Mitrais, Member of CAC Holdings Group

Mitrais Mining Newsletter

November 2019 | Vol. 47

Weekly News

China Moly Joins Huayou in Indonesia Nickel Project

November 10, 2019

China Molybdenum Co said it planned to take an indirect 30% stake in an Indonesian nickel project as it looks to increase its exposure to the growing market for battery metals.

The planned Huayue project on the island of Sulawesi is one of a series of Chinese-invested nickel smelting projects in Indonesia, which banned nickel ore exports from 2020 as it seeks to process more resources at home.

China Moly, which already operates one of the world’s biggest cobalt mines in the Democratic Republic of Congo, said it would initially acquire a 21% interest in the Huayue Nickel Cobalt joint venture, which plans to produce 60,000 tonnes a year of mixed nickel hydroxide cobalt.

Nickel and cobalt are both key ingredients in batteries for electric vehicles. High-nickel ternary materials account for more than 40% of the cost of a battery, China Moly said in a statement to the Hong Kong stock exchange late on Friday.

China Moly will pay about $5 million for the stake, but it will also take over investment commitments in the $1.28 billion project from the sellers, Hong Kong-based private investment firm Newstride Ltd and Indonesia Morowali Industrial Park.

After a capital injection of $69.1 million in the Huayue venture, China Moly’s indirect stake will rise to 30%. Zhejiang Huayou will hold 57% through a wholly-owned unit, while Chinese nickel and stainless steel giant Tsingshan Holding Group will have 10% through a subsidiary.

The plant is one of a number of high-pressure acid leach (HPAL) projects being built in Indonesia that have drawn industry attention due to their low budget projections and short delivery times.

Huayou President Chen Hongliang said last Tuesday he expected the Huayue project to start up within two years.


Weekly News

Indonesia Allows Nine Companies to Resume Nickel Ore Exports

November 11, 2019

Indonesia has allowed nine companies to resume nickel ore exports after inspections into reports of ore export rules violations, Heru Pambudi, the director general of the country’s customs office, said on Monday.

Among the companies allowed to export ore again are state-controlled miner PT Aneka Tambang and PT Trimegah Bangun Persada, according to an official document reviewed by Reuters and verified by a mining ministry official on Monday.

Indonesia, the world’s biggest nickel ore exporter, had halted shipments on Oct. 28 following reports showed a surge in exports after the country brought forward a ban on exports by two years to January.

To export nickel ore, Indonesian miners are required to build smelters and authorities would review progress of their projects every six months.

“The nine companies have shown that their smelter projects were progressing as planned, have valid exports approval documents and their ores met with required contents,” Pambudi said to reporters after a meeting with Luhut Pandjaitan, the coordinating minister who oversees the mining sector.

Two other exporters are still facing further review related to the progress of their smelters development, Pambudi said.

Authorities were reviewing a total of 11 companies, he said.

Luhut Pandjaitan also told reporters that the review of the two other companies will “hopefully” finish this week.

“As long as they follow the rules, we will let them export,” he said.

At least 20 vessels were held at ports after the government restricted the nickel ore exports, Meidy Katrin Lengkey, secretary general of Indonesia’s nickel miners association (APNI), said last week.

The export surge reportedly included large sales of high-grade nickel ore though Indonesia only allows exports of ore with less than 1.7% nickel content.


Weekly News

The Changing of Company’s Logo to Integrate with Mining Industry Indonesia (MIND ID)

November 11, 2019

PT Bukit Asam Tbk (“Company”) announces the changing of Company’s logo to integrate with Mining Industry Indonesia (MIND ID), whereby the changing of Company’s logo as follows:

Company’s logo with MIND ID’s configuration has been approved by Board of Commissioners on Letter Number: 63/DEKOM/IX/2019 dated 13 September 2019, and also has been registered to Directorate of Mark and Geography Indication, General Directorate of Intellectual Property, Ministry of Law and Human Rights on 24 Classes.


The changing of Company’s logo is being effective on 11 November 2019.

There is no direct impact in accordance to changing of Company’s logo against operational of Company or financial condition of Company, while indirectly, the changing of logo shows the identity and synergy with MIND ID and Holding’s members.

The similar information has been submitted by Company through Indonesia Stock Exchange’s Website and has been reported to Financial Services Authority (OJK).

Jakarta, 11 November 2019

Corporate Secretary


Weekly News

Omnibus Law to Revise Coal DMO Rule

November 11, 2019

The government’s plan to issue an omnibus law to revise all regulations in the economic sector will include stipulations to encourage coal gasification, Coordinating Minister for the Economy Airlangga Hartarto said on Sunday.

The government has been encouraging coal producers to turn their coal into dimethyl ether gas that can be used to replace liquified petroleum gas, the import of which has been growing in the past year, adding to the country’s trade deficit.

But, the coal producers say they are being bogged down by the domestic market obligation (DMO) rule that requires them to sell a quarter of their production to local companies, often at prices lower than in the global market.

