VMining, the First Ecommerce for Coal Trade Launched in Indonesia
August 22, 2019
PT Bumi Banua Sinergi in partnership with Visitama Teknologi Indonesia launched an e-commerce platform dedicated in the trade of mining products dubbed as the VMining.
This type of platform enables consumers to save costs where they would otherwise conduct coal surveys, view the mining location via the internet, up to numerous coal delivery alternatives that can be adjusted to a buyer’s budgeting allocation.
VMining claims the products sold in its e-commerce are those of the highest quality in accordance with GAR (gross as received).
“The coals we offer originate from Sumatra and Kalimantan which are equipped with official certificates that allow them to be traded,” said Arijanto, PT Bumi Banua Sinergi president-director on Tuesday, August 13.
Meanwhile, PT Bumi Banua Sinergi reasons that this type of coal trade is meant to reach not only the national scale but also the international market.
“In this digital era, we often witness many layers in the transactions within the coal industry. It’s difficult for buyers to meet the sellers. This technology acts as a mediator which has safe transaction security,” said Reza Putra, PT Visatama Teknologi Indonesia President-Director.
As of consumers’ privacy and data security, VMining guarantees that its platform – available in either Play Store and App Store – is safe for both, traders and buyers.
Indonesia to Speed Up Enforcement of Mineral Ore Export Ban: detik.com
August 12, 2019
Indonesia aims to speed up enforcement of a ban on mineral ore exports that is currently due to come into force in 2020, news website Detik.com quoted coordinating minister for maritime affairs Luhut Pandjaitan as saying on Monday.
“Just wait until the announcement, the point is we want to move to downstream. We will speed this up,” Pandjaitan told reporters, according to Detik.com.
The ban is aimed at making miners process minerals in Indonesia, a major exporter of nickel ore used mainly in the stainless steel industry.
Trade Minister Enggartiasto Lukita said on Friday that President Joko Widodo had asked for feedback from his cabinet on possibly bringing forward the ban on ore exports from 2022.
Pandjaitan told reporters that the expected change of timeline should not disrupt ongoing development of smelters.
Last week the Indonesia Nickel Miners Association urged the government to stick to the 2022 timetable as an earlier-than- expected export ban would disrupt revenue for miners needed to finance smelters development.
Indonesia relaxed a ban on ore exports in 2017, but only for five years and said exports would be restricted again in 2022.
As of July, Indonesia had 13 operating nickel smelters with input capacity of 24.52 million tonnes, which the miners’ group said is not enough capacity to absorb ore output.
Government data shows that 22 more nickel smelters are currently under development with additional capacity of 46.33 million tonnes.
Regent Visits Gallery of SMEs Fostered by Mining Companies
August 12, 2019
Tanah Laut Regent H Sukamta reviewed two small medium enterprises (UKM) galleries, Tiga Srikandi and PT Arutmin Indonesia Site Kintap and PT Pamapersada Nusantara in the Sungai Cuka Village, Kintap Sub-district, Saturday (10/8).
H Sukamta appreciated the company’s efforts in fostering and providing full support for the development of SMEs in the Sub-district of Kintap.
“The company’s efforts are very appreciated because a program like this is very empowering for the community and allows local people to develop their products, so they can be marketed well,” he said.
Sukamta added, everyone has their own business instincts and of course supporting facilities are needed.
“The PT Arutmin Indonesia and PT Pama Persada Nusantara programs are one of the supporting facilities for business development for the community,” he explained.
At present, he explained, the Tanah Laut District Government is focusing on encouraging the development of SMEs.
“Yesterday there was already the Tanah Laut special sasirangan that was processed by our SMEs which was sold in Malaysia. I want other products to also follow like that,” he hoped.
Redpath Helping Grasberg Block Cave Transition from Development to Full Production
August 13, 2019
After many years of hard work in PT Freeport Indonesia’s Grasberg Block Cave (GBC), the project is now well into its transition from Mine Development into Mine Production. As an example, Redpath’s GBC Production Team, led by Antony Strong and Louis Keyser, successfully delivered 240,000 t of ore (averaging 7,500 t/d) to the crusher for the month of May 2019. This brought the rate of advance slightly ahead of the production target for that month.
In all, Redpath’s production scope of work includes the drilling of production holes, services installation, secondary breakage and the mucking of Extraction Level drawpoints and cave development mucking. Redpath has successfully implemented auto drilling on the Sandvik Solo drills and the crews have been achieving up to 1,200 drill metres per day, utilising four Solo drill rigs. Redpath performs the production mucking with a fleet of six Caterpillar R1600G LHDs, which will steadily increase in number to 15 over time as the cave grows and more draw points become available to muck. The LHD operators receive real-time information on draw orders from the Cat MineStar system and dispatcher. This ensures that the block cave ore is mucked in a controlled sequence.
PTT Subsidiary Invests in New Coal Mine in Indonesia
August 13, 2019
PTT Plc’s subsidiary in Indonesia, Sakari Resources Ltd (SAR), has invested in a small coal mine in Indonesia that has 10 million tonnes of reserves.
PTT Plc’s chief operating officer for Upstream Petroleum and Gas Business group, Wirat Uanarumit, said recently that the move was aimed at securing its coal reserves for 10 years in Indonesia. Meanwhile, the company is still studying its plan to seek a listing for its coal mine business on Indonesia’s stock market, he said. Currently, PTT Plc holds a 94.56 per cent stake in SAR, which owns coal mines in Sebuku and Jembayan, a 35 per cent stake in a cold mine in Brunei, and an 80 per cent stake in a coal mine in Madagascar.
Indonesian President’s Decision on Nickel Export Ban Expected Soon, Says Government
August 13, 2019
Just a week ago Indonesia’s director general of mineral and coal refused to comment on his country’s nickel export ban being brought forward, but a statement today from its mining minister sheds some light
Indonesia’s president Joko Widodo will soon make his final decision on whether to expedite his country’s proposed export ban on various ores including nickel, according the country’s mining minister.
Luhut Pandjaitan said on 13 August, the legislation, currently slated to come into effect sometime in 2022, is being considered for an early introduction in hopes that it will spur investment in the Indonesian smelting industry.
Uncertainty over whether the ban will be implemented sooner rather than later has sky-rocketed nickel prices over the past couple of weeks, with the commodity reaching a 16-month high of $16,690 a tonne on 8 August.
Pandjaitan said: “The president’s decision is expected some time in the future, we are currently awaiting his decision.”
Referring to rising trade tensions between the US and China, he added: “In the current trade war condition, we need to attract as many investors as possible.”
Proposed nickel export ban boosts prices
Last month, nickel prices reached a one-year high rising 3.5% to $14,955 per tonne, which marked the 12th consecutive session of gains for the commodity.
