11-0.21% copper. Epithermal samples are also being analysed for optimal recoveries with head grades ranging from 0.58-10g/t gold and 6-8.5g/t silver.Initial porphyry metallurgical results have achieved 35-51% gold recoveries using simple gravity. A further 83-85% of the gold in the gravity tailings can be recovered using conventional carbon-in-lead processing. To-date, overall gold recoveries ranged from 90-91%, with associated silver recoveries of around 65%.Under the test work program, Far East is investigating reducing cyanide usage and potentially regenerating cyanide to further minimise consumption.Potential to grow resourcesAugur previously developed a JORC 2012 resource for Wonogiri’s Randu Kuning deposit, which contains 1.15 million ounces of gold equivalent. This comprises 996,000oz of gold and 190 million pounds of copper.Far East noted that the potential to grow these resources is indicated by previous drilling where an extensional hole intercepted 37m at 1.77g/t gold and 0.23% copper from 458m, with mineralisation remaining open at depth.Woyla copper-gold projectIn parallel with the updated scoping study at Wonogiri, Far East is advancing its Woyla copper-gold project in Indonesia’s Aceh region. The project covers 24,260 hectares and Far East is increasing its 51% stake to 80% by completing a feasibility study and delivering a maiden JORC resource.Exploration at Woyla is underway with an induced polarisation (IP) survey crew mobilised to the project site last month. The survey is being carried out as part of a collaboration with the Indonesian Government’s Ministry of Energy and Mineral Resources.Initial survey work has been completed at the Anak Perk North section of the Anak Perak prospect, and will begin at the Anak Perak Main Zone section of the prospect later this week. Far East is anticipating survey results early next month.The rationale behind the survey is to further Far East’s understanding of the 4.7km epithermal vein system identified at the project, where rock chip sampling has uncovered up to 119g/t gold and 361g/t silver.Results from the survey along with the historical mapping, sampling and trenching will be used to pinpoint targets for the maiden drill program at Woyla.Source: https://smallcaps.com.au/far-east-gold-begins-revised-scoping-study-wonogiri-copper-gold-project/

One of the mining companies, PT Harum Energy, Tbk (HRUM) through its subsidiary, namely PT Harum Nickel Industry (HNI) has acquired 250,000 new shares of PT Westrong Metal Industry (WMI). This amount represents 20% of the total issued and paid-up capital of WMI with a purchase price of US$ 75 million on 27 April 2022.HRUM President Director Ray A Gunara explained, WMI is a limited liability company engaged in nickel refining (smelter). "WMI's smelter using  rotary klin electric furnace  (RKEF) technology is planned to be built this year along with the infrastructure in the Weda Bay Industrial Area (Indonesia Weda Bay Industrial Park) in Central Halmahera Regency," Ray explained in a Disclosure of Information to the Exchange. Indonesian Securities (IDX) on Monday (9/5).It also explained that its annual production capacity is targeted to be between 44,000-56,000 tons of nickel in the form of  ferronickel / nickel pig iron . "The purpose of the transaction carried out by the company is to further develop and expand the company's business activities into the nickel industry, which is the realization of the company's long-term business diversification strategy," said Ray A Gunara.It was emphasized in the information disclosure that there was no material impact on the taking of the shares on the operational, legal, financial condition or continuity of the company's operations.Source: https://www.tambang.co.id/harum-energy-akuisisi-20-saham-perusahaan-smelter-28721/

A mining company headquartered in Brazil announced that it has signed a long-term contract with Tesla, Inc. to supply Class 1 nickel in the United States from its operations in Canada. This agreement is in line with the company's strategy to increase exposure to the electric vehicle industry, leveraging the company's low carbon footprint and leading position as the largest nickel producer in North America.“We are delighted to have the leading electric vehicle manufacturer Tesla among our customers,” said Deshnee Naidoo, Vale Executive Vice President for Base Metals. He added, “This agreement reflects our shared commitment to sustainability and demonstrates very clearly that we are the supplier of choice for the low-carbon, high-purity nickel products that are essential for long-range batteries.”The press release explained that Vale's target is to send 30% to 40% of Class 1 nickel sales into the fast-growing electric vehicle industry.To note, Vale's Canadian operations produce some of the lowest carbon nickel globally. The 2020 round of the Long Harbor refinery in Newfoundland & Labrador has a verified carbon footprint of 4.4 tonnes CO2 equivalent per tonne nickel. Meanwhile pellets and powder from the Copper Cliff Nickel Refinery in Ontario have a verified trace equivalent of 7.3 tonnes. This includes Scope 1 and 2 emissions from mining, crushing and refining as well as upstream Scope 3 emissions from inputs.Source: https://www.tambang.co.id/vale-akan-pasok-nikel-kelas-i-untuk-tesla-inc-28723/

