IMA-Daily Update Page 1

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Minerba Industry Awaits Details of Mandatory Exploration Regulations and Reserves Resilience Fund Industri Minerba tunggu detail aturan wajib eksplorasi dan dana ketahanan cadangan Adaro's boss, Garibaldi Thohir, is outspoken about the current coal business Bos Adaro Garibaldi Thohir Blak-blakan soal Bisnis Batu Bara Saat Ini Coal Prices Fly 6% & Highest 5 Months, Can It Continue? Harga Batu Bara Terbang 6% & Tertinggi 5 Bulan, Bisa Lanjut? Indika Will Issue "Global Bond" of US$ 650 Million Indika Bakal Terbitkan "Global Bond" US$ 650 Juta IMEF recommends that the amount of mineral and coal reserve resilience funds be differentiated IMEF sarankan besaran dana ketahanan cadangan mineral dan batubara dibedakan Weak fundamentals, coal prices predicted to fluctuate again Fundamental lemah, harga batubara diprediksi kembali fluktuatif No thermal coal price recovery to 2019 highs – report Thiess mobilises second autonomous drill at Lake Vermont Thermal, coking coal imports dip 28% to 46 mn tonnes in Apr-Aug: IPA Global gold output to contract by 1.7% – report Rio Tinto awards Koodaideri contract to Alltype Engineering CIL output may fall below 600 MT in FY21 on sluggish demand: Analysts

Kontan Bisnis CNBC Indonesia Investor Daily Kontan Kontan Mining.com Int'l Mining Business Standard Mining.com Australian Mining Business Standard

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IMA-Daily Update Page 2

Minerba Industry Awaits Details of Mandatory Exploration Regulations and Reserves

Resilience Fund Reporter: Ridwan Nanda Mulyana | Editor:

Tendi Mahadi

MINERAL and coal mining (minerba)

business players are stil l waiting for detailed implementation regulations regarding further exploration obligations and the Reserve Resilience Fund (DKC). Meanwhile, this policy is one of the govern-ment's strategies to boost investment and exploration activities, whose realization is still small.

Head of Corporate Communication of PT Adaro Energy Tbk (ADRO) Febriati Nadira said that her party is still waiting for the issuance of this regulation. Nadira said that all this time ADRO subsidiaries engaged in the mining sector had continued to explore as an effort to optimize their coal reserves.

She said, this is important considering that coal commodity is closely related to national energy security. However, Nadira was still reluctant to comment further regarding the scheme and the amount of the obligation. What is clear is that as a government contractor, she continued, ADRO stated its commitment to comply with mandatory continued exploration and DKC Minerba.

"Adaro as a government contractor and a public company will certainly obey and follow the applicable rules, including regarding exploration and DKC obligations. We are still waiting, we will follow the rules," Nadira said when contacted by Kontan.co.id, Sunday (20/9).

Industri Minerba tunggu detail aturan wajib eksplorasi dan dana ketahanan cadangan

Reporter: Ridwan Nanda Mulyana | Editor: Tendi Mahadi

PELAKU usaha pertambangan mineral dan batubara (minerba) masih menunggu detail aturan pelaksanaan terkait kewajiban eksplorasi lanjutan dan Dana Ketahanan Cadangan (DKC) . Adapun, kebijakan tersebut menjadi salah satu strategi pemerintah dalam menggenjot investasi dan aktivitas eksplorasi yang realisasinya masih mini.

Head of Corporate Communication PT Adaro Energy Tbk (ADRO) Febriati Nadira mengatakan, pihaknya masih menanti terbitnya regulasi tersebut . Nadira menyebut, selama ini pun anak-anak perusahaan ADRO yang bergerak di sektor pertambangan terus melakukan eksplorasi sebagai upaya mengoptimalkan cadangan batubaranya.

Kata dia, hal itu penting mengingat komo-ditas batubara erat kaitannya dengan ketahanan energi nasional. Namun, Nadira masih enggan mengomentari lebih lanjut terkait dengan skema maupun besaran kewajiban tersebut. Yang jelas sebagai kontraktor pemerintah, sambungnya, ADRO menyatakan komitmennya untuk mematuhi wajib eksplorasi lanjutan dan DKC minerba.

"Adaro sebagai kontraktor pemerintah dan perusahaan publik tentunya akan patuh dan mengikuti aturan yang berlaku, termasuk mengenai kewajiban eksplorasi dan DKC. Kami masih menunggu, kita akan ikuti aturannya," kata Nadira saat di-hubungi Kontan.co.id, Minggu (20/9).

IMA-Daily Update Page 3

The same thing was conveyed by the Director of PT ABM Investama Tbk (ABMM) Adrian Erlangga. According to him, this mandatory exploration regulation is nothing new to the mining world. This is because exploration is indeed an important requirement for the sustainability and sustainability of mineral and coal companies.

It's just that in relation to the provisions being discussed by the government, Adrian is still waiting for the detailed imple-mentation rules. "Exploration is part of day to day operations. So from day one, mining companies must continue to carry out exploration. In my opinion, DKC is the writing of regulations that have been carried out by all major mining companies," said Adrian.

On Friday last week, Chief Financial Officer of PT Vale Indonesia Tbk (INCO), Bernardus Irmanto, also said that his party had been routinely carrying out exploration activities. He claimed that INCO had also allocated funds or budgets for exploration activities.

He said the nickel company, whose 20% stake was acquired by the state-owned mining holding company MIND ID, had an exploration plan and had sufficient funds available for exploration acti vities. Meanwhile, the exploration budget has been included in the RKAB proposal every year.

For 2020, Bernardus said that his party allocated around US$ 6 million for exploration purposes. "Vale has allocated a budget to support the exploration plan. The budget is around US$ 6 million," he said.

Bernardus was still reluctant to provide further comments regarding this obligation. What is clear is that he said that his party did not see the exploration -related arrangements as a burden to the company.

Hal senada juga disampaikan oleh Direktur PT ABM Investama Tbk (ABMM) Adrian Erlangga. Menurutnya, aturan wajib eksplorasi ini sejatinya bukan lah hal yang baru bagi dunia tambang. Sebab, eksplorasi memang menjadi kebutuhan penting untuk keberlangsungan dan keberlanjutan per-usahaan minerba.

Hanya saja terkait ketentuan yang sedang dibahas pemerintah ini, Adrian masih menunggu detail aturan pelaksanaannya. "Eksplorasi itu bagian dari day to day operations. Jadi sejak hari pertama, per-usahaan tambang harus terus melakukan eksplorasi. Menurut saya, DKC itu adalah penulisan aturan yang selama ini sudah dilakukan seluruh perusahaan tambang besar," sebut Adrian.

Pada Jum'at pekan lalu, Chief Financial Officer PT Vale Indonesia Tbk (INCO) Bernardus Irmanto pun menyampaikan bahwa pihak-nya sudah secara rutin menjalankan aktivitas eksplorasi. Dia mengklaim, pengalokasian dana atau budget untuk kegiatan eksplorasi juga sudah dilakukan INCO.

