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

The Ministry of Energy and Mineral Resources of the Republic of Indonesia (ESDM) stated that the construction of the factory battery electric vehicles (electric vehicles/EV) by Hyundai Motor Group and LG Energy Solution is nearing completion.This means that in the near future, Indonesia will start production of its first EV battery. The type of the battery is based on nickel-manganese-cobalt (NMC)."The battery factory is almost finished. Production will start this year," said the Special Staff of the Minister of Energy and Mineral Resources for the Acceleration of Industrial Development of the Energy and Mineral Resources Sector, Agus Tjahajana Wirakusumah, Friday (1/26/2024).Illustration of PT ATN Indonesia MineralAccording to Agus, in terms of development progress, the battery factory in Karawang has reached 95 percent. He also hopes that, in April 2024, the factory can operate soon.Previously, Indonesia Battery Corporation (IBC) targeted starting its first battery production in 2024 at 10 gigawatt hours (GWh).The project, worth 8 billion US dollars (US), or around IDR122 trillion, will gradually run until it can finally produce 50 GWh in 2034."In 2024, we will have the first 10 GWh for automotive. This is in collaboration with Hyundai; it is ready to operate with LG in Karawang, West Java," said IBC Director Toto Nugroho in the RDP event with Commission VII DPR RI, Jakarta, Monday (11/27/2023).Illustration of LG Energy Solution electric car battery factoryFurthermore, Toto said his party is also preparing the construction of an exchange station electric vehicle battery general (SPBKLU) of around 5,000 units.This step is carried out in order to achieve the new renewable energy (EBT) mix target of 13 percent by 2024."In 2034, Indonesia will have produced around 50 GWh of batteries. This is for two and four wheels and for energy storage systems (ESS) as it is very important to support the development of EBT," he said.Image source: ToyotaSource: www.otomotif.kompas.com/Pembangunan Pabrik Baterai EV Hyundai-LG Rampung Tahun Ini

PT Vale Indonesia Tbk said the total production in the fourth quarter of 2023 reached 19,084 metric tons of nickel in matte.PT Vale's CEO and President Director, Febriany Eddy, said Monday that for its overall production achievement in 2023 of 70,728 meters of matte ton, this figure shows an increase of 19 percent from production in 2022."We are very grateful for this achievement. Despite facing various challenges throughout the year, we managed to exceed our production targets for 2023. This is certainly a testament to the dedication, commitment, and high spirit of collaboration from all employees in the company," said Febriany Eddy.The operational process at PT Vale Indonesia Tbk.She revealed that for the fourth quarter of 2023, it reached 19,084 metric tons of nickel in mate, or about six percent and 18 percent higher than the production volumes recorded in 3Q23 and 4Q22, respectively."This increase is the result of an effective maintenance strategy as well as improved performance in our mining areas and processing plants throughout the year, driving production higher quarter-on-quarter in 2023," she explained.Image source: Antara/HO-PT Vale IndonesiaSource: www.sultra.antaranews.com/PT Vale: Produksi triwulan ke empat tahun 2023 capai 19.084 ton nikel

PT Harum Energy Tbk (HRUM), through its subsidiary PT Harum Nickel Industry (HNI), has purchased 1.124 million shares, or 60.7 percent ownership, in PT Westrong Metal Industry (WMI) for USD 215.21 million.As a result, HRUM holds 80.7 percent of the ownership of a nickel processing company or smelter in Weda Bay, North Maluku, as of January 26, 2024.President and Director of HRUM, Ray A. Gunara, explained that the nickel processing and refining company purchase in Weda Bay is to increase business diversification through subsidiaries.He continued that WMI will start commercial operations in the second quarter of 2024 with an annual installed production capacity of around 56 thousand tons of nickel contained in high-grade nickel-matte products."If it has been producing, the company will produce high-grade nickel-matte products, which are expected to provide better-added value than nickel products," he said in an official statement on Monday (1/29/2024).He further explained that after this transaction, WMI's financial statements will be consolidated into the company's financial statements. Thus, WMI's performance will be reflected in the company's financial statements starting in the first quarter of 2024.The seller of WMI shares consists of two previous shareholders, Prima Investment Capital Limited and Walsin Singapore Ltd.Image source: EmitenNews.comSource: www.emitennews.com/Gelontorkan USD215,21 Juta, Harum Energy (HRUM) Caplok Perusahaan Smelter Nikel