That makes pursuing gasification hardly feasible, they argue.

“For this reason, there must be a change in policy, where gasification is no longer subject to additional burdens from the DMO rule. We’ll put this in the omnibus law,” Airlangga said.

President Joko “Jokowi” Widodo promised a sweeping legislation reform in his address to the nation in August.

Jokowi said the government will create two omnibus laws – on job creation and empowerment of small and medium enterprises – that will revise or simplify many overlapping laws and regulations.

The government will also use the omnibus laws to cut tax, providing incentives for businesses amid sluggish global economic growth.

“These incentives are expected to help our economy expand. First we want to expand the tax base,” Airlangga said.

“Going forward, we aim to improve the investment climate. All our efforts will go to bringing in more investment,” Airlangga said.


Weekly News

China is Likely to Cap Annual Coal Imports at 300 Million Tons

November 11, 2019

China will likely hold annual coal imports at between 200 million and 300 million tons, according to the president of a top industry body, suggesting that the pace of shipments so far in 2019 could tail off in the last two months and establishing a cap on expectations for subsequent years.

Imports at this level are necessary to supplement domestic miners and maintain balanced trade with exporting nations, Yang Xianfeng of the China Coal Transportation & Distribution Association told a conference in Shanghai on Saturday. China last exceeded the upper limit in 2013, but this year expectations have built that 300 million tons could again be reached after cargoes in the first 10 months hit 276 million tons, in part due to cheaper overseas fuel.

“We will maintain a certain level of imports, but we also don’t want imports to be too big,” he said at an event held during the Shanghai import expo. “The target is to ensure both domestic supply-demand balance, and also balanced global trade.”

Import Curbs

China regularly tries to control imports to help local miners by limiting the amount of competing coal. In 2018, foreign purchases were held at 281 million tons, with cargoes shut out almost entirely in the last weeks of the year.

“The short term slide in the coal market isn’t going to affect the overall stable trend,” Yang said.

Weaker prices were highlighted by Indonesia, China’s top supplier, which now expects its coal output to rise to over 500 million tons this year, exceeding a target of 489 million tons.

“This will put pressure on an already oversupplied seaborne market” and is concerning the government in Jakarta, Hendra Sinadia, executive director of the Indonesia Coal Mining Association, told the conference.

Earlier in the day, Chinese firms got a head-start on next year’s import needs, signing agreements for about 82 million tons of coal from foreign suppliers including BHP Group and Yancoal Australia Ltd.


Weekly News

The Government and Mining Association Agree to Stop Nickel Export

November 12, 2019

The Investment Coordinating Board (BKPM) has produced an agreement with the nickel mining and nickel refining association to ban the export of nickel ore from 1 January 2020.

Bahlil Lahadalia, Head of BKPM, said that he had held meetings with the Indonesian Mineral Processing and Purification Association (AP3I) and Indonesia’s Nickel Miners Association (APNI). In addition to the association’s representatives, the meeting was also attended by 47 companies, mostly nickel mining companies and smelters.

“Mining companies and smelters in Indonesia have agreed that we no longer want to export ore from 1 January 2020,” Lahadalia said when met at his office on Tuesday (12/11) today.

Meanwhile, companies that have obtained nickel export permits can continue to export after being verified by the Ministry of Energy and Mineral Resources (ESDM). This export permit, said Lahadalia, will valid until the end of 2019.


Weekly News

Indonesian Nickel Miners Consider Selling Ore Locally Ahead of 2020 Ban

November 12, 2019

Indonesia’s nickel miners are prepared to sell their ore to local smelters if they are offered competitive pricing compared with overseas buyers, the secretary general of the nickel miners association Meidy Katrin Lengkey said on Tuesday.

Indonesia, the world’s biggest nickel ore exporter, allowed nine nickel companies to resume ore exports this week, after halting shipments for two weeks to investigate reports of export rule violations. Two more companies are expected to resume exports later this week.

The status of 26 other companies believed to have export quotas is not clear.

The Indonesian nickel miners association (APNI) estimates 8 million tonnes of nickel ore export quotas have not been utilized yet.

“If local smelters were to buy the ores under the same conditions as exports, why would we export? We would rather sell locally,” Lengkey said.

She said after talks on Tuesday with Indonesia’s investment coordinating board (BKPM) and the nickel smelters association, nickel cargoes from companies which did not pass inspections by Indonesian authorities would be sold to local smelters in a fixed price range of $27-$30 per tonne FOB up to Dec. 31.

Local smelters, which typically prefer high-grade ore, will buy ore with below 1.7% nickel content from the miners, BKPM chief Bahlil Lahadalia said.

“BKPM has arranged for around 2 million tonnes of ore this month to be absorbed by the smelters with that pricing,” Lahadalia said.

Ore shipments were halted on Oct. 28 following reports indicating a surge in exports when the country brought forward a ban on exports by two years to January.

The export surge reportedly included major sales of high-grade nickel ore, even though Indonesia only permits exports of ore with less than 1.7% nickel content.

