The coal mining company, PT Harum Energy Tbk (HRUM), has officially acquired a 51% stake in Nickel International Capital Pte Ltd (NICAP), a Singapore-based company, for USD 42.06 million or approximately IDR 640.2 billion (based on the current exchange rate).In a disclosure of information quoted on Wednesday (October 2, 2024), the acquisition was made by purchasing new shares of NICAP on September 26, 2024."The company has taken over a 51% stake in the capital of NICAP," said HRUM President Director Roy A. Gunara.NICAP holds a 49% share in PT Position, an Indonesian nickel mining company located in East Halmahera, North Maluku, which is also a business entity of HRUM. The company has a concession area of 4,017 hectares.Roy assured that the corporate action will not affect the company’s operations, legal standing, financial condition, or business continuity.

CIMIC Group company Leighton Asia has been awarded a contract by PT Vale Indonesia, to develop the mine infrastructure for its Indonesia Growth Project (IGP) Pomalaa in Southeast Sulawesi, Indonesia.The contract will generate revenue of approximately AUD 154 million for Leighton Asia.CIMIC Group Executive Chairman Juan Santamaria said: “We are pleased to continue our long-standing partnership with PT Vale Indonesia and contribute to the success of this landmark project. It underscores our commitment to supporting the growth of Indonesia’s nickel industry, a metal critical to enabling the global energy transition.”Leighton Asia Managing Director Brad Davey said: “With a continuous relationship with PT Vale Indonesia for over 25 years, we are proud to apply our core expertise and collaborate on this significant mine infrastructure project. We look forward to contributing to Indonesia’s economic development.”Leighton Asia will undertake the mine infrastructure works for the Integrated Mines of Pomalaa (IMP) project, which is part of the broader IGP Pomalaa initiative.The scope of work includes the development of the mine infrastructure, with earthworks, civil and building works, and associated infrastructure to enable the operation of the mine to supply ore to the processing plant.Construction work will commence in the second half of 2024 with a construction period of 26 months.

PT Berau Coal has achieved a remarkable milestone by winning eight awards at the Good Mining Practice (GMP) Awards 2024, organized by the Ministry of Energy and Mineral Resources (ESDM). The company, part of the Sinar Mas business pillar in mining and energy, was named the Best Winner for the Coal Commodity Mining Company Group.The awards ceremony was held to commemorate the 78th anniversary of Mining and Energy on September 28, 2024, at Hotel Bidakara, Jakarta, on Wednesday, September 24, 2024.PT Berau Coal was recognized as the Best Winner of the GMP Awards 2024 in the Coal Commodity Mining Company Group, securing one Main Certificate in the category of Mining Services and Standardization Management, four Aditama Certificates for Mining Technical Management, Mining Safety Management, Environmental Management, and Coal Conservation Management, and two Best Trophies for Mining Technical Management and Mining Safety Management. In total, the company won eight prestigious awards at the event.Arief Wiedhartono, Director of Operations and HSE at PT Berau Coal, expressed that these awards reflect the company’s responsibility to continue carrying out the best mining operations. He emphasized that this recognition serves as a motivation to implement responsible and sustainable mining practices while complying with regulations.“These awards motivate and encourage us to keep applying the best mining practices that are responsible, follow regulations, and are sustainable. The awards are a testament to the government’s appreciation,” Arief stated in a written statement on Thursday, September 26, 2024."Our task and focus are to translate government regulations into work guidelines in the field, continuously improving through hard work and collaboration among employees, partners, the government, and the community. We express our gratitude for the support of all employees, partners, the government, and the community in supporting safe, environmentally friendly, and excellent operations," he added.In his remarks, Tri Winarno, Director-General of Mineral and Coal at the Ministry of Energy and Mineral Resources, stated that the GMP Awards aim to appreciate mining companies holding contracts of work (KK), Coal Mining Exploitation Work Agreements (PKP2B), Mining Business Permits (IUP), Special Mining Business Permits (IUPK), as well as mining service companies holding IUJP.“This event is expected to motivate all mining business operators to continue conducting operations in accordance with the principles of Good Mining Practices, and serve as a benchmark for the government in supervising and overseeing technical and environmental aspects of mineral and coal mining activities,” Tri Winarno said.He encouraged the winners and all companies to continue setting examples for the public. “Mining operations can be managed by prioritizing people’s safety and environmental protection, while achieving profit and contributing positively to the state’s revenue, regional development, and sustainable growth,” he emphasized.At the same event, Minister of Energy and Mineral Resources Bahlil Lahadalia praised the mining companies for their contributions to the country’s revenue. He stressed the importance of adopting Environmental, Social, and Governance (ESG) principles in the mineral and coal mining subsector to ensure business sustainability and enhance competitiveness.Bahlil also highlighted the need for comprehensive post-mining programs that address economic, social, and environmental aspects, ensuring sustainable livelihoods and well-being after mining activities cease.The assessment for the GMP Awards covered various aspects, including Mineral and Coal Mining Technical Management, Mining Safety Management, Environmental Management, Mineral and Coal Conservation, and Mining Services Management.

