Mitrais Mining Newsletter

Although still experiencing a weak coal market and global economic uncertainties during the COVID-19 pandemic, the strategic initiative of PT Petrosea Tbk (PTRO) to implement digitalization and technology to enhance our operations since mid2018 has helped the Company tremendously in delivering sustainable operations.

During the third quarter of 2020, Petrosea recorded an additional backlog from one of its main clients in the Contract Mining business line, therefore by the end of September 2020, the Company successfully recorded a backlog of US$835.3 million. In 3Q2020, the Company’s total revenue increased compared to 2Q2020 (+2.24% qoq). Meanwhile, gross profit (+25.30% qoq) and operating profit (+54.44% qoq) also increased in this period. However, during 9M2020, the Company recorded a 22.11% decrease in overburden removal volume compared to the previous year, which resulted in the total revenue of the Company amounting to US$249.93 million (-34.01% yoy) and profit attributable to owners of the company amounting to US$13.00 million (-36.83% yoy).

In facing these challenging times, Petrosea continues to implement various innovations within all mining and engineering aspects, including developing a new business model as well as enhancing its capabilities through various organizational development initiatives.

All of these efforts are carried out with the goal of creating an agile Company in facing the current and future volatile global conditions. In addition, the Company also continues to focus on maintaining the cost effectiveness of its operational activities and cash preservation, while remaining focused on implementing operational excellence in order to provide the best results for all clients.

Throughout 2020, Petrosea continues to carry out various CSR activities and programs that focuses on its four CSR pillars, which are Education, Health, Economic Empowerment and Environment. Through the implementation of these programs, Petrosea is committed to aligning its business performance with providing benefits to the surrounding communities and environment as part of the Company’s stakeholders. During this pandemic, Petrosea is also focusing on implementing various programs to assist the Indonesian Government, employees, as well as communities around the Company’s operational areas to handle the spread of the COVID-19 virus.

PT Aneka Tambang Tbk (ANTAM; IDX: ANTM; ASX: ATM) is proud to announce that the Company has receives Platinum Rank for the QCC Smart Plan and QCI Riyuvi at The XXIV National Quality & Productivity Competition (TKMPN) and The International Quality & Productivity Convention (IQPC) 2020. The award was submitted by Wahana Kendali Mutu virtually on November 18, 2020.

ANTAM’s Human Resources Director, Luki Setiawan Suardi said:

“The achievements of the Smart Plan Quality Control Team (GKM) from the Geomin & Technology Development Unit and the Riyuvi Advice System (SS) team from the Precious Metals Processing and Refinery Business Unit, are prove that ANTAM’s employee have excellent competencies and able to create innovations for the Company. ANTAM as part of Mining Industry Indonesia (MIND ID) is always committed to building the Company’s human resources and opening the widest possible opportunities for ANTAM’s employee to improve their skills and competencies.”

GKM Smart Plan through the innovation of Strategic Mineplan Analysis for Estimating Nickel Deposit Reserves receives the Platinum predicate in the QCC category. Meanwhile, SS Riyuvi through the innovation of Increasing Gold Sales Conversion through the Website by Optimizing Big Data Analytics receives the Platinum predicate for the QCI category.

The Annual XXIV TKMPN and IQPC are national scale annual events held by the Indonesian Quality & Productivity Management Association in collaboration with PT Wahana Kendali Mutu and supported by the Ministry of Manpower, the Asia Pacific Quality Organization, and The Asian Productivity Organization.

TKMPN is an event of the skills and successes story of national private companies and State-Owned Enterprises, government agencies, cooperatives, universities and non-profit organizations in managing the quality and productivity of companies, both individually and in groups with various management system approaches.

The government is considering to shut down the aging Suralaya coal-fired power plant (PLTU) in Cilegon, Banten, and replace it with green energy, as Indonesia chases its long-delayed commitments to cut carbon-dioxide emissions.

