An opportunity arises for cooperation between Indonesia and Australia on the lithium supply chain. Indonesia can process Australian lithium —a critical component for electric vehicle batteries— to be later exported to other markets such as the US, according to former Australian minister for trade, tourism, and investment Steven Ciobo.Ciobo said the hardening positions of the US and China had created opportunities in Indonesia. He added that the Indonesian government was now alert to opportunities around the supply chain. “The world’s biggest market, the US, wants to continue to have a guaranteed supply chain, especially around critical components such as lithium and rare earth oxides,” Ciobo said at the Investor Daily Summit 2022 in Jakarta on Wednesday.This provides an opportunity to take full advantage of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), which aims to unlock trade and investment potential for both countries.“What better opportunity to capitalize the IA-CEPA than to, for example, build a supply chain of lithium from Australia, from where it’s mined, to be processed here in Indonesia? Then, they could be exported from Indonesia to, for example, the US,” he said.Such cooperation on lithium would align with the Indonesian government’s vision of becoming a global leader in the supply of renewable energy and critical minerals. “And also help to drive the transition to electric vehicles,” Ciobo told the conference.Indonesia is abundant in nickel, another critical ingredient for batteries, but has to import its lithium. According to state-owned battery maker Indonesia Battery Corporation (IBC), Indonesia needs 70,000 tons of lithium hydroxide every year, but the Southeast Asian country still imports from China, Australia, and Chile.Australia is the world’s largest exporter of lithium. The Australian Bureau of Statistics reported that 46 percent of the world’s lithium came from Australia in 2020. Exports of the silvery-white metal are forecast to contribute $9.4 billion in revenue to the Australian economy by 2023-24. The US is actually an incredibly lithium-rich nation. The US Geological Survey 2020 data showed that the US held 6.8 million tons of lithium reserves. However, the country only has one active lithium mine in Nevada. The US heavily depends on Chinese lithium-ion battery imports to satisfy its rising appetite for electric vehicles. According to S&P Global Market Intelligence, China shipped 109,017 tons of lithium-ion batteries to the US in the second quarter of 2022, making up 73.5 percent of US imports. This marked a slight decline from the 77.5 percent share of Chinese battery imports, which reached 110,081 tons in the first quarter. Image Source: Universe Photo/Ruht SemionoSource: https://jakartaglobe.id/business/australia-indonesia-can-team-up-on-lithium-supply-chain

Securing the assets of the mineral and coal industry is important to continue to be echoed. The Government of Indonesia has regulated mining activities with a Mining Business Permit (IUP) and a Special Mining Business Permit (IUPK).Director General of Minerals and Coal of the Ministry of Energy and Mineral Resources Ridwan Djamaluddin said IUP and IUPK are policies to map business actors who have the right to carry out mining operations in predetermined areas."One of the importance of companies having IUP and IUPK is to guarantee and prioritize aspects of work safety. Companies that have permits will be responsible for carrying out operational activities with good mining practices and complying with applicable regulations," he said as quoted from his statement, Thursday (13/10/2022).In addition to the safety aspect, he ensured that post-mining sustainability is a mandatory task of IUP and IUPK holders. According to him, actors who do not have permits tend to be negligent in their commitments to revitalization, rehabilitation, and reclamation of post-mining land."In the end, it is the state and surrounding communities that are harmed by the irresponsible operation of the mine," said Ridwan.One example of a post-mining sustainability program is the Jangkang Water Reclamation carried out by PT Timah Tbk. In this case, the former mining land converted into a tourist destination can increase regional contributions.In addition, a post-mining sustainability program was also carried out by PT Bukit Asam Tbk (PTBA). PTBA turned the area of former coal mining in Ombilin, Sawahlunto, into a tourist destination.The tourist site also managed to become a world cultural heritage that received a UNESCO certificate to become the Ombilin Coal Mining Heritage of Sawahlunto."By maintaining good mining practices, as well as maintaining the quality of mining products, it is hoped that it can maintain a positive image of domestic mining products in the eyes of the world," Ridwan concluded.For information, the Ministry of Energy and Mineral Resources has launched the State-Owned Goods Monitoring Information System (SIMBARA) to realize the post-mining sustainability program. This system is expected to encourage the ecosystem of supervision and management of the mineral and coal sector which is formed from the results of the integration of systems and data from upstream to downstream. The system is also claimed to be able to prevent the trade in minerals and coal from illegal mining.Image Source: Direktur Jenderal Mineral dan Batubara Kementerian Energi dan Sumber Daya Mineral Ridwan DjamaluddinSource: https://www.cnbcindonesia.com/news/20221013203640-4-379611/ditjen-minerba-tegaskan-pentingnya-menjaga-aset-tambang