Kata dia, perusahaan nikel yang 20% saham-nya diakuisisi oleh holding pertambangan BUMN MIND ID ini telah memiliki rencana eksplorasi dan mencadangkan dana yang cukup untuk kegiatan eksplorasi. Adapun, budget eksplorasi sudah masuk dalam proposal RKAB setiap tahunnya.

Untuk tahun 2020 ini, Bernardus menyam-paikan bahwa pihaknya mengalokasikan dana sekitar US$ 6 juta untuk keperluan eksplorasi. "Vale telah mencadangkan budget untuk mendukung rencana eksplorasi. Anggaran biaya sekitar US$ 6 juta," katanya.

Bernardus pun masih enggan memberikan tanggapan lebih jauh mengenai kewajiban tersebut. Yang jelas dia menyampaikan bahwa pihaknya tidak melihat pengaturan terkait eksplorasi itu sebagai beban bagi perusahaan.

IMA-Daily Update Page 4

"We need to learn more about this DKC. But Vale does not see exploration as a burden, because it is very important to support business sustainability," he said.

Contacted separately, the Corporate Secretary of PT Bukit Asam Tbk. (PTBA) Apollonius Andwie positively welcomed the regulation and saw that this policy could encourage the assurance of the availability of energy sources and industrial raw materials for the future.

He said the state-owned coal company routinely conducts exploration activities, both to support mining operations and for development exploration. However, for the advanced exploration rules and DKC regulated in the new Minerba Law, PTBA is still waiting for the detailed implemen-tation regulations.

"PTBA allocates sufficient funds for all operational exploration and development activities. We are still waiting for (detailed rules related to DKC)," said Andwie.

In the previous Kontan.co.id report, the Director of Mineral Development and Business of the Ministry of EMR Yunus Saefulhak revealed a number of new strategies and efforts by the government in boosting the investment climate and mining exploration activities. This step is regulated in Law Number 3 of 2020, aka the new Minerba Law, along with its derivative regulations.

One of these strategies is to require companies to provide mineral and coal Resilience Funds (DKC). "DKC is used by IUP/IUPK holders to carry out further exploration at the stage of production operations, the amount of which is determined annually in the RKAB," said Yunus.

For information, DKC has been regulated in Law no. 3 of 2020 as the new Minerba Law. Article 112A states that...

"Kami perlu mempelajari lebih lanjut tentang DKC ini. Tapi Vale tidak melihat eksplorasi sebagai beban, karena memang sangat penting untuk menunjang keberlanjutan usaha," sebutnya.

Dihubungi terpisah, Sekretaris Perusahaan PT Bukit Asam Tbk. (PTBA) Apollonius Andwie menyambut positif aturan tersebut dan melihat kebijakan ini bisa mendorong terjaminnya ketersediaan sumber energi dan bahan baku industri untuk masa mendatang.

Dia menyebut, perusahaan batubara plat merah itu rutin melakukan kegiatan eksplorasi, baik untuk mendukung kegiatan operasional pe-nambangan, maupun untuk eksplorasi pengem-bangan. Namun, untuk aturan eksplorasi lanjutan dan DKC yang diatur dalam UU minerba yang baru, PTBA masih menantikan detail aturan pelaksanaannya.

"PTBA mengalokasikan dana yang cukup untuk semua kegiatan eksplorasi operasional maupun pengembangan. Kami masih menunggu (detail aturan terkait DKC)," pungkas Andwie.

Dalam pemberitaan Kontan.co.id sebelum-nya, Direktur Pembinaan dan Pengusahaan Mineral Kementerian ESDM Yunus Saefulhak mengungkapkan sejumlah strategi dan upaya baru pemerintah dalam menggenjot iklim investasi dan aktivitas eksplorasi tambang. Langkah tersebut diatur dalam Undang-Undang No. 3 Tahun 2020 alias UU Minerba yang baru, beserta aturan turunannya.

Salah satu dari strategi tersebut adalah mewajibkan perusahaan untuk menyediakan Dana Ketahanan Cadangan (DKC) minerba. "DKC digunakan oleh pemegang IUP/IUPK untuk melakukan eksplorasi lanjutan pada tahap kegiatan operasi produksi yang besarannya ditetapkan setiap tahun dalam RKAB," sebut Yunus.

Sebagai informasi, DKC sudah diatur dalam UU No. 3 Tahun 2020 sebagai UU Minerba yang baru. Pasal 112A menyebutkan bahwa...

IMA-Daily Update Page 5

Article 112A states that the Mining Business Permit (IUP) and Special IUP (IUPK) holders at the stage of production operations are required to provide mineral and coal reserve resilience funds. Meanwhile, the mineral and coal reserve resilience fund is used for activities to discover new reserves.

In the draft Government Regulation Draft (RPP) as a derivative rule of Law no. 3 of 2020, a number of company obligations are regulated to encourage exploration activities. The regulation is contained in the draft RPP regarding the implementation of mineral and coal mining business activities.

Referring to the draft RPP obtained by Kontan.co.id, Article 49 stipulates that in the context of mineral and coal conservation, IUP holders in the production operation stage are required to carry out further exploration every year. In carrying out these obligations, IUP holders are also required to allocate a budget every year as mineral and coal reserve resilience funds, the amount of which is proposed in the annual RKAB.

However, the continued exploration obligation is exempted for IUP holders in the production operation stage who already have backup data in all WIUP Production Operation activities.

Not only IUP, IUPK holders in the production operation stage are also required to provide mineral and coal reserve resilience funds. The funds are used to carry out further exploration activities. This is stated in Article 98, which also regulates that the amount of mineral and coal reserve resilience funds is proposed in the annual RKAB.

The draft RPP does not yet regulate in detail the further exploration obligations and also the obligation to allocate mineral and coal reserve resilience funds. Because, it will be further regulated in the EMR Ministerial Regulation (Permen).

Pasal 112A menyebutkan bahwa Pemegang Izin Usaha Pertambangan (IUP) dan IUP Khusus (IUPK) pada tahap kegiatan operasi produksi wajib menyediakan dana ketahanan cadangan minerba. Adapun, dana ketahanan cadangan minerba tersebut digunakan untuk kegiatan penemuan cadangan baru.

Dalam draft Rancangan Peraturan Peme-rintah (RPP) sebagai aturan turunan UU No. 3 Tahun 2020, diatur sejumlah kewajiban perusahaan untuk mendorong aktivitas eksplorasi. Aturan tersebut tertuang dalam draft RPP tentang pelaksanaan kegiatan usaha pertambangan minerba.

Merujuk pada draft RPP yang didapat Kontan.co.id, Pasal 49 mengatur bahwa dalam rangka konservasi minerba, pemegang IUP tahap operasi produksi wajib melakukan eksplorasi lanjutan setiap tahun. Dalam melaksanakan kewajiban tersebut, pemegang IUP juga wajib mengalokasikan anggaran setiap tahun sebagai dana ketahanan cadangan minerba, yang besarannya di-usulkan dalam RKAB tahunan.

Namun, kewajiban eksplorasi lanjutan tersebut dikecualikan bagi pemegang IUP tahap operasi produksi yang telah memiliki data cadangan di seluruh WIUP kegiatan Operasi Produksi.