The commodity’s inexorable rise throughout the year has been partly powered by traders in China, but recent speculation over whether Indonesia will enact its proposed export ban of the metal has also been a major contributing factor.
The ban was first made public knowledge through mining legislation passed by the country in 2017, but there has been scant information since.
As recently as last week, Bambang Gatot Ariyono, director general of mineral and coal in Indonesia’s mining ministry, had refused to comment on the likelihood of the law passing in the immediate future, according to Reuters.
Elsewhere, the price of cobalt has fallen sharply so far in 2019, wreaking havoc for the commodity’s market around the world sowing mass investor uncertainty.
Like nickel, the commodity is a key component in the production of lithium-ion batteries, and reached more than $40/lb this time last year, but a combination of oversupply and waning demand has seen its price slashed by as much as 60%.
Indonesian Coal Prices Hold Steady
August 14, 2019
Indonesian physical thermal coal prices held steady today, but trade was at a near standstill as market participants waited for the results to emerge of a Chinese utility’s tender to buy.
Chinese state-controlled utility Guodian yesterday issued a tender seeking 950,000t of various grades of mostly low-calorific value (CV) imported coal, all for delivery to its power plants in east China’s Jiangsu province during 1 September-31 October. The tender closes on 16 August. Views are mixed on whether the tender will offer any support to prices, although the price at which cargoes are awarded could give the market some price direction heading into next week.
Bids and offers for geared vessels in the GAR 4,200 kcal/kg Indonesian market were relatively steady compared with yesterday, with most September shipments bid at around $30.50-31.50/t and offered around $31.50-32.50/t. Details of trades were slow to emerge, although a September-loading Panamax of this coal traded at $31.80/t. Panamaxes typically trade at a premium of around 50¢/t to $1/t compared with supramax shipments.
Trade was also thin in the ICI 4 coal derivatives market after September and October traded as a spread yesterday. These trades comprised a September sale at $32/t for 5,000t, balanced by an October sale for 5,000t at $31.70/t, revealing a 30¢/t backwardation between the months.
September ICI 4 derivatives were bid today at $31.50/t and offered at $32.20/t. This is in line with the last Argus assessed price for September at $32.05/t yesterday.
Elsewhere in the Indonesian market, a September-loading gearless Panamax GAR 5,000 kcal/kg cargo was bid at $46/t and offered at $47/t. By comparison, a September-loading Panamax GAR 5,000 kcal/kg cargo traded late last week at $47/t.
The Australian market saw an October-loading 75,000t NAR 6,000 kcal/kg cargo trade at $64.20/t fob Newcastle, down from last week’s Argus assessment at $67.80/t on 8 August. By comparison, the most recent confirmed trade for October was at $68.25/t fob Newcastle last week.
The lower CV Australian market was quiet. Some Chinese buyers looking to cut costs were interested in NAR 5,100 kcal/kg coal, but that is irrelevant to the Argus index that has a minimum CV threshold of NAR 5,300 kcal/kg.
China’s domestic spot market had NAR 5,500 kcal/kg coal bid at 580 yuan/t ($82.67/t) and offered at Yn585-590/t fob Qinhuangdao.
China’s futures market saw the September contract on the Zhengzhou commodity exchange close at Yn579/t, edging up by Yn5.80/t from yesterday.
Nickel Retreats from 16-Month Peak
August 13, 2019
Nickel slipped on Friday from a 16-month high amid uncertainty over whether top producer Indonesia would soon ban ore exports while other base metals drifted lower after weak Chinese data.
Indonesia is discussing bringing forward a ban on mineral ore exports that was previously set to begin in 2022 though no decision has yet been made, its trade minister said on Friday.
Worries about possible shortages had pushed benchmark nickel on the London Metal Exchange nearly 40 per cent higher since early July to a peak on Thursday of $US16,690 a tonne, its highest since April 2018.
It has since pared those gains.
“I don’t think a ban makes sense and it looks like the market is pricing in a full ban, so I think the risks are to the downside,” said Colin Hamilton, director of commodities research at BMO Capital.
The rational thing would be for Indonesia to conduct an audit of refined nickel projects and slap an export ban only on those not making adequate progress, he added.
“If nothing happens, then the nickel price is about 20 per cent too high, but there’s a chance and it’s hard to quantify that chance, that we get something, and then the nickel market is suddenly in a bigger raw material deficit than we thought.”
Three-month LME nickel dropped 2.1 per cent in final open-outcry trading to $US15,550 a tonne but ended the week with a gain of about 7.5 per cent.
LME zinc tumbled 3.1 per cent to close at $US2,233 a tonne, the lowest since October 2016, on worries about oversupply.
“Supply is now expected to outweigh demand in the second half of 2019 as new mine supply returns to market and Chinese bottlenecks retreat,” Scotiabank commodity strategist Nicky Shiels said in a note this week.
Supply of stainless steel ingredient nickel pig iron on the Chinese spot market is “still relatively tight and some stainless steel plants have already locked in orders until the end of September,” Huatai Futures said in a note.
Metals were pressured after factory gate prices in top metals consumer China shrank for the first time in three years in July, stoking deflation worries and adding pressure on Beijing authorities to deliver more stimulus.
The premium of cash LME lead over the three-month contract jumped to $US29.50 a tonne by Thursday’s close – the strongest since June 11 – from $US3.50 two days earlier, indicating near-term shortages of material in the LME system.
The premium eased to $US21 on Friday.
One party has control of 50-80 per cent of LME inventories, data showed on Friday.
LME lead dipped 0.1 per cent to finish at $US2,069 a tonne after touching a two-week high of $US2,082.
LME copper shed 0.7 per cent to close at $US5,755 a tonne, aluminium edged down by 0.3 per cent to $US1,772 and tin added 0.3 per cent to $US16,900.
Geo Energy Q2 Profit Plummets 90% On Lower Coal Prices, Bad Weather
August 14, 2019
A CONTINUED weakness in coal prices coupled with poor weather conditions wiped out the bulk of Geo Energy Resources’ earnings for its second quarter ended June 30.
Net profit plunged 90 per cent to US$830,481 for the quarter, down from US$8.5 million a year ago, the mainboard-listed Indonesian coal producer said during the midday break on Wednesday.
Earnings per share (EPS) came in at 0.06 US cent for the quarter, less than a tenth of EPS of 0.64 US cent in the corresponding period last year.
No dividend was declared for the six months ended June 30, compared to an interim cash dividend of S$0.01 per share in the year-ago period.
Revenue fell 38 per cent to US$51.9 million during the quarter from US$83.2 million previously.
This was because of a lower average selling price, which resulted from the drop in the average Indonesian Coal Index (ICI) price compared to a year ago, as well as lower sales quantity due to poor weather conditions.