The Energy and Mineral Resources (ESDM) Ministry’s freshly appointed renewables director general, Dadan Kusdiana, said on Nov. 16 that his office was conducting an internal study to replace Suralaya with a battery-equipped solar farm (PLTS).

Adding batteries to a solar farm makes it more expensive but enables it to provide 24-hour electricity from the sun, which is otherwise an intermittent energy source.

“[Suralaya] is already 35-years-old. We are looking at whether it should be demolished and replaced with a new utility-scale solar farm, with batteries, so there’ll be no intermittency issue,” he told lawmakers at a public hearing in Jakarta.

The 3,400-megawatt Suralaya plant comprises seven units that began operations between 1984 and 1997. The plant, owned by PT Indonesia Power, a subsidiary of state-owned electricity giant PLN, is one of the biggest coal plants in Southeast Asia.

Suralaya is also the biggest among 5,655MW worth of other coal plants over 20-years-old that the energy ministry is planning to replace with green plants in chasing Indonesia’s renewable energy targets.

Under prevailing regulations, Indonesia, a signatory to the landmark Paris Agreement, targets to reach a 23 percent green energy mix 2025, yet the country only reached 9.15 percent last year. Many studies project that, at the current pace, Indonesia will miss the target.

Meanwhile, 17.5 percent of Indonesia’s power capacity should have been from green energy sources by 2019, but it only reached 12.36 percent that year, according to energy ministry data. Indonesia has also pledged to make solar contribute 5.7 percent to the country’s power by 2025, yet solar only contributed 0.1 percent in 2019.

Indonesia Power corporate secretary Igan Subawa Putra told The Jakarta Post last Saturday that the company “has not been given such an assignment [to study the swap] from PLN.”

The power producer is also developing its Jawa 9 and 10 units as expansions of the Suralaya plant. South Korean electricity giant Kepco reaffirmed in June plans to invest in the two units.

“This [plan] is very important,” said Indonesia Solar Energy Association (AESI) chairman Andhika Prastawa on Friday. “2025 is in five years, yet there is still a huge gap to meeting the target.”

Furthermore, the coal plant retirement plan also aligned with energy minister Arifin Tasrif’s policy of focusing on solar photovoltaic (PV) over other green energy sources, said Dadan. The country’s renewables power production is currently dominated by hydropower and geothermal.

Institute for Essential Services Reform (IESR) executive director Fabby Tumiwa explained that solar PV’s competitive advantage was its low cost and easy deployability. Business and industrial demand for solar PVs was also on the rise.

Drink manufacturers Coca Cola and Danone-AQUA recently launched big solar PV projects for their respective factories in Bekasi, West Java, and in Klaten, Central Java.

The energy ministry unveiled plans to raise Indonesia’s solar farm capacity by 63 times over the next 15 years to 17,687 MW in 2035, which would be “a huge jump,” said Fabby.

However, high local content requirements, problematic project bidding processes, the small-size of projects and low electricity offtake prices are frequently raised issues related to solar PV deployment in Indonesia.

“Targets will only remain targets if not operationalized in long-term plans,” added Fabby.

PT Aneka Tambang Tbk (ANTAM; IDX: ANTM; ASX: ATM) held a Charity Week for the 3rd Anniversary of the Mining Industry Indonesia (MIND ID). In a series of INCREDIBLE 3rd Anniversary, ANTAM distributed supporting facilities for the new normal adaptation in 7 business units in 5 operational areas which were held this November.

ANTAM’s Human Resources Director, Luki Setiawan Suardi said:

“The implementation of this Charity Week is a form of ANTAM’s commitment as part of the Mining Industry Indonesia (MIND ID) to help communities around the operating area in relation to adapting new normal. Assistance in the form of masks, Personal Protective Equipment (PPE), Rapid Test Kit, hand sanitizers and online learning assistance programs are provided for people in need.”