Tak hanya IUP, para pemegang IUPK tahap operasi produksi juga diwajibkan menye-diakan dana ketahanan cadangan minerba. Dana tersebut digunakan untuk melakukan kegiatan eksplorasi lanjutan. Hal itu tertuang dalam Pasal 98, yang juga mengatur bahwa besaran dana ketahanan cadangan minerba diusulkan dalam RKAB tahunan.

Draft RPP tersebut memang belum mengatur secara rinci tentang kewajiban eksplorasi lanjutan dan juga kewajiban alokasi dana ketahanan cadangan minerba. Sebab, hal itu akan diatur lebih lanjut pada Peraturan Menteri (Permen) ESDM.

IMA-Daily Update Page 6

Adaro's boss, Garibaldi Thohir, is outspoken about the current

coal business Denis Riantiza Meilanova

THE COAL industry is facing heavy

pressure amid the Covid-19 pandemic.

Coal entrepreneurs are racking their brains to maintain the sustainability of

their business amidst the weakening demand and price of coal.

President Director of PT Adaro Energy Tbk, Garibaldi Thohir said that coal price

fluctuations are something that the company cannot control.

Therefore, operational efficiency and spending discipline are the keys to

maintaining business continuity.

"Our mine is an old mine, it is difficult to

cut costs, but we have a strategy every day there must be improvement. We have to be

very detailed, 1 cent, 2 cents, which is very important. Here we are required to

survive, the key is cash flow," he said in a webinar, Friday (18/9/2020).

He said that under these difficult conditions, Adaro had to cut its production

target this year from around 57 million-58 million tons to 55 million-56 million tons.

Besides efficiency, according to him, maintaining the health and safety of

employees with strict health protocols is also the most important key to keeping

production activities running smoothly.

"Until today, Adaro's operations are still

running smoothly. We can still achieve the production target of 55 [million] - 56

million [tons]," he said.

Bos Adaro Garibaldi Thohir Blak-blakan soal Bisnis Batu

Bara Saat Ini Denis Riantiza Meilanova

INDUSTRI batu bara tengah menghadapi

tekanan berat di tengah pandemi Covid-19. Pengusaha batu bara pun memutar otak untuk menjaga keberlangsungan bisnisnya di tengah pelemahan permintaan dan harga batu bara.

Presiden Direktur PT Adaro Energy Tbk, Garibaldi Thohir mengatakan bahwa fluktuasi harga batu bara merupakan hal yang tidak bisa dikontrol oleh perusahaan.

Oleh karena itu, efisiensi operasional dan disiplin pengeluaran menjadi kunci untuk menjaga keberlangsungan usaha.

"Tambang kami tambang tua, sulit untuk lakukan cutting cost, tetapi kami punya strategi tiap hari harus ada improvement. Kami harus sangat detail, 1 sen, 2 sen, sangat penting sekali. Di sini kami dituntut untuk survive, kuncinya cash flow paling utama," ujarnya dalam sebuah webinar, Jumat (18/9/2020).

Dia menuturkan bahwa dalam kondisi sulit ini, Adaro pun harus memangkas target produksinya tahun ini dari semula sekitar 57 juta-58 juta ton menjadi 55 juta-56 juta ton.

Selain efisiensi, menurutnya, menjaga kesehatan dan keselamatan karyawan dengan protokol kesehatan yang ketat juga menjadi kunci paling penting untuk menjaga kegiatan produksi berjalan lancar.

"Sampai hari ini operasional Adaro masih berjalan lancar. Masih bisa achieve target produksi 55 [juta]- 56 juta [ton]," katanya.

IMA-Daily Update Page 7

Previously, Minister of EMR Arifin Tasrif said that the impact of the Covid-19 pandemic had resulted in a decrease in coal demand in the global market. The performance of coal exports also decreased by 11 percent compared to the realization in the same period last year which reached 266 million tons. The volume of coal exports until July 2020 was recorded at only 238 million tons.

The decline was also influenced by the policies of major coal importer countries, namely India and China, which prioritized the use of domestically produced coal.

Restrictions on coal imports by China and India, as well as reduced demand for coal from South Korea, the Philippines and Japan, have resulted in an excess supply of coal in the global market. This resulted in a fall in the price of coal on the international market.

The reference coal price (HBA) in September 2020 fell to US$ 49.42 per ton or down 25 percent compared to the January 2020 HBA of US$ 65.93 per ton.

According to Arifin, the HBA in September 2020 was the lowest since 2009. Editor:

Zufrizal

Sebelumnya, Menteri ESDM Arifin Tasrif mengatakan bahwa dampak pandemi Covid-19 telah mengakibatkan penurunan kebutuhan batu bara di pasar global. Kinerja ekspor batu bara pun mengalami penurunan 11 persen dibandingkan dengan realisasi pada periode yang sama tahun lalu yang mencapai 266 juta ton. Volume ekspor batu bara hingga Juli 2020 tercatat hanya mencapai 238 juta ton.

Penurunan juga dipengaruhi adanya kebijakan negara importir utama batu bara, yakni India dan China, yang lebih mem-prioritaskan pemanfaatan batu bara produksi dalam negeri.

Pembatasan impor batu bara oleh China dan India, serta berkurangnya permintaan batu bara dari Korea Selatan, Filipina, dan Jepang menyebabkan kondisi kelebihan pasok batu bara di pasar global. Hal ini mengakibatkan jatuhnya harga batu bara di pasar inter-nasional.

Harga batu bara acuan (HBA) pada Septem-ber 2020 turun hingga US$49,42 per ton atau turun 25 persen dibandingkan dengan HBA Januari 2020 US$65,93 per ton.

Menurut Arifin, HBA pada September 2020 merupakan yang terendah sejak 2009. Editor :

Zufrizal

Coal Prices Fly 6% & Highest 5

Months, Can It Continue? Tirta Citradi, CNBC Indonesia

DEWI Fortuna was siding with coal last

week. The price of Newcastle thermal coal for actively traded contracts rose significantly.

Harga Batu Bara Terbang 6% &

Tertinggi 5 Bulan, Bisa Lanjut? Tirta Citradi, CNBC Indonesia

DEWI Fortuna sedang berpihak pada batu

bara minggu lalu. Harga batu bara termal Newcastle untuk kontrak yang aktif di-transaksikan menguat signifikan.

IMA-Daily Update Page 8

In the period 11-18 September 2020, the price of this gemstone increased by 6%.

The coal price closed at US$ 57.4/ton. This is the highest price in the last 5 months to

be precise since April 15, 2020. The price of coal has skyrocketed but is still below

US$ 60/ton.

The price of coal for Asia Pacific has indeed increased. Argus Media reported that the

price of thermal coal for South Korea with a calorific value of 6,080 Kcal/Kg rose US$

3.41/ton to US$ 56.37/ton.

The increase in coal prices occurred when the Ginseng Country's nuclear power plant went out following a st orm and a maintenance schedule.

Referring to data from South Korea's hydro and nuclear power plants, five nuclear reactors that were shut down due to storms earlier this month were not operational until last week.