Coal sales totalled 1.4 million tonnes from its two coal mines in Indonesia – PT Sungai Danau Jaya (SDJ) and PT Tanah Bumbu Resources (TBR) – in the quarter, down from 2 million tonnes a year ago.
Geo Energy said its results were impacted by the continuously weaker coal prices amid soft demand from China.
“Asian thermal markets were pondering the growing prospect of China introducing fresh import restrictions and were weighing the possible impact on supply and prices,” the company added.
Moreover, poor weather and rainy conditions in the second quarter resulted in unfavourable conditions in the TBR coal mine, where pit access was slippery and restricted by water. A flood adversely affected the mine’s production and delivery for a few days.
But the weather has improved in mid-June and normal production and delivery of coal have since resumed, while coal loading activity in Kalimantan has also increased, Geo Energy said.
For the six months to June 30, Geo Energy sank into the red with a net loss of US$7.9 million, compared to a year-ago net profit of US$17.5 million.
The group expects its results in the coming quarters to improve if coal prices recover, especially with the increase in the target production and sales of TBR coal.
Shares of Geo Energy were trading at S$0.149 as at 2.13pm on Wednesday, up 0.5 Singapore cent or 3.47 per cent, after the results were released.
Indonesia Approves 5.22 Million wmt of Nickel Ore Export Quotas in Early Aug
August 14, 2019
Indonesia has approved 5.22 million wmt of nickel ore export quotas across three mines so far this month, exacerbating the uncertainty surrounding the country’s potential ban on raw ore exports.
In July, two mines obtained a total of 3.6 million wmt of nickel ore export quotas.
The newly-issued quotas brought the tally since 2017 to 71.57 million wmt, with 38.61 wmt still effective as of August 13. Quotas will expire in a year.
The three mines are Toshida, PT. Tonia Mitra Sejahtera and PT. Rohul Energi, and none of them have built processing and refining facilities, which might indicate that the Indonesian government’s audit over ore exporters who are committed to onshore smelter construction is not so rigorous as previously estimated.
This, on the other hand, came in line with market chatter that Indonesia’s Ministry of Energy and Mineral Resources (MEMR) will no longer grant new export quotas after they approve applications at hand.
Under a 2017 mining regulation, Indonesia is expected to stop allowing the export of unprocessed ore from January 2022. But speculation that the country will bring forward the export ban sparked fears of a supply shortage and boosted nickel prices.
SMM expects supply tightness if Indonesia stops granting new export quotas. Shipment capacity of mines, meanwhile, will likely keep actual supply from growing as much as quotas, as a slew of mines had failed to use up all quotas before expiration.
Nickel Mines Expands Ranger Stake in Indonesia
August 15, 2019
Nickel Mines has upped its stake in the Ranger nickel project in Indonesia to 60 per cent.
The company, which exercised an option within 60 days of first nickel pig iron production, increased its share by 43 per cent for $US121.4 million ($179.8 million) at a discounted valuation (of $US280 million).
Its initial acquisition for a 17 per cent interest in Ranger and all of shareholder loans came at a cost of $US50 million.
Nickel Mines made the decision in consultation with its collaboration partner Shanghai Decent, which held the other 83 per cent interest in Ranger.
“With the company now having a 60 per cent ownership interest in both the Hengjaya nickel and Ranger nickel projects (both in Indonesia), we are now firmly on track to reporting in excess of 20,000 tonnes per annum of attributable nickel metal production and establishing Nickel Mines as a globally significant nickel producer,” Nickel Mines managing director Justin Werner said.
Nickel Mines will complete its acquisition funding in three tranches, including a $US80 million senior debt facility from a Shanghai Decent associated company.
The company will also issue $US40 million worth of its shares and provide a cash payment of $US1.4 million.
Shanghai Decent commenced the commissioning of the Ranger mine in May, with two rotary kilns expected to take around two months to ramp up to 80 per cent of capacity.
“We look forward to providing further updates to the market as Ranger continues to ramp up to full production over the coming months,” Werner concluded.
West Wits Mining Set to Unlock Value of Indonesian Gold Project
August 16, 2019
West Wits Mining Ltd (ASX:WWI) has signed an agreement with Far East Venture Group (FEVG) to facilitate the ongoing maintenance and development of the Derewo River Gold Project, Indonesia.
Under the agreement, all responsibility for managing and funding the project through to feasibility will be assumed by FEVG.
The agreement provides that feasibility shall be taken to have been achieved on the issue of a detailed feasibility study by an independent expert supported by relevant exploration (including as required drill results) to verify an economic mineral resource for development.
Free carry until completion of feasibility work
Under the agreement, WWI will dilute its equity interests in PT Madinah Quarataa’n (PTMQ), the Derewo River Gold Project company, from the current 64% to 10%, which 10% interest will be free carried until completion of all feasibility work.
This dilution of WWI’s interest in PTMQ will be effected upon implementation of the agreement which is expected in the coming weeks.
Following the implementation of the agreement, all management for the operation of the Derewo Gold Project will be the responsibility of FEVG which will hold 54% equity in the project.
Managed by co-founders of Far East Resources Fund
FEVG has a focus on investing and fundraising to develop mining assets in South East Asia.
The company was started by two of the co-founders of Far East Resources Fund Ltd to build upon their success in raising capital and developing operating mining assets in Indonesia.
In circumstances where FEVG fails to progress the project to feasibility within three years, WWI at its election may call for a retransfer of its shares in PTMQ for a consideration of one dollar thereby reinstating its original equity holding at 64%.
WWI had previously written down to no value its holding in the Derewo River Gold Project.
Silkroad Nickel MOU with Nickel Giant Shandong Xinhai for Building of Indonesia Ferronickel Smelter
August 16, 2019
SGX-Catalist listed Silkroad Nickel Ltd, an Indonesian nickel mining group, has entered into a non-binding memorandum of understanding (MOU) with Shandong Xinhai (Singapore) Pte Ltd, a subsidiary of Shandong Xinhai Technology Co Ltd. Under the MOU, Shandong Xinhai is proposing to build and operate a Rotary Kiln Electric Furnace (RKEF) which will be supported by a coal-fired power plant in Indonesia for the production of up to 400,000 t/y of ferronickel. The parties to the MOU have entered into exclusive discussions to form a partnership for the development and operations of the RKEF smelter facility for mutual benefit.
Hong Kah Ing, Executive Director and Chief Executive Officer of Silkroad Nickel commented: “We are pleased to have signed this MOU with China’s largest producer of nickel alloy. Shandong Xinhai is the only enterprise in China capable of co-producing electricity and ferronickel, with a production capacity of 10 billion kilowatt hours of electric power and 1.9 Mt/y of ferronickel, which accounts for over 50% of China’s total market share. Shandong Xinhai has a permit to operate a RKEF smelter facility which meets the stringent environmental standards required in China and which can co-produce ferronickel alloy and generate electricity with a 1.4 gigawatt coal fired power plant. Silkroad Nickel shall be supplying the nickel ore required to operate the RKEF smelter facility and may consider investing in the Investment Company for the RKEF smelter facility. This would mark a further step towards our Group’s strategy of becoming an integrated nickel mining company.”