Indonesia has pledged to enforce its export ban in January 2020, though the uncertainty has rattled global nickel markets.

The companies allowed to export again must prove their smelter projects were progressing as planned, show valid export approval documents and that ores were of the required quality, according to Indonesia’s customs director general Heru Pambudi.


Weekly News

Weak Demand Pressures Low-CV Indonesian Coal Prices

November 12, 2019

The low calorific value (CV) Indonesian physical coal market came under further pressure from weak Chinese demand, as details emerged of a deal concluded at a lower price than recent similar transactions.

An early December loading geared Supramax GAR 4,200 kcal/kg cargo traded today at $33.85/t. This is below the latest Argus price assessment for this grade of coal at $34.33/t on 8 November and also below the $34.50-34.75/t range at which cross-month late November to early December-loading geared Supramax GAR 4,200 kcal/kg cargoes traded late last week.

Despite this, several producers kept their offer prices high at around $35/t for December-loading shipments on expectations demand could begin to increase again from next month. China’s lunar new year holiday falls in January next year, earlier than usual, which could bring forward the typical pre-holiday restocking. Chinese import quotas are also expected to be reset in January, when cargoes that are sold in December are likely to arrive at Chinese ports.

In the ICI 4 derivatives market, a 15,000t December clip traded at $34.05/t, brokered by Singapore-based Evolution. This was up from yesterday’s Argus settlement price for this month at $33.60/t. But bids and offers in the ICI 4 futures market remained scarce, with November contracts bid at $34/t and December bid at $33.80/t against no corresponding offers.

In the Australian thermal coal market, a December-loading Panamax of NAR 5,500 kcal/kg coal was offered at $51/t fob Newcastle on the Global Coal screen. That is down from the most recent Argus assessment of $51.18/t fob Newcastle on 8 November.

China’s domestic coal prices showed signs of stabilising yesterday and today. Bids for NAR 5,500 kcal/kg coal were no higher than 550 yuan/t fob northern China ports today, while offers were around Yn555/t.

In China’s futures market, the January contract on the Zhengzhou commodity exchange closed at Yn550.6/t, up by Yn0.8/t on the day.


Weekly News

Global Fluctuations Affects Indonesian Mining Export Prices in November

November 12, 2019

Global fluctuations affected the Indonesian export benchmark price of mining products in November 2019. Products of iron concentrate, lead concentrate, zinc concentrate, ilmenite concentrate, rutile concentrate, and nickel have increased. In opposite, copper concentrate, manganese, and bauxite concentrate have decreased.

“The export benchmark price of some mining products has increased or decreased due to international price fluctuations,” director general of foreign trade Indrasari Wisnu Wardhana, said in a written statement on Monday (11/11), adding the provision as stipulated in trade minister regulation number 86 the Year 2019, dated November 7, 2019.

Compared to the previous month, it said, mining products that experienced an average price increase in this month were iron concentrates (hematite, magnetite) (Fe ≥ 62 percent and ≤ 1 percent TiO2) with an average price of US$76.99 / WE or increase by 2.74 percent.

Then, laterite iron concentrates (gutite, hematite, magnetite) with levels (Fe ≥ 50 percent and (Al2O3 + SiO2) ≥ 10 percent) with an average price of $39.34 / WE or an increase of 2.74 percent, lead concentrate (Pb ≥ 56 percent) with an average price of $874.83/WE or an increase of 2.87 percent.

Furthermore, zinc concentrate (Zn ≥ 51 percent) with an average price of $589.93/WE or an increase of 3.04 percent, iron sand concentrate (lamella magnetite-ilmenite) (Fe ≥ 56 percent) with an average price of $45.97 / WE or an increase of 2.74 percent.

While, ilmenite concentrate (TiO2 percent 45 percent) with an average price of $243.60/WE or an increase of 3.47 percent, rutile concentrate (TiO2 ≥ 90 percent) with an average price of $961 , 04/WE or an increase of 4.18 percent, and Nickel (Ni <1.7 percent) with an average price of $25.26/WE or an increase of 1.63 percent.

On the opposite, the product that experienced a decline was copper concentrate (Cu ≥ 15 percent) with an average price of $2,334.02 /WE or a decrease of 0.80 percent, manganese concentrate (Mn ≥ 49 percent) with an average price $224.53 / WE or down 8.89 percent, and washed bauxite (Al2O3 ≥ 42 percent) with an average price of $23.24 / WE or down 1.63 percent.

Meanwhile, the iron sand concentrate (Lamela magnetite-ilmenite) pellet (Fe ≥ 54) with an average price of $117.98/WE did not change. According to Wardhana, the determination of the price was determined after taking into account various written inputs and coordination from various related agencies.


Weekly News

Nickel Mining Companies Agree to Support Ore Export Ban

November 13, 2019

Nickel mining and smelting companies have agreed to support the government’s plan to ban nickel ore exports from January 2020 onward, as stipulated in an Energy and Mineral Resources Ministry regulation, Investment Coordinating Board (BKPM) chairman Bahlil Lahadalia has said.

