IMA-Daily Update Page 1

TABLE OF CONTENTS

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Vale (INCO) Adds Boards of Directors and Commissioners, SOEs People Enter Vale (INCO) Tambah Jajaran Direksi dan Komisaris, Orang BUMN Masuk

First semester of 2020, Bumi Resources Minerals (BRMS) earned US$ 2.55 million in revenue Semester I-2020, Bumi Resources Minerals (BRMS) raup pendapatan US$ 2,55 juta

MDKA Gives Maximum Bond Interest 10.25% MDKA Beri Bunga Obligasi Maksimal 10,25%

Inalum Join, This Is Vale's Big Business Agenda in 2021 Inalum Gabung, Ini Agenda Besar Bisnis Vale di 2021

Collaborating with Antam, Bumi Resources Minerals (BRMS) Spurs Gold Business Gandeng Antam, Bumi Resources Minerals (BRMS) Pacu Bisnis Emas

Steady Gold Sales, Bumi Resources (BRMS) Optimistic on Shining Performance Penjualan emas mantap, Bumi Resources (BRMS) optimistis kinerja kinclong

Coal production exceeding 600 million tons against the rules? Produksi Batu Bara Melebihi 600 Juta Ton Langgar Aturan?

Once hit by Corona, the copper prices began to creep up Sempat Dihantam Corona, Harga Tembaga Mulai Merangkak Naik Asking for clarity on the divestment, the DPR will summon Freeport, MIND ID and the Papua Regional Government Minta kejelasan divestasi, DPR bakal panggil Freeport, MIND ID dan Pemda Papua

Watershed Rehabilitation for Environmental Recovery and Community Economic Improvement during Pandemic Period Rehabilitasi DAS untuk Pemulihan Lingkungan dan Peningkatan Ekonomi Masyarakat di Masa Pandemi

Bisnis

Kontan

Neraca

CNBC Indonesia Bisnis

Kontan CNBC Indonesia

DetikFinance Kontan

Nusa Daily

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Announcement! Coal Prices Drop Again Below US$ 50/Ton Pengumuman! Harga Batu Bara Drop Lagi ke Bawah US$ 50/Ton Copper upswings to highest price in two years Mining deal value declines $18bn in first half as Covid-19 disrupts flow of capital - GlobalData World’s biggest copper supplier saw sales slump last month Cardinal Resources advises shareholders to accept Shandong takeover bid Gold miners present strong value as gold prices rise – Franklin Templeton Investments Prominent Hill: Priority and production

CNBC Indonesia Australian Mining Mining Weekly Mining.com Mining Review Africa Kitco News Australian Mining Review

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IMA-Daily Update Page 3

Vale (INCO) Adds Boards of Directors and Commissioners,

SOEs People Enter Finna U. Ulfah

MINERAL mining issuer, PT Vale

Indonesia Tbk., has added seats to the board of directors and commissioners along with the divestment of 20 percent of the company's shares to Mining Industry Indonesia or MIND ID.

In the Extraordinary General Meeting of Shareholders (EGMS) of issuers coded INCO which was held on Monday (7/9/2020), shareholders approved the appointment of several names of new directors and commissioners for a period of 3 years.

The new board of directors and commissioners will be effective upon settlement of the sale and purchase of shares between the controlling shareholder and the major shareholder and the prospective buyer in connection with the obligation to divest 20 percent of the company's shares, until the closing of the Company's Annual General Meeting of Shareholders in 2024.

"The [board of directors and commissioners] has increased due to the addition of commissioners from PT Inalum as future shareholders of Vale Indonesia," said President Director of Vale Indonesia Nico Kanter during the 2020 EGMS Media Discussion, Monday (7/9/2020).

Meanwhile, the shareholders agreed to appoint Adriansyah Chaniago as the new Vice President Director of Vale Indonesia. Based on Bisnis record, Adriansyah Chaniago is currently still serving as an Independent Commissioner of PT Jasa Marga Tbk. (Persero) (JSMR).

Vale (INCO) Tambah Jajaran Direksi dan Komisaris, Orang

BUMN Masuk Finna U. Ulfah

EMITEN pertambangan mineral, PT Vale

Indonesia Tbk., menambah kursi jajaran direksi dan komisaris seiring dengan divestasi 20 persen saham perseroan kepada Mining Industry Indonesia atau MIND ID.

Dalam Rapat Umum Pemegang Saham Luar Biasa (RUPSLB) emiten berkode efek INCO yang diselenggarakan pada Senin (7/9/2020), pemegang saham menyetujui pengangkatan beberapa nama direksi dan komisaris baru untuk periode 3 tahun.

Susunan direksi dan komisaris baru itu akan efektif pada saat terjadinya penyelesaian atas jual beli saham antara pemegang saham pengendali dan pemegang saham utama dengan calon pembeli sehubungan dengan kewajiban divestasi 20 persen saham perseroan, sampai dengan penutupan Rapat Umum Pemegang Saham Tahunan Perseroan tahun 2024.

“[Jajaran direksi dan komisaris] ini bertambahnya karena ada penambahan komisaris dari PT Inalum sebagai calon pemegang saham Vale Indonesia nantinya,” ujar Presiden Direktur Vale Indonesia Nico Kanter saat Diskusi Media RUPSLB 2020, Senin (7/9/2020).

Adapun, pemegang saham sepakat untuk mengangkat Adriansyah Chaniago sebagai Wakil Presiden Direktur Vale Indonesia yang baru. Berdasarkan catatan Bisnis, Adriansyah Chaniago saat ini masih menjabat sebagai Komisaris Independen PT Jasa Marga Tbk. (Persero) (JSMR).

IMA-Daily Update Page 4

In addition, shareholders also appointed Ogi Prastomiyono as the new Vice President Commissioner. Ogi Prastomiyono also still serves as Director of Strategic Services at PT Inalum.

Then, shareholders appointed Rizal Sukma and Alexandre Silva D'Ambrosio as new Commissioners respectively, and Dwia Aries Tina Pulubuhu as Independent Comm. of the

company.

The following is the latest composition of the board of directors and commissioners of Vale Indonesia:

Directors

President Director: Nicolas D. Kanter

Vice President Dir.: Adriansyah Chaniago

Director: Febriany Eddy

Director: Bernardus Irmanto

Director: Dani Widjaja

Director: Agus Superiadi

Director: Vinicius Mendes Ferreira

Commissioner

President Comm.: Mark James Travers

Vice President Comm.: Ogi Prastomiyono

Commissioner: Luiz Fernando Landeiro

Commissioner: Cory McPhee

Commissioner: Nobuhiro Matsumoto

Commissioner: Rizal Sukma

Commissioner: Alexandre Silva D'Ambrosio

Independent Commissioner: Raden Sukhyar

Independent Commissioner: Rudiantara

Independent Commissioner: Dwia Aries Tina Pulubuhu. Editor: Hafiyyan

Selain itu, pemegang saham juga meng-angkat Ogi Prastomiyono sebagai Wakil Presiden Komisaris yang baru. Ogi Prastomiyono juga masih menjabat sebagai Direktur Layanan Strategis PT Inalum.

Kemudian, pemegang saham mengangkat Rizal Sukma dan Alexandre Silva D'Ambrosio masing-masing sebagai Komisaris yang baru, dan Dwia Aries Tina

Pulubuhu sebagai Komisaris Independen perseroan.

Berikut susunan direksi dan komisaris Vale Indonesia terbaru:

Direksi

Presiden Direktur: Nicolas D. Kanter

Wakil Presdir: Adriansyah Chaniago

Direktur: Febriany Eddy

Direktur: Bernardus Irmanto

Direktur: Dani Widjaja

Direktur: Agus Superiadi

Direktur: Vinicius Mendes Ferreira

Komisaris

Presiden Komisaris: Mark James Travers

Wakil Presiden Kom.: Ogi Prastomiyono

Komisaris: Luiz Fernando Landeiro

Komisaris: Cory McPhee

Komisaris: Nobuhiro Matsumoto

Komisaris: Rizal Sukma

Komisaris: Alexandre Silva D'Ambrosio

Komisaris Independen: Raden Sukhyar

Komisaris Independen: Rudiantara

Komisaris Independen: Dwia Aries Tina Pulubuhu. Editor : Hafiyyan

IMA-Daily Update Page 5

First semester of 2020, Bumi Resources Minerals (BRMS) earned

US$2.55 million in revenue Reporter: Ridwan Nanda Mulyana | Editor:

Yudho Winarto

PT BUMI Resources Minerals Tbk (BRMS)

posted revenues of US$ 2.55 million and earned a net profit of US$ 955,388 during the first semester of this year.

BRMS Director and Investor Relations Herwin W. Hidayat revealed, until the period 30 June 2020, as much as US$ 408,319 or around 16% of BRMS revenue came from the sale of gold products produced by its subsidiary, PT Citra Palu

Minerals in Poboya, Palu, Sulawesi.

"The remaining revenue that was booked came from mining advisory services," Herwin said in a written statement to Kontan.co.id, Monday (7/9).

He said, BRMS revenue from sales of gold products in the first semester had shown progress compared to the previous quarter.

In the first quarter of this year, BRMS only

posted revenue of US$ 99,860 from sales of gold products, or only 10% of BRMS 'total revenue in that period.

According to Herwin, in Semester I-2020, BRMS has also paid off its US$ 53 million loan to related creditors (Wexler Capital Pte. Ltd).

"Therefore, the loan to equity ratio from the Company improved from 0.2 in December 2019 to 0.1 in June 220," said Herwin.

Semester I-2020, Bumi Resources Minerals (BRMS) raup

pendapatan US$ 2,55 juta Reporter: Ridwan Nanda Mulyana | Editor:

Yudho Winarto PT BUMI Resources Minerals Tbk (BRMS) membukukan pendapatan US$ 2,55 juta dan meraih laba bersih sebesar US$ 955.388 sepanjang Semester I tahun ini.