Golden Energy Produces 12.5 Million MTs of Coal in 1H
August 16, 2019
PT Golden Energy Mines Tbk (GEMS) recorded coal production of 12.5 million metric tonnes (MTs) in the first semester of 2019, 62.5% of this year’s target of 20 million MTs.
According to GEMS Corporate Secretary Sudin Sudirman, the company will possibly revise this year’s coal production target due to potential production increases in other mines operated by the company.
“Currently GEMS is proposing a revision of our production capacity to the Ministry of Energy and Mineral Resources because there are potential increases in other mines,” Mr Sudirman told Kontan.co.id, Thursday (15/8).
Mr Sudirman added that the majority of GEMS’s exploration activities this year is centred in PT Borneo Indobara which operates in South Kalimantan. In addition, the company also carries out exploration through PT Kuansing Inti Makmur in Jambi and PT Barasentosa Lestari in South Sumatra.
Indonesia to Review Coal DMO Rules to Support Gasification
August 16, 2019
Indonesia President Vows to Process More Resources Onshore
August 16, 2019
Indonesia should do more to develop downstream industries to process natural and mineral resources domestically, bolstering Southeast Asia’s largest economy, President Joko Widodo said in his state of the union address to parliament on Friday.
Widodo listed minerals such as bauxite and nickel, as well as coal, palm oil and fisheries, as the type of resources Indonesia should process more of onshore to increase their value before exporting.
Indonesia is a major exporter of resources such as nickel ore and talks of expediting a mineral export ban due in 2022 sent London nickel prices to a 16-month high earlier this month, while Shanghai nickel hit a record high.
“We need disruptive innovations that are turning impossibilities into opportunities,” Widodo told the parliament.
A downstream bauxite industry was needed to slash imports of alumina, while processing coal to dimethyl ether gas would replace imported liquefied petroleum gas (LPG), he said.
“We are building a downstream industry for nickel to make ferronickel, so its value can increase by four times,” he added.
Widodo’s ministers have said the president has asked for input from his cabinet on possibly moving forward a ban on the export of unprocessed ores from 2022, and that he is expected to decide “some time in the future”.
The president also said Indonesia should be able to develop fuel made from 100% palm oil as well as jet fuel made from palm oil.
“We have produced our own jet fuel, but we can do more than that, we can export jet fuel and we also want to produce palm-based jet fuel,” he said.
The government wants to expand the use of palm oil into the energy sector to absorb excess supply amid sluggish global demand for the vegetable oil, while addressing the country’s energy needs.
During the speech, Widodo, who is due to start his second term in October, also repeated promises to continue regulatory and bureaucratic reforms.
Government institutions that have similar roles will be merged and inefficient civil servants will be removed, he said.
The president, however, said some areas require tighter rules as a response to advances in technology, including on data protection due to cybercrime.
“Data is the new type of wealth for our nation, it is now more valuable than oil,” he said.
Sales Revenue Grows Amidst Global Economy Slowdown
August 16, 2019
Economy slowdown results in a lower coal price.
PT Indo Tambangraya Megah Tbk. (ITM) recorded growth in total sales revenue in the first half of 2019 amidst global economy slowdown.
The global economy which was under pressure as a consequence of trade war has caused coal demand – mainly from China – to weaken worldwide, resulting in a lower coal price.
Nevertheless, sales revenue went up by 10% to USD 893 million from USD 809 million in the first half in the preceding year. That resulted from higher sales volume by 28% from the same period last year to 12.3 million tons.
However, the company’s net income went down by 31% from USD 130 million in first half of last year to USD 69 million in the same period this year, mainly due to weakening coal price. The average coal price in the first half of 2019 was recorded USD 68.8 per ton, 16% lower from USD 80.9 per ton from the same period last year.
On the other hand, higher sales volume was also parallel with higher coal production volume causing roduction cost to increase. Furthermore, lower net income was also contributed by higher costs as result of higher stripping ratio as the company in the first half continued optimizing coal reserves by digging deeper.
With lower ASP and higher cost, gross profit margin was recorded 10% lower to 18% versus 28% in the first half of last year while EBIT in this period declined by 42% to USD 96 million. And lastly the net income in the first half of the year was recorded at USD 69 million. Earnings per share during the period was booked at USD 0.006.
By the end of June 2019, ITM’s total assets were valued at USD 1,324 million while total equity was USD 885 million. The company has maintained a strong net cash position of USD 287 million with short term borrowings of USD 4 million.
The company in the first half of this year shipped coal to China (4.0 million tons), Japan (2.0 million tons), Indonesia (1.6 million tons), India (0.8 million tons), Bangladesh (0.6 million tons), and other countries in East, South, and Southeast Asia.
In the first half of 2019, the company produced 11.4 million tons of coal. For 2019, production volume is targeted at 23.6 million tons while our sales volume target has been set at 26.5 million tons, of which 93% has already been sold.
With rapid technology advancements and a fast-changing environment in the energy sector, ITM sees significant potential to use technology, digital capabilities and mindset to create more value for shareholders.
As a result, we have commenced a digital transformation process. The digital transformation is aimed to improve our technology, our mindset and our organization to innovate ways of work, improve products and services and expand into new business potentials. We believe that the result from the digital transformation will be one core key competency to execute our strategies in the years to come.
Three State-Owned Enterprises Held the Republic of Indonesia's Independence Day Ceremony in Lampung Tourism Destination
August 16, 2019
Commemorating the 74th Independence Day of the Republic of Indonesia, PT Bukit Asam Tbk together with PT Brantas Abipraya (Persero) and PT Kawasan Berikat Nusantara (Persero) held Indonesian Independence Day ceremony at M Beach Kalianda, South Lampung, Saturday (08/17). Acting as Ceremony Inspector was PT Bukit Asam Tbk Director of Human Resources, Joko Pramono.
Starting at 08.00 WIB, the Republic of Indonesia Independence Day Commemoration Ceremony was attended by approximately 400 participants consisting of the management of the three SOEs, representatives of SOEs located in Lampung Province, local government, representatives of the Lampung community, as well as Siswa Mengenal Nusantara or Students Getting to Know the Archipelago from North Maluku.
This year’s ceremony was special because it was held at one of the tourist destination in South Lampung. M Beach, also known as Merak Belatung Beach or Embe Beach, was chosen as one of South Lampung’s icons and was expected to be a tourism promotion for this area.