Bahlil said in Jakarta on Tuesday that the BKPM had facilitated a meeting between the Indonesian Nickel Mining Association (APNI) and the Processing and Smelting Companies Association (AP3I) to resolve their differences on the nickel ore export ban.

“The meeting concluded that [nickel] mining companies and smelting companies in Indonesia have agreed we do not want to export nickel ore beginning January 2020,” Bahlil told a press briefing after the meeting at BKPM’s office in Jakarta on Tuesday, accompanied by representatives from the two associations.

Bahlil said the two associations had agreed that nickel ore would be sold to local companies at the international price of US$27 to $30 per metric ton on a free-on-board basis.

Meanwhile, APNI secretary-general Meidy Katrin Lengkey said during the same briefing that nickel mining companies would support the government’s efforts to develop the downstream sector.

AP3I secretary-general Haykal Hubeis said members of the association agreed with the government’s decision to stop nickel ore exports and would buy the commodity at the aforementioned international price.

APNI previously opposed the export ban, while AP31 urged the government to stick to its policy to protect local smelting companies.

Prior to the meeting, Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan announced on Sunday that exports would be permitted until January 2020. The government imposed a temporary ban in October amid violations of the nickel export quota.

Luhut said that once the planned permanent ban came into effect, all domestic nickel ore prices would be pegged at international prices.


Weekly News

Indonesia Anti-Monopoly Body to Investigate Nickel Smelters

November 13, 2019

The Indonesia nickel miners association said on Wednesday the country’s anti-monopoly body has launched an investigation into alleged cartel practices impacting pricing by local smelter operators.

The probe was launched after the nickel miners association (APNI) filed a complaint a few months ago, secretary general Meidy Katrin Lengkey told reporters.

She said two giant smelters controlled 60% of the domestic nickel ore market and local prices.

“Because their demand is so dominant, they control the prices and other smelters, like it or not, have to follow,” Lengkey told reporters.

An official at the anti-monopoly body, the Commission for the Supervision of Business Competition (KPPU), did not immediately respond to a request for comment.

APNI has often argued that local smelters push nickel ore prices down, making the domestic market less attractive than selling overseas.

Lengkey also said domestic smelters only bought high-grade ores.

Indonesia, the world’s biggest nickel ore exporter, will stop allowing exports starting January as it pushes to process more minerals at home.

In a hearing with a parliamentary committee on Wednesday, Lengkey said ores with 1.7% nickel content were priced on average at $14 per ton FOB in the domestic market, below the average $30 per ton government-set benchmark price this year.

Indonesia’s mining ministry is revising a rule that governs the domestic price of nickel ore to ensure smelters follow government benchmark prices, a ministry official told Reuters last month.

On Tuesday, Lengkey said nickel miners were prepared to sell their ore to local smelters if they are offered competitive pricing compared with overseas buyers.

Indonesia temporarily halted exports earlier this month after reports of a surge in monthly ore exports following its decision to move the export ban to 2020 from 2022.


Weekly News

FAMUR Group Has Signed A Contract for Delivery of A Longwall System to Indonesia

November 14, 2019

FAMUR SA, a leading supplier of solutions for the mining industry in Europe, and Gerbang Daya Mandiri PT, with its registered office in Indonesia, on 8 November this year signed a contract for delivery of a longwall system with the necessary equipment. The contract value is over EUR 10 million.

The FAMUR Group, consistently implementing the assumptions of foreign expansion included in the 2019-2023 strategy, has established cooperation with the Indonesian coal producer, Gerbang Daya Mandiri PT. The aforementioned contract covers the delivery of a longwall shearer, powered roof support, scraper conveyor and electrical equipment, transport equipment and auxiliary equipment. The total value of the contract is EUR 10,465,750. The order is to be implemented in stages and the final delivery date will be within ten and a half months from the date of the contract effective date.

– Cooperation with Gerbang Daya Mandiri PT in Indonesia is another extremely important contract, fitting into the business objectives set out in the FAMUR strategy for 2019-2023. We welcome the fact that Polish technical thought (know-how) may contribute to the increase in the efficiency of coal extraction in other country, while increasing the safety of mine employees. The choice of our offer is also the best evidence that the FAMUR Group effectively has used many years of experience on the global market and unique know-how to build the Made in Poland brand in the world – emphasizes Mirosław Bendzera, President of FAMUR SA.

The FAMUR Group works with the customers in over 40 countries on five continents and the share of exports in its revenue is approx. 33%. Recently, the company has secured significant contracts in Kazakhstan and China. Its plan for the immediate future is to expand sales on such markets as Australia, USA and Canada.


Weekly News

Press Metal Buys One Quarter of Indonesian Alumina Firm

November 15, 2019

Press Metal Aluminium Holdings Bhd, the largest aluminium smelter in Southeast Asia, has bought a 25 per cent stake in PT Bintan Alumina Indonesia for US$80.23 million.