Direktur dan Investor Relations BRMS Herwin W. Hidayat mengungkapkan, hingga periode 30 Juni 2020, sebanyak US$ 408.319 atau sekitar 16% pendapatan BRMS berasal dari penjualan produk emas yang dihasilkan oleh anak perusahaan, yakni PT Citra palu Minerals di Poboya, Palu, Sulawesi.

"Adapun sisa dari pendapatan yanh di-bukukan berasal dari jasa mining advisory," kata Herwin dalam keterangan tertulisnya kepada Kontan.co.id, Senin (7/9).

Kata dia, pendapatan BRMS dari penjualan produk emas pada periode Semester I telah menunjukkan kemajuan dibanding kuartal sebelumnya.

Pada Kuartal pertama tahun ini, BRMS hanya membukukan pendapatan US$ 99.860 dari penjualan produk emas, atau hanya 10% dari total pendapatan BRMS di periode tersebut.

Menurut Herwin, pada Semester I-2020 ini BRMS juga sudah melunasi pinjamannya sebesar US$ 53 juta terhadap kreditur terkait (Wexler Capital Pte. Ltd).

"Oleh karenanya, rasio pinjaman terhadap ekuitas dari Perusahaan membaik dari 0,2 di Desember 2019 menjadi 0,1 di Juni 220," sebut Herwin.

IMA-Daily Update Page 6

Furthermore, he explained that during Semester I-2020, the production facility owned by BRMS in Poboya, Palu, had produced and delivered 25.25 kilograms of dore bullion to the Logam Mulia refining facility (smelter) operated by PT Aneka Tambang Tbk., In Jakarta.

Meanwhile, the production facility in Poboya, Palu, has the capacity to process up to 500 tons of gold ore per day which is currently managed by PT Citra Palu Minerals (CPM), a subsidiary of BRMS.

Lebih lanjut, dia memaparkan bahwa sepanjang Semester I -2020, fasilitas produksi miliki BRMS di Poboya, Palu, telah memproduksi dan mengirimkan 25,25 kilogram dore bullion ke fasilitas pemurnian (smelter) Logam Mulia yang dioperasikan oleh PT Aneka Tambang Tbk., di Jakarta.

Adapun, fasilitas produksi di Poboya, Palu, memiliki kapasitas untuk mengolah sampai dengan 500 ton bijih emas per hari yang saat ini dikelola oleh PT Citra Palu Minerals (CPM) yang merupakan anak usaha BRMS.

MDKA Gives Maximum Bond Interest 10.25% By: Ahmad Nabhani

TO support the development of the subsidiary's business, PT Merdeka Copper Gold Tbk (MDKA) is conducting a public offering of Rp 300 billion in sustainable bonds I Merdeka Copper Gold phase II in 2020, amounting to Rp 300 billion in two series. In a press release in Jakarta, yesterday it was stated that the company's bonds have two series. Where series A with a value of Rp.149 billion has an 8.25% interest and a tenor of 367 days.

The series B is valued at Rp151 billion with an interest rate of 10.25% and a three-year tenor. The gold mining company said that the proceeds from the corporate action will be channeled in the form of loans to affiliated parties, namely PT Batutua Kharisma Permai (BKP), amounting to 75% of the value of the bonds. While the rest is for the company's working capital.

If the funds loaned have been returned by BKP to the company, the company will use the funds to support the company's business activities.

MDKA Beri Bunga Obligasi Maksimal 10,25%

Oleh: Ahmad Nabhani

DUKUNG pengembangan bisnis anak usaha, PT Merdeka Copper Gold Tbk (MDKA) tengah melakukan penawaran umum obligasi berkelanjutan I Merdeka Copper Gold tahap II tahun 2020 sebesar Rp 300 miliar dalam dua seri. Dalam siaran persnya di Jakarta, kemarin disebutkan, obligasi perseroan memiliki dua seri. Dimana seri A dengan nilai Rp149 miliar berbunga 8,25% dan tenor 367 hari.

Adapun seri B senilai Rp151 miliar dengan bunga 10,25% dan bertenor tiga tahun. Emiten pertambangan emas ini menye-butkan, dana hasil aksi korporasi itu akan disalurkan dalam bentuk pinjaman kepada pihak terafil iasi, yakni PT Batutua Kharisma Permai (BKP) sebesar 75% dari nilai obligasi. Sementara sisanya untuk modal kerja perseroan.

Apabila dana yang dipinjamkan telah dikembalikan oleh BKP kepada perseroan, maka perseroan akan menggunakan dana tersebut untuk mendukung kegiatan usaha perseroan.

IMA-Daily Update Page 7

It was further explained that the implementation of fund distribution transactions to BKP is an exempted affiliate transaction as referred to in Regulation No. IX.E.1, Attachment to Decree of the Chairman of the Capital Market and Financial Institution Supervisory Agency No. Kep-412/BL/2009 dated 25 November 2009 because BKP supports the main business activities of the Company, and if the Transaction of Funds to BKP is carried out after 20 October 2020, the Company must comply with the provisions stipulated in OJK Regulation No. 42/POJK.04/2020 concerning Affiliated Transactions and Conflict of Interest Transactions.

Lebih lanjut dijelaskan, pelaksanaan transaksi penyaluran dana ke BKP merupakan transaksi afiliasi yang di-kecualikan sebagaimana dimaksud dalam Peraturan No. IX.E.1, Lampiran Keputusan Ketua Badan Pengawas Pasar Modal dan Lembaga Keuangan No. Kep-412/BL/2009 tanggal 25 November 2009 karena BKP penunjang kegiatan usaha utama Perseroan, dan apabila transaksi Penyaluran Dana ke BKP tersebut dilakukan setelah tanggal 20 Oktober 2020, maka Perseroan wajib memenuhi ketentuan sebagaimana diatur dalam Peraturan OJK No. 42/POJK.04/2020 tentang Transaksi Afiliasi dan Transaksi Benturan Kepentingan.

Inalum Join, This Is Vale's Big Business Agenda in 2021

Monica Wareza, CNBC Indonesia

PT VALE Indonesia Tbk (INCO), a Brazilian nickel mining and processing and refining (smelter) company, has decided to postpone the plan to rebuild its furnace facilities from the end of this year to May 2021. Work on this facility is expected to take five months and will have an impact on production decline next year.

Vale Indonesia Finance Director Bernardus Irmanto said that the delay in rebuilding the furnace will be next year because 2020 is considered a challenging year for the company. Thus, he continued, the company's development agenda for the next year will be quite solid, starting from the rebuilding of this furnace facility to the construction of two other new smelter projects.

Inalum Gabung, Ini Agenda Besar Bisnis Vale di 2021

Monica Wareza, CNBC Indonesia

PT VALE Indonesia Tbk (INCO), perusahaan

tambang dan pengolahan dan pemurnian (smelter) nikel asal Brazil, memutuskan untuk memundurkan rencana pembangunan ulang (rebuild) fasilitas furnace dari akhir tahun ini menjadi Mei 2021 mendatang. Pengerjaan fasilitas ini diperkirakan akan memakan waktu lima bulan dan akan berdampak pada penurunan produksi pada tahun depan.

Direktur Keuangan Vale Indonesia Bernardus Irmanto mengatakan penundaan pem -bangunan ulang furnace menjadi tahun depan lantaran pada 2020 ini dinilai sebagai tahun yang menantang bagi perusahaan. Dengan demikian, lanjutnya, agenda pengembangan perusahaan pada tahun depan cukup padat, mulai dari pembangunan ulang fasilitas furnace ini hingga pembangunan dua projek smelter baru lainnya.

IMA-Daily Update Page 8

"2021 is challengi ng for companies because there are several big agendas that will be carried out for business continuity. As conveyed at the last AGM, one major decision was taken, namely to postpone the rebuild furnace work from 2020 to 2021. The plan will begin in May (2021) as long as five months and finished in October 2021," said Bernardus in a virtual press conference, Monday (7/9/2020).

In addition, he continued, as soon as possible the company will make investment decisions for its two new projects which are currently still in the feasibility study stage, as well as continue the licensing process.

As is known, the two new projects are the ferronickel smelter in Bahodopi, Central Sulawesi and the High Pressure Acid Leaching (HPAL) smelter in Pomalaa, Southeast Sulawesi.

Previously, it was stated that the construction process could begin after the company completed a number of technical and commercial requirements together with Sumitomo Metal Mining Co Ltd (SMM) as partners in this HPAL smelter project.

The two smelter projects will be the company's focus, especially after MIND ID entered into the 20% shareholder of Vale Indonesia on 19 June.

"Because there is a furnace that will be rebuilt in five months, the production level will be low and nickel prices are expected to be quite good in 2021, so that it can help the low production and the company's performance can be well maintained," he said.

This year, Vale Indonesia targets an increase in nickel matte production to 73,000 tons, higher than the previously set target of 71,000 tons. The projected higher production this year is due to...

"2021 ini jadi menantang bagi perusahaan karena ada beberapa agenda besar yang akan dilakukan untuk keberlangsungan usaha. Seperti disampaikan pada RUPS yang lalu, satu keputusan besar diambil yaitu penundaan pengerjaan rebuild furnace ini dari 2020 ke 2021. Rencananya akan dimulai pada Mei (2021) selama lima bulan dan selesai pada Oktober 2021," kata Bernardus dalam konferensi pers virtual, Senin (7/9/2020).

Selain itu, lanjutnya, secepatnya perusahaan akan membuat keputusan investasi untuk dua proyek barunya yang saat ini masih dalam tahap feasibility study (uji kelayakan), serta melanjutkan proses perizinan.

Seperti diketahui, dua proyek baru ini adalah smelter feronikel di Bahodopi, Sulawesi Tengah dan smelter High Pressure Acid Leaching (HPAL) di Pomalaa, Sulawesi Tenggara.