This ceremony was one of BUMN Hadir Untuk Negeri (BHUN) or State Owned Enterprises for the Country program series. With the theme “SDM Unggul Indonesia Maju”, the commemoration ceremony of the 74th Independence Day of the Republic of Indonesia went solemnly and smoothly.
On that occasion, Bukit Asam, Brantas Abipraya, and Kawasan Berikat Nusantara, appointed as the Coordinator of BHUN Lampung Province, handed over a number of assistance in the form of basic needs for the people of Lampung. The assistance was handed over symbolically by Bukit Asam HR Director, Joko Pramono to the beneficiary representative. These included renovation assistance for 10 houses, clean water facilities, electrification for 50 households, 50 toilets, and student scholarships.
Besides ceremony, the commemoration of the Independence Day of Republic of Indonesia was also enlivened with various activities such as the 5KM Healthy Walk, several competitions, free medical treatment, exhibitions and free culinary. Located in the Kalianda Korpri Field, South Lampung, the 5KM Healthy Walk would be attended by around 4,000 participants consisting of Lampung people on Sunday (18/08).
Various kinds of competitions and prizes have been prepared to add to the excitement of this event. Moreover, various activities were also held at the Kalianda Korpri Field especially for the local people, including free medical checks and blood donations.
Also, there was exhibition of local SMEs and fostered partners of BUMN in Lampung. This activity was expected to serve as a promotion of SME products to the community to encourage the creation of job employments in Lampung.
Borneo Olah Sarana Confident in Positive Performance Despite Declining Benchmark Coal Prices
August 15, 2019
PT Borneo Olah Sarana Sukses Tbk (BOSS) is optimistic that the company’s performance will remain positive this year despite the trend of declining benchmark coal prices. This is due to the relatively stable high-calorie coal demand with a price of above the average US$ 70 per metric tonne (MT).
BOSS CFO Widodo Nurly Sumady explained that until July this year the company’s average coal production increased from the previous three months to 75,000 tonnes per month. “In the second semester this year, BOSS focuses on increasing production from both mines that are currently in operation,” said Mr Sumady in a press release received by IDNFinancials.com, Thursday (15/8).
“We target a production increase of above 500,000 tonnes until the end of the year, up 200% from last year.”
In addition, BOSS is also optimistic its sales will double from last year. This year, the company has secured new clients from Japan, namely Itochu and Banpu Group, from the high-calorie coal segment.
In the first semester of 2019, BOSS recorded net sales growth of 28% year on year (yoy) to Rp 172.9 billion. Its gross profit in the second quarter of 2019 also grew 19% yoy to Rp 68.43 billion.
Bukit Asam Launched Three Books on Indonesia's Independence Day
August 17, 2019
On the Republic of Indonesia’s Independence Day’s celebration, PT Bukit Asam Tbk launched three books about the corporate journey and social activities. The three books summarized in the Bukit Asam Trilogy were titled “100 Years of the Tanjung Enim Mine”, “Tanjung Enim Towards Tourism City”, and “Era’s Changing, Brilliance’s Awaiting”. These three books were launched after the Republic of Indonesia’s Independence Day Commemoration Ceremony by the Director of Production Operations of PT Bukit Asam Tbk, Suryo Eko Hadianto, at PT Bukit Asam Tbk office yard in Tanjung Enim, Saturday (17/8).
Coal mining in Tanjung Enim started in 1919 by the Dutch colonial government. Exactly in year 2019, the Tanjung Enim coal mine was 100 years old. This was the reason Bukit Asam launched the book “100 Years of the Tanjung Enim Mine”.
In “100 Years of the Tanjung Enim Mine” book, Bukit Asam summarized the journey of the Tanjung Enim coal mine ever since it was still an underground mining until it became an open pit mining today. The Tanjung Enim coal mine was a silent witness to the coal mining journey that took place in Tanjung Enim and to the development of various mining world technologies.
As the coal mining activities became more developed and advanced in Tanjung Enim, Bukit Asam also paid closer attention to the environment and the lives of the local people around the company. Bukit Asam was committed to continue caring for the environment and fostering community welfare, one of which is through the Tanjung Enim Tourism City program, which was then revealed in the book “Tanjung Enim Towards Tourism City”.
Learning from Sawahlunto, a post mining site which developed into tourism sector, Bukit Asam began to invite the local people to build Tanjung Enim Tourism City together. The purpose was to encourage the local people to become more independent through the tourism sector since the Tanjung Enim region was very protential as tourist destination.
Through Tanjung Enim Tourism City, Bukit Asam encouraged the people’s enthusiasm to present local culture and to create a variety of traditional artworks of Tanjung Enim. Bukit Asam also urged the people to take care of the existing tourist destinations and to create new tourist destinations to attract potential tourists.
In order to support this program, Bukit Asam has undertaken several numbers of facilities constructions such as the Love Park, Sriwijaya Gate as the entrance gate of Tanjung Enim Tourism City, Mini Zoo, and the jogging track. In addition, Bukit Asam also planned to establish Coal Mining Museum that would expose the mining journey at Tanjung Enim.
The third book “Era’s Changing, Brilliance’s Awaiting” was actually intended for children and contained pictures. This book told the history of the Tanjung Enim mine since 100 years ago and also the history of Bukit Asam until today. The company’s journey presented in pictures was expected to make it easier for children to understand the state-owned coal mining company’s journey.
The publication of these three books aimed to give further information about the history of coal mining and Bukit Asam. Moreover, this book was presented by Bukit Asam for Indonesia on its 74th anniversary as the company’s real contribution in developing the country.
State Mining Holding Company Rebrands as MIND ID
Holding Industri Pertambangan (HIP) has officially rebranded itself as MIND ID, an acronym for Mining Industry Indonesia, as part of the company’s transformation into a super holding enterprise that oversees five mining companies: Aneka Tambang (Antam), Bukit Asam, Freeport Indonesia, Indonesia Asahan Aluminium (Inalum) and Timah.
MIND ID president director Budi Gunadi Sadikin said in a statement on Saturday that the change reflected the company’s commitment in ensuring that state-owned mining companies would benefit the people of Indonesia.
“Their output “will not be directly sold but processed to create more added value and bring more benefits to the nation and state,” he said. His statement is in line with Government Regulation No. 1/2014 that bans the export of raw mining products to push local companies to create more value-added products as opposed to raw extracts.
The rebranding would not change the status of Inalum as a holding company. Inalum booked Rp 65.2 trillion (US$4.58 billion) in consolidated revenues last year, up 38 percent from the previous year. Meanwhile, profits rose by 54 percent to Rp 10.5 trillion in 2018.
Newcrest Ready to Divest Interest from Indonesian Asset
In its 2018/19 Full Year Financial Results, published on August 16, 2019, Newcrest Mining (ASX: NCM) announced that it has started a process aimed at divesting a least a 26% interest from its current 75% ownership of the Gosowong gold operation in Indonesia.