PT Bintan is building a one million tonnes per annum alumina refinery plant in Galang Batang, Indonesia. Future expansion will add another one million tonnes.

In a filing with Bursa Malaysia today, Press Metal said the acquisition would provide it with long-term supply of alumina.

It plans to buy at least half of alumina produced before completion of the project and up to 1.5 million tonnes after the completion.

“With this, reliance on third party suppliers for alumina needs will reduce considerably, providing stability for Press Metal’s smelting operations,” it added.

Group chief executive officer Tan Sri Paul Koon said this was an exceptional opportunity for Press Metal to invest in a refinery for a secured supply of alumina.

“Together with our earlier acquisition of Worsley, we will be able to cover about 80 per cent of our enlarged alumina requirements moving forward.

“This will strengthen us vertically and provide us an edge as we remove some uncertainties or supply constraints which could lead to operational disruptions,” Koon said.

He said the deal was vital as the group was growing ist smelting operations.

“The location of this asset is in closer proximity to Samalaju as compared to sourcing from Australia and will enable us to enjoy shorter lead-time and capture considerable logistic cost savings,” he added.


Weekly News

Indonesia’s Merdeka Copper Upsizes Gold Production to 200,000 Oz

November 15, 2019

Indonesian gold miner, PT Merdeka Copper Gold Tbk (IDX: MDKA) upsize the production target from 180,000 ounces (oz) to 200,000 ounces and and copper 21,000 tons in this year, said the spokesman today (11/15). The reasoned, this year’ target has realized in nine months (9M) of 2019.

According to Adi Adriansyah Sjoekri, the rising of production had a positive impact on the company’ financial performance. In 9M of 2019, the company’ revenues rose 50 percent to US$324million from last year $216 million. While, the net profit jumped 24.6 percent from $53.11million to $66.19 million.

To lift up the capacity production, Merdeka Copper prepared capital expenditure $160 million and has spent around $40 million to optimize the operations and exploration of Tujuh Bukit gold and silver mining project in Banyuwangi, East Java, copper mining project in Wetar Island, West Maluku, and gold mining projects in Gorontalo, Central Kalimantan.

Beside, the miner also developed Lerokis Pit, the second open pit mine in the Wetar Copper Project and is scheduled to start commercial production in 2019. At the end of 2018, the company acquired 68.93 percent of Pani mining project.

Merdeka Copper has mining business license of 4,998 hectares and 6,623 hectares. According to a study conducted by the company, the existing mines could be exploited up to 25 years with the estimates potential ore reserves of 1.9 billion tons.

Merdeka Copper has mining business license of 4,998 hectares and 6,623 hectares. According to a study conducted by the company, the existing mines could be exploited up to 25 years with the estimates potential ore reserves of 1.9 billion tonnes.

Based on the company data, the shareholders of Merdeka Copper are PT Saratoga Investama Sedaya Tbk (IDX: SRTG) 20,76 percent, PT Mitra Daya Mustika 14.16 percent, Garibaldi Thohir 8.76 percent, PT Suwarna Arta Mandiri 7.04 percent, Regency of Banyuwangi 5.50 percent, and public 43.78 percent.

in 2017, together with its holding, the company has take over assets of Australian copper miner Finders Resources Ltd’s (ASX: FND) in Indonesia, for an estimated value of US$177 million. Finders runs Wetar copper and Ojolali gold-silver projects in Indonesia.

The Ojolali project is located in Lampung Province, near the southern tip of Sumatra, as part of the highly-productive Sumatran Gold Belt, which includes Martarbe, Lebong Donok, Lebong Tandai, Pongkor, and Way Linggo deposits.

Wetar Copper Project is located far away, on the north-central coast of Wetar Island, of the Maluku Barat Daya Regency, Maluku Province. Finders holds a 95 percent stake in Wetar Copper in Maluku Province, engaged in a high-quality copper mine concession with JORC-compliant resources of 200,000 tons of copper (as of 2013).


Weekly News

Indonesia Hopes Chinese Government Allows to Decrease Import Threshold on Steel Products

November 15, 2019

According to the news from Indonesia, it had already updated the latest trading situation with China, and hoped the Chinese government could allow those steel exports from Indonesia to China could export by “zero-cost”.

In the first nine months of this year, the total exports of Indonesia’s steel products were around US$5.4 billion, increased by almost 29% year on year.

However, although the exports of steel from Indonesia had shown a large increase, the scale from Indonesia to China still remained flat, because of the high import threshold.


Weekly News

The Second Anniversary Series of MIND ID Officially Opened

November 15, 2019

The second birthday celebration of MIND ID was officially opened on November 10, 2019 at The Hawk Basketball, Bumi Serpong Damai, Tangerang. Starting a series of events held throughout the month, MIND ID held a basketball competition participated by six directorates from five MIND ID Mining Industry holding companies, namely PT ANTAM Tbk, PT Bukit Asam Tbk, PT Freeport Indonesia, PT INALUM, and PT TIMAH Tbk.