ANTAM provided assistance of 9,700 masks in the Head Office area, Gold Mining Business Unit, North Maluku Nickel Mining Business Unit and Southeast Sulawesi Nickel Mining Business Unit. A total of 2,000 rapid test kits, 100 sets of PPE and 200 overalls were also distributed in the ​​Southeast Sulawesi Nickel Mining Business Unit. ANTAM also distributed a total of 500 liters of disinfectant/hand sanitizer in the North Maluku Nickel Mining Business Unit and Precious Metals Processing and Refinery Business Unit.

As for the assistance of facilities and infrastructure to support the adaptation of new normal, ANTAM distributed in several public areas, such as: hand washing facilities in Precious Metals Processing and Refinery Business Unit and Gold Mining Business Unit, Clean Water Facilities in the Bogor area by the Geomin & Technology Development Unit team, as well as staple food assistance at Southeast Sulawesi Nickel Mining Business Unit.

In order to support online learning, ANTAM through West Kalimantan Bauxite Mining Business Unit also provides online learning facilities in the form of internet network devices, signal amplifiers and solar panels in 8 locations in Sanggau Regency.

The various efforts are an implementation of the corporate social responsibility program contained in the CSR Masterplan, especially in relation to the realization of Superior Synergy. ANTAM believes that the Company’s participation in overcoming various challenges faced by the community in the operating environment, both in terms of education and health, is an important investment in the context of developing quality human resources, while reflecting the achievement of the Sustainability Development Goals launched by the Government.

State-owned coal miner PT Bukit Asam’s US$2 billion flagship coal gasification project has been added to the national strategic projects list as the government continues to pursue the development of a downstream mining industry.

Bukit Asam’s project, a potentially loss-making enterprise that converts coal into a type of cooking gas called dimethyl ether, is now eligible for a land and building acquisition tax waiver and less red tape, among other incentives.

The list and its terms are outlined in Presidential Regulation (Perpres) No. 109/2020, a revision of Perpres No. 3/2016, which did not include the Bukit Asam project.

“[This is] a positive signal and big support from the government to optimize the country’s overflowing natural wealth,” wrote Bukit Asam corporate secretary Apollonius Andwie on Tuesday.

Shares of Bukit Asam, traded on the Indonesia Stock Exchange (IDX) under the symbol PTBA, had risen 1.27 percent as of 1:24 p.m. Jakarta time on Tuesday, as the main gauge, the Jakarta Composite Index (JCI) gained 0.87 percent. The stocks are down 10.15 percent so far this year.

The coal gasification plant, which is slated to begin operations in late 2024, is being constructed in Tanjung Enim, South Sumatra, a center of coal mining in the country. Having been added to the strategic project list, Bukit Asam is also obliged to create local job opportunities.

Other listed energy projects include oil refineries, gas-rich fields, household gas pipes and publicly listed PT Bumi Resources’ coal-to-methanol plant in Bengalon, East Kutai, East Kalimantan.

The acquisition tax waiver and promises of other fiscal incentives add to a “new generation of fossil fuel subsidies”, as one analyst said, to keep such coal gasification projects running.

Energy finance analyst Ghee Peh, in a recent study, found that producing and selling dimethyl ether would cost Bukit Asam $377 million in operational losses each year.

“Technical viability is not the same as economic viability. The DME [dimethyl ether] project doesn’t make economic sense,” wrote Peh, a researcher with the Institute for Energy Economics and Financial Analysis (IEEFA).

Indonesian coal miners agree that coal gasification is a capital intensive undertaking and have asked for incentives to execute such projects. In response, the government introduced a coal royalty waiver in the recently passed Job Creation Law.

PT Resource Alam Indonesia Tbk (KKGI) is optimistic that they can reduce losses at the end of this year as coal prices improve in the global market. This was conveyed by Pintarso Adijanto, President Director of KKGI in a public expose quoted on Tuesday (12/1).