The move comes after the Joko Widodo government issued last year a mandate stating that major mines such as Gosowong or Freeport-McMoRan’s (NYSE:FCX) Grasberg have to be at least 51% owned by Indonesian companies.
“Newcrest’s 75% owned Indonesian subsidiary, PT Nusa Halmahera Minerals (PTNHM), entered into an agreement with the Government of Indonesia to amend the Gosowong Contract of Work (CoW). A key amendment to the CoW included a requirement that Indonesian parties own at least 51% of PTNHM within two years of signing the amendment agreement,” the report reads.
According to the Australian Financial Review, an auction for the interest in the $246-million asset is already underway and a transaction should be completed before the miner’s deadline to divest, which is set for June 2020.
Gosowong is located on Halmahera Island, about 2,450 kilometres northeast of the national capital, Jakarta. It is a gold (epithermal and epithermal – low sulfidation) deposit, with additional occurrences of silver.
Through the year ended on June 30, the underground operation produced 190,000 ounces of gold and generated $29 million in free cash.
The Future of Mining
After Indonesia’s Petrosea embarked on the digital transformation of its Tabang coal mine in Kalimantan in June 2018, it soon became apparent that initiatives like real-time performance monitoring and predictive maintenance would help ensure the company’s sustainable growth.
Indonesia is ASEAN’s largest producer of coal and fifth largest in the world, and as demand for energy continually increases, a number of Southeast Asian countries continue to utilise coal as a cheap way to meet their energy needs. In a 2017 report, the International Energy Agency (IEA) stated that Southeast Asia’s energy demands are forecasted to grow as much as 60 percent by 2040 with coal accounting for almost 40 percent of that growth.
Despite various challenges such as the volatility in global coal prices, disruptions in the mineral and coal markets and sustainability concerns, Petrosea took the plunge and adopted Fourth Industrial Revolution technologies such as big data and advanced analytics in a bid to further improve the company’s operational and financial performance.
The results came in just six months when Petrosea was able to increase its production by 30 percent and transform a challenging project in a remote area into one of the company’s most profitable operations.
Fast-forward one year, and the company made headlines last month after being the only ASEAN-owned company to feature in the World Economic Forum’s Global Lighthouse Network – a community of manufacturers that are showing success in integrating Fourth Industrial Revolution technologies to drive efficiency, innovation and financial impact.
A factory in Indonesia owned by France’s Schneider Electric joined the Tabang mine as among the 10 newest additions to the Global Lighthouse Network – no mean feat considering there were over 1,200 applicants. There are now 26 lighthouses across multiple geographies and industries, serving as beacons to guide others to overcome challenges in upgrading systems and applying cutting-edge technologies.
“This is a very proud moment for us,” said Hanifa Indradjaya, President Director of Petrosea.
“Our digital transformation at Tabang enabled us to reduce cost and increase production, and as a result, we have achieved incredible results in a very short amount of time. This is only the first step of our company-wide digital transformation,” he added.
In an interview with The ASEAN Post, Petrosea explained how the real time monitoring system of its mining fleet in Tabang led to improved decision-making.
The mine’s heavy equipment was installed with sensors that captured data (e.g. fuel consumption, driver performance and road conditions) in real time for improved analysis and decision-making, allowing operators to instantly know which equipment is consuming more fuel, which driver is inefficient and which patch of road requires maintenance.
A predictive maintenance system used to monitor the mine’s heavy equipment has extended its lifetime and helped increase average equipment availability to over 90 percent.
Drones took to the skies to plan mines, conduct mine surveys and monitor road conditions, and an app was specifically developed to control operational activities and enable supervisors to make decisions and action plans to increase productivity.
“We have seen first-hand how advanced analytics, machine learning and Internet of Things (IoT) have transformed our operations, and we believe it has wide applicability and scalability,” explained Hanifa.
Plans are now underway to implement similar digital transformations in the company’s other business lines and supporting units. However, implementing these changes have not been easy.
Due to its remote location – reaching the Tabang mine requires around seven hours of travel by car and a further three hours by boat – a stable network connection proved to be a huge barrier, particularly when using, sharing and integrating big data.
In addition, shifting the behaviour and mind-sets of employees to get them to fully embrace new ways of working was another challenge towards creating a more technologically advanced and sustainable mine.
Raising skill levels, promoting sustainable mining
As the United Nations Development Programme (UNDP) and UN Environment noted in its ‘Managing mining for sustainable development’ report in 2018, the growing trend of automation in the mining industry means that raising workers’ skill levels might increasingly become a necessity instead of an option.
It is estimated that further diffusion of automated technologies in the mining industry will likely reduce the number of jobs in a typical mine by 30 to 75 percent. Demand for lower-skilled jobs such as truck drivers and drilling and blasting workers will decline while demand for remote machinery operators will increase.
Mining is a sector with rapid technological progress, and enabling people to learn and acquire skills can foster the productive capabilities of other companies in the country – arguably the single most important factor in driving economic development.
The main constraints to sustainability in the mining sector remain the ever-increasing demand for mined resources, the consumption of resources needed for extracting and processing the mined material, and the increasing pollution generated by the extraction process.
While more environmentally friendly technologies might be costlier in terms of capital and operational expenditures, these technologies can also be more efficient – thereby increasing revenue and reducing environmental clean-up and liability costs.
Thus, incentives for companies to incorporate more innovative solutions and cleaner technologies in a more cost-effective manner will improve the competitiveness of the mining industry and uphold strong environmental standards.
With solar and wind power dropping in cost as technology improves, and renewable energy enjoying a surge in investment, the coal mining industry faces some long-term profitability challenges.
Given the importance of mining to revenue and employment in some developing countries, fostering sustainable and efficient mining practices with the help of Fourth Industrial Revolution technologies will be critical in ensuring the industry’s survival in the years to come.
Haritajaya Is Exploring The Sales of Its Minority Stake in CITA
PT Harita Jayaraya, the main shareholder of PT Cita Mineral Investindo Tbk (CITA) is exploring the sales of its minority stake in CITA to a strategic partner, Glencore International Investment Ltd.
As quoted from the disclosure of company information, Lim Gunardi Hariyanto, Director of PT Harita Jayaraya, said that the sales would not have a negative impact on CITA’s operation, financial condition, and business continuity.
The current composition of CITA’s shareholders is as follows: PT Harita Jayaraya (91.02%), PT Suryaputra Inti Mulia (6.38%), and the public (each under 5%) (2, 61%).
Mining People on The Move
Gulf Manganese Corporation – Building A Successful Indonesian Smelting Business
The developer of premium Indonesian Manganese Alloys, Gulf Manganese Corporation Limited (ASX: GMC) has appointed highly experienced Mr. Ian Gregory as Company Secretary, as per the latest update on ASX.