PT Harum Energy Tbk (HRUM) obtained a revolving credit facility in US dollars with a total commitment amount of US$ 390 million. The maturity date of the loan facility is December 31, 2025. In the information disclosure on the Indonesia Stock Exchange website, Monday (10/10), the lenders in this revolving credit facility are United Overseas Bank Limited, PT Bank UOB Indonesia, Oversea-Chinese Banking Corporation Limited, PT Bank OCBC NISP Tbk (NISP)., PT Bank DBS Indonesia, DBS Bank Ltd., PT Bank CIMB Niaga Tbk (BNGA), PT Bank BTPN Tbk (BTPN), and PT Bank QNB Indonesia Tbk (BKSW). One of the considerations of this loan is to achieve sustainable business growth. Where one of HRUM's main efforts is to diversify its business through expansion into nickel mining and processing businesses, which require considerable financing. The source of financing for the business expansion will come from, among others, loan facilities. The loan facility, if used, will cause obligations to pay the principal and interest on the loan. On the other hand, the loan facility is expected to increase financial flexibility and liquidity as well as HRUM's ability to finance its business expansion. The loan facility can be used for two purposes. First, the payment of costs, costs and expenses based on or in connection with the loan facility agreement. Second, capital expenditure, working capital, corporate needs and investment in general. "This loan facility can be withdrawn and repaid at any time by the Company in accordance with the provisions in the loan facility agreement. At the time this Information Disclosure was issued, the Loan Facility had not been used by the Company," wrote HRUMmanagement As for this loan, it is material, based on a transaction value of US$ 390 million. This is equivalent to 59% of HRUM's total consolidated equity based on the 2021 consolidated financial statements. Thus, in accordance with the provisions of POJK 17, this transaction is a material transaction, with a transaction value exceeding 20% of the equity.Source: https://investasi.kontan.co.id/news/harum-energy-hrum-dapat-fasilitas-kredit-revolving-hingga-us-390-juta

Indra Widjaja, who is one of the controlling shareholders of Golden Energy and Resources, is in talks regarding a “possible acquisition” of the coal and gold miner.Widjaja and other family members hold 77.49% of the company as at March 15.GEAR shares hit as high as 93.5 cents on Oct 10, up 11.3% from the close of 84 cents last Friday.“At present, there is no concrete outcome from the aforementioned discussions, and no definitive agreements have been entered into, involving the Company and its subsidiaries,” says GEAR in a market announcement.GEAR is enjoying growing demand for coal as part of the wider commodities bull market.On Aug 14, the company reported earnings of US$279 million for 1HFY2022 ended June, up 859% y-o-y, as contributions from its newly acquired stake in an Australian coal mine kicks in.Revenue in the same period was up 201% y-o-y to US$2.43 billion, as the company benefitted from not just higher selling prices of coal but also a two-month contribution upon completion of taking a 80% stake Stanmore SMC, the Australian miner, for US$1.35 billion.Palm oil player Golden Agri-Resources, another Singapore listed company controlled by the Widjajas, was up as much as 3.85% to 27.5 cents today; Geo Energy Resources, an unrelated Indonesia coal miner, was up 3.9% to 40 cents.All three counters are among the mostly actively-traded stocks thus far todaySource: https://www.theedgesingapore.com/news/commodities/golden-energy-shares-surge-possible-acquisition-controlling-widjaja-family

