Minister of Energy and Mineral Resources Arifin Tasrif said the bauxite alumina smelter facility currently developed by PT Indonesia Asahan Aluminum (Inalum) will be completed by the end of 2027.The statement was made after attending a closed meeting chaired by President Joko Widodo at the Presidential Palace, Jakarta, on February 5."We will build the smelter processing facilities at Inalum. It will be completed in 2027," Arifin said after the meeting, on Monday, February 5, 2024.The project will use clean energy supported by PLN. "It is full of clean energy," Arifin emphasized.Arifin did not specify the project in question. However, it is thought to be related to the Mempawah Smelter Grade Alumina Refinery (SGAR) in West Kalimantan, which is said to have reached 80 percent as of mid-December 2023. The project had been stalled for several years due to contractor disputes. The SGAR smelter is expected to produce one million tons of alumina annually with an estimated bauxite raw material of 3.3 million tons per year.Image source: Metro TV News / doc. MIND IDSource: https://www.metrotvnews.com/read/k8oC699A-indonesia-bakal-punya-smelter-bauksit-di-2027 

Managing Director of Energy Shift Institute Putra Adhiguna assessed that Indonesia needs to increase its battery production capacity, as it is estimated that it will only have 10 gigawatt hours (GWh) or less than 0. 4% of global battery production capacity by 2024."The Energy Shift Institute estimates that Indonesia will only have 10 gigawatt-hours (GWh) or less than 0. 4% of global battery production capacity, 2,800 GWh," Putra said, as reported by Antara, Friday, February 9, 2024.According to Putra, the added value of Indonesia's nickel products ranges from two to 11 times that of its raw products. However, this value is still far below the added value which is more than 60 times if it reaches battery production.Putra continued, that the policy construction aims to improve the competitiveness of Indonesian nickel rests on the promise of developing the battery and electric vehicle industries.Semi-Finished ExportersUnless Indonesia's battery production capacity is increased, Putra believes Indonesia will only shift from an exporter of nickel products for stainless steel to an exporter of semi-finished products for the battery industry."It is important for the various parties involved not to underestimate the scale of future growth because the world's battery-based electric motor vehicle revolution has just entered its early stages," he said.Regarding the rapid growth of nickel-free batteries and the debate over the future of nickel, Putra said that the global demand for nickel for batteries is likely to continue to soar.The increase, he said, could occur along with the rate of adoption of battery-based electric motor vehicles despite the presence of alternative technologies. "It is important to note that in a fast-growing sector, absolute growth figures are more important than market share," Putra said.Apart from nickel, Putra believes that what often goes unnoticed is the increase in cobalt production by Indonesia as the second-largest cobalt producer in the world. "This further emphasizes the importance of optimal natural resource management," he said.Image source: Medcom / AFPSource: https://www.medcom.id/ekonomi/sustainability/gNQ448vK-indonesia-perlu-naikkan-kapasitas-produksi-baterai 

PT PLN is supporting mineral downstream by supplying an additional 60 Megavolt Ampere (MVA) of power for PT Freeport Indonesia's copper smelter in Gresik Special Economic Zone (SEZ), East Java. PLN has also supplied the first phase of 30 MVA power in September 2023.PLN President Director Darmawan Prasodjo said that PLN fully supports the government's efforts to encourage the downstream of the mineral industry through the provision of reliable electricity at competitive prices. Downstream, he said, is a strategic step to increase the value of mineral commodities and boost national economic growth."PLN realizes that the presence of electricity is an important factor for industrial activities. Moreover, downstream of the mineral industry requires electricity with large and reliable power," Darmawan said in an official statement on Thursday (9/2).Darmawan added that his team is ready to meet the electricity needs of the mineral industry sector, which continues to increase every year. This is consistent with PLN's mission, not only to serve the community's needs but also to support the growth of the domestic industry."The availability of electrical energy is crucial in various business and industrial sectors. PLN is committed to meeting electricity needs with a high level of reliability. This is done by providing the best service to all customers, including the smelter industry sector," he added.General Manager of PLN East Java Distribution Unit (UID), Agus Kuswardoyo, explained that the electricity supply for PT Freeport Indonesia in East Java SEZ will take place in four stages. Phase I is 30 MVA, Phase II is 60 MVA, Phase III is 110 MVA, and Phase IV is 170 MVA. "PLN will continue to accelerate the addition of phase III and IV supplies by 2024," Agus said.PLN hopes that with sufficient electricity supply, PT Freeport Indonesia's smelter production can support other downstream industries such as cable factories, electric cars, and others. "PLN wants to support PT Freeport Indonesia's smelter project in Gresik Regency, one of the National Strategic Projects in improving the country's economy," Agus concluded.Image source: Jawa Pos / Doc. PLNSource: https://www.jawapos.com/ekonomi/014142073/dukung-hilirisasi-mineral-pln-pasok-tambah-daya-60-mva-untuk-smelter-tembaga-freeport-di-gresik 