According to him, the increase in average coal price in the fourth quarter of 2020 would reduce the company’s losses during the third quarter of 2020, which were recorded at US$ 8.1 million. “The losses experienced at the end of this year could be corrected to US$ 5 million,” he said.

He further said that the company was targeting coal sales of 700 thousand metric tons (MT) by the end of this year. The increase in sales volume was due to the increase in coal prices. In the third quarter of 2020, sales were low because of price fluctuations. (LK/VA)

Indonesia may fall short of a government-set target to export 400mn t of coal this year, having shipped a little more than 329mn t in January-October.

Indonesia, the world’s largest thermal coal exporter, shipped a seven-month high of 32.1mn t in October, although this was still down by 8.9mn t on the year, according to customs data released today.

Exports in October represented a recovery from the 43-month low 28.2mn t that was shipped in the previous month, but the rate of supply to the seaborne market would need to accelerate further to hit the government’s 2020 goal.

Shipments for the first 10 months of this year declined by about 14.1pc, or 53.9mn t, on the year to 329.3mn t, leaving 70.7mn t, or 35.3mn t/month, to reach the annual target of 400mn t. Indonesian exports averaged 37.9mn t/month in November-December last year, but the rate dropped to 32.9mn t/month in January-October this year.

The potential shortfall in seaborne exports, coupled with lower domestic consumption and relatively firm production, suggests that the Indonesian market remains oversupplied heading into the new year.

Indonesia produced 46.4mn t/month in January-October, according to energy ministry data, putting the country on course to achieve the government’s 550mn t 2020 output goal. Mining companies would need to produce 42.9mn t/month in November-December to meet the goal, but they look more likely to exceed that target based on the recent production rate.

Of the 500mn t production targeted, the government earmarked about 150mn t for the domestic sector and 400mn t for export. But the economic impact of the Covid-19 pandemic limited domestic consumption to only 109mn t in January-October, implying at least a 19mn t shortfall in annual domestic demand.

This, in addition to a potential shortfall in export demand and stronger-than-expected production, is likely to have supported inventories across the country this year. But the government expects domestic coal demand to rebound strongly to 172mn t next year and Chinese demand for Indonesian exports could strengthen in the new year when import quotas are refreshed, which could help to rebalance fundamentals in the coming months.

Indonesia produced a record 616.2mn t last year and domestic consumption totalled 138mn t, according to energy ministry data. Total coal exports reached 459.1mn t, according to customs data. Argus’ fob Indonesia GAR 4,200 kcal/kg price assessment has recovered by 26pc since 1 October to reach $31.63/t on 27 November.

China continues to drag on Indonesian exports

Indonesian exports to India almost recovered to last year’s level in September-October, but shipments to China remained sharply lower.

Tight import restrictions in China, the biggest importer of Indonesian coal, contributed towards a 30.2mn t year-on-year decline in January-October exports to 93.8mn t, customs data show. This includes a 6.9mn t drop in October to 5.7mn t, although this was up from the 3.2mn t dispatched in September.

China’s thermal coal imports declined in October by 62pc on the year, to their lowest level since December 2019, as most regions ran out of import quotas.

Chinese imports in November and December are likely to rebound, as Beijing considers allocating an additional 20mn t of 2020 import quotas to cope with domestic supply tightness and strong winter demand. But an additional 20mn t of Chinese import quotas is unlikely to be enough on its own to offset weaker exports earlier this year and raise Indonesian shipments to the 400mn t level.

High inventories in India, the second-biggest importer of Indonesian coal, along with sluggish demand because of Covid-19-related lockdowns, has also weighed on import demand.

Indonesia’s exports to India declined by 21mn t, or 21pc, on the year to 79.3mn t in January-October, customs data show. A combination of higher availability from state-controlled producer Coal India, high domestic inventories and Delhi’s push to replace imports with domestic coal have weighed heavily on India’s demand for seaborne coal so far this year.