Five subsidiaries of PT Indo Tambangraya Megah Tbk (ITM) engaged in mining received awards at the 2022 Good Mining Practice Award (GMP). This award is in line with the Company's policy of continuing to be committed to good and responsible mining practices. More specifically, this is a positive impetus in the transformation of ITM towards a greener and smarter company. The event, which was held by the Ministry of Energy and Mineral Resources (ESDM) on September 29, 2022, has been going on since 2020. The goal is to provide appreciation and motivation to mining business actors to apply good mining engineering rules and support sustainable development. In a speech read by the Special Staff of the Minister of Energy and Mineral Resources for the Acceleration of Mineral and Coal Governance Irwandi Arif, Minister of Energy and Mineral Resources Arifin Tasrif conveyed three main aspects in the GMP Awards assessment, namely aspects of mining technical management, mining safety management and aspects of environmental management and conservation. The achievement of ITM's subsidiaries in this event is quite proud with the highest award, namely Aditama, which was received by PT Indominco Mandiri (IMM) for the Mining Engineering Management category. "It is an honor for ITM that in the 3rd GMP Awards, one of ITM's subsidiaries, namely IMM, managed to achieve the highest score in the aspect of Mining Engineering Management. Hopefully, this good achievement will be an inspiration and motivation for the Company and all ITM people to continue to be consistent and committed to work and do their best," said Mr. Ignatius Wurwanto, Director of Sustainability and Risk Management of ITM, who was present on behalf of ITM Management. In the same category, the Main Award was awarded to two other ITM subsidiaries, namely PT Trubaindo Coal Mining (TCM), and PT Jorong Barutama Greston (JBG) which also received the Main Award in the aspect of Mining Safety Management. Thanks to its commitment to aspects of Coal Conservation Implementation, ITM through PT Indominco Mandiri (IMM) and PT Trubaindo Coal Mining (TCM) received the Main Award. In the aspect of Standardization Management and Mining Services Business, the Company received the Main Award through PT Indominco Mandiri (IMM), Bharinto Ekatama (BEK), and PT Tambang Raya Usaha Tama (TRUST). In addition, ITM also received two Pratama Awards on the aspect of Mining Environmental Management through PT Indominco Mandiri (IMM) and Trubaindo Coal Mining (TCM).Source: https://investor.id/business/309154/lima-anak-usaha-itm-raih-good-mining-practice-award-2022

PT Agincourt Resources (AR) as the manager of the Martabe Batang Toru Gold Mine, South Tapanuli Regency managed to bring four awards in the prestigious Good Mining Practices Award 2022 held by the Ministry of Energy and Mineral Resources (ESDM). "PTAR even managed to achieve the highest ranking with the gold symbol, namely the Aditama Award, in the aspect of mining environmental management of the group of business entities holding Contract of Work and Special Mining Business Permits (IUPK) for mineral commodities," said President Director of PT Agincourt Resources, Muliady Sutio, Saturday (8/10). Various expectations achieved by PR AR from the Ministry of Energy and Mineral Resources in the 2022 Good Mining Practices Award event, were received by the President Director of PT Agincourt Resources, Muliady Sutio on September 29, 2022Another award brought home by PTAR, he said, was the main award for the aspects of mining engineering management of the group of business entities holding KK, IUP BUMN, IUPPMA, IUPK mineral commodities. Then the primary award for aspects of the application of mineral and coal conservation of the group of business entities holding KK, IUP and IUPK mineral commodities and the primary award for aspects of managing standardization and mining services business groups of business entities holding KK, PKP2B, IUP and IUPK mineral and coal commodities. President Director of PT Agincourt Resources (PTAR), Muliady Sutio, (third from left) received the award during the 2022 Good Mining Engineering Principles (GMP) Achievement Award Presentation held by the Ministry of Energy and Mineral Resources in Jakarta on September 29, 2022. PTAR won four awards at the same time at the annual event. Alert/ist. For the achievements achieved by PT AR, Muliady Sutio, expressed his gratitude for the support from employees, PTAR business partners so that these achievements can be achieved, including government support, both central and regional. The Aditama Award on the Aspects of Mining Environmental Management won by PTAR, he explained, is proof of the company's seriousness in protecting and managing the environment and biodiversity from the impact of the Martabe Gold Mine operational activities. Since the commencement of mining operations, the main objectives of environmental management at the Martabe Gold Mine have remained unchanged, including rehabilitation activities, safe management of tailings and wastestones, safe management of process wastewater, management and reduction of greenhouse gas emissions, biodiversity protection, and safe and stable post-mining closures. "PTAR follows strict environmental management protocols, aligned with appropriate environmental regulations regarding pollution, water, tailings, energy, and biodiversity management. We continue to continue the fundamental, structured, and collaborative environmental program with all stakeholders," said Muliady, the Pratama Award for Aspects of Standardization Management and Mining Services Business is also a proof of PTAR's policy in prioritizing local workers and local businesses. By the end of 2021, 73.92% of workers at the Martabe Gold Mine were local residents, exceeding the 70% target set out in the Environmental Impact Assessment (AMDAL). In the realm of local business, PTAR has worked togethera equals 79 local suppliers or 12% of the total 657 suppliers. These local suppliers come from South Tapanuli, Central Tapanuli, Sibolga, and Padangsidimpuan. The percentage of local suppliers in 2021 increased compared to 2020 which was 9%. Muliady appreciated the award from the Ministry of Energy and Mineral Resources, which was interpreted as proof of the seriousness of ptar in implementing good environmental management and evidence of ptar's commitment to implementing good mining engineering rules. "These four awards are not only an appreciation for us, but also a motivation for us to continue to implement good environmental management and apply good mining engineering rules in accordance with Indonesian government regulations," said Muliady. Minister of Energy and Mineral Resources Arifin Tasrif, represented by the Special Staff of the Minister of Energy and Mineral Resources for the Acceleration of Mineral and Coal Management Agency Irwandy Arif, said that Good Mining Practice is part of efforts to implement Environmental, Social and Governance (ESG) in the company's environment, especially in the environmental aspect, namely how the company's performance is achieved in an environmentally friendly manner, both from operations to its products. "In essence, companies that apply ESG principles in their business and investment practices mean that they will participate in integrating and implementing company policies that are in line with the sustainability of these three concepts and have a positive impact not only on the company's performance, but also on society and the environment," said Irwandy.Source: https://waspada.id/sumut/di-ajang-good-mining-practices-award-2022-agincourt-resources-raih-4-penghargaan/