Sebelumnya disebutkan bahwa proses konstruksi itu bisa dimulai setelah perusahaan menuntaskan sejumlah persyaratan teknis dan komersial bersama dengan Sumitomo Metal Mining Co Ltd (SMM) sebagai mitra dalam proyek smelter HPAL ini.

Kedua proyek smelter ini akan menjadi fokus perusahaan terutama setelah masuk-nya MIND ID menjadi pemegang saham 20% Vale Indonesia pada 19 Juni lalu.

"Karena ada satu furnace yang akan di-rebuild lima bulan, tingkat produksi akan rendah dan harga nikel diharapkan cukup baik di 2021, sehingga bisa bantu produksi yang rendah itu dan kinerja perusahaan bisa di-maintain dengan baik," ungkapnya.

Tahun ini Vale Indonesia menargetkan peningkatan produksi nikel matte pada menjadi 73.000 ton, lebih tinggi dari target yang ditetapkan sebelumnya sebesar 71.000 ton. Proyeksi lebih tingginya produksi tahun ini dikarenakan...

IMA-Daily Update Page 9

The projected higher production this year is due to the company delaying the imple-mentation of the electric furnace rebuild 4 to the second quarter of 2021, from the initial plan that was supposed to be carried out this year.

"If the furnace rebuild unit 4 is postponed and carried out next year, next year's production will be affected," said Bernardus. (wia/wia)

Proyeksi lebih tingginya produksi tahun ini dikarenakan perusahaan menunda pelak-sanaan rebuild furnace listrik 4 ke kuartal dua 2021 dari rencana awal yang seharus-nya akan dilakukan tahun ini.

"Kalau rebuild tanur unit 4 ini ditunda dan dilakukan tahun depan, maka produksi tahun depan akan terdampak," ujar Bernardus. (wia/wia)

Collaborating with Antam, Bumi Resources Minerals (BRMS) Spurs

Gold Business Finna U. Ulfah

METAL mining company PT Bumi Resources Minerals Tbk. (BRMS) increased the portion of revenue from the gold business.

In the first semester of 2020, the company posted revenues of US$ 2.55 million, down 13.85 percent year on year (yoy) from the previous US$ 2.96 million.

Net profit attributable to owners of the parent company amounted to US$ 969,707, up 3.97 percent yoy from US$ 932.69 previously.

BRMS uses an exchange rate of Rp 14,285.57 per US dollar for the period 30 June 2020, and Rp 13,888.88 per US dollar for the period at the end of December 2019.

Thus, the total revenue in the first semester of 2020 was equivalent to Rp 36.43 billion, while the net profit was around Rp 13.85 billion.

Bumi Resources Minerals Director and Investor Relations Herwin Hidayat said that around 16% of the company's revenue in the first half of 2020 or...

Gandeng Antam, Bumi Resources Minerals (BRMS) Pacu Bisnis

Emas Finna U. Ulfah

EMITEN pertambangan logam PT Bumi Resources Minerals Tbk. (BRMS) mening-katkan porsi pendapatan dari bisnis emas.

Pada semester I/2020, perusahaan mem-bukukan pendapatan US$2,55 juta, turun 13,85 persen year on year (yoy) dari sebelumnya US$2,96 juta.

Laba neto yang dapat diatribusikan kepada pemilik entitas induk sejumlah US$ 969.707, naik 3,97 persen yoy dari sebelumnya US$932,69.

BRMS menggunakan kurs Rp14.285,57 per dolar AS untuk periode 30 Juni 2020, dan Rp13.888,88 per dolar AS pada periode akhir Desember 2019.

Dengan demikian, total pendapatan pada semester I/2020 setara dengan Rp36,43 miliar, sedangkan laba bersih sekitar Rp13,85 miliar.

Direktur dan Investor Relations Bumi Resources Minerals Herwin Hidayat menyampaikan sekitar 16% dari pendapatan perusahaan di semester I/2020 atau...

IMA-Daily Update Page 10

US$ 408,319 came from the sale of gold

products produced by BRMS's subsidiary,

PT Citra Palu Minerals in Poboya, Palu,

Sulawesi. The remaining income comes

from mining advisory services.

"The company's revenue in the first half of

2020 from the sale of gold products has

shown rapid progress from the previous

quarter," he said in an official statement,

Monday (7/9/2020).

In the first quarter of 2020, BRMS only

booked US$ 99,860 in revenue from the

sale of its gold products, which was only

10% of the company's total revenue in that

period.

In the first half of 2020, BRMS has also paid

off its US$ 53 million loan to a related

creditor (Wexler Capital Pte. Ltd).

Therefore, the Company's loan to equity

ratio improved from 0.2 in December 2019

to 0.1 in June 2020.

During the first semester of 2020, the

production facility owned by BRMS in

Poboya, Palu has produced and delivered

more than 25 kg of dore bullion to the

Logam Mulia refining facility (smelter) in

Jakarta which is operated by PT Aneka

Tambang Tbk. (ANTM).

The production facility in Poboya, Palu has

the capacity to process up to 500 tonnes of

gold ore per day which is currently

managed by PT Citra Palu Minerals

(“CPM”), which is a subsidiary of BRMS.

Editor: Hafiyyan

US$408.319 berasal dari penjualan produk emas yang dihasilkan oleh anak usaha BRMS yaitu PT Citra Palu Minerals di Poboya, Palu, Sulawesi. Adapun sisa dari pendapatan yang dibukukan berasal dari jasa penasehat pertambangan.

"Pendapatan Perusahaan di semester pertama tahun 2020 yang berasal dari penjualan produk emas tersebut telah menunjukan kemajuan yang pesat dari kuartal sebelumnya," paparnya dalam keterangan resmi, Senin (7/9/2020).

Pada periode kuartal pertama tahun 2020, BRMS hanya membukukan US$99.860 pendapatan dari penjualan produk emas-nya, yang mana hanya merupakan 10% dari total pendapatan perusahaan di periode tersebut.

Di semester pertama tahun 2020, BRMS juga telah melunasi pinjamannya sebesar $53 juta terhadap kreditur terkait (Wexler Capital Pte. Ltd). Oleh karenanya, rasio pinjaman terhadap ekuitas dari Per-usahaan membaik dari 0,2 di Desember 2019, menjadi 0.1 di Juni 2020.

Sepanjang semester pertama tahun 2020, fasilitas produksi milik BRMS di Poboya, Palu telah memproduksikan dan mengi-rimkan lebih dari 25 kg dore bullion ke fasilitas pemurnian (smelter) Logam Mulia di Jakarta yang dioperasikan oleh PT Aneka Tambang Tbk. (ANTM).

Fasilitas produksi di Poboya, Palu tersebut memiliki kapasitas untuk mengolah sampai dengan 500 ton bijih emas per hari yang saat ini dikelola oleh PT Citra Palu Minerals (“CPM”), yang merupakan anak usaha BRMS. Editor : Hafiyyan

IMA-Daily Update Page 11

Steady Gold Sales, Bumi Resources (BRMS) Optimistic on

Shining Performance Reporter: Ridwan Nanda Mulyana | Editor:

Anna Suci Perwitasari

PT BUMI Resources Minerals Tbk (BRMS)

is optimistic that it can reap an increase in revenue and achieve a net profit continuously. This is thanks to the positive performance of the company's gold sales.

BRMS Director and Investor Relations Herwin W. Hidayat revealed that the company is also pursuing an increase in production volume and hopes that the gold selling price will remain at a high level.

"What can be conveyed for the company's future projections is that it is hoped that the percentage increase in sales and net profit can be maintained at least every quarter, quarter on quarter," he said when contacted by Kontan.co.id, Monday (7/9).

In the first semester of 2020, BRMS posted revenue of US$ 2.55 million and achieved a net profit of US$ 955,388.

Until June 30, 2020, as much as US$

408,319 or around 16% of BRMS 'revenue came from the sale of gold products produced by its subsidiary, namely PT Citra Hammer Minerals in Poboya, Palu, Sulawesi. Meanwhile, the remaining revenue recorded comes from mining advisory services.

Herwin explained that last year BRMS had not recorded any revenue from selling its gold products. All company revenue still

comes from mining consulting services.

Penjualan emas mantap, Bumi Resources (BRMS) optimistis

kinerja kinclong Reporter: Ridwan Nanda Mulyana | Editor:

Anna Suci Perwitasari

PT BUMI Resources Minerals Tbk (BRMS) optimistis bisa meraup kenaikan penda-patan dan meraih laba bersih secara terus menerus. Hal ini berkat kinerja positif dari penjualan emas perusahaan.

Direktur dan Investor Relations BRMS Herwin W. Hidayat mengungkapkan, per-usahaan pun mengejar peningkatan volume produksi dan berharap harga jual emas tetap berada di level yang tinggi.

"Yang dapat disampaikan untuk proyeksi ke depan perusahaan adalah diharapkan persentase kenaikan penjualan maupun laba bersih dapat setidaknya dipertahan-kan setiap kuartal, quarter on quarter," kata dia saat dihubungi Kontan.co.id, Senin (7/9).

Pada semester I-2020, BRMS membukukan pendapatan sebesar US$ 2,55 juta dan meraih laba bersih sebesar US$ 955.388.

Hingga periode 30 Juni 2020, sebanyak US$ 408.319 atau sekitar 16% pendapatan BRMS berasal dari penjualan produk emas yang dihasilkan oleh anak perusahaan, yakni PT Citra palu Minerals di Poboya, Palu, Sulawesi. Sementara sisa dari pendapatan yang dibukukan berasal dari jasa penasehat pertambangan atau mining advisory services.

Herwin menjelaskan, pada tahun lalu BRMS belum membukukan pendapatan dari penjualan produk emasnya. Seluruh pendapatan perusahaan masih bersumber dari jasa konsultasi pertambangan.

IMA-Daily Update Page 12

"There has been progress in the last quarter because about 10% of the company's revenue comes from selling gold products," he said.