But exports to India were only 13pc lower on the year in October and exceeded 10mn t in total for a second consecutive month, from as low as 3.5mn t in May.

Indian power-sector coal consumption rose on the year for a second consecutive month in October, but overall seaborne receipts continued to lag 2019. The sector’s imports reached 4.64mn t in October, sustaining a recovery that began in July, but were still down by 1.38mn t on the year, Central Electricity Authority data show.

Exports to northeast Asia, excluding China, have also suffered this year — falling by 9.8mn t in January-October — with only Japan sustaining demand at last year’s level.

Indonesian exporters have offset lower demand to some extent in their core markets with stronger sales to southeast Asia. Exports to southeast Asia grew by 6mn t on the year in January-October to 73.6mn t and were up by 900,000t in October alone. The year-to-date growth was driven by Vietnam (+3.3mn t), the Philippines (+2.2mn t) and Malaysia (+1.5mn t), in particular.

PT Dian Swastatika Sentosa Tbk (DSSA), a subsidiary of the Sinar Mas Group engaged in mining, has announced the addition of Rp 14.15 billion capital in its power plant subsidiaries.

According to DSSA Corporate Secretary Susan Chandra, the two subsidiaries are PT DSSP Power Mas Utama and PT DSSP Power Sejahtera, which have received Rp 349.26 million in placed and paid-up capital each.

All of the new shares issued by the two companies have been absorbed by PT DSSE Energi Mas Utama (EMAS), a wholly-owned susbidiary of DSSA.

“The company’s increased capital in subsidiaries has no significant effect on its financial conditions,” Ms Chandra said in a stock exchange filing.

According to IDNFinancials.com’s data, DSSP Power Mas Utama and DSSP Power Sejahtera have Rp 4.16 trillion and Rp 52.74 billion in placed and paid-up capital respectively, with both companies wholly owned by DSSE EMAS.

Baru Gold Corp (“Baru Gold” or “The Company”) announces that, subject to the receipt of approval by the TSX Venture Exchange (“TSX-V”), it has retained Generation IACP Inc. (“Generation”) to provide market making services with the objective of maintaining a reasonable market and improving the liquidity of Baru Gold’s common shares, traded on the TSX-Venture exchange.

Under the agreement between Generation and the Company (the “Generation Agreement”), the Company has agreed to initially pay Generation a fee of $7,500 plus applicable taxes, per month. Generation will not receive any common shares or options as compensation. Generation does not currently own any securities of Baru Gold; however, Generation and its clients may acquire a direct interest in the securities of the Company.

Baru Gold’s CEO Terry Filbert comments, “We welcome Generation’s expertise in advising and helping improve Baru Gold’s liquidity as our team continues to advance Sangihe Gold project to production and beyond. Having a proven and experienced market maker on our stock should improve trading efficiency, visibility, the overall valuation of our Company, and facilitate new and existing investors in updating their share positions in the market.”

Baru Gold and Generation are unrelated and unaffiliated entities. Generation is a member of the Investment Industry Regulation Organization of Canada and a member firm of the Toronto Stock Exchange and the TSX-V. The initial term of the Generation Agreement will last 6 months, and such term will be automatically renewed for subsequent 6-month periods unless terminated earlier by 30 days prior written notice. Notwithstanding the foregoing, Generation shall have the right to terminate the agreement at any time upon prior written notice.

Until the end of the third quarter of 2020, PT Darma Henwa Tbk (DEWA)’s revenue grew to US$ 239.31 million, or increased 0.58% compared to the same period in the previous year of US$ 237.98 million.

The strengths and advantages possessed by the client today have made DEWA a mining contractor capable of generating revenues of US$ 175.82 million from PT Kaltim Prima Coal, US$ 47.64 million from PT Arutmin Indonesia, and US $ 14.84 million from PT Cakrawala Langit Sejahtera. Then there are also a number of other revenues from PT Batuta Chemical Industrial Park, PT Citra Palu Minerals, and PT Dairi Prima Minerals.