PT United Tractors (UNTR) spent IDR 4.45 billion in exploration funds. Exploration activities are carried out for the period July-September 2022. The exploration activity was carried out by a subsidiary, namely PT Suprabari Mapanindo Mineral (SMM). The cost of exploration activities for the July 2022 period was IDR 1.17 billion. Then, the cost of exploration activities for the August 2022 period amounted to IDR 3.28 billion, and the cost of exploration activities for the September 2022 period was IDR 0. So, the total cost of exploration activities for the July-September 2022 period was IDR 4.45 billion. Exploration activities are carried out in the Area of North Barito Regency, Central Kalimantan Province (Kalteng). In the July 2022 period, PT SMM carried out drilling activities with a total of 11 points, and had varying degrees of depth. Furthermore, in august 2022, PT SMM carried out drilling activities with a total of 39 points, and had varying degrees of depth. Exploration activities are carried out by PT SMM assisted by several subcontractors. PT SMM, the holder of a coal mining concession agreement for coal commodities. PT SMM is owned by United Tractors as much as 80.1 percent. Established on June 13, 1991, the articles of association of PT SMM have changed from time to time.Source: https://www.emitennews.com/news/lakoni-eksplorasi-enitas-united-tractors-untr-habiskan-anggaran-rp445-miliar

Coal issuer PT Adaro Minerals Indonesia Tbk. (ADMR) said that there was an increase in coal demand from Europe. Adaro Minerals Director Heri Gunawan said that his party did see an increase in demand for coal from Europe. The ongoing Russian and Ukrainian wars made European countries look back at coal as a fuel for power generation. "Previously, Europe had reduced the use of thermal coal, but with this condition, they had to find alternative energy sources," said Heri in the ADRO and ADMR Stockbit Event, Tuesday (11/10/2022). He continued, until now ADMR has sold a small amount of its coal to Europe, namely to Spain. In general, ADMR sells as much as 75 percent of coal for export, and 25 percent for domestic. Historically, he continued, ADMR sold a lot of thermal coal to China, Japan, India, and Malaysia. "The focus for ADMR is indeed the Asian market. Japan is our main customer, then China, India, then a little bit in Indonesia, in the Morowali complex," he said. ADMR targets coal production to reach 2.8 million tons to 3.3 million tons this year. In the first semester of 2022, ADMR produced 1.5 million tons of coal, an increase of 7 percent compared to the same period last year or year-on-year (yoy) of 1.43 million tons of coal. As for 2022, the Adaro Group, namely PT Adaro Energy Indonesia Tbk. (ADRO) targets to produce 58 million-60 million tons of coal. As of the first half of 2022, Adaro has produced 28 million tons of coal.Source: https://market.bisnis.com/read/20221011/192/1586309/permintaan-dari-eropa-meningkat-adaro-minerals-admr-tertarik-ekspansi