“Over the next 20 days, the series of MIND ID Anniversary events have been arranged so that our extended family can get to know each other, stay in touch, interact, and know the conditions of fellow holding members. mining holding members, which are based on company values, namely Integrity, Professionalism, Synergy, and Sustainability, “said Acting. MIND ID Group CEO, Mr. Ogi Prastomiyono when opening the event.

The same thing was also stated by Mr. Aprilandi Hidayat, Director of Commerce of PT ANTAM Tbk, who also acted as the host of the opening competition. “Here we will expand the meaning of team work, where as part of the MIND ID we must be able to work together and work together with colleagues from other holding members,” he said in remarks at the same event.

The synergy of strengths from various companies is clearly seen from the competition. In the match that took place, even though they had only met face-to-face one day before competing, the players managed to show synergy and good cooperation, with motivation to win.

The Commerce Directorate became the participant who won the basketball competition after overthrowing the Directorate of Human Resources with a score of 26-14 in the final match. The third place goes to the Directorate of Finance. In this basketball competition, Saleh Afriatna from PT ANTAM Tbk’s Human Resources Directorate, as The 3-Point King of MIND ID.

The next competition is badminton, table tennis and futsal on 16-17 November 2019 in Kuala Tanjung and Tanjung Enim which are hosted by INALUM and Bukit Asam.


Weekly News

Chinese Enterprises Invest to Build The First Unit of Mingguru Coal-Fired Power Station in Indonesia

November 16, 2019

Xinhua News Agency, Mingguru, Indonesia, 15 Nov (Reporter Liang Hui) the first unit of the Mingguru Coal-fired Power Station in Indonesia, which was invested by the China Electric Power Construction Group, was officially connected to the grid on the 15th. This project will effectively alleviate the long-standing problem of power shortage in Mingguru Province and even Sumatra.

The Mingguru coal-fired power station, located in Minggulu City, Minggulu Province, on the west coast of Sumatra Island, Indonesia, was developed by China Electric Power Construction in cooperation with Indonesia’s Inta Company and began construction on October 25, 2016. The project is expected to generate about 1.4 billion kilowatts of electricity a year and will be put into commercial operation in the future.

Sheng Yuming, chairman of China Electric Construction Group overseas Investment Co., Ltd., said at the launching ceremony on the same day that the project adopted the “four-in-one” construction organization and control mode of owner, design, supervision and construction. Give full play to the advantages of the integration of the whole industrial chain of China Electric Power Construction.

Agoos, head of the Indonesian Investment Coordination Committee, said that the Mingguru coal-fired power station project has driven the rapid development of the local economy. He believes that the project is an investment model and will attract more investors to invest.

According to reports, the Minggulu coal-fired power station is the first thermal power project in Minggulu Province, and it is also the largest foreign capital project under construction in Minggulu Province. Since the beginning of the construction of the project, more than 2000 local jobs have been provided, and hundreds of medium-and high-end jobs are expected to be provided after they are put into operation.


Weekly News

PTBA and ANTM is Finalizing Their Plan to Establish a JV

November 15, 2019

PT Bukit Asam Tbk (PTBA) and PT Aneka Tambang Tbk (ANTM) are in the middle of a discussion to establish a Joint Venture (JV) company that will build a Steam Power Plant (PLTU).

Mega Satria, Finance Director of PTBA, said the establishment of the JV is expected to be completed by the end of this year. The investment for the 2×45 megawatt (MW) power plant is estimated to reach US$ 185 million. PTBA will hold a 75% ownership in the JV, while ANTM has 25%.

“We are not worried about funding because the project is very feasible,” Satria said as reported by Kontan on Friday (15/11) today. “We don’t need the funding upfront. The US$ 185 million will be disbursed in stages,” he added.

The power plant will supply electricity for ANTM’s ferronickel plant in North Maluku. Coal consumption at the plant is estimated to reach 0.65 million tons per year.


Weekly News

Nickel Prices Cool as Indonesia Ends Export Ban

November 13, 2019

While long-term demand forecasts are still strong, nickel has given back some of the gains it has made in 2019, dropping by about US$1 a pound since peaking at $8.17 in September.

Nickel was selling for $7.06 a pound late Tuesday on the London Metal Exchange.

According to a story in the Financial Post, rising stockpiles and a decision by Indonesia to reverse its export ban are behind the drop.

“Last week, Indonesia said it had allowed some nickel ore exporters to resume shipments following a temporary halt to investigate reports of violations,” the story said.

“Nickel has been the best performer this year among base metals, with LME nickel rising 49 per cent, supported by a fear of a shortage in supplies from Indonesia, after it announced a ban on exports from the beginning of next year.”

Nickel analyst Terry Orstlan told earlier this year that short-term prices will be volatile, but long-term, demand for electric car batteries will drive prives up.

Currently, two-thirds of the world’s nickel is used for stainless steel production, and three per cent for batteries. That ratio is expected to change dramatically.