“We believe that the strength and excellence of the client’s current business as well as the Company’s competencies will support the Company’s future performance. However, we continue to strive to expand the scope of project work both in the coal and non-coal mining services sector,” said Mukson Arif Rosyidi, Chief Investor Relations & Corporate Secretary DEWA.

From this revenue, DEWA also recorded a net profit of US$ 1.20 million by the end of the third quarter of 2020. This profit was slightly better than the same period in the previous year of US$ 1.19 million.

The Energy and Mineral Resources Ministry has enforced an export ban on nickel ore, while relaxing it for two other metals for more than a year, through a recently issued regulation that serves as a derivative for the new Coal and Mineral Mining Law.

Ministerial Regulation No. 17/2020 issued on Nov. 11 maintains the nickel ore export ban that started this year but allows miners to continue exporting washed bauxite and copper anode slime until June 2023, on the condition they are either building or already working with a smelter.

The two metal concentrates, washed bauxite and anode slime, are respectively used to make aluminum and certain precious metals such as gold and silver. Indonesia is a big exporter of these metals.

“Only nickel cannot be exported because it is banned by [the preceding] Ministerial Regulation No. 11/2019,” said the ministry’s mineral business development director, Yunus Saefulhak, in a text message to The Jakarta Post on Wednesday.

The new ministerial regulation is the latest in a series of back-and-forth policies issued over the past 11 years related to banning raw metal exports as the country, a major coal and raw metals producer, seeks to industrialize its mineral wealth.

Indonesia, the world’s largest nickel ore producing country, has banned exports of the commodity since January to push miners to develop smelters and refine the metal ore domestically so they can export higher-value products.
Local media outlets reported that the new ministerial regulation extended to the bauxite and anode slime export ban date from January 2022, as stipulated by the preceding ministerial regulation, to June 2023.

However, Yunus explained that the new Coal and Mineral Mining Law, which came out in June this year, had already granted such an extension. The new regulation only operationalized the new law’s mandate.

The law relaxed the export ban for the concentrates as the COVID-19 pandemic had delayed many metal smelter construction projects.

The regulation also came as mining exports reached US$1.55 billion in October, up 16.98 percent year-on-year (yoy) from September, in the sharpest rise compared to the country’s three other major export industries: oil and gas, agriculture and manufacturing, Statistics Indonesia (BPS) data show.

However, overall, from January to October period this year, mining exports still fell 25 percent yoy to $15.62 billion from last year, due to the slump in coal exports amid the impact of the COVID-19 pandemic.

Meanwhile, nickel was declared exempt from a relaxation because global demand for nickel-based electric vehicles (EVs) batteries was expected to rise higher than for aluminum and precious metals in the medium-term, as the world shifts away from fossil fuels.

The government has aimed for the country to produce nickel-rich batteries for EVs instead of just digging up nickel ore. Three state-owned companies, consisting of mining holding company MIND ID, oil and gas company Pertamina and electricity company PLN, are tasked with establishing a holding company to develop an end-to-end supply chain for EV batteries.

Coordinating Economic Minister Airlangga Hartarto often touts a plan of having EVs contribute 20 percent of all new vehicles starting 2025, although the target is not written in any regulation.

“In 2025, demand for nickel ore will be very high so we need to secure our [nickel] reserves for a [domestic] EV industry,” explained Indonesian Mining Association (IMA) executive director Djoko Widajatno.

Furthermore, Indonesia’s nickel reserve lifespan was several years shorter than that of its bauxite and copper ore reserves. Opening export taps would only quickly exhaust the country’s nickel reserves and was thus, also a reason behind the early export ban, he added.