Just so you know, in the first quarter of 2020, BRMS posted revenue of US$ 99,860 from sales of gold products, or 10% of BRMS's total revenue in that period. Meanwhile, in the first semester of 2020, revenue from gold sales increased to around 16%.

"It is hoped that in the future the company's revenue from gold sales can continue to increase," continued Herwin.

Furthermore, he explained that during the first semester of 2020, the production facility owned by BRMS in Poboya, Palu, had produced and delivered 25.25 kilograms of dore bullion to the Logam Mulia refining facility (smelter) operated by PT Aneka Tambang Tbk. (Antam) in Jakarta.

Meanwhile, the production facility in Poboya, Palu, has the capacity to process up to 500 tons of gold ore per day which is currently managed by PT Cita Palu Minerals (CPM), a subsidiary of BRMS.

"Until now, all the gold ore produced by BRMS into Dore Bullion has been sent from Palu to Antam's precious metal smelter in Jakarta," Herwin explained.

Then, BRMS paid a processing fee to Antam to refine the dore bullion into gold bullion. Furthermore, the gold bars were sold by BRMS to end users, such as Antam and Pegadaian.

After successfully operating its first factory, Herwin said that BRMS was also building a second factory with a capacity of up to 4,000 tons of ore per day. Currently, BRMS is still in the stage of finalizing the availability of funding for the construction of the factory.

"Kuartal lalu sudah ada kemajuan karena sekitar 10% dari pendapatan perusahaan adalah dari penjualan produk emasnya," ujar dia.

Asal tahu saja, pada kuartal I-2020 lalu, BRMS membukukan pendapatan US$ 99.860 dari penjualan produk emas, atau 10% dari total pendapatan BRMS di periode tersebut. Sedangkan pada semester I-2020, pendapatan dari penjualan emas meningkat menjadi sekitar 16%.

"Diharapkan ke depannya pendapatan per-usahaan dari penjualan emas dapat terus meningkat," sambung Herwin.

Lebih lanjut, dia memaparkan bahwa sepanjang semester I -2020, fasilitas produksi miliki BRMS di Poboya, Palu, telah memproduksi dan mengirimkan 25,25 kilogram dore bullion ke fasilitas pemurnian (smelter) Logam Mulia yang dioperasikan oleh PT Aneka Tambang Tbk. (Antam) di Jakarta.

Adapun, fasilitas produksi di Poboya, Palu, memiliki kapasitas untuk mengolah sampai dengan 500 ton bijih emas per hari yang saat ini dikelola oleh PT Cita Palu Minerals (CPM) yang merupakan anak usaha BRMS.

"Sampai saat ini seluruh bijih emas yang diproduksikan menjadi Dore Bullion oleh BRMS dikirim dari Palu ke smelter logam mulia milik Antam di Jakarta," jelas Herwin.

Lalu, BRMS membayar processing fee ke Antam untuk memurnikan dore bullion menjadi emas batangan. Selanjutnya, emas batangan tersebut dijual oleh BRMS ke end user, seperti Antam dan Pegadaian.

Setelah sukses mengoperasikan pabrik pertamanya, Herwin mengatakan bahwa BRMS juga tengah membangun pabrik kedua dengan kapasitas hingga 4.000 ton bijih per hari. Saat ini, BRMS masih dalam tahap finalisasi ketersediaan pendanaan untuk konstruksi pabrik tersebut.

IMA-Daily Update Page 13

"If all goes well, it is hoped that the second factory will be completed by the end of 2022," said Herwin.

To build this second factory, the estimated cost required is around US$ 60 million - US$ 70 million. It is planned that the construction of this factory will be funded by a project financing scheme. "However, to note, this is still not final, and is still being studied further," concluded Herwin.

"Kalau semua lancar, diharapkan pabrik kedua selesai di akhir 2022," kata Herwin.

Untuk membangun pabrik kedua ini, estimasi biaya yang diperlukan mencapai sekitar US$ 60 juta - US$ 70 juta. Rencana-nya pembangunan pabrik ini akan didanai dengan skema project financing. "Namun untuk dicatat, ini masih belum final, dan masih dikaji lebih lanjut," pungkas Herwin.

Coal production exceeding 600 million tons against the rules?

Anisatul Umah, CNBC Indonesia

THE MINISTRY of Energy and Mineral Resources (MEMR) projects that coal production in 2021 will exceed 600 million tons, to be precise 609 million tons, up from this year's production target of 550 million tons.

This coal production figure is estimated to continue to increase every year. In fact, in 2024 coal production is estimated to reach 628 million tons.

Responding to the estimated coal production by the government, one of the non-governmental organizations, namely Publish What You Pay (PWYP), said that the plan for coal production to continue to increase even above 600 million tons is contrary to national energy policies, especially the Regional Energy General Plan (RUED).

PWYP Indonesia National Coordinator Maryati Abdullah said RUED limits coal production per 2019 to a maximum of 400 million tons per year.

Produksi Batu Bara Melebihi 600 Juta Ton Langgar Aturan?

Anisatul Umah, CNBC Indonesia

KEMENTERIAN Energi dan Sumber Daya Mineral (ESDM) memproyeksikan pro-duksi batubara pada 2021 akan menembus 600 juta ton, tepatnya 609 juta ton, naik dari target produksi tahun ini yang dipatok sebesar 550 juta ton.

Angka produksi batu bara ini diperkirakan akan terus melonjak setiap tahunnya. Bahkan, pada 2024 produksi batu bara diperkirakan mencapai 628 juta ton.

Menanggapi perkiraan produksi batu bara oleh pemerintah tersebut, salah satu organisasi non pemerintah yakni Publish What You Pay (PWYP) menuturkan rencana produksi batu bara yang terus melonjak bahkan di atas 600 juta ton tersebut bertentangan dengan kebijakan energi nasional, khususnya Rencana Umum Energi Daerah (RUED).

Koordinator Nasional PWYP Indonesia Maryati Abdullah mengatakan RUED membatasi produksi batu bara per 2019 maksimal 400 juta ton per tahunnya.

IMA-Daily Update Page 14

"Especially RUED, which limits coal production per 2019 to a maximum of 400 million tons per year. This is also a contradiction with efforts to reduce the portion of fossil energy in the national energy mix (primary energy mix)," he told CNBC Indonesia via short message.

He further said that coal prices and future demand are expected to decline, especially

from India and China. Demand for coal from the two largest importing countries of Indonesian coal is estimated to decline. In addition, domestic demand, such as from PLN and private electricity developers

(Independent Power Producer/IPP), according to him, will also not increase.

"This is considering the over capacity (excess capacity) of PLTUs in Java and the economic growth in post-epidemic

economic recovery which has not yet grown significantly," he said.

Coal prices are now plummeting due to low market demand, but now the government is actually boosting production. According to him, this will not significantly increase state revenue.

"In fact, increasing the quota has created a transfer pricing gap amid falling demand and weak trade and royalty supervision," he said.

Not to mention the existence of tax incentives given to coal contract or permit holders, according to him this will not increase revenue from the coal sector. However, instead it has an increasingly massive impact on coal production and exploitation.

Massive production, but in terms of low economic value for the country, according to him, is a contradictory condition of the desire to increase added value.

"Khususnya RUED, yang melakukan pem-batasan produksi batu bara per 2019 maksimum 400 juta ton per tahun. Hal ini juga kontradiksi dengan upaya penurunan porsi energi fosil dalam bauran energi nasional (primary energy mix)," ungkapnya kepada CNBC Indonesia melalui pesan singkat.

Lebih lanjut ia mengatakan harga batu bara serta permintaan ke depan diperkirakan akan semakin menurun, terutama dari India dan Tiongkok. Permintaan batu bara dari dua negara importir terbesar batu bara Indonesia tersebut diperkirakan turun. Selain itu, permintaan dalam negeri, seperti dari PLN dan pengembang listrik swasta (Independent Power Producer/ IPP) menurutnya juga tidak akan naik.

c"Ini mengingat over capacity (kelebihan kapasitas) PLTU di Jawa dan pertumbuhan ekonomi dalam pemulihan ekonomi pasca-pandemi yang masih belum tumbuh secara signifikan," tuturnya.

Harga batu bara kini anjlok dikarenakan rendahnya permintaan pasar, namun kini pemerintah malah menggenjot produksi. Menurutnya hal ini justru tidak akan menaikkan penerimaan negara secara signifikan.

"Justru dengan menaikkan kuota ini malah menimbulkan celah transfer pricing di tengah permintaan yang menurun dan pengawasan perdagangan dan royalti yang lemah," tuturnya.

Belum lagi dengan adanya insentif pajak yang diberikan kepada pemegang kontrak atau izin batu bara, menurutnya ini tidak akan menaikkan pendapatan dari sektor batu bara. Akan tetapi malah berdampak pada produksi dan eksploitasi batu bara semakin masif.

Masifnya produksi namun secara nilai ekonomi rendah bagi negara menurutnya ini adalah kondisi kontradiktif dari keinginan untuk peningkatan nilai tambah.

IMA-Daily Update Page 15

"And this is contrary to the vision of a developed Indonesia (with high economic added value) which was announced in President Jokowi's inauguration speech," he said.

Previously, the Director General of Mineral and Coal at the Ministry of EMR, Ridwan Djamaludin, said that the projected coal volume in 2020 to 2024 is calculated based on the company's production capacity, domestic market needs, and economic growth.

"After calculating both domestic demand and demand, it is decided that next year's coal production will amount to 609 million tons," he said at the Hearing Meeting (RDP) at Commission VII DPR RI, Thursday (27/08/2020).

In 2022, coal production is also projected to increase again to 618 million tons, then in 2023 at 625 million tons, and in 2024 at 628 million tons.

Then for the projection of domestic coal demand in 2021 of 168 million tons, an increase of 13 million tons from 155 million tons this year. Then in 2022 it will be 177 million tons, in 2023 it will increase again to be 184 million tons, and in 2024 it will reach 187 million tons. (wia)

"Dan ini bertentangan dengan visi Indonesia maju (dengan nilai tambah ekonomi tinggi) yang dicanangkan dalam pidato pelantikan Presiden Jokowi," tegasnya.