“Changes in battery technology that improve the longevity and cost profile of batteries are likely to lift the proportion of nickel used in batteries, which combined with significantly higher battery production, is expected to open new opportunities for nickel producers from the 2020s onward,” said a June analysis by the Australian government.

“World consumption is forecast to increase from 2.3 million tonnes in 2018 to 2.7 million tonnes in 2021, growing at an average rate of 4.7 per cent a year.”


Weekly News

INDY Purchased Nusantara Resources Shares for AUS$ 51,442.81

November 15, 2019

PT Indika Energy Tbk (INDY) purchased 177,389 of Nusantara Resources Ltd’s shares for AUS$ 51,442.81.

As quoted from the company disclosure, the purchase was made after Nusantara Resources issued 666,667 new shares after the abolition of its royalty agreement with Vista Gold Corp.

As quoted from its financial statements, INDY owns a 19.9% stake in Nusantara through its subsidiary, PT Indika Mineral Investindo (IMI).


Weekly News

ITMG's Net Profit Fell by 69% Due to Low Coal Prices

PT Indo Tambangraya Megah Tbk (ITMG) generated US$ 29.7 million in net profit in the third quarter (Q3) 2019, 69% lower than the figure recorded in the same period last year.

Ariyanto Kurniawan, analyst at Mandiri Sekuritas, assessed that the decline was caused by the Average Selling Price (ASP) of coal in the market. “Low ASP caused ITMG’s revenue to only reach US$ 412 million, down 32% YoY,” Kurniawan said in writing.

In Q3 2019, ITMG has also reduced its production costs to US$ 337 million. The company’s Cost of Good Sales (COGS) also fell by 17% YoY. The company has also reduced its production utilization by 9.3%.


Weekly News

Indonesia Sees Bauxite Downstream Reaches US$13B Next Year

Indonesia has the sixth-largest bauxite reserves in the world and the government sees the potential of bauxite downstream could reach US$13 billion next year from the current $9 billion, coordinating minister for maritime and investment affairs Luhut Binsar Pandjaitan said on Wednesday (11/13).

“Indonesia is the top six bauxite reserves in the world, but we only export it. I have received a direct order from President Joko Widodo to tighten downstream efforts. This is so that the Indonesian mining industry can get added value,” he said.

The minister went on to say if bauxite is processed into various derivatives, the value can increase up to 11 digits. This potential has not been maximized.

“If for example, we exported $400 million previously, this year we have started $9 billion, next year we are targeting $13 billion and so on, because of the supply chain,” he explained.

Therefore, the government will consider accelerating an export ban on bauxite and other mineral items such as tin, and alumina, among others, subject to the scale of investment, Pandjaitan said. Under the current rules, exports of bauxite are allowed till January 11, 2022.

“Later on, if we already have investors coming in for downstream in bauxite and others like tin, asphalt, alumina, and so on, why not?” he said, adding his party in talks with several firms who are interested in investing in bauxite processing plants, including with Japanese companies.

Furthermore, the minister encouraged the development of the bauxite processing industry to be accelerated. It includes PT Indonesia Asahan Aluminum in collaboration with PT Aneka Tambang Tbk (IDX: ANTM) via its subsidiary PT Borneo Alumina Indonesia (PT BAI), which built the bauxite processing industry into alumina in Mempawah, Kalimantan West.

The project will reduce exports of raw minerals and simultaneously dependence on imports of raw materials for aluminum production, Pandjaitan said.

“The development of the bauxite processing industry into alumina will also encourage the birth of other investment potentials in the future, for example in the form of developing industries related to alumina-based aluminum and its diversification,” he added.

The project is built on an area of ​​288 hectares, has an initial capacity of 1 million tons per year. This project will also be equipped with a 3×25 megawatt coal power plant. The project investment is estimated to reach $850 million and is targeted to start production in early 2022.


Weekly News

Indonesian Nickel Export Swells to US$97M in October

Ahead of the permanent halt in nickel exports from Indonesia early next year, the world’s top supplier of nickel recorded export US$97.4 million worth of nickel mines and products in October, up 10 percent from $88.2 million in September, the official said today (11/15).

“In September 2019 the value was $88.2 million, compared to October increasing nickel exports to $97.4 million,” Head of the Central Statistics Agency Suharyanto told reporters in his office, saying the surge was largely influenced by government policies banning nickel exports from January 1, 2020.

Suharyanto explained the country shipped 8.85 million tonnes of nickel ore and nickel products in October, up slightly from 8.79 million tonnes in September. Between January and October, Indonesia exported 73.2 million tons of nickel ore and nickel products, down 4 percent from the same period last year.

A day before, the director-general of customs, Heru Pambudi, said nickel exports have increased since September. But October’s growth was fierce, even twice as much as exports in 2018. The spike occurred within one month after the study of the limitation of nickel ore for domestic industrial needs.

“On October 31, nickel revenues rose sharply by Rp1.1 trillion. Why sharp? Because during 2018 exports in this sector only reached Rp659 billion. The surge began in September 2019 at the beginning of the moratorium,” Pambudi said.