According to the 2020 United States Geological survey, at last year’s production rates, Indonesia’s current nickel reserves will last another 26 years compared to bauxite’s 75 years and copper’s 111 years, excluding miners’ efforts into exploring new reserves. “A smelter is around 30 years so its metal reserves need to be more than 30 years,” said Djoko.

The ministry expects two new nickel smelters to come online this year. These are PT Weda Bay Nickel’s smelter in Central Halmahera, North Maluku and state-owned PT Aneka Tambang’s smelter in neighboring East Halmahera.

The Central Halmahera smelter, which can produce 300,000 tons of ferronickel annually, has reached 100 percent completion. Meanwhile, the East Halmahera smelter, which can produce 64,655 tons annually, has progressed by 97 percent, as its completion held back by an inability to strike an electricity supply deal with state-owned PLN.

“Nickel is expected to become an alternative to the coal industry that has all this time been a major contributor to the mining sector,” Samuel Sekuritas investment analyst Dessy Lapagu previously told the Post.

Management Update

Further to our announcement on 23 September 2020, Nusantara Resources Limited (ASX: NUS) is pleased to announce the appointment of Mr Matthew Doube as Chief Financial Officer.

Matthew’s appointment strengthens Nusantara’s management team, as it advances the Awak Mas Gold Project through the funding process, towards production.

Matthew is a highly regarded resources investment banker, with more than 15 years of experience across capital raising, financing, M&A and strategic advisory. He has a proven track record in the sector, having advised on over AUD20bn of public market resources transactions.

Most recently, Matthew was Head of Corporate Finance for Adani Global’s business. In this role, he led some of the sector’s largest, and most challenging funding initiatives. Prior to this, Matthew held key roles with Standard Chartered Bank, Gryphon Partners and the Macquarie Group.

For the last 7 years, Matthew has been based in Asia where he will remain for the intermediate term. He has extensive relationships with regional banks, funds and financiers. He will be driving Nusantara’s funding process (alongside our project partner, PT Indika Energy Tbk and advisor, Noah’s Rule), as well as our investor relations strategy.

Matthew has a Bachelor of Laws and Legal Practice (Honours) and a Bachelor of Commerce (Finance and Accounting), from Flinders University in South Australia.

Nusantara’s Managing Director, Neil Whitaker said “Nusantara warmly welcomes Matthew to the company. Between the existing and deep banking relationships that we are able to access via our partner Indika, and Matthew’s recent and hands on working knowledge of corporate finance from working in the banking sector, we are strongly positioned to further advance financing of the Awak Mas Gold Project”.

Resignation of Director

Gulf Manganese Corporation Limited (“Gulf” or the “Company”) (ASX: GMC) advises that Mr Tan Hwa Poh has resigned as a director of the Company with immediate effect.

The Board thanks Mr Tan for his contribution and wishes him all the best for the future.

The Company is undertaking a search for a new director as a priority.

INCO Adds New Members to Its BOD

At its Extraordinary General Meeting of Shareholders (EGM) today (7/9), PT Vale Indonesia Tbk (INCO) added new members to its board of directors and commissioners. This step was taken following the acquisition of 20% of INCO shares by Inalum.

Bernardus Irmanto, Chief Financial Officer (CFO) of PT Vale Indonesia Tbk (INCO) said that the EGM approved the appointment of Adriansyah Chaniago as Vice President Director.

At the same time, INCO also appointed three new members of its board of commissioners, namely Ogi Prastomiyono (Deputy President Commissioner) , Rizal Sukma and Alexandre Silva D’Ambrosio (Commissioner).

Adriansyah is widely known as an Independent Commissioner of PT Jasa Marga (Persero) Tbk (JSMR). He started his career at PT Bahana Sekuritas in 1998.

Ogi Prastomiyono previously served as Director of Strategic Services at PT Inalum. He had also served as a director at PT Bank Mandiri (Persero) Tbk (BMRI).

Finally, Rizal Sukma is currently served as Indonesian Ambassador to the United Kingdom and Ireland.