PT Bukit Asam Tbk (PTBA) has successfully received five Good Mining Practice (GMP) Awards from the Ministry of Energy and Mineral Resources (ESDM) on Wednesday, September 25, 2024, in Jakarta.Four awards were earned by PTBA’s Tanjung Enim Mining Unit, including the Main Achievement Award for Mineral and Coal Mining Technical Management, the Main Achievement Award for Mineral and Coal Conservation Management, the Main Achievement Award for Mineral and Coal Mining Standardization and Services Management, and the First Achievement Award for Environmental Management of Mineral and Coal Mining.Additionally, PTBA’s Tarahan Port Unit received the First Achievement Award for Environmental Management of Mineral and Coal Mining.The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, emphasized the importance of balancing profit with responsibility towards the environment and local communities. He also highlighted the necessity of post-mining management that prioritizes the well-being of communities."Post-mining management is crucial, and the people must also be taken care of. Profits are important, but the welfare of the people should not be neglected. Mining communities should not struggle," said Bahlil in his remarks during the opening of the GMP Award 2024.Suhedi, PTBA’s Director of Operations & Production, expressed gratitude for the recognition from the Ministry of ESDM. He reaffirmed PTBA's commitment to consistently implementing good mining practices.“The application of good mining practices ensures that Bukit Asam’s mining operations are effective, efficient, safe, and environmentally friendly. This recognition motivates us to continually improve our Good Mining Practice implementation. By doing so, Bukit Asam can continue to provide sustainable energy that enhances the well-being of communities,” said Suhedi.

One of Merdeka Group's subsidiaries, PT Bumi Suksesindo (PT BSI), the operator of the gold and silver mine in Sumberagung Village, Pesanggaran District, Banyuwangi Regency, East Java, has once again achieved outstanding recognition. PT BSI won five prestigious awards from the Ministry of Energy and Mineral Resources (ESDM) of the Republic of Indonesia and CNN Indonesia on Wednesday, September 25, 2024.PT BSI received four awards from the Ministry of ESDM during the Good Mining Practice (GMP) Awards ceremony held at Hotel Bidakara, Jakarta. The four awards included the “Utama” category for technical management of mineral and coal mining, the “Pratama” category for mining safety management, and the “Aditama” and “Best” awards for environmental management of mineral and coal mining.President Director of PT BSI, Adi Adriansyah Sjoekri, stated that these awards once again highlight PT BSI’s seriousness in applying good mining practices (GMP) in its operations in Banyuwangi.“As part of PT Merdeka Copper Gold, Tbk (IDX:MDKA), PT BSI consistently strives to manage the mine with high compliance standards to provide optimal contributions to stakeholders,” said Adi. He added that this achievement would motivate PT BSI to continuously enhance responsible and sustainable mining management.Adi also emphasized that PT BSI has implemented several key environmental programs to support proper environmental management at its operational sites. These include environmental quality monitoring (covering water, soil, and air), land rehabilitation, and regulatory compliance. The results of these activities are consistently reported to the relevant authorities.Simultaneously, PT BSI received an award in the category 'Leading Local Community Empowerment Initiatives Recognition for Outstanding Program in Empowering Local Communities' presented by CNN Indonesia at the CNN Indonesia Jatim Awards, held at the Westin Hotel Surabaya.This award was presented by Director of CT Corpora, Warnedy, to PT BSI’s General Manager of Operations and Head of Mining Technical Operations (KTT), Roelly Fransza.Roelly expressed pride in PT BSI’s achievements at the event. “This award encourages us to continue benefiting the surrounding communities and local groups, especially in the areas surrounding the mine,” he said during the award ceremony.Roelly further explained that all the social programs run by PT BSI aim to empower the local community. He mentioned several programs, including scholarships, support for small and medium enterprises (SMEs), public infrastructure development, health services, and socio-cultural programs. All of these are part of the Community Development and Empowerment (PPM) initiatives.To implement these programs, Roelly noted that PT Merdeka Copper Gold, Tbk has invested over IDR 156 billion between 2018 and 2023. These funds were used to realize PPM programs in the Pesanggaran District and surrounding areas.One example of the PPM projects includes the construction of roads in Sumbermulyo and Rowojambe up to Pancer, as well as other village roads in the Pesanggaran District. Roelly explained that these public infrastructure developments are designed to improve community access and indirectly boost socio-economic mobility.“We aim to be good neighbors to the communities around our operational areas. Through PT BSI’s PPM program, we want to help local residents achieve independence, especially as the life of our mine comes to an end. We extend our gratitude to the community and the government for their support, which has helped us achieve this recognition,” Roelly stated.As a company with an ESG rating of A from Morgan Stanley Capital International (MSCI) since 2023, PT Merdeka Copper Gold Tbk remains committed to strengthening its reputation as a company with a high ESG performance. The company’s commitment to environmental performance, positively impacting ecosystems and communities, is a fundamental principle upheld by Merdeka Group.