Sebelumnya, Direktur Jenderal Mineral dan Batubara Kementerian ESDM, Ridwan Djamaludin mengatakan proyeksi volume batu bara pada 2020 sampai 2024 dihitung berdasarkan kapasitas produksi perusahaan, kebutuhan pasar dalam negeri, dan pertum-buhan ekonomi.

"Setelah melakukan perhitungan baik demand maupun kebutuhan dalam negeri diputuskan produksi batu bara pada tahun depan sebesar 609 juta ton," paparnya dalam Rapat Dengar Pendapat (RDP) di Komisi VII DPR RI, Kamis, (27/08/2020).

Pada 2022 produksi batu bara juga di-proyeksikan akan kembali meningkat menjadi sebesar 618 juta ton, lalu pada 2023 sebesar 625 juta ton, dan tahun 2024 sebesar 628 juta ton.

Kemudian untuk proyeksi kebutuhan batu bara domestik pada 2021 sebesar 168 juta ton, naik 13 juta ton dari tahun ini 155 juta ton. Kemudian pada 2022 sebesar 177 juta ton, pada 2023 naik lagi menjadi sebesar 184 juta ton, dan pada 2024 mencapai 187 juta ton. (wia)

Once hit by Corona, the copper prices began to creep up

Trio Hamdani - detikFinance

COPPER prices rose quite significantly after the price slumped at the end of March and it is believed that the rally will continue. The price of copper is often seen as determining the direction of the global economy. However,...

Sempat Dihantam Corona, Harga Tembaga Mulai Merangkak Naik

Trio Hamdani - detikFinance

HARGA tembaga naik cukup signifikan setelah harganya merosot di akhir Maret dan diyakini reli akan terus berlanjut. Harga tembaga seringkali dipandang sebagai penentu arah ekonomi global. Namun,...

IMA-Daily Update Page 16

However, its value fell at the end of March when the Corona virus pandemic spread around the world.

However, spot prices have recovered rapidly from US$ 2.1195 per pound on the New York Mercantile Exchange on March 23 to US$ 2.9580 per pound on Friday. That's up 5.87% for the year and 9% on a quarterly basis. Initially these conditions were supported by a sharp increase in Chinese demand.

"While this contrasts sharply with the 5% average drop in share prices for the 4 Big 4 diversified miners (Anglo, BHP, Glencore, RIO), we remain bullish in this sector given the global economic recovery, led by China," said the Analyst. metals and mining Goldman Sachs quoted from CNBC, Tuesday (8/9/2020).

Goldman Executive Director Jack O'Brien and his team attributed their optimism to the recovery in the auto and equipment sector, continued strength in China's property market, and China's second-highest record one-month credit issuance.

A weaker US dollar and rising global inflation expectations are also expected to support copper prices in the future.

Copper remains a favorite commodity in terms of existing demand. Meanwhile, Glencore and BHP are the companies that are in the best position to benefit from the increase in copper prices.

"Our view remains that copper can remain stronger from here as demand for Chinese property remains at a high level, and the supply side continues to deal with the effects of COVID-19," he said.

In assessing the supply outlook, Bank of America strategists noted that copper mine supplies have decreased, while refined supplies have increased.

Namun nilainya jatuh pada akhir Maret ketika pandemi virus Corona menyebar ke seluruh dunia.

Namun, harga spot telah pulih dengan cepat dari US$ 2,1195 per pon di New York Mercantile Exchange pada 23 Maret menjadi US$ 2,9580 per pon pada hari Jumat. Itu naik 5,87% untuk tahun ini dan 9% secara kuartal. Awalnya kondisi tersebut didukung oleh kenaikan tajam permintaan China.

"Meskipun hal ini sangat kontras dengan penurunan rata-rata 5% pada harga saham untuk 4 penambang terdiversifikasi Big 4 (Anglo, BHP, Glencore, RIO), kami tetap bullish di sektor ini karena pemulihan ekonomi global, dipimpin oleh China," kata Analis logam dan pertambangan Goldman Sachs dikutip dari CNBC, Selasa (8/9/2020).

Direktur Eksekutif Goldman Jack O'Brien dan timnya mengaitkan optimisme mereka dengan pemulihan di sektor otomotif dan peralatan, kekuatan berkelanjutan di pasar properti China, dan rekor penerbitan kredit satu bulan tertinggi kedua di China.

Dolar AS yang melemah dan ekspektasi inflasi global yang meningkat juga diper-kirakan akan menopang harga tembaga di masa mendatang.

Tembaga tetap menjadi komoditas favorit dilihat dari permintaan yang ada. Sedangkan Glencore dan BHP sebagai perusahaan yang berada pada posisi terbaik untuk men-dapatkan keuntungan dari kenaikan harga tembaga.

"Pandangan kami tetap bahwa tembaga dapat tetap lebih kuat dari sini karena permintaan properti China tetap pada tingkat yang tinggi, dan sisi penawaran terus menangani efek COVID-19," tuturnya.

Dalam menilai prospek pasokan, ahli strategi Bank of America mencatat bahwa pasokan tambang tembaga telah menurun, sementara pasokan olahan meningkat.

IMA-Daily Update Page 17

"Therefore, against ongoing mining production constraints, there is a continued risk of increasing global processed production by 2.5% in May," Bank of America said in a research note.

BofA strategists highlight that basic mine supply growth has fallen steadily in recent years, with copper concentrate production in 2020 at roughly the same level as in

2016. (toy/ara)

"Oleh karena itu, terhadap hambatan produksi tambang yang sedang berlangsung, terdapat risiko keberlanjutan peningkatan produksi olahan global sebesar 2,5% pada Mei," kata Bank of America dalam catatan penelitian.

Ahli strategi BofA menyoroti bahwa pertum-buhan pasokan tambang dasar telah turun secara stabil dalam beberapa tahun terakhir, dengan produksi konsentrat tembaga pada tahun 2020 berada pada tingkat yang kurang lebih sama seperti pada tahun 2016. (toy/ara)

Asking for clarity on the divestment, the DPR will summon Freeport, MIND ID and the Papua

Regional Government Reporter: Ridwan Nanda Mulyana | Editor:

Anna Suci Perwitasari

COMMISSION VII DPR RI will immediately summon PT Freeport Indonesia (PTFI), Mining Industry Indonesia (MIND ID) and the regional government of Papua. The commission in charge of the energy sector will discuss a number of issues and ask for clarity on various matters after the PTFI divestment at the end of 2018.

Deputy Chairman of Commission VII DPR RI, Eddy Soeparno, said that his party plans to hold a General Hearing Meeting (RDPU) at the end of the trial period, namely in the last week of September. Apart from these three parties, the RDPU will also summon the Mimika Regency Government (Pemkab).

According to Eddy, the RDPU scheduled several things. Among other things, asking for an explanation regarding the share ownership of PTFI after the divestment, obligations and rights to be borne by shareholders, as well as corporate actions that PTFI will undertake. Including the obligation to build a smelter.

Minta kejelasan divestasi, DPR bakal panggil Freeport, MIND ID

dan Pemda Papua Reporter: Ridwan Nanda Mulyana | Editor:

Anna Suci Perwitasari

KOMISI VII DPR RI akan segera memanggil PT Freeport Indonesia (PTFI), Mining Industry Indonesia (MIND ID) dan pemerintah daerah Papua. Komisi yang membidangi sektor energi tersebut akan membahas sejumlah isu dan meminta kejelasan atas berbagai hal pasca divestasi PTFI pada akhir 2018 lalu.

Wakil Ketua Komisi VII DPR RI Eddy Soeparno menyampaikan, pihaknya berencana meng-gelar Rapat Dengar Pendapat Umum (RDPU) pada akhir masa persidangan, yakni di pekan terakhir bulan September ini. Selain tiga pihak tersebut, RDPU juga akan memanggil Peme-rintah Kabupaten (Pemkab) Mimika.

Menurut Eddy, RDPU tersebut mengagen-dakan beberapa hal. Antara lain meminta penjelasan terkait porsi kepemilikan saham PTFI pasca divestasi, kewajiban dan hak yang ditanggung para pemegang saham, serta aksi-aksi korporasi yang akan dilaku-kan PTFI. Termasuk tentang kewajiban pembangunan smelter.

IMA-Daily Update Page 18

"What will be discussed? Of course a lot. Regarding smelter construction. Second, the division of responsibilities among shareholders, MIND ID, PTFI, Pemprov (Papua), and Pemkab (Mimika), especially for future development," said Eddy to Kontan. .co.id, Monday (7/9).

He said the DPR wanted to know how the divestment agreement regulates the

obligations of shareholders for PTFI development. Also how dividends are distributed, and to what extent the burden borne by shareholders for debts taken for acquisitions or corporate actions.

"We want to know how much the burden of each shareholder if future corporate actions are taken. Particularly in taking out a loan, how much of a shareholder will it be to pay in installments, pay off the loan," explained Eddy.

For this reason, the DPR will also highlight the issue of Papua's regional ownership of PTFI shares after the divestment. "Indeed, what we are discussing is the share ownership portion as a whole. Anyway, we want to see the agreement. So that rights and obligations become clear," he said.

The shares for Papua are still hanging

As is known, the divestment of PTFI shares was completed on December 21, 2018. That way, the state-owned mining holding which is now called MIND ID already holds 51.2% of PTFI shares. Of the 51.2% shares, 10% will be owned by the Papuan regional government through PT Indonesia Papua Metal and Mineral (IPMM).

IPMM is a joint venture company (Joint Venture) between MIND ID and Papua BUMD/ROEs. The problem is, until now the Papua ROEs that will hold the 10% stake in PTFI has not been formed.