This significant increase in coal prices needs to be watched out for this week. The Covid-19 pandemic that is still spreading and various social restrictions imposed globally have made demand for electricity and coal remain weak.

Not to mention the news that China's coal production has started to increase. Citing Argus Media, coal production by Chinese state-owned producers Shenhua Energy and China Energy increased in August. The increase is slowing down the decline in China's national coal production.

Shenhua Energy, a subsidiary of China's largest state-controlled coal producer China Energy Investment, produced 23.9 million tonnes of coal in August. Monthly production increased by 2.1% on year, reversing consecutive output declines throughout February-July.

Pada periode 11-18 September 2020, harga batu legam tersebut naik 6%. Harga batu bara ditutup di US$ 57,4/ton. Ini menjadi harga tertinggi dalam 5 bulan terakhir tepatnya sejak 15 April 2020. Harga batu bara meroket tetapi masih di bawah US$ 60/ton.

Harga batu bara Asia Pasifik memang kompak naik. Argus Media melaporkan harga batu bara termal untuk Korea Selatan dengan nilai kalori 6.080 Kcal/Kg naik US$ 3,41/ton menjadi US$ 56,37/ton.

Kenaikan harga batu bara terjadi ketika terjadi pemadaman pembangkit listrik tenaga nuklir milik Negeri Ginseng menyu-sul adanya badai dan jadwal pemeliharaan.

Mengacu pada data pembangkit listrik tenaga hidro dan nuklir Korea Selatan, lima reaktor nuklir yang ditutup akibat badai awal bulan masih belum beroperasi hingga minggu lalu.

Kenaikan harga batu bara yang signifikan ini perlu diwaspadai untuk pekan ini. Pandemi Covid-19 yang masih merebak dan berbagai pembatasan sosial yang di-tempuh secara global membuat per-mintaan terhadap listrik dan batu bara tetap lemah.

Belum lagi adanya kabar bahwa produksi batu bara China mulai mengalami kenaik-an. Mengutip Argus Media, produksi batu bara oleh produsen BUMN China Shenhua Energy dan China Energy meningkat pada bulan Agustus. Kenaikan tersebut mem-perlambat penurunan produksi batu bara nasional China.

Shenhua Energy, anak perusahaan dari produsen batu bara terbesar yang di-kendalikan negara China, China Energy Investment, memproduksi 23,9 juta ton batu bara pada bulan Agustus. Produksi bulanan meningkat 2,1% dalam setahun, membalikkan penurunan output berturut-turut sepanjang Februari-Juli.

IMA-Daily Update Page 9

In the last eight months, Shenhua Energy's

production became 193.2 million tons or

stable from the previous year period.

Production in the first eight months

contributed 72% of the company's 2020

production target of 268 million tons.

Another producer from China, China Coal

Energy, a subsidiary of China Coal ,

reportedly produced 9.8 million tonnes

last month. Production rose 9.3% (yoy) in

August and became the highest since April.

Production in August boosted China Coal

Energy's cumulative production to 72.56

million tonnes in January-August, up 6.1%

compared to last year. Earlier this year, the

producer set a target to produce and sell

96 million tonnes of coal by 2020.

The increase in production by Shenhua

Energy and China Coal Energy contributed

to reducing the decline in China's national

coal production. China's output for all

types of coal reached 325.81 million

tonnes during August , down 0 .1%

compared to the same period last year.

The already very high price hike is

accompanied by weak demand, the

presence of cheap and abundant substitute

energy such as liquefied natural gas (LNG),

so that the increase in production has the

potential to push down prices this week.

CNBC INDONESIA RESEARCH TEAM (twg/twg)

Dalam delapan bulan terakhir, produksi Shenhua Energy menjadi 193,2 juta ton atau stabil dari periode tahun sebelumnya. Produksi dalam delapan bulan pertama menyumbang 72% dari target produksi 2020 perusahaan sebesar 268 juta ton.

Produsen lain dari Negeri Panda yaitu China Coal Energy, anak perusahaan China Coal dilaporkan memproduksi 9,8 juta ton bulan lalu. Produksi naik 9,3% (yoy) di bulan Agustus dan menjadi yang tertinggi sejak April.

Produksi di bulan Agustus mendorong produksi kumulatif China Coal Energy menjadi 72,56 juta ton pada Januari-Agustus, naik 6,1% dibanding tahun lalu. Produsen tersebut pada awal tahun ini menetapkan target untuk memproduksi dan menjual 96 juta ton batu bara pada tahun 2020 penuh.

Kenaikan produksi oleh Shenhua Energy dan China Coal Energy berkontribusi pada pengurangan penurunan produksi batu bara nasional China. Output China untuk semua jenis batu bara mencapai 325,81 juta ton selama Agustus, turun 0,1% di-bandingkan dengan periode yang sama tahun lalu.

Kenaikan harga yang sudah sangat tinggi disertai dengan lemahnya permintaan, adanya energi subsitusi yang murah dan melimpah seperti gas alam cair (LNG) hingga kenaikan produksi berpotensi menekan harga untuk pekan ini. TIM RISET

CNBC INDONESIA (twg/twg)

IMA-Daily Update Page 10

Indika Will Issue "Global Bond" of US$ 650 Million

Gita Rossiana (gita.rossiana@investor.co.id)

PT INDIKA Energy Tbk (INDY) plans to

issue debt securities denominated in United States dollars (US) or global bonds worth US$ 650 million. The proceeds from the bond issuance will be used for business activities and settlement of financial obligations.

These debt securities are planned to be guaranteed by a corporate guarantee by the company or a company controlled by the company. Meanwhile, the target maturity date of the debt securities is in 2027 or another period approved by the related parties.

"Regarding the bond coupon, it is still being discussed with related parties," explained the management in an information disclosure at the end of last week.

With the issuance of these bonds, the company hopes to extend its maturing debt profile and open up funding options in the future.

"The company will use the proceeds from the issuance of debt securities for business development , financing business diversification, repayment of corporate obligations, as well as corporate financing in general," said management.

Until now, the company has not announced the initial buyer of the debt securities issuance. Information regarding investors who are the initial buyers will only be announced during the bookbuilding period.

Indika Bakal Terbitkan "Global Bond" US$ 650 Juta

Gita Rossiana (gita.rossiana@investor.co.id)

PT INDIKA Energy Tbk (INDY) berencana

menerbitkan surat utang berdenominasi dollar Amerika Serikat (AS) atau global bond senilai US$ 650 juta. Dana hasil emisi surat utang ini akan digunakan untuk kegiatan usaha dan pelunasan kewajiban keuangan.

Surat utang ini rencananya dijamin dengan

jaminan perusahaan (corporate guarantee) oleh perseroan atau perusahaan yang

terkendali oleh perseroan. Sedangkan target jatuh tempo surat utang tersebut

tahun 2027 atau periode lain yang di-setujui oleh para pihak terkait.

"Terkait kupon obligasi tersebut masih dibicarakan dengan pihak-pihak terkait,"

jelas manajemen dalam keterbukaan infor-masi pada akhir pekan lalu.

Dengan adanya penerbitan surat utang ini, perseroan berharap memperpanjang profil

utang jatuh tempo dan membuka opsi pendanaan di masa depan.