Indonesia's battery production capacity in 2024 is estimated to reach only 10 gigawatt-hours (GWh), or less than 0.4% of the total global capacity of 2,800 GWh.According to Energy Shift Institute research, reported Friday (9/2/2024), Indonesia's battery production capacity, which lags far behind the global average, is inversely proportional to nickel production, which has jumped more than eight times since 2015.Indonesia's nickel downstream, in fact, was predicted by the government to increase nickel-added value and become a key player in the world's battery and battery-based electric motor vehicle (EV) industry."However, while Indonesia is slowly moving up the supply chain of the battery and EV industry, the race among other countries is already in full swing," the research said.This is reflected in the rapid growth of global battery production capacity, which is much faster than demand. In the first half of 2023, battery factories in China on average operated at less than 45% of their production capacity.As China continues to build capacity, coupled with aggressive pushes from the United States (US) and the European Union (EU) to develop their industries, competition for investment has intensified-even in a growing market."So far, the added value of Indonesia's nickel products ranges from two to 11 times that of its raw products. However, this is still far below the more than 60-fold added value for battery production," Energy Shift said.Accordingly, Energy Shift estimates that global nickel demand for batteries is likely to continue to soar in line with the pace of EV adoption despite the presence of alternative technologies."Based on existing developments, battery manufacturers are more inclined to place their factory investments following the development of the EV market, but the adoption of electric vehicles in Indonesia is still quite slow."The news of BYD's entry into Indonesia is also unlikely to have a major impact on the development of nickel-based battery factories because their vehicle models mostly use batteries without nickel.Not to mention, according to the institute, Indonesia's fierce competition with other ASEAN countries to provide incentives for EV and battery manufacturer investment also raises questions about the effectiveness of nickel downstream bargaining power in driving the battery and EV industry in the country."With the current trajectory, Indonesia is likely to shift only from an exporter of nickel products for stainless steel to an exporter of semi-finished products for the battery industry," according to the institute.As the world's nickel demand continues to grow, the parties involved must not underestimate the scale of future growth as the world's EV revolution has just entered its first phase.Competing with CanadaSigns that competition for global battery and EV manufacturers is intensifying amid massive nickel production from Indonesia can be seen in the news that mining company Canada Nickel Co Inc. plans to develop a nickel processing plant in Ontario that will cost USD 1 billion and be the largest in North America once completed.The plant will have the capacity to produce more than 80,000 tons of nickel annually and will begin operations in early 2027, the Toronto-based mining company said in a press release. According to Chief Executive Officer Mark Selby, the company also plans to build a stainless steel and alloy production plant to process nickel and chromium concentrates, which will cost an additional USD 2 billion.The plan aims to fill the gap in the electric vehicle supply chain in North America, which generally lacks the infrastructure to process and refine key materials such as nickel, copper, and lithium.Most of the metals extracted from mines in the region are shipped to China for processing before being shipped back to North America for domestic automakers.Canada Nickel's market capitalization was about USD 166 million as of market close on Wednesday, local time. The company plans to seek funding from the Canadian and Ontario governments to help build the plant, Selby said.Nickel prices have seen a dramatic drop in recent months as new supply from Indonesia floods the market - driven by Chinese investment and major technological breakthroughs. Nickel mines around the world are at risk of closure, while others are seeking state bailouts or going bankrupt.Selby, whose company is developing nickel deposits in northern Ontario, expects North American nickel demand to grow as governments and automakers push for domestic battery metal sourcing."Nickel has always been viewed as a strategic metal," Selby said in an interview."Given the current geopolitical conditions and China's control of Indonesia's resources, which makes Indonesia and China solely dependent on nickel, I don't think there are many end users and governments here that want that [nickel raw material supply from Indonesia]."Image source: BloombergSource: https://www.bloombergtechnoz.com/detail-news/29307/ada-hilirisasi-nikel-produksi-baterai-ev-ri-hanya-0-4-global/2 

PT Amman Mineral Internasional Tbk (AMMN), through its subsidiary PT Amman Mineral Industri, is targeting the copper and gold smelter commissioning in June 2024. Commissioning is the act of assessing the readiness and feasibility of mining equipment or operational testing of the smelter before it operates commercially. AMMN Vice President of Corporate Communications and Investor Relations, Kartika Octaviana, said Amman is fully committed to completing the national strategic project of the copper smelter and precious metal refining (PMR) facilities. The quarterly progress verification results for October 2023 to December 2023 of AMMAN's copper smelter construction progress have reached 76.1% of the construction plan of 72.4% (105.1%). Meanwhile, the PMR construction progress has reached 72.7% of the construction plan of 72.1% (100.7%). The company is confident that the smelter and PMR physical construction progress is going well to reach the construction completion target at the end of May 2024 and start the commissioning process in June 2024. "[This achievement] is AMMAN's commitment as one of the largest copper and gold mining companies in Indonesia to always be involved in the development of the national mining industry that benefits the regional and national economy," Kartika explained in a press release on Monday (5/2/2024).When fully operating, AMMAN's total copper smelter and PMR facility input capacity is estimated at 900,000 kilotons per annum (ktpa) of concentrate from the Batu Hijau mine and Elang project. The products of this processing will be copper cathode that reaches 222 ktpa and sulfuric acid that reaches 830 ktpa. Meanwhile, the PMR facility will produce 18 tpa of gold bars, 55 tpa of silver bars, and 70 tpa of selenium.In September last year, AMMAN signed a Preliminary Agreement with PT Pertamina (Persero) to ensure the supply of a more environmentally friendly energy source, liquified natural gas (LNG). The gas and steam power plant facilities are currently under construction to support the operations of the copper smelter and PMR facilities. On Monday (5/2/2024) at 09.47 WIB, AMMN shares fell 0.99% or 75 points to IDR 7,525. The market capitalization reached IDR 545.70 trillion with a PER valuation of 421.32 kli and a PBV of 8.18 times. Throughout 2024, AMMN shares are still up by 15.27%.Image source: Bisnis.com Source: https://market.bisnis.com/read/20240205/192/1738292/amman-mineral-ammn-targetkan-smelter-tembaga-dan-emas-pmr-comissioning-juni-2024 

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