With the increase that occurred for almost two months, his party is conducting verification steps on companies that are registered nickel ore export branches during October.

“The government will serve companies that have met their needs whether they meet the requirements, we will conduct a deepening verification,” he went on.

Pambudi explained that the jump in customs revenue from nickel ore exports from January-August was fairly normal. However, since export restrictions began from September to October there was a surge in the value of export duties to more than Rp470 billion.

The growth, he adds, was the highest jump of the total export value because the increase in September 2019 reached 191 percent or as high as Rp170 billion. Then, in October the export value of nickel ore rose sharply up to 298 percent to Rp300 billion.

The government previously banned nickel mining companies from exporting their products as of January 1, 2020. The prohibition is regulated in Energy and Mineral Resources Minister Regulation Number 11 of 2019 concerning the second amendment to previous regulation number 25 of 2018 concerning mineral and coal mining businesses.

The moves were taken by the government to develop the country’s upstream nickel processing industry. Especially to strengthen raw materials for the preparation to produce motorcycle and electric car batteries, which will be successful in the next 5 to 10 years.


Weekly News

PT Timah Spent Rp 146 Billion for Exploration in October

PT Timah Tbk. (TINS) spent Rp 148.02 billion for exploration activities for tin in October 2019.

Based on information disclosure on the Indonesia Stock Exchange on Monday (11/11/2019), the company spent Rp 146.02 billion for operation and Rp 1.99 billion for investment.

TINS management explained that the company’s exploration activities at sea including drilling activities in Bangka and Kundur waters using 5 units of drillships.

As of Q3 2019, TINS has produced 58,157 tonnes of tin, 174% higher than the figure recorded in Q3 2018 of 21,264 tonnes. Meanwhile, the company’s refined tin sales volume was recorded at 50,326 tonnes, much higher than the figure recorded in Q3 2018 of 20.174 tonnes.


Mining People on The Move

PT Aneka Tambang Tbk - Fachrul Razi

Appointment Of Antam’s President Commissioner As Minister Of Religious Affairs Of The Republic Of Indonesia

PT Aneka Tambang Tbk (ANTAM; IDX: ANTM; ASX: ATM) hereby announces that ANTAM’s President Commissioners, Mr. Fachrul Razi, has recently been appointed as Minister of Religious Affairs of The Republic of Indonesia on October 23, 2019.

Following such appointment, Mr. Fachrul Razi no longer assumes his position as ANTAM’s President Commissioner since the date of his appointment as Minister of Religious Affairs of The Republic of Indonesia, in accordance with the provisions of ANTAM’s Articles of Association and compliance to the applicable regulations. The ANTAM’s Board of Commissioners and Directors would like to congratulate for a new appointment and thank Mr. Fachrul Razi for his dedication and best support to the Company during his tenure.

ANTAM published this release as part of public disclosure pursuant to the Indonesia Financial Services Authority Regulation No. 31/POJK.04/2015 on the Disclosure on Material Information or Facts by Issuers or Public Companies.


Mining People on The Move

BlackGold Natural Resources - Philip Cecil Rickard

BlackGold Natural Resources Chairman, Chief Executive Resigns

BLACKGOLD Natural Resources chairman and chief executive Philip Cecil Rickard is resigning in light of changes to the group’s business strategy and direction, it said on Wednesday.

Mr Rickard, 50, said he has chosen to spend time with his family, since BlackGold’s planned investment in a coal-fired power plant project in Riau, Indonesia failed to pan out. The company had announced it was pulling its plans for the project 11 months ago.

The firm was also entangled in an Indonesian power plant graft scandal last year.

Mr Rickard has helmed the company since March 2018, and will not seek re-election at the company’s upcoming annual general meeting (AGM) to be held on Oct 31.

Andreas Rinaldi, 69, has been appointed CEO-designate with effect from Wednesday. He will replace Mr Rickard as CEO after the upcoming AGM.

Philip Soh Sai Kiang will be re-designated from independent director to independent non-executive chairman of the board following the conclusion of the company’s AGM.


Mining People on The Move

Kingrose Mining Limited - Grant Mills

Non-executive Director Resigns

Kingsrose Mining (ASX: KRM, “Kingsrose” or “the Company”) announces that Grant Mills has submitted his resignation as a Director of the Company, effective as of 30 November 2019 and that the Company has accepted his resignation.

Mr Mills, who has been a Director of Kingsrose since August 2017, plans to focus on development of his various personal business interests.

Interim Chairman Dr Mike Andrews thanked Mr Mills for his dedication to the Company and his assistance in implementing the operational strategy.

“During his tenure on our Board Grant has fulfilled the role of non-executive director with great professionalism and diligence. On Behalf of the Board, I wish Grant all the best with his future business endeavours,” Dr Andrews said.

Kingsrose intend to appoint a new Director in due course.


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Publications regularly surveyed are The Jakarta Post, Jakarta Globe, Bisnis Indonesia, Kontan, Coalspot, and various online news services.

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