"Perseroan akan menggunakan hasil penerbitan surat utang untuk pengem-

bangan usaha, pembiayaan diversifikasi usaha, pelunasan kewajiban perseroan,

serta pembiayaan korporasi pada umum-nya," kata manajemen.

Hingga kini, perseroan belum mengumum-kan terkait pembeli awal dari penerbitan

surat utang ini. Informasi mengenai investor yang menjadi pembeli awal baru

diumumkan pada masa penawaran awal (bookbuilding).

IMA-Daily Update Page 11

"The issuance of these bonds will be ratified at the Extraordinary General Meeting of Shareholders (EGMS) which will be held on October 26, 2020," said the management. Editor: Parluhutan (parluhutan@investor.co.id)

"Penerbitan surat utang ini akan disahkan dalam Rapat Umum Pemegang Saham Luar Biasa (RUPSLB) yang akan digelar pada 26 Oktober 2020," ungkap manajemen. Editor : Parluhutan (parluhutan@investor.co.id)

IMEF recommends that the amount of mineral and coal reserve resilience funds be

differentiated Reporter: Ridwan Nanda Mulyana | Editor:

Noverius Laoli

THE INDONESIAN Mining and Energy

Forum (IMEF) considers that the existence of further exploration obligations as well as the mineral and coal Reservation Fund (DKC) is indeed necessary. Even so, IMEF emphasized, there are a number of things that the government needs to pay attention to first.

Apart from the interest of conserving resources for the state, Chairman of IMEF, Singgih Widagdo, said that for business actors or investors, exploration is more focused on the value or business calculations that the company will carry out.

As a result, mineral and coal exploration activities and investment in the last decade are still small, and even tend to be on a downward trend. "It must be admitted that exploration activities and investment have declined over the past 10 years," Singgih told Kontan.co.id, Sunday (20/9).

Even so, he emphasized that exploration in the types of mineral and coal mining cannot be generalized. Therefore,...

IMEF sarankan besaran dana ketahanan cadangan mineral

dan batubara dibedakan Reporter: Ridwan Nanda Mulyana | Editor:

Noverius Laoli

INDONESIAN Mining and Energy Forum

(IMEF) menilai adanya kewajiban eksplo-rasi lanjutan dan juga Dana Ketahanan Cadangan (DKC) mineral dan batubara (minerba) memang diperlukan. Kendati begitu, IMEF menekankan, ada sejumlah hal yang perlu terlebih dulu diperhatikan pemerintah.

Terlepas dari kepentingan konservasi sumber daya bagi negara, Ketua Umum IMEF Singgih Widagdo menyampaikan bahwa bagi para pelaku usaha atau investor, eksplorasi lebih diletakkan pada nilai atau kalkulasi bisnis yang akan dilakukan perusahaan.

Alhasil, aktivitas dan investasi eksplorasi minerba dalam satu dekade terakhir masih mini, bahkan cenderung dalam tren yang menurun. "Harus diakui memang kegiatan dan investasi eksplorasi turun selama 10 tahun terakhir ini," kata Singgih kepada Kontan.co.id, Minggu (20/9).

Kendati begitu, dia menekankan bahwa eksplorasi pada jenis tambang mineral dan batubara tidak bisa disamaratakan. Oleh sebab itu,...

IMA-Daily Update Page 12

Therefore, the regulation regarding Reserves Resilience Fund (DKC) should not be equated, especially regarding the portion or amount of DKC that is required.

Singgih is of the view that the government must first map and consider in an integrated manner the resources, reserves, demand projection, domestic utilization, as well as the readiness of supporting infrastructure for mineral and coal commodities.

This is because optimizing exploration activities is not limited to knowing and enlarging resources, but also how to plan their utilization up to the level of calculation of the trade system.

"From there it is clear, planning the DKC for coal mining will be different from minerals. To set a figure for the amount of DKC, I do not agree to be beaten evenly on all types of minerals or coal. Obviously the business calculations between coal and minerals, even the types of minerals or various coal qualities are different," explained Singgih.

He also said that mining companies whose reserves are far above their planned production during the concession period will have their DKC size even though there are separate calculations.

"So DKC does not have to be optimized for exploration activities, let alone considered to be optimum for the company. But (DKC) must be seen in the context of national conservation," said Singgih.

In the previous Kontan.co.id report, the Director of Mineral Development and Business of the Ministry of EMR Yunus Saefulhak revealed a number of new strategies and efforts by the government in boosting the investment climate and mining exploration activities. This step is regulated in Law Number 3 of 2020, aka the new Minerba Law, along with its derivative regulations.

Oleh sebab itu, pengaturan mengenai Dana Ketahanan Cadangan (DKC) selayaknya tidak disamakan, khususnya mengenai porsi atau besaran DKC yang diwajibkan.

Singgih berpandangan, pemerintah mesti terlebih dulu memetakan dan memper-timbangkan secara terintegrasi mengenai sumber daya, cadangan, proyeksi kebutuhan (demand), pemanfaatan di dalam negeri, serta kesiapan infrastruktur pendukung bagi komoditas mineral dan batubara.

Sebab, pengoptimalan kegiatan eksplorasi bukan sebatas mengetahui dan memper-besar sumber daya, namun juga bagaimana bisa merencanakan pemanfaatannya sampai pada level perhitungan tata niaga.

"Dari sana jelas, merencanakan DKC untuk pertambangan batubara akan berbeda dengan mineral. Untuk menetapkan angka besaran DKC, saya tidak setuju dipukul rata pada seluruh jenis mineral atau batubara. Jelas kalkulasi bisnis antara batubara dan mineral, bahkan jenis mineral atau berbagai kualitas batubara itu berbeda," jelas Singgih.

Dia pun mengatakan, perusahaan tambang yang jumlah cadangannya sudah jauh di atas rencana produksi selama masa konsesi, maka besaran DKC-nya meski ada kalkulasi tersendiri.

"Maka DKC tidak harus dioptimalkan untuk kegiatan eksplorasi apalagi dinilai telah optimum bagi perusahaan. Tapi (DKC) harus dilihat pada konteks konservasi nasional," sebut Singgih.

Dalam pemberitaan Kontan.co.id sebelum-nya, Direktur Pembinaan dan Pengusahaan Mineral Kementerian ESDM Yunus Saefulhak mengungkapkan sejumlah strategi dan upaya baru pemerintah dalam menggenjot iklim investasi dan aktivitas eksplorasi tambang. Langkah tersebut diatur dalam Undang-Undang Nomor 3 Tahun 2020 alias UU Minerba yang baru, beserta aturan turunannya.

IMA-Daily Update Page 13

One of these strategies is to require companies to provide mineral and coal

Resilience Funds (DKC). "DKC is used by IUP/IUPK holders to carry out further

exploration at the stage of production operations, the amount of which is

determined annually in the RKAB," said Yunus.

For information, DKC has been regulated in Law no. 3 of 2020 as the new Minerba Law.

Article 112A states that the Mining Business Permit (IUP) and Special IUP

(IUPK) holders at the stage of production operations are required to provide mineral

and coal reserve resilience funds. Meanwhile, the mineral and coal reserve

resilience fund is used for activities to discover new reserves.