"Apa yang akan dibahas? tentu banyak. Mengenai pembangunan smelter. Kedua, pembagian tanggung jawab diantara para pemegang saham, MIND ID, PTFI, Pemprov (Papua), dan Pemkab (Mimika), terutama untuk pengembangan ke depannya," kata Eddy kepada Kontan.co.id, Senin (7/9).

Kata dia, DPR ingin mengetahui bagaimana perjanjian divestasi mengatur tentang kewajiban para pemegang saham terhadap pengembangan PTFI. Juga bagaimana pem-bagian dividen, dan sejauh mana beban yang ditanggung para pemegang saham atas utang-utang yang diambil untuk akuisisi maupun aksi korporasi.

"Kami ingin tahu berapa besar beban masing-masing pemegang saham jika di-lakukan aksi-aksi korporasi ke depannya. Khususnya dalam mengambil pinjaman, seberapa besar dari pemegang saham untuk ikut mencicil, melunasi pinjaman tersebut," jelas Eddy.

Untuk itu, DPR juga bakal menyoroti soal porsi kepemilikan daerah Papua terhadap saham PTFI pasca divestasi. "Memang yang kita bahas adalah porsi kepemilikan saham secara keseluruhan. Pokoknya perjanjian-nya ingin kita lihat. Supaya hak dan kewajiban menjadi jelas," tegas dia.

Saham untuk Papua Masih Menggantung

Seperti diketahui, divestasi saham PTFI telah selesai dilakukan pada 21 Desember 2018 lalu. Dengan begitu, holding pertam-bangan BUMN yang kini bernama MIND ID sudah memegang 51,2% saham PTFI. Dari 51,2% saham tersebut, sebanyak 10% saham akan dimiliki oleh pemerintah daerah papua melalui PT Indonesia Papua Metal dan Mineral (IPMM).

IPMM ini merupakan perusahaan patungan (Joint Venture) antara MIND ID dan BUMD Papua. Masalahnya, hingga kini BUMD Papua yang akan menampung 10% saham PTFI tersebut belum terbentuk.

IMA-Daily Update Page 19

MIND ID Senior Vice President Corporate Secretary Rendi Witular said that his party is still waiting for the Papua regional government to form a ROEs that will manage the 10% stake in PTFI. "We are still waiting for the provincial government and Mimika Regency to form a ROEs that will be involved in managing the shares," Rendi told Kontan.co.id, Monday (7/9).

Previously it was reported that there was a conflict between the Papua Provincial Government and the Mimika Regency Government. In terms of the agreement, of the 51% shares owned by Indonesia, the local government gets 10% with a portion of 3% for Papua Province and 7% for Mimika Regency, including representing the rights of indigenous peoples and permanently affected communities.

However, the Papua Provincial Govern-ment issued Regional Regulation (Perda) Number 7 of 2018 concerning the Papua Limited Company Divesting Mandiri as a regional company (ROEs). In the Perda, the share composition of the Papua Provincial Government in ROEs is 51%, Mimika Regency Government 29% and Regency Government around PTFI's operating area of 20%.

On February 11, 2019, Mimika Regent Eltinus Omaleng sent a letter to President Joko Widodo regarding this issue. According to Omeleng, in accordance with the composition of 10% shares as stipulated in the agreement, if converted into the Papua Divestasi Mandiri ROEs, the Papua Provincial Government's share composition in ROEs should be 30% and Mimika Regency Government at 70%.

There has been no official confirmation regarding the resolution of this issue. What is clear, Rendi said that this is the domain of the government. "Ask them, not in the realm of MIND ID to answer," continued Rendi.

Senior Vice President Corporate Secretary MIND ID Rendi Witular mengatakan, pihaknya masih menunggu pemerintah daerah Papua untuk membentuk BUMD yang akan mengelola 10% saham PTFI tersebut. "Kami masih menunggu peme-rintah daerah provinsi dan Kabupaten Mimika untuk membentuk BUMD yang akan terlibat dalam pengelolaan saham tersebut," kata Rendi kepada Kontan.co.id, Senin (7/9).

Sebelumnya diberitakan, sempat ada kisruh antara Pemprov Papua dan Pemkab Mimika. Dalam pokok-pokok kesepakatan, dari 51% saham yang dimiliki Indonesia, pemerintah daerah mendapatkan 10% dengan porsi 3% untuk Provinsi Papua dan 7% untuk Kabupaten Mimika termasuk mewakili hak-hak masyarakat ulayat dan masyarakat terdampak permanen.

Namun, Pemprov Papua menerbitkan Peraturan Daerah Nomor 7 Tahun 2018 tentang Perseroan Terbatas Papua Divestasi Mandiri sebagai perusahaan daerah (BUMD). Dalam Perda tersebut, komposisi saham Pemprov Papua pada BUMD sebesar 51%, Pemkab Mimika 29% dan Pemerintah Kabupaten sekitar areal operasi PTFI sebesar 20%.

Pada 11 Februari 2019 lalu, Bupati Mimika Eltinus Omaleng pun sempat mengirimkan Surat Kepada Presiden Joko Widodo terkait dengan persoalan ini. Menurut Omeleng, sesuai dengan komposisi 10% saham yang telah diatur dalam perjanjian, bila di-konversi dalam BUMD Papua Divestasi Mandiri, seharusnya komposisi saham Pemprov Papua dalam BUMD ialah sebesar 30% dan Pemkab Mimika sebesar 70%.

Belum ada konfirmasi resmi terkait dengan penyelesaian persoalan ini. Yang jelas, Rendi mengatakan bahwa hal tersebut menjadi ranah pemerintah. "Itu tanyakan ke mereka, bukan ranah MIND ID untuk menjawab," sambung Rendi.

IMA-Daily Update Page 20

Referring to Kontan.co.id's report, Rini Soemarno as Minister of SOEs at that time said that the central government would intervene to solve the problem, through the Ministry of Home Affairs. "Later with the Minister of Home Affairs, this is his domain," said Rini, last March 6, 2019.

Unfortunately, as of this writing, the Ministry of Home Affairs is not yet willing

to provide a response and confirmation regarding the settlement of the PTFI share distribution for the Papua region.

Merujuk pada pemberitaan Kontan.co.id, Rini Soemarno sebagai Menteri BUMN saat itu mengatakan bahwa pemerintah pusat akan turun tangan untuk menyelesaikan persoalan tersebut, melalui Kementerian Dalam Negeri. "Nanti dengan Pak Mendagri saja, ini sudah ranah beliau," kata Rini, 6 Maret 2019 lalu.

Sayangnya, hingga tulisan ini dibuat, pihak Kemendagri belum bersedia memberikan tanggapan dan konfirmasi terkait dengan penyelesaian pembagian saham PTFI untuk daerah Papua tersebut.

Watershed Rehabilitation for Environmental Recovery and

Community Economic Improve-ment during Pandemic Period

WATERSHED rehabilitation, which is an effort to restore the environment, is one of the Government's agendas. The goal is to provide benefits for the restoration of forest areas and the welfare of the surrounding communities. This is in accordance with the mandate of Article 28H of the 1945 Constitution which states that Indonesian citizens have the right to a good living environment.

The obligation of watershed rehabilitation for Borrow and Use Forest Area Permits (IPPKH) holders is very important because environmental improvement cannot be borne solely by the Central Government or Local Government alone, but must be carried out by all elements collectively or "Urun Daya" (crowdsourcing), namely that everyone is obliged to participate make environmental improvements in accordance with their abilities and positions.

Rehabilitasi DAS untuk Pemulihan Lingkungan dan Peningkatan Ekonomi Masyarakat di Masa

Pandemi

REHABILITASI DAS yang merupakan upaya pemulihan lingkungan merupakan salah satu agenda Pemerintah. Tujuannya untuk memberikan manfaat bagi pemulihan kawasan hutan dan mensejah-terakan masyarakat di sekitarnya. Ini sesuai amanat Pasal 28H UUD 1945 yang menyebutkan bahwa warga negara Indonesia berhak untuk mendapatkan lingkungan hidup yang baik.

Kewajiban Rehabilitasi DAS bagi pemegang IPPKH menjadi sangat penting karena perbaikan lingkungan tidak mungkin dibebankan hanya kepada Pemerintah Pusat maupun Pemerintah Daerah semata, namun harus dilakukan oleh semua unsur secara bersama-sama atau “Urun Daya” (crowdsourcing), yaitu bahwa setiap orang wajib ikut berpartisipasi melakukan per-baikan lingkungan sesuai dengan kemam-puan dan kedudukannya.

IMA-Daily Update Page 21

This was explained by Environmental and Forestry (LKH) minister Siti Nurbaya when attending the Webinar Serial on Watershed Rehabilitation on Monday (7/9) in Jakarta.

According to minister Siti during the Covid-19 pandemic, apart from being beneficial for the environment, watershed reha-bilitation can also provide direct benefits to the community in the form of daily wages as an achievement when carrying out activities that will become a form of social safety net for people who need employ-ment.

"All policies implemented by the govern-ment, especially through the Ministry of Environment and Forestry (LHK) are fully oriented towards meeting the needs of the people while still prioritizing environ-mental protection and improvement," said Siti Nurbaya.

"It is legally obligatory for permit holders to carry out reclamation and revegetation after mining activities. Apart from that, each IPPKH holder is also required to carry out watershed rehabilitation outside the area of the permit so that the carrying capacity and environmental capacity of the watershed area does not decrease,” continued Minister Siti.

The total number of IPPKHs that are still active is 1,039 units

According to data, up to now the total number of IPPKHs that are still active is 1,039 units, equivalent to 500,131 hectares. It is divided into two major groups, namely IPPKH for Mining totaling 669 units covering an area of 445,953 ha and IPPKH for non-mining totaling as many as 370 units covering an area of 54,178 ha.

One of the direct benefits received by the state with the issuance of this IPPKH is Non-Tax State Revenue (PNBP) with total revenues starting from 2009 - August 2020 amounting to Rp 10.9 trillion.