PT Golden Energy Mines Tbk (GEMS) aims to increase coal production performance this year.GEMS Corporate Secretary Sudin Sudiman explained that production this year is targeted to exceed the realization of production in 2023, which reaches 46 million tons."In 2024, production is targeted at 50 million tons and can maintain good financial performance," Sudin told Kontan on Thursday (25/1).GEMS's coal production achievement, which reached 46 million tons throughout 2023, was recorded to exceed the target set at 40 million tons.Sudin added that the company realized a capital expenditure of USD 46 million for 2023. Most funds are for port facilities, hauling roads, and other operational performance support facilities.In order to smooth out the business plan this year, GEMS also increased its capital expenditure projection."In 2024, the projected capital expenditure is USD 60 million," concluded SudinImage source: GEMSSource: www.industri.kontan.co.id/Golden Energy Mines (GEMS) Bidik Produksi 50 Juta Ton Batubara pada Tahun 2024

PT Royaltama Mulia Kontraktorindo Tbk (RMKO), a listed company engaged in mining support services and heavy equipment rental, will focus on completing the hauling road in 2024. With the completion of this 39-kilometer hauling road, several coal mines in Muara Enim, South Sumatra, can be operated soon.RMKO President and Director Vincent Saputra hopes that the completion of this hauling road will increase the number of coal loads that can be transported and increase RMKO's heavy equipment rental. That way, RMKO's revenue also has the opportunity to increase."The length of the hauling road also has the potential to increase along with the increasing access to other private mines," Vincent said when contacted by Kontan.co.id on Friday (26/1).Meanwhile, the addition of heavy equipment was largely executed in 2023. When the hauling road project is completed, the company will increase the utilization of this heavy equipment. However, RMKO does not rule out the possibility of additional heavy equipment along with the integration of hauling roads with surrounding mines.RMKO, which is under the control of PT RMK Investama and a group with PT RMK Energy Tbk (RMKE), has a revenue derived from a small number of customers. In the first nine months of 2023, RMKO recorded revenue of IDR 199.08 billion, an increase of 53.60% from the same period in 2022 of IDR 129.60 billion.This revenue mostly came from the mining segment, with a nominal value of IDR119.44 billion (60%). Then, heavy equipment rental services cost IDR 51.39 billion (26%), and construction services cost IDR 28.24 billion (14%).In terms of clients, the most revenue came from RMKE owned mine, PT Truba Bara Banyu Enim (TBBE), amounting to IDR120.86 billion or 61% of total revenue. Then, from PT Royaltama Mulia Kencana, IDR62.7 billion (RMUK), and RMKE, IDR6.21 billion.TBBE is one of the company's main customers that uses coal mining and transportation services. Meanwhile, RMUK is a customer who uses services for emplacement implementation, transportation road construction, and heavy equipment rental.Indeed, RMKE owned mine, PT Truba Bara Banyu Enim (TBBE), has been operating since 2021. RMKO recorded a significant increase in revenue. RMKO's top line in 2022 reached IDR 184.87 billion, an increase of 6.5 times since the mine operated.RMKO's revenue has increased significantly since 2021, with a compounded annual growth rate (CAGR) of 7.9 times. Along with the increase in operating revenue, RMKO also managed to increase operating net profit by 7.4 times to IDR 19.08 billion by the end of 2022.Seeing this realization, Vincent believes that external clients will increase along with the completion of the hauling road, which will be integrated into coal mines in Muara Enim. RMKO also sees opportunities beyond coal mines and the South Sumatra area."Later, this hauling road will improve RMKO's operational performance, especially upstream (loading at the mine), and, in parallel, improve RMKE's operations downstream (unloading)," said Vincent.In other words, RMKO is a complement to logistics services in the upstream process, which will later support RMKE's downstream business activities that focus on coal logistics services. With the integration of upstream and downstream logistics services, the group's performance can improve continuously.Vincent said the potential of coal in South Sumatra is still very large. If the upstream and downstream infrastructure is well connected, as well as the availability of professional mining support services, he is optimistic that he can increase production capacity in South Sumatra.Regarding the depressed selling price of coal in 2024, Vincent said this had no direct effect. The reason is, as well as RMKE, RMKO is a mining contractor that provides coal transportation services that focus upstream.However, RMKO does not sell such coal. RMKO only executes mines and transports mining products upstream so that it does not affect changes in coal prices directly."The risk of coal fluctuations can be mitigated by good operational efficiency costs, such as maintaining a lower stripping ratio and efficient fuel use," said Vincent.As an illustration, PT Royaltama Mulia Kontraktorindo was established in 2017 with the initial name PT Chain Mulia Kontraktorindo. The company changed its name to PT Royaltama Mulia Kontraktorindo in 2022.In 2020, RMKO started the construction of TBBE mining infrastructure, worked on a 39-kilometer hauling road project in 2021, and began to become a mining contractor at IUP TBBE and an executor of railway coal loading activities at RMUK emplacements in 2022.Image source: RMKOSource: www.investasi.kontan.co.id/Royaltama Mulia (RMKO) Targetkan Hauling Road 39 Km Rampung di 2024