In the draft Government Regulation Draft (RPP) as a derivative rule of Law no. 3 of

2020, a number of company obligations are regulated to encourage exploration

activities. The regulation is contained in the draft RPP regarding the implemen-

tation of mineral and coal mining business activities.

Referring to the draft RPP obtained by Kontan.co.id, Article 49 stipulates that in

the context of mineral and coal conservation, IUP holders in the

production operation stage are required to carry out further exploration every year. In

carrying out these obligations, IUP holders are also required to allocate a budget every

year as mineral and coal reserve resilience funds, the amount of which is proposed in

the annual RKAB.

However, the continued exploration

obligation is exempted for IUP holders in the production operation stage who

already have backup data in all WIUP Production Operation activities.

Salah satu dari strategi tersebut adalah mewajibkan perusahaan untuk menye-

diakan Dana Ketahanan Cadangan (DKC) minerba. "DKC digunakan oleh pemegang

IUP/IUPK untuk melakukan eksplorasi lanjutan pada tahap kegiatan operasi

produksi yang besarannya ditetapkan setiap tahun dalam RKAB," sebut Yunus.

Sebagai informasi, DKC sudah diatur dalam UU No. 3 Tahun 2020 sebagai UU Minerba

yang baru. Pasal 112A menyebutkan bahwa Pemegang Izin Usaha Pertam-

bangan (IUP) dan IUP Khusus (IUPK) pada tahap kegiatan operasi produksi wajib

menyediakan dana ketahanan cadangan minerba. Adapun, dana ketahanan

cadangan minerba tersebut digunakan untuk kegiatan penemuan cadangan baru.

Dalam draft Rancangan Peraturan Pemerintah (RPP) sebagai aturan turunan

UU No. 3 Tahun 2020, diatur sejumlah kewajiban perusahaan untuk mendorong

aktivitas eksplorasi. Aturan tersebut tertuang dalam draft RPP tentang pelak-

sanaan kegiatan usaha pertambangan minerba.

Merujuk pada draft RPP yang didapat Kontan.co.id, Pasal 49 mengatur bahwa

dalam rangka konservasi minerba, peme-gang IUP tahap operasi produksi wajib

melakukan eksplorasi lanjutan setiap tahun. Dalam melaksanakan kewajiban ter-

sebut, pemegang IUP juga wajib meng-alokasikan anggaran setiap tahun sebagai

dana ketahanan cadangan minerba, yang besarannya diusulkan dalam RKAB

tahunan.

Namun, kewajiban eksplorasi lanjutan

tersebut dikecualikan bagi pemegang IUP tahap operasi produksi yang telah

memiliki data cadangan di seluruh WIUP kegiatan Operasi Produksi.

IMA-Daily Update Page 14

Not only IUP, IUPK holders in the production operation stage are also required to provide mineral and coal reserve resilience funds. The funds are used to carry out further exploration activities. This is stated in Article 98, which also regulates that the amount of mineral and coal reserve resilience funds is proposed in the annual RKAB.

The draft RPP does not yet regulate in detail the further exploration obligations and also the obligation to allocate mineral and coal reserve resilience funds. Because, it will be further regulated in the EMR Ministerial Regulation (Permen).

Tak hanya IUP, para pemegang IUPK tahap operasi produksi juga diwajibkan menyediakan dana ketahanan cadangan minerba. Dana tersebut digunakan untuk melakukan kegiatan eksplorasi lanjutan. Hal itu tertuang dalam Pasal 98, yang juga mengatur bahwa besaran dana ketahanan cadangan minerba diusulkan dalam RKAB tahunan.

Draft RPP tersebut memang belum meng-atur secara rinci tentang kewajiban eksplo-rasi lanjutan dan juga kewajiban alokasi dana ketahanan cadangan minerba. Sebab, hal itu akan diatur lebih lanjut pada Peraturan Menteri (Permen) ESDM.

Weak fundamentals, coal prices are predicted to fluctuate again Reporter: Hikma Dirgantara | Editor: Anna

Suci Perwitasari

COAL prices are currently in a positive

trend after recording increases in the last few days. In fact, since September 8, the price of coal has always been above US$ 50 per metric ton.

Quoting Bloomberg, Friday (18/9) at 18.00 WIB, the price of contract coal for October 2020 delivery strengthened 1.33% to US$ 57.25 per metric ton. Even within a week, the price of the black one has skyrocketed 5.72%.

Central Capital Futures analyst Wahyu Laksono said, the increase in coal prices is in line with the trend of strong commodity prices, including the energy sector. In addition, optimism for economic recovery remains the main sentiment affecting coal price movements.

Fundamental lemah, harga batu bara diprediksi kembali fluktuatif

Reporter: Hikma Dirgantara | Editor: Anna Suci Perwitasari

HARGA batubara tengah berada dalam

tren positif setelah mencatatkan kenaikan dalam beberapa hari terakhir. Bahkan, sejak 8 September, harga batubara selalu berada di atas US$ 50 per metrik ton.

Mengutip Bloomberg, Jumat (18/9) pukul 18.00 WIB, harga batubara kontrak pengiriman Oktober 2020 menguat 1,33% ke US$ 57,25 per metrik ton. Bahkan dalam sepekan, harga si hitam sudah meroket 5,72%.

Analis Central Capital Futures Wahyu Laksono mengatakan, kenaikan harga batubara sejalan dengan tren harga komo-ditas yang masih mengalami menguat, termasuk sektor energi. Selain itu, optimisme pemulihan ekonomi juga masih jadi sentimen utama yang mempengaruhi pergerakan harga batubara.

IMA-Daily Update Page 15

"The price of coal is still trending quite

well, although in fact it is still quite volatile

as the corona virus pandemic is still

looming. The increase in coal prices is

more due to a sentiment in demand which

has the potential to increase," Wahyu told

Kontan.co.id, Friday (18/9).

He added, after the fall in coal prices in the

2016 period, rebounds and increases in

coal prices were normal. Meanwhile, for

now, as long as there are no concrete steps

regarding economic recovery activities

after the pandemic, demand for coal tends

to be difficult to stabilize.

Wahyu has called China a country that has

maintained sufficient coal prices in recent

times. However, China which also tends to

focus on using domestically produced coal

also limits coal demand in general. It's just

that, recently China's domestic coal prices

are experiencing an increase.

"So the position of buyers from China is on

standby to secure coal supplies that are

outside China. Towards the fourth quarter

of 2020, demand for coal from Europe has

also increased, while US reserves have also

started to run low," added Wahyu.

Wahyu believes that this combination has

the potential to increase coal prices in the

future. Not to mention that countries such

as Pakistan, Bangladesh and India will

continue to build power plants that can

increase future demand.

Wahyu also estimates that by the end of

the year, coal prices will still experience

volatility and move in the range of US$ 50-

US$ 60 per metric ton.

“Harga batubara trennya masih cukup baik walau sebenarnya masih cukup fluktuatif seiring pandemi virus corona juga masih membayangi. Kenaikan harga batubara lebih diakibatkan ada sentimen permin-taan yang berpotensi meningkat,” kata Wahyu kepada Kontan.co.id, Jumat (18/9).