Mr. Ian Gregory is a professionally well-connected Director and Company Secretary with more than 30 years of experience in the provision of company secretarial and business administration services. He has previously served as Chairman of the Western Australian Branch Council of Governance Institute of Australia.
On Education front, he has a Bachelor of Business degree from Curtin University and is a Fellow of the Governance Institute of Australia, the Financial Services Institute of Australia as well as a Member of the Australian Institute of Company Directors.
Earlier, Mr. Robert Ierace was serving as Company Secretary; however, due to increasing finance and governance requirements, the company made a decision to separate the finance and secretarial roles in order to strengthen the company’s professional resource base. Consequently, Mr. Robert Ierace is retiring from the position of Company Secretary to focus on his role as Chief Financial Officer.
Gulf to Acquire Strategic Interest in Iron Fortune Pty Ltd
Gulf Manganese Corporation recently made a strategic step to diversify its asset base beyond Indonesia by entering into an agreement to acquire a strategic 20% interest in Iron Fortune Pty Ltd. This is expected to provide Gulf with a first to market exploration opportunity in Timor-Leste. As per the Gulf, Iron Fortune’s strong local relationships and geological knowledge of the region will help the company in growing manganese footprint outside of Indonesia.
To acquire the 20% interest, the company will have to make an initial payment of A$100k for exclusivity while the due diligence process is completed. Both the companies have agreed for coordination in order to develop a work plan and strategic direction. And once the due diligence process is finalised, the company will pay a further A$200k and issue shares worth A$100k; and Iron Fortune will issue Gulf a 20% stake.
As per the financial terms, Gulf will also commit to spending A$300k on the Business by 31 August 2020, and a further $300k in the following 12 months to earn 35% and then 51% interest in Iron Fortune. Once the 51% interest is earned, Gulf will complete a mining study and reach a decision to mine to earn a further 29% interest for a total of 80%. After which, the current shareholders of Iron Fortune will have the right to fund the mining and development costs on a pro-rata basis. In case, Gulf completes the acquisition to 100% of Iron Fortune, the current shareholders will receive a 2.0% Net Royalty on Profit.
As per terms of the agreement, Hamish Bohannan will be appointed Non-Executive Director of Iron Fortune Board.
The company’s management believes that this partnership can significantly de-risk the Gulf’s ore supply chain and help it in expanding its high-quality manganese mining footprint and processing capabilities. It is believed that this will help in the development of Gulf’s Kupang Smelting Hub facility.
The agreement is subject to various conditions, which include:
Review of Company’s Operations
In the June quarter, the company made substantial operational progress with several key milestones achieved, including the securing of the Company’s Direct Shipping Ore (DSO) licence in May 2019.
In the month of May, the Company’s Indonesian subsidiary, PT Gulf Mangan Grup (GMG) received its Direct Shipping Ore Licence from Indonesia’s Ministry of Trade, allowing GMG to export up to 103,162 tonnes of high-grade manganese ore per year.
During the quarter, key management personnel attended the Vienna’s International Manganese Institute’s (IMnI) annual conference.
Recently, the company vended High-Grade Timorese manganese mine, Putra Indonesia Jaya (PIJ) to its key Indonesian and Singaporean partners and announced its intention to supply the 100% of the ore produced from this mine to Gulf’s operations in Kupang. It is expected that ore supply from the mine will commence in the month of September 2019. By the first quarter of calendar year 2020, the ore supply is expected to increase to around 2,000 tonnes per month.
During the quarter, the company successfully raised A$3.24 million by issuing ~647.20 million shares at $0.005 per share. The company has also agreed to place further 45 million shares at an issue price of $0.007 to Acuity Capital for a total of A$0.32 million in accordance with the Controlled Placement Agreement with Acuity announced on 31 January 2018. As per the company, the funds received from the placements will be used to advance preparations for DSO start-up and for general working capital purposes.
Cash Flow Position
During the June quarter, the company spend $679k of cash on development activities, $485k on staff costs and $624k on administration and corporate costs. The total net cash used in operating activities during the June quarter was around $1.79 million. The net cashflow from investing and financing activities during the quarter was $92k and $5,220k respectively.
The total estimated cash outflows for September quarter is around $1.7 million which includes around $980k to be spent on development, $450k to be spent on staff costs and $280k to be spent on administration and corporate costs.
By ramping up DSO exports over the coming months, the company intends to utilize the generated cash to finalise the commissioning of first two smelting hub furnaces at Kupang, which remain on-track for completion in the first quarter of next year. The company is also advancing discussions with debt funding providers and potential offtake partners to expedite this construction process.
At the time of market close on 5th August 2019, GMC’s stock was trading at a price of $0.007 with a market capitalisation of circa 34.56 million.
Mining People on The Move
PT Bumi Resources Tbk - Yingbin Ian He
PT Bumi Resources Tbk. (“BUMI” or the “Company”) has convened an Annual General Meeting (“AGM”) or “the Meeting”), Tuesday (18/6) at J.S Luwansa Hotel. The Meeting had satisfied the quorum as it was attended by the shareholders, representing 33,699,426,952 shares or 51,47% of total shares carrying valid voting rights issued by the Company, in accordance with the provision of POJK No. 32 and Article 11 paragraph (1.a) of the Articles of Association of the Company, and the Meeting was therefore declared valid and may adopt resolutions that are valid and binding upon the Company.
The Agenda Items of the AGM were as follow:
1. Approval for Directors Accountability Statement in respect of the Company’s operations for Financial Year ended 31 December 2018.
2. Ratification of Balance Sheet and Profit/Loss Accounts for Financial Year ended 31 December 2018.
3. Utilization of Profit of the Company.
4. Appointment of Public Accountant to conduct the audit of Financial Statements of the Company for Financial Year ended 31 December 2019.
5. Change and/or reconfirmation of composition of Directors and Board of Commissioners of the Company.
By way of voting, the Meeting based on majority votes resolved the following:
First Agenda Item:
1. To approve the Company’s Annual Report, the key points of which have been presented by Directors of the Company and reviewed by Board of Commissioners regarding the conditions and operations of the Company for financial year ended on 31 December 2018.
Second Agenda Item
1. To approve Financial Statements of the Company for financial year ended on 31 December 2018, having been audited by Public Accounting Office Amir Abadi Jusuf, Aryanto Mawar dan Rekan (RSM Indonesia) with an Unqualified Opinion as set out in their report No. 00272/2.1030/AU.1/02/0501-2/1/III/2019 of 28 March 2019.