PT Mifa Bersaudara has once again achieved remarkable success by winning four major awards at the 2024 Good Mining Practice (GMP) Awards.This prestigious event, organized by Indonesia's Ministry of Energy and Mineral Resources (ESDM) on Wednesday, September 25, 2024, recognizes excellence in the mineral and coal mining sector.The awards won by Mifa include recognition for Mining Technical Aspects, Mining Safety Aspects, Mineral and Coal Conservation Aspects, and Environmental Management Aspects in mining operations. This achievement is not only a source of pride for Mifa but also a significant milestone for the mining industry in Aceh as a whole.Hadi Firmansah, Head of Mining Operations at PT Mifa Bersaudara, expressed his gratitude for the accolades on Thursday, September 26, 2024. He emphasized that this success is the result of the hard work and dedication of the entire team, committed to implementing best mining practices.Hadi further noted that adhering to proper mining technical standards is a requirement for all companies, as monitored directly by the Ministry of Energy and Mineral Resources.With these achievements, Hadi hopes that other mining companies in Aceh will be motivated to improve their operational standards. He also encouraged everyone to contribute to sustainable development, positioning Aceh as a model for responsible mining practices.

The Ministry of Investment has identified four challenges to advancing the downstreaming sector: focusing on human resource development, expanding international cooperation, offering incentives, and addressing external pressures.Riyatno, the ministry's Deputy for Investment Climate Development, said on Wednesday that Indonesia requires 16,000 workers annually to maximize the added value of downstreaming and manufacturing."Each year, we need approximately 16,000 skilled workers for the manufacturing sector, including the downstreaming process," he stated.He added that expanding international cooperation is crucial to increasing the export potential of Indonesian downstream products and attracting foreign investment.Regarding incentives, Riyatno emphasized that Indonesia must develop investor- and market-friendly policies, particularly by offering competitive licensing terms.He also noted that Indonesia is facing external pressure from countries opposed to its downstreaming policy. For example, the European Union filed a lawsuit with the World Trade Organization (WTO) when Indonesia halted nickel ore exports."Despite the lawsuit, we are continuing the downstreaming process," he said.Riyatno highlighted that investment in the processing sector for high value-added products (downstreaming) has followed a positive trend over the past five years, rising from IDR 61.6 trillion (USD 3.9 billion) in 2019 to IDR 200.3 trillion in 2023.

The copper and precious metals processing facility, or smelter, built by PT Amman Mineral Nusa Tenggara in West Sumbawa, West Nusa Tenggara (NTB), was officially inaugurated by President Joko Widodo (Jokowi) on Monday, September 23, 2024.The smelter was completed after 14 months of construction.Hilmi Panigoro, President Commissioner of PT Amman Mineral Nusa Tenggara, claimed that the construction of this smelter was one of the fastest in the world."In just 14 months, we successfully completed the construction of this mega copper smelter project, along with its supporting facilities, in line with the targets set by the Indonesian government. The physical construction of this mega project is one of the fastest in the world for similar scale projects," Hilmi said in a statement on Tuesday, September 24, 2024.He explained that the smelter, which is a part of a national strategic project, is part of the company's efforts to develop Indonesia's mining industry. The goal is to support the creation of a downstream mineral industry and strengthen the resilience of the national industry."We hope that with the operation of this copper smelter, Indonesia's position in the global copper supply chain will become stronger and support the government's efforts to maintain domestic economic resilience through the mining sector," he added.Meanwhile, the Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, stated that this copper smelter in West Sumbawa is the first smelter in Indonesia to be built by a national entrepreneur. He commended Amman's successful completion of the smelter project on schedule."This is the first smelter owned by a national entrepreneur. Amman is a company that has laid the foundation for building a long history of copper sector downstreaming," Bahlil said.With this smelter, Amman's mining operations are now fully integrated, from exploration, mining, processing, and refining through the copper and precious metals smelter.The smelter utilizes advanced Double Flash Smelting technology, which combines flash smelting and flash converting processes. This technology produces high-quality premium copper while adhering to safety standards and environmental preservation.The smelter has an installed input capacity of 900,000 tons of concentrate per year (ktpa), which will be supplied from the Batu Hijau mine and the Elang mine in the future.The smelter's products include 222,000 tons of copper cathodes per year (tpa) with 99.99% purity, as well as 830,000 tons of sulfuric acid per year with 98.5% purity.Additionally, it will produce 18 tons of gold bars per year with 99.99% purity, 55 tons of silver bars per year with 99.95% purity, and 77 tons of selenium per year with 99.9% purity.

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

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