Dia menambahkan, setelah kejatuhan harga batubara pada periode 2016 silam, rebound dan kenaikan harga batubara merupakan hal yang wajar. Sementara untuk saat ini, selama belum ada langkah nyata mengenai aktivitas pemulihan ekonomi selepas pandemi, permintaan akan batubara cenderung sulit stabil.

China disebut Wahyu sebagai negara yang cukup menjaga harga batubara dalam beberapa waktu terakhir. Namun, China yang juga cenderung fokus untuk meng-gunakan batubara produksi dalam negeri juga membatasi permintaan batubara secara umum. Hanya saja, belakangan harga batubara dalam negeri China sedang mengalami kenaikan.

“Jadi posisinya pembeli dari China tengah standby untuk mengamankan pasokan batubara yang ada di luar China. Menjelang kuartal IV-2020, permintaan batubara dari Eropa juga meningkat sementara cadangan Amerika Serikat juga sudah mulai menipis,” tambah Wahyu.

Perpaduan ini lah yang dinilai Wahyu berpotensi untuk meningkatkan harga batubara ke depan. Belum lagi negara-negara seperti Pakistan, Banglades, dan India masih akan melanjutkan pem-bangunan pembangkit tenaga listrik yang bisa meningkatkan permintaan ke depan.

Wahyu pun memperkirakan hingga akhir tahun nanti, harga batubara masih akan mengalami volatilitas dan bergerak di kisaran US$ 50-US$ 60 per metrik ton.

IMA-Daily Update Page 16

No thermal coal price recovery to 2019 highs – report MINING.com Editor

FITCH Solutions is revising down its thermal coal price forecast for 2020 to $55/tonne from

$65/tonne as demand for Newcastle coal is set to remain weak while supply is ample, the market analyst said in its latest report.

Prices weakened further due to a severe drop in global thermal coal energy demand amid covid-19 lockdowns in Q220 extending into Q320, Fitch reports. Newcastle thermal coal (6,000kcal/kg, FOB) prices are currently hovering around $48/tonne, a level last seen only in 2016.

So far, prices have averaged $58/tonne in the year to date, and Fitch sees more weakening in the coming months from current levels to reach its final average forecast for the year.

Moving into 2021, Fitch says there should be some strengthening in prices as the global economy and thus demand starts to gear up, and puts its forecast at $58/tonne for the year.

However, the analyst notes that there will be no recovery to price levels seen in 2017-2019 as a rebound in demand back to the extent seen during those years is unlikely.

No rebound to 2019 highs

IMA-Daily Update Page 17

On the demand side, substantial downside pressure to Newcastle coal prices in 2020-2021 compared with 2019 will come from Japan and South Korea, the two largest importers after China (together making up 50% of all Australian thermal coal exports in 2019), Fitch says, due to a severe drop in economic activity as a result of the covid-19 pandemic and a slow recovery in 2020-2021.

Fitch holds its view that the outlook for Newcastle coal prices will remain bleak in 2020-2021 and beyond due to ample supplies and waning demand from main importing nations.

The global coal deficit will ease in 2020, Fitch says, to 519mnt compared with 592mnt in 2019.

Thiess mobilises second autonomous drill at Lake Vermont Posted by Paul Moore

THIESS is continuing to strengthen its autonomy capability, with the second drill fitted with

an Autonomous Drilling System (ADS) now in operation at its Lake Vermont project, which is owned by Jellinbah Group. The introduction of a second drill on site will see Lake Vermont

become the first coal mining operation to have two multi-pass fully autonomous rigs drilling side-by-side.

Since the introduction of autonomous drills at the project, Thiess has drilled over 3,000 holes

equating over 90,000 metres.

Thiess General Manager Autonomous Services Matt Petty confirmed the drills continue to

deliver benefits such as improved safety outcomes and increased productivity, machine and autonomous utilisation. “The expansion of our autonomous drilling fleet delivers significant

productivity gains and enables us to drill more safely, accurately and consistently,” he said.

“We’ve leveraged our real-world experience and insight in autonomous drilling to optimise

solutions for our client, backed by our proven systems and processes and multi-disciplinary engineering excellence. The deployment of additional rigs, operated from our remote

operating station on-site, offers significant advantages as part of our integrated system, which optimises our autonomous drills and dozers and provides increased operability and

flexibility.”

The two Epiroc Pit Viper 275 (PV-275) drills use state of the art guidance technologies to assist operators drill holes to the exact location and depth specified by the drill plan, resulting

in proven performance and reliability. The current multi-pass capability enables operators to drill holes up to 59.4 m deep and 171 mm to 270 mm in diameter. Future development will

enable greater depth capacity, with the Epiroc PV-275 capable of drilling holes up to 72 m deep.

IMA-Daily Update Page 18

Thiess Lake Vermont Operations Manager/SSE Colin Mulligan said his team is continuing to provide profitable returns for the client with the technology enabling a single operator to control both rigs simultaneously. “We’re currently operating in auto drill plan execution (fully autonomous) which allows us to efficiently and predictably operate the rig independently of manual operations through the entire drill cycle to complete the drill plan.”

“This enables improvements in utilisation with the PV-275’s capable of working for 11.5 hours of a 12-hour shift, compared with around eight and a half hours with manned operators.”

Building a deeper capability

Workforce skills development continues to play a significant role in the expansion of autonomous drilling at the project, and the implementation of a staged, sustainable upskilling process has begun.

“Our approach to autonomy is to work closely with our team members and offer opportunities for upskilling. Already on-site we have had a number of drill and dozer operators, communication technicians and maintenance personnel re-trained to work with autonomous technologies,” Mulligan said. “This is ensuring Thiess remains transformational and leads to higher-skilled workers and jobs.”

Thiess will continue to provide full-service mining operations at Lake Vermont Coal Mine, including autonomous drilling and semi-autonomous dozer push, under a new five year contract extension commencing from 1 January 2022. As part of this offering Thiess will welcome a third Epiroc PV-275 to the project later this year.

Thermal, coking coal imports dip 28% to 46 mn tonnes in Apr-Aug: IPA

Press Trust of India | New Delhi

HIT by coronavirus-related disruptions, both thermal and coking coal imports at India's 12

major ports dipped 27.93 per cent to 45.77 million tonnes (MT) in April-August 2020 over the same period a year ago, according to the apex ports' body IPA.

Thermal coal imports dropped 25.42 per cent to 28.93 MT and coking coal shipments fell 31.87 per cent to 16.84 MT during this period.

Coal volumes at these 12 major ports under the control of the Centre declined for the fifth straight month in August 2020, as per the Indian Ports Association (IPA).

These ports had handled 38.79 MT of thermal coal and 24.72 MT of coking coal in the April-August period of the previous financial year.

The IPA, which maintains cargo data handled by these ports, in its latest report said "percentage variation from the previous year" in thermal coal and coking coal handling was 25.42 per cent and 31.87 per cent, respectively.

IMA-Daily Update Page 19

Together, thermal and coking coal handling saw a decline of 30.83 per cent at these ports in the April-July period at 36.7 MT.