2. To grant full release and discharge to Directors and Board of Commissioners of the Company for their managerial and supervisory activities for financial year ended 31 December 2018 (acquit et de charge) so long as and to the extent that their actions are reflected in the Annual Report and Financial statements of the Company for financial year ended on 31 December 2018 and are not contradictory to laws and regulations.
Third Agenda Item
1. To declare that for the financial year ended 31 December 2018, the Company is unable to distribute dividends to all of its shareholders.
Fourth Agenda Item
1. To appoint Public Accounting Office Amir Abadi Jusuf, Aryanto, Mawar dan Rekan (RSM) as the auditor who will be auditing financial statements of the Company for financial year ended December 31, 2019 and/or for a given period throughout 2019 (as and when needed at any time), as well as grant the powers and authority to Directors of the Company to determine the amount of honorarium for Public Accountant, as well as other requirements for their appointment upon considering the recommendation of Board of Commissioners of the Company.
2. To grant the authority to the Meeting to delegate the appointment and dismissal of public accountant who will be auditing the financial statements of the Company for financial year 2019, and other periods in financial year 2019, to Board of Commissioners, upon considering their recommendations in accordance with the provisions of Article 36A paragraph (1) of Rule of OJK No. 10/POJK.04/2017 on Amendment to Rule of OJK No.32/POJK.04/2014 on the Planning and Convening of General Meetings of Publicly Listed Companies.
Fifth Agenda Item
1. To approve the resignation of Bapak Haiyong Yu from his position as Director of the Company, as well as grant a full release and discharge (acquit et decharge) from all his managerial and supervisory actions carried out in relation to his function as Director of the Company, which resignation shall take effect as of the closing of the Meeting.
2. To approve the appointment of Bapak Yingbin Ian He as Director of the Company, which appointment shall take effect as of the closing of the Meeting until such time as the office term of the replaced member of Directors expires in accordance with the Articles of Association of the Company, namely at the Annual General Meeting 2022 of the Company, without impairing the rights of the shareholders to dismiss him at any time, according to the prevailing laws and regulations.
3. To approve the reappointment of:
1) Bapak Saptari Hoedaja, as President Director of the Company;
2) Bapak Andrew C. Beckham, as Director of the Company;
3) Bapak Dileep Srivastava, as Independent Director of the Company;
4) Ibu R.A. Sri Dharmayanti, as Director of the Company;
5) Bapak Nalinkant Amratlal Rathod, as President Commissioner of the Company.
which appointment shall take effect as of the closing of the Meeting until such time as the Annual General Meeting 2024 of the Company is held, without impairing the right of the Shareholders to dismiss each of them at any time in accordance with the prevailing laws and regulations.
Accordingly, the composition of Board of Commissioners and Directors of the Company shall be as follows:
Board of Commissioners:
1) Bapak Nalinkant Amratlal Rathod, as President Commissioner of the Company;
2) Bapak Drs. Anton Setianto Soedarsono, as Independent Commissioner of the Company;
3) Bapak Drs. Kanaka Poeradiredja, as Independent Commissioner of the Company;
4) Bapak Y.A Didik Cahyanto, as Independent Commissioner of the Company;
5) Bapak R. Eddie Junianto Subari, as Commissioner of the Company;
6) Bapak Thomas Myer Kearney, as Commissioner of the Company;
7) Bapak Jinping Ma, as Commissioner of the Company; and
8) Bapak Wen Yao, as Commissioner of the Company.
1) Bapak Saptari Hoedaja, as President Director of the Company;
2) Bapak Andrew C. Beckham, as Director of the Company;
3) Bapak Dileep Srivastava, as Independent Director of the Company;
4) R.A. Sri Dharmayanti, as Director of the Company;
5) Linjung Zhang, as Director of the Company;
6) Xuefeng Ruan, as Director of the Company; and
7) Bapak Yingbin Ian He, as Director of the Company.
4. To grant full authority and powers with the right of substitution to Directors of the Company either individually or jointly to perform any necessary acts in relation to the resolutions adopted herein, including but not limited to stating the appointments of the members of Board of Commissioners and Directors of the Company in a notarial deed and registering the same in the Company Register in accordance with the prevailing laws and regulations.
5. To approve the grant of authority to Board f Commissioners of the Company, taking into account the recommendations from the Nomination and Remuneration Committee of the Company, to determine the salary, honorarium and other allowances (if any), as well as distribution of duties and authority of each member of Directors and Board of Commissioners.
Mining People on The Move
Asiamet Resources - Feng (Bruce) Sheng
Asiamet Resources Limited (“Asiamet” or the “Company”) is pleased to announce the appointment of Mr Feng (Bruce) Sheng as a Non-Executive Director to the Board effective from 10 July 2019. Mr Sheng is the Chairman of Melbourne based Asipac Group Pty Ltd, a diversified company with investments across the resources and financial sectors, and various property businesses. Mr Sheng also currently serves as Vice Chairman of the Australia China Business Council (Victoria) and the Executive Chairman of ASX listed Terramin Australia Ltd, a company developing a portfolio of zinc and gold projects in Australia and Algeria.
Tony Manini, Executive Chairman commented:
“On behalf of the Company we welcome Bruce to the Asiamet Board. Bruce has been a long-term supportive shareholder and we look forward to the opportunity to work more closely with him as we move into the project financing and development stage for the BKM project and continue advancing our other high potential projects on the KSK CoW and at Beutong. Bruce has spent the past 25 years working at the interface between China-Australia business and brings extensive experience and networks across China and greater Asia to the Asiamet board. This is particularly relevant given China’s One Belt-One Road policy and the large amount of Chinese inbound investment into Indonesia associated with it. Enhancing the Company’s level of connectivity with China is expected to add significant value as we continue the development of our portfolio of high-quality copper, gold and polymetallic projects. Different skills and experience will be required to take the Company forward and as such further evolution and strengthening of the board and management team is considered an important requisite for continued growth. Our ability to attract new directors of the calibre of Bruce, and Dominic before him, are testament to the progress we have made and the quality of the growth opportunity that Asiamet presents for investors. We look forward to continuing to deliver on our plans for the benefit of all stakeholders.”
The Company provides the following additional disclosure as at 10 July 2019 relating to the appointment of Mr Feng (Bruce) Sheng as director of Asiamet, effective 10 July 2019:
Mr Feng (Bruce) Sheng, aged 56, currently holds or has held the following directorships and partnerships over the last five years.
Mr.Sheng,through the holdings of Asipac Group,has an8.55% interest in the securities of Asiamet at the date of this announcement.
Except as disclosed in this announcement, neither the Company nor Mr. Sheng are aware of any further disclosures that are required in respect of the appointment of Mr. Sheng under Rule 17 or paragraph (g) of Schedule Two of the AIM Rules for Companies.
ON BEHALF OF THE BOARD OF DIRECTORS
Tony Manini, Executive Chairman
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