PT MNC Energy Investments (IATA) through its newly acquired company, PT Arthaco Prima Energy (APE) has discovered new coal reserves of up to 20.58 million metric tons (MT). Based on a report by the Indonesian Mineral Reserves Committee (KCMI), the new coal reserves have a GAR of 3,250 kg/kcal in Phase 1 drilling on an area of ​​380 hectares of the total current reserve area of ​​2,059 hectares. Meanwhile, Phase 1 coal resources reached 138.85 million MT.Using the average HBA coal price from 2000 to April 2022, APE mining activities will generate a Net Present Value (NPV) of USD 56.6 million, with an Internal Rate of Return (IRR) of 56.5%, Break Even Point (BEP) of 5.2 million MT and Payback Period of 1.87 years. "Obviously if coal prices persist as they are now, the above NPV will more than double," said Head of Investor Relations IATA, Natassha Yunita, Monday (9/5).Natassha said that the discovery of reserves and resources will continue to grow because the Phase 1 drilling carried out is only less than 20% of the APE IUP area that can be mined. Phase 2 and Phase 3 drilling are scheduled to be completed this quarter.“APE already has a Production Operation IUP with an area of ​​15,000 hectares in Musi Banyuasin, South Sumatra. The APE mine site is only 12.5 km from the river and about 108 km to the transshipment area at Tanjung Buyut port. APE is planned to start production in the fourth quarter of 2022," he said.With the addition of this KCMI report, proven coal reserves from 9 IUPs owned by IATA increased to 158.68 million from the previous 138.1 million MT. This figure does not take into account the additional reserves from the APE IUP where more than 80% of the land has not been drilled.As for the IUP of PT Indonesia Batu Prima Energi (IBPE), PT Bhumi Sriwijaya Perdana Coal – South (BSPC-S), PT Putra Mandiri Coal (PUMCO), PT Primaraya Energi (PE), PT Titan Prawira Sriwijaya (TPS), PT Sriwijaya Energi Persada (SEP), as well as PT Energi Inti Bara Pratama (EIBP), have not drilled at all.“Drilling activities will continue and reserves will continue to grow if exploration results show coal findings. Management estimates that coal reserves for all IUPs will reach a minimum of 600 million MT," he said. (RW)Source: https://www.tambang.co.id/temukan-cadangan-baru-batubara-iata-capai-2058-juta-metrik-ton-28713/

PT Bumi Resources Tbk ( BUMI ) plans to boost coal production in the second quarter of this year. Director and Corporate Secretary of PT Bumi Resources Tbk (BUMI) Dileep Srivastava said, BUMI hopes to produce more coal than the first quarter of 2022 in the second quarter of 2022. "Production in the second quarter of 2022 is expected to be higher than the first quarter of 2022 with higher prices," said Dileep to Kontan.co.id (8/5)Dileep admitted that he could not reveal how much BUMI's coal production was realized in the first quarter of this year. However, he admitted, BUMI's coal production in the first quarter of 2022 was still affected by heavy rainfall due to the La Nina effect, even though BUMI still hopes to pocket an increase in revenue in the first quarter of 2022 with the increase in existing coal prices.Until the end of next year, BUMI is aiming for a coal production target of 83 million tons - 89 million tons for the 2022 financial year. This figure is greater than the realization of BUMI's coal production which amounted to 78.8 million tons in 2021.Meanwhile, BUMI's coal sales volume reached 79 million tons in 2021, while BUMI's consolidated revenue reached US$ 5.4 billion with a net profit of US$ 489 million. With a higher production target in 2022, BUMI hopes to pocket higher revenues this year compared to 2021. Dileep is optimistic that coal prices will be at a high level in 2022 and in the following years.The driving catalyst, according to Dileep, was the widening gap between coal supply and increasing demand due to a number of factors, ranging from the global energy crisis, unaffordable gas prices, the inability of renewable energy to meet the soaring energy needs after the Covid-19 pandemic, to replace fossil fuels such as coal, and much more.“Moreover, the reluctance of institutions and banks to finance the expansion of coal production capacity expansion in line with the spirit of green energy and renewable energy is also increasingly pushing the gap between supply and demand for coal to widen. The possibility of sanctions against Russian coal also further reduces the supply of coal," added Dileep.Dileep ensured that BUMI would prioritize fulfilling PLN's coal needs in coal sales. After fulfilling the supply obligations to PLN, BUMI will focus on fulfilling export orders from existing customers.Source: https://industri.kontan.co.id/news/bumi-resources-bumi-pacu-produksi-batubara-pada-kuartal-ii-2022