Hal ini dijelaskan menteri LKH Siti Nurbaya Saat mengikuti acara Serial Webinar tentang Rehabilitasi DAS pada Senin (7/9) di Jakarta.

Menurut menteri Siti di masa pandemi Covid-19, selain bermanfaat bagi lingkungan, rehabilitasi DAS juga dapat memberikan manfaat langsung kepada masyarakat berupa upah kerja harian sebagai prestasi pada saat pengerjaan kegiatan yang akan menjadi salah satu bentuk jaring pengaman sosial bagi masyarakat yang memerlukan lapangan pekerjaan.

“Seluruh kebijakan yang diterapkan oleh Pemerintah, khususnya melalui Kementerian Lingkungan Hidup dan Kehutanan (LHK) sepenuhnya diorientasikan pada pemenuhan kebutuhan rakyat dengan tetap menge-depankan pada perlindungan dan perbaikan lingkungan,” tegas Siti Nurbaya.

“Wajib hukumnya bagi pemegang izin untuk melaksanakan reklamasi dan revegetasi pasca kegiatan penambangan. Selain itu, setiap pemegang IPPKH juga diwajibkan untuk melakukan rehabilitasi DAS di luar areal izinnya agar daya dukung dan daya tampung lingkungan pada wilayah DAS tersebut tidak mengalami penurunan,” lanjut Menteri Siti.

Total IPPKH yang masih aktif sebanyak 1.039 unit

Menurut data, sampai saat ini total IPPKH yang masih aktif sebanyak 1.039 unit atau setara dengan 500.131 Ha. Yang terbagi menjadi dua kelompok besar yaitu IPPKH untuk Pertambangan sebanyak 669 unit seluas 445.953 ha dan IPPKH non-pertam-bangan sebanyak 370 unit seluas 54.178 ha.

Salah satu manfaat langsung yang diterima negara dengan diterbitkannya IPPKH ini adalah Penerimaan Negara Bukan Pajak (PNBP) dengan total penerimaan terhitung sejak tahun 2009 – Agustus 2020 sebesar Rp 10,9 triliun.

IMA-Daily Update Page 22

Still according to Minister Siti, of the total obligation for watershed rehabilitation covering an area of 560,719 hectares, those that have carried out planting activities are an area of 105,202 hectares, and specifically for 2020 to August the planting of watershed rehabilitation reaches 10,393 hectares.

On that occasion, several selected IPPKH holders were presented directly to share stories, whether they had carried out watershed rehabilitation until the handover stage (finished planting) or were still in the process of inspiring each other.

PT Adaro Indonesia will hand over some of the crop

In the Webinar series-1, SKK Migas-EMP Malacca Straits SA is showing live planting of 592 hectares and PT Adaro Indonesia, which will hand over some of the results of the 298.36 hectares of watershed rehabilitation plants to the Ministry of Environment and Forestry.

At this momentum, SKK Migas gives its greatest appreciation to the Ministry of Environment and Forestry for fully supporting SKK Migas and Oil and Gas Cooperation Contract Contractors, in the framework of issuing IPKKH and continuing to support and assist in the fulfillment of their IPPKH obligations.

The Head of SKK Migas, represented by the Deputy for Business Support, Sulistya Hastuti Wahyu, said that there were 19 locations that were in the process of watershed rehabilitation activities with a total area of ± 6,034.18 hectares in collaboration with 12 Cooperation Contract Contractors.

"We always involve the community around the watershed rehabilitation location not only in order to pay attention to and protect the environment but also hope that involving the surrounding community will help them financially in dealing with economic difficulties caused by the Covid-19 Pandemic disaster," said Sulistya.

Masih menurut Menteri Siti Dari total kewajiban rehabilitasi DAS seluas 560.719 Ha, yang telah melaksanakan kegiatan pena-naman adalah seluas 105.202 Ha, dan khusus untuk tahun 2020 sampai dengan Agustus penanaman rehabilitasi DAS mencapai 10.393 Ha.

Dalam kesempatan itu beberapa pemegang IPPKH terpilih dihadirkan secara langsung untuk berbagi kisah, baik yang sudah melakukan rehabilitasi DAS sampai tahap serah terima (selesai penanaman) ataupun yang masih proses untuk saling memberikan inspirasi satu sama lain.

PT Adaro Indonesia yang akan menyerah-kan sebagian hasil tanaman

Pada Webinar seri-1, ditampilkan secara langsung SKK Migas-EMP Malacca Straits SA yang sedang melakukan penanaman seluas 592 Ha dan PT Adaro Indonesia yang akan menye-rahkan sebagian hasil tanaman rehabilitasi DAS seluas 298,36 Ha kepada Kementerian LHK.

Pada momentum ini, SKK Migas memberikan apresiasi sebesar-besarnya kepada Kemen-terian LHK yang telah mendukung penuh SKK Migas dan Kontraktor Kontrak Kerja Sama Minyak dan Gas Bumi, dalam rangka pener-bitan IPKKH serta terus mendukung dan membantu dalam pelaksanaan pemenuhan kewajiban IPPKH yang mereka miliki.

Kepala SKK Migas, diwakili Deputi Dukungan Bisnis, Sulistya Hastuti Wahyu, menyampaikan bahwa terdapat 19 lokasi yang sedang dalam proses kegiatan rehabilitasi DAS dengan total luasan ± 6.034,18 Ha yang bekerjasama dengan 12 Kontraktor Kontrak Kerja Sama.

“Kami selalu melibatkan masyarakat sekitar lokasi Rehabilitasi DAS tidak hanya dalam rangka memperhatikan serta menjaga ling-kungan hidup tetapi juga berharap dengan melibatkan masyarakat sekitar maka akan membantu mereka secara finansial dalam menghadapi kesulitan ekonomi yang di-akibatkan oleh bencana Pandemi Covid-19 ini,” ujar Sulistya.

IMA-Daily Update Page 23

Furthermore, PT Adaro Indonesia, one of the coal mining companies in South Kalimantan has received an IPPKH, the President Director, Garibaldi Thohir said that PT Adaro Indonesia has carried out the obligation of Watershed Rehabilitation activities in Kiram Village and Abirau Village, Karang Intan District, Banjar Regency which is a Forest Park Conser-vation Area. Raya Sultan Adam. Garibaldi explained that the implementation of Watershed Rehabilitation activities has started since June 2016 and is currently in the process of completing planting.

"In carrying out watershed rehabilitation, we involved more than 400 people consisting of the South Kalimantan Forestry Service, BPDAS HL Barito, TAHURA Sultan Adam and the active role of the local community both during planting preparation, making plant seeds, planting and maintaining plant activities and controlling forest fires and land (Dalkarhutla) in the form of the Fire Care Community (MPA)," said Garibaldi.

The results of the watershed reha-bilitation plants were handed over

In this webinar, there was also a handover ceremony for the results of watershed rehabilitation plants which was carried out by PT Adaro Indonesia in Tahura Sultan Adam, South Kalimantan Province and the launching of the watershed rehabilitation planting activity carried out by SKK Migas - EMP Malacca Straits SA in Tesso Nilo National Park, Riau Province. It is hoped that this will trigger enthusiasm for other IPPKH holders to immediately complete their DAS rehabilitation obligations.

At the end of his remarks, the Minister of LHK also emphasized that in 2020 all IPPKH holders should accelerate planting, taking advantage of the time until December 2020.

Selanjutnya, PT Adaro Indonesia salah satu perusahaan pertambangan batubara di Kalimantan Selatan telah mendapatkan IPPKH, Presiden Direkturnya, Garibaldi Thohir menyampaikan bahwa PT Adaro Indonesia telah melaksanakan kewajiban kegiatan Rehabilitasi DAS di Desa Kiram dan Desa Abirau Kecamatan Karang Intan Kabupaten Banjar yang merupakan Kawasan Konservasi Taman Hutan Raya Sultan Adam. Garibaldi menjelaskan pelak-sanaan kegiatan Rehabilitasi DAS telah dimulai sejak bulan Juni 2016 dan saat ini sedang proses penyelesaian penanaman.

“Dalam melakukan Rehabilitasi DAS, kami melibatkan lebih dari 400 orang yang terdiri dari Dinas Kehutanan Kalimantan Selatan, BPDAS HL Barito, TAHURA Sultan Adam dan peran aktif masyarakat setempat baik saat persiapan penanaman, pembuatan bibit tanaman, kegiatan penanaman dan pemeliharaan tanaman serta Pengendalian Kebakaran Hutan dan Lahan (Dalkarhutla) berupa kelompok Masyarakat Peduli Api (MPA),” ucap Garibaldi.

Diserahterimakan hasil tanaman reha-bilitasi DAS

Pada webinar kali ini juga dilaksanakan acara serah terima hasil tanaman rehabilitasi DAS yang telah dilaksanakan oleh PT Adaro Indonesia di Tahura Sultan Adam Provinsi Kalimantan Selatan dan launching kegiatan penanaman rehabilitasi DAS yang dilaksanakan oleh SKK Migas – EMP Malacca Straits S.A di Taman Nasional Tesso Nilo Provinsi Riau. Hal ini diharapkan dapat memicu semangat bagi para peme-gang IPPKH yang lain untuk segera menye-lesaikan kewajiban rehabilitasi DAS.

Di akhir sambutannya, Menteri LHK juga menegaskan bahwa di tahun 2020 ini semua pemegang IPPKH agar melakukan percepatan penanaman, dengan meman-faatkan waktu sampai Desember 2020.

IMA-Daily Update Page 24

"In the future, the concept of watershed rehabilitation is not only for environmental improvement, but can be aimed at improving the community's economy by selecting types. "Other than forest plants, there are also multi-purpose tree species (MPTS), especially the types of fruit trees that the community wants," he concluded.

(sir/aka)

“Ke depan konsep rehabilitasi DAS tidak hanya untuk perbaikan lingkungan, namun dapat ditujukan untuk peningkatan per-ekonomian masyarakat dengan pemilihan jenis tanaman selain tanaman hutan juga tanaman multi purpose tree spesies (mpts) terutama jenis tanaman buah-buahan yang dikehendaki masyarakat,” pungkasnya.