PT Freeport Indonesia is looking for opportunities to develop a mineral processing and refining facility, or smelter in Papua, after completing the copper smelter project in Gresik. This was conveyed by the Chairman of the Board & CEO of Freeport Mc-MoRan, Richard C. Adkerson. Currently, Freeport is focusing on completing the construction of its second copper smelter in the Java Integrated Industrial Port Estate (JIIPE) Special Economic Zone, Manyar, Gresik, East Java, which is targeted to be completed in 2024. "In the future, we will look for opportunities to develop processing facilities in Papua. But now the government has warned us to move quickly," he said in a Scientific Oration: Economic Transformation through Downstreaming with Local Wisdom at Cenderawasih University, Papua, some time ago, Thursday (6/10). However, with the Covid-19 pandemic and changes in the supply chain that have occurred in the world, inevitably the target must be delayed. "We are 40% complete, we will be completed in 2024. In the future, there will be our opportunity to build industrial facilities, electrical facilities to support industrial development in Papua. We are committed to doing that," he added. Based on richard's presentation materials, Freeport's new smelter in JIIPE Gresik, East Java, it will be the largest single-line smelter in the world with a copper processing production capacity of up to 1.7 million tons of concentrate per year. The top 5 reef-safe sunscreens for 2022 Freeport will also increase the capacity of its first copper smelter, PT Smelting, which is also in Gresik, from a production of 1 million tons to 1.3 million tons of concentrate per year. In addition, there will also be a precious metal refining facility of 6,000 tons per year. With an investment of US$ 3 billion, until the end of July 2022, it was recorded that the progress of physical development had reached 39.9% with a total cost absorption of around US$ 1.2 billion. Concrete work has almost reached 10% with the absorption of 98% of the Indonesian workforce.Source: https://katadata.co.id/happyfajrian/berita/634402d343001/freeport-berencana-bangun-smelter-di-papua-usai-smelter-gresik-rampung

Salim Group will expand into the coal business. The company owned by billionaire Anthony Salim will enter the coal business through the purchase of shares of PT Bumi Resources Tbk (BUMI). Regarding this corporate action, BUMI will hold an Extraordinary General Meeting of Shareholders (EGMS) today, Tuesday (11/10/2022). In this agenda, BUMI Resources requested the approval of shareholders to increase capital without pre-emptive rights (PMTHMETD) or private placement. In this case, BUMI Resources will increase its shares by 200 billion series C ordinary shares with an exercise price of IDR 120 per share or equivalent to IDR 24 trillion. The shares will also be absorbed by 2 companies controlled by the Hong Kong-based Salim Group, namely Mach Energy Limited (MEL) and Treasure Global Investements Limited (TGIL). Both will own 85% and 15% of the shares released by BUMI Resources, respectively. "MEL and TGIL are parties controlled by Anthony Salim and are companies belonging to the Salim business group," BUMI wrote. Capital Market Observer and Founder of Central Capital Wahyu Tri Laksono responded regarding Salim Group entering BUMI Resources through a private placement. He said that throughout the first semester of 2022, BUMI recorded revenues of USD968.68 million or equivalent to IDR 14.45 trillion (exchange rate of IDR 14,925) an increase of 129.6% from the same period or year-on-year (yoy). In the first semester of 2021, BUMI posted revenues of USD421.86 million or equivalent to IDR 6.02 trillion (exchange rate of IDR 14,285). The net profit recorded by BUMI reached USD167.67 million or equivalent to IDR 2.5 trillion, an increase of 8,768% from USD1.89 million or equivalent to IDR 27 billion in the first half of 2021. "This is clearly a positive sentiment for bumi resources," wahyu said when contacted by MNC Portal, Tuesday (11/10/2022). Di said that since the Covid-19 pandemic and supply chain issues have triggered a global commodity boom, especially in the energy sector, which has increased, including coal. "Although there is currently a price correction and the potential weakening of demand related to the threat of a global recession. But still the energy is sexy. The evidence is that OPEC is now reducing production and triggering a rebound in oil. Europe, which is anti-coal, is actually forced to use coal as well now," he said. He assessed that the main factor in the price increase was because the gap between coal demand and supply was getting bigger. According to him, supply is always static or even declining while demand is getting bigger everywhere. "Well, if Salim comes in this is part of the response to that potential," he said. As is known, BUMI plans to issue 200 billion new shares at a price of IDR 120 per share. This means that if the shareholders agree to the corporate action that provides a dilution effect of up to 58.8%, BUMI will reap fresh funds of up to IDR 24 trillion.Source: https://economy.okezone.com/read/2022/10/11/278/2684671/salim-group-masuk-bisnis-batu-bara-lewat-bumi-yakin-untung