PT Bumi Resources Tbk (BUMI) wrote a new record of the highest revenue in 2021, hitting USD 5.42 billion following the coal price surge. This revenue was 47% higher than the gains recorded in 2020 of USD 3.68 billion. Total revenue generated by BUMI throughout 2021 came from the sales of 79 million tons of coals mined by its two subsidiaries, PT Kaltim Prima Coal (KPC) that produced 56.9 million tons and PT Arutmin Indonesia (AI) that generated 22.2 million tons.With this massive gain in its revenue, BUMI then managed to turn the tide around, bouncing back from the net loss reported in 2020 of USD 338 million. In 2021, the net profit of BUMI reached USD 168 million. Dileep Srivastava, Director and Corporate Secretary of BUMI, confirmed that BUMI has set the 2022 coal production target to 81-89 million tons. “Backed up by the revived optimism in the sector and the coal price positive trend, Bumi Resources wishes to significantly boost its performance in 2022,” he mentioned in the press release last Friday.Source: https://www.idnfinancials.com/news/42965/bumi-revenue-record

Head of the Land Use Management and Investment Management Task Force, Bahlil Lahadalia, revoked 1,118 Mining Business Permits (IUP) for minerals and coal. This figure is effective as of April 24, 2022."On April 24 we have signed 1118 licenses that have been revoked. Of the 1,118 IUPs, the total area that has been revoked is 2,707,443 hectares," Bahlil said in a press statement, quoted Tuesday (26/4).Bahlil detailed that the 1,118 IUPs consist of 102 nickel IUPs, or the equivalent of 161,254 hectares. Then 271 coal IUPs or the equivalent of 914,136 hectares, 14 copper IUPs or the equivalent of 51,563 hectares.Furthermore, 50 IUP bauxite or equivalent to 311,294 hectares, 237 IUP tin or equivalent to 374,031 hectares. Then there are 59 gold IUPs or the equivalent of 529,869 hectares and 385 other mineral IUPs or the equivalent of 365,296 hectares."Why is this permit revoked? because the government based on existing data, it is indicated that these IUPs were given to entrepreneurs but were not used properly. For example, this IUP is used for pawning at the bank, this is not allowed," he said.Another case that often occurs in the field, said Bahlil, is that companies often trade IUPs. There are also companies that use IUP as collateral in the financial market without being properly implemented."This is the background. Because we hope that with this permit, we can refer to the process of accelerating economic growth, increasing downstreaming, and at the same time creating added value in new economic growth areas throughout the Republic of Indonesia," he explained.Another reason that according to Bahlil many entrepreneurs do is that they already have an IUP but do not apply for a Borrow-to-Use Forest Area Permit (IPPKH) from the Ministry of Environment and Forestry. He said, the revocation also applies to companies whose IUPs exist, IPPKHs exist but do not complete the Work Plan and Budget (RKAB).“There is an IUP but it doesn't take care of IPPKH, so it's been a long time coming, from 6 years 7 years to some even decades. The IUP has IPPKH, but it doesn't take care of the RKAB," he explained."Well, this is because there are certain intentions to sell, what do you want? Third, the IUP is there, the IPPKH is there, the RKAB is there but it doesn't work. This is usually a financial shortfall,” he added.For information, the data on the revocation of IUPs, which reached 1,118, is part of the revocation of 2,078 IUPs launched by President Joko Widodo in early January. In other words, the progress of the revocation has only reached 53.8 percent of the target.Source: https://www.tambang.co.id/terkini-menteri-bahlil-cabut-1-118-iup-mineral-dan-batubara-28565/