Thermal coal is the mainstay of India's energy programme as 70 per cent of power generation is dependent on the dry fuel, while coking coal is used mainly for steel making.

India is the third-largest producer of coal after China and the US, and has 299 billion tonnes of resources and 123 billion tonnes of proven reserves, which may last for over 100 years.

In the wake of the COVID-19 outbreak, sharp declines were also witnessed in handling of containers, coal and POL (petroleum, oil and lubricant) among other commodities.

These ports have registered 16.56 per cent dip in cargo handling to 245.04 million tonnes (MT) between April and August this fiscal.

Cargo volumes at these ports declined for the fifth straight month in August 2020 and all ports barring Mormugao saw a negative growth.

These 12 ports had together handled 293.67 MT of cargo during April-August 2018-19.

Ports like Chennai, Cochin and Kamrajar saw their cargo volumes nosedive about 30 per cent during April-August, while JNPT and Kolkata suffered a drop of over 20 per cent.

India has 12 major ports under the control of the central government -- Deendayal (erstwhile Kandla), Mumbai, JNPT, Mormugao, New Mangalore, Cochin, Chennai, Kamarajar (earlier Ennore), V O Chidambarnar, Visakhapatnam, Paradip and Kolkata (including Haldia).

These ports handle about 61 per cent of the country's total cargo traffic. These ports handled 705 MT of cargo last fiscal.

Global gold output to contract by 1.7% – report Northern Miner Staff

THE SUSPENSION of mining activities due to the covid-19 outbreak in the second quarter of

this year will result in a 1.7% decline in global gold production in 2020, says GlobalData.

According to the data and analytics company, all the world’s top gold producers, including Newmont (TSX: NGT; NYSE: NEM), Barrick Gold (TSX: ABX; NYSE: GOLD), AngloGold Ashanti (NYSE: AU), and Newcrest Mining (ASX: NCM) are expected to experience a reduction in output during 2020 owing to restrictions in mining operations and lockdowns in several key markets, such as South Africa.

“The widespread uncertainty due to the fear of a possible global economic downturn, however, pushed gold prices to an all-time high in August 2020, and they remain around $2,000 per oz. supporting profit growth for a number of gold miners, despite the falling output,” Vinneth Bajaj, a senior mining analyst at GlobalData, stated in a press release.

IMA-Daily Update Page 20

The coronavirus pandemic led to the two largest gold miners, Newmont and Barrick Gold, reducing their production guidance from a collective 11.6 million oz. to around 11 million oz., says GlobalData.

Production from these companies, says GlobalData, more than halved in the second quarter to 1.4 million oz., down from 2.9 million oz. in the second quarter of 2019.

The reduction in output followed the temporary suspensions of operations at Barrick’s Veladero and Porgera mines and Newmont’s Cerro Negro, Yanacocha, Eleonore, Penasquito, and Musselwhite mines for most of April and May this year due to restrictions imposed by the outbreak, GlobalData says.

While AngloGold Ashanti and Kinross Gold (TSX: K; NYSE: KGC) have suspended their production guidance for the year, Polyus Gold (LSE: PLZL), Russia’s largest gold producer, has stuck with its guidance.

Restrictions due to covid-19 imposed on AngloGold Ashanti’s South African operations have led to a drop in output of 63,000 oz. in the first half of 2020 compared with the same period last year, GlobalData says, while the company’s overall reduction in global production for the first half of 2020 was 85,000 ounces.

“Other factors that have impacted the leading companies’ output during 2020 have been lower ore grades and sale of assets,” says Bajaj. “In Newcrest’s case, output was lower due to the sale of the Gosowong mine to Indotan Halmahera in March, whilst Newmont sold its Red Lake project in April and Kalgoorlie projects in the beginning of 2020.”

(Carl A. Williams – This article first appeared in The Northern Miner on September 18)

Rio Tinto awards Koodaideri contract to Alltype Engineering Salomae Haselgrove

ALLTYPE Engineering has won a contract to build an iron ore mining plant at Rio Tinto’s Koodaideri project in the Pilbara, Western Australia, via managing contractor Laing O’Rourke. Under the $6 million contract, Alltype Engineering will complete the phase one structural, mechanical and piping package for the Koodaideri mine plant.

This will see the WestStar Industrial subsidiary perform procurement, fabrication, surface protection, pre-assembly and modularisation works at the greenfield mine development.

Rio Tinto is developing Koodaideri processing plant and infrastructure with a total investment of $3.5 billion.

The infrastructure includes a 166 kilometre rail line connecting the mine to the existing network.

Alltype will preassemble and modularise the structural steel elements of the mine plant at its naval base facility south of Perth.

IMA-Daily Update Page 21

The company will bring with it similar delivery strategies used for its past projects in the oil and gas, petrochemical and infrastructure sectors.

This endorses Alltype’s strategy of continuing to build its established local fabrication capabilities, according to company engineering managing director Kelvin Andrijich.

“Alltype Engineering undertook a significant strategic shift in 2017, focussing on multidiscipline construction solutions, technology partnership with original equipment manufacturers and leveraging off the well-established industry exposure developed over 35 years of operation,” Andrijich said.

“This strategy continues to unfold, building upon delivery of successive projects of increasing scale and complexity with new and existing clients.

“The support of our new owner WestStar Industrial allows the group to execute larger contracts previously constrained by working capital, as well as start to expand the operational footprint to the east coast of Australia where there is further market opportunity.”

Alltype Engineering’s contract win with Rio Tinto will take immediate effect, the company stated.

First production from Koodaideri is expected in 2021.

CIL output may fall below 600 MT in FY21 on sluggish demand: Analysts

Press Trust of India | Kolkata

STATE-run Coal India Ltd may witness de-growth in production during the current fiscal as

its output is likely to fall below 600 million tonnes amid subdued demand, analysts said.

The miner could end the current year with the production of around 580 million tonnes of coal as against its revised target of 650-660 million tonnes, they said.

Analysts of brokerage firm Motilal Oswal projected production of 582 million tonne for Coal India and off-take of 565 million tonnes in FY2021 while ICICI Securities had estimated an output of 580 million tonne and sales of 550 million tonne this year.

However, the miner is hopeful of achieving a 10 per cent growth in 2020-21 over 602 million tonne of coal produced last year, notwithstanding the disruptions caused by the COVID-19 pandemic, a Coal India official said.

The coal behemoth had earlier set a production target of 710 million tonne for the current fiscal.

"Coal India has to match with the demand and can't keep on producing even if it has the capacity. Demand for coal remains subdued. In FY20, production was at 602 million tonne but offtake remained at 581 million tonne," an analyst said on condition of anonymity.

IMA-Daily Update Page 22

The brokerage firms also projected a lower EBITDA (earnings before interest, taxes, depreciation, and amortisation) of 17-18 per cent for Coal India in the current fiscal.

The analysts are not optimistic on sales demand even though the miner has introduced a new category of spot e-auction for importers only and aimed at replacing 150 million tonne of the fuel sourced from abroad with domestic supply.

The coal procured under the "special spot e-auction scheme 2020 for import substitution" will be for use within the country.