(sir/aka)

Announcement! Coal Prices Drop Again Below US$50/Ton

Tirta Citradi, CNBC Indonesia

NEWCASTLE's benchmark thermal coal

price dropped again below US$ 50/ton.

Until now, there has been no sign of

recovery in demand that can boost the

price of this jet stone.

Monday (7/9/2020), coal prices for

contracts that are actively being traded fell

0.99% to the level of US$ 49.9/ton. In the

first week of September, the price of coal

has dropped 5.13%.

The pressure on the prices of Indonesia's

and Australia's leading commodities is

inseparable from the weak demand factor.

Imports from coal consuming countries in

the Asia Pacific region, such as China, India

and Japan, are still low.

Based on data from Refinitiv Coal Flows,

coal stocks at China's main port of

Qinhuangdao began to decline in the last

two weeks of August to 4.81 million tons

until August 28, 2020.

Pengumuman! Harga Batu Bara Drop Lagi ke Bawah US$50/Ton

Tirta Citradi, CNBC Indonesia

HARGA batu bara termal acuan Newcastle

drop lagi ke bawah US$ 50/ton. Sampai

saat ini belum tampak tanda-tanda

pemulihan permintaan yang dapat men-

dongkrak harga batu legam ini.

Senin (7/9/2020), harga batu bara untuk

kontrak yang aktif ditransaksikan

melemah 0,99% ke level US$ 49,9/ton.

Pada minggu pertama bulan September ini

harga batu bara telah ambles 5,13%.

Tertekannya harga komoditas unggulan

Indonesia dan Australia ini tak terlepas

dari faktor permintaan yang lemah. Impor

dari negara-negara konsumen batu bara di

kawasan Asia Pasifik seperti China, India

dan Jepang yang masih rendah.

Berdasarkan data Refinitiv Coal Flows, stok

batu bara di pelabuhan utama China

Qinhuangdao mulai turun dalam dua pekan

terakhir bulan Agustus menjadi 4,81 juta

ton hingga 28 Agustus 2020.

IMA-Daily Update Page 25

Although stocks have decreased, referring to the Refinitiv Hidro Model data shows that the use of coal as fuel for electricity generation for August, September and October will be largely replaced by hydroelectric power.

Moreover, China's domestic coal price with a calorific value of 5,500 Kcal/kg which fell to RMB 555/ton or US$ 81.19/ton made

China likely to still implement its coal import quota policy to boost domestic demand.

China's domestic coal price has indeed fallen. However, current prices are still in the 'green zone' in the range of RMB 500 - RMB 570 per tonne. The green zone is an informal target term for the coal price range set by the relevant authorities to maintain the profitability of coal producers and utility companies.

On the other hand, gas prices that are already very low also have the potential to suppress coal demand because they can trigger a substitution of coal to gas consumption. CNBC INDONESIA RESEARCH

TEAM (twg/twg)

Meski stok mengalami penurunan, tetapi mengacu pada data Refinitiv Hidro Model menunjukkan bahwa penggunaan batu bara sebagai bahan bakar pembangkit listrik untuk bulan Agustus, September dan Oktober akan lebih banyak digantikan dengan pembangkit listrik tenaga air.

Lagi pula harga batu bara domestik China dengan nilai kalori 5.500 Kcal/kg yang turun ke RMB 555/ton atau US$ 81,19/ton mem-buat China kemungkinan besar masih akan menerapkan kebijakan kuota impor batu baranya untuk mendongkrak permintaan domestik.

Harga batu bara domestik China memang turun. Namun harga saat ini masih berada di 'zona hijau' pada rentang RMB 500-RMB 570 per ton. Zona hijau merupakan suatu istilah target informal rentang harga batu bara yang ditetapkan oleh otoritas terkait untuk menjaga profitabilitas produsen batu bara dan perusahaan utilitas.

Di sisi lain, harga gas yang sudah sangat rendah juga menjadi hal yang berpotensi menekan permintaan batu bara karena bisa memicu terjadinya substitusi dari konsumsi batu bara ke gas. TIM RISET CNBC INDONESIA (twg/twg)

Copper upswings to highest price in two years Salomae Haselgrove

COPPER prices have continued to rise this week to almost $US6800 per tonne ($9345) as

global concerns of a lack of supply continue.

The London Metals Exchange listed the red metal at $US6790.50 on September 7, which is the highest price since June 2018.

After an initial COVID-19 influenced slump, copper prices have been on the increase since June when the metal reached $US5700 per tonne thanks to a rebound in demand from the

world’s top copper consumer, China.

IMA-Daily Update Page 26

The metal also reached record levels during July, picking up to $US6362 per tonne as Chinese imports rose to 762,211 tonnes during July, an 81 per cent improvement compared with July 2019.

As Latin American producers like Chile and Peru continue to experience volatility to operations due to the spread of COVID-19, prices are expected to continue in peaks and troughs.

Australian copper producers are enjoying a rise in share prices, reflective of the three-year highs, including OZ Minerals at $14.81 per share on September 8, IGO at $4.54 representing a 1.91 per cent increase while Sandfire Resources rose by 0.83 per cent to settle at $4.85 a share.

Mining deal value declines $18bn in first half as Covid-19 disrupts flow of capital - GlobalData

By: Donna Slater, Creamer Media Staff Writer and Photographer

GLOBAL mining deal value, suffering from the shock of the Covid-19 pandemic, fell by more

than $18-billion year-on-year in the first six months of the year, to $46.6-billion, says data analytics company GlobalData.

The company notes that an expected slump in the global economy, steered by a series of challenges, has kept investors away from long-term financial instruments, resulting in a 12.7% year-on-year fall in the capital raised by mining companies.

Despite a decent first quarter, resulting from merger and acquisition deals among gold companies, overall merger and acquisition performance declined by 51.6% during the first half of the year.

Overall, the majority of the impact was evident on the completion rate, as there was a 41.7% year-on-year fall in the completed deal value.

Seven of the top ten asset transaction deals involved gold. Topping the list was Mudrick Capital Acquisition Corporation, which bought an equity interest and assets from Hycroft Mining Corporation for $537-million to form Hycroft Mining Holding Corporation.

The remaining three deals involved cobalt, coal and copper.

GlobalData senior mining analyst Vinneth Bajaj says that the largest of the completed deals was the acquisition of Detour Gold by Kirkland Lake Gold for $3.79-billion.

“By including the Detour Lake mine to its production assets, the company aims to produce up to 1.5-million ounces of gold in 2020.”

Bajaj adds that, with this acquisition, Kirkland also added $173.9-million in cash and repaid Detour’s debt of about $98.6-million.

IMA-Daily Update Page 27

“Furthermore, with strong liquidity, the company is well-positioned to cope with Covid-19 challenges. Kirkland also raised $1-million in a private placement of shares primarily to complete Phase 2 permitting of its Hasbrouck project in the US.”

Alongside that, PT Indonesia Asahan Aluminium raised $2.5-billion by offering three sets of bonds at 4.75% (due in 2025), 5.45% (due in 2030) and 5.8% (due in 2050). Of the total, 60% will be used to pay debts and to acquire 20% of PT Vale Indonesia, while the remaining 40% will be used to refinance the company’s older bonds.

Moreover, GlobalData reports that Freeport-McMoRan raised a collective $1.3-billion, which will be used to fund its purchase of certain outstanding senior notes due in 2021 and 2022.

He says the total volume of deals increased from 1 811 in the first half of 2019, to 2 271 in the first half of this year, owing to a 79.7% increase in the total number of announced capital raising deals in that period.

“This was accompanied by a 28.4% increase in the volume of completed merger and acquisition deals. Canada, the US, Australia, China and India accounted for nearly 87% of the total deal volume and over 72% of the total deal value.”

World’s biggest copper supplier saw sales slump last month Bloomberg News

THE BIGGEST copper-producing nation just offered further insight into why markets have

been tightening of late.

Chile, which had managed to maintain production near pre-pandemic levels, reported copper shipments of $2.76 billion for August, an 11% drop from July, according to trade data released Monday by the country’s central bank. That’s the steepest decline since January.

While copper watchers are more focused on volume than revenue given that changes in the

latter also reflect price moves, average copper futures in August were slightly higher than July. That indicates an even steeper drop in August production when the statistics agency discloses it later this month. Chile accounts for a quarter of global copper output.

To be sure, exports can also depend on shipping schedules and the August decline may prove to be a blip. But confirmation that the country’s giant mines are struggling to maintain normal production levels because of virus-fighting measures may give more legs to a rally that’s already taken prices to two-year highs.

Comex inventories have fallen for 17 straight days, the longest run of draw-downs in more than a year, while lower treatment and refining charges are a sign that miners are struggling to keep up with demand from smelters.

IMA-Daily Update Page 28

“The imbalance between the limited supply of overseas copper concentrate and healthy demand from China’s refineries may continue in the second half as Covid-19 disrupts mining operations in South America,” Bloomberg Intelligence analyst Yi Zhu wrote last week. (By James Attwood, with assistance from Rafael Gayol)

Cardinal Resources advises shareholders to accept Shandong takeover bid

By Chantelle Kotze

CARDINAL Resources advises its shareholders to accept the increased takeover offer tabled by Shandong Gold in the absence of a superior proposal.

Shandong Gold increased its takeover offer for West African gold explorer Cardinal Resources to A$1.00 a share, up from its previous offer of $0.70 a share on 7 September.

The Cardinal board, together with the Special Committee and its financial and legal advisers, carefully considered the improved Shandong offer in detail and given the superior price to the Nordgold takeover bid, the Cardinal board unanimously recommends that its shareholders accept the improved Shandong offer (in the absence of a superior proposal) and reject the Nordgold takeover bid.

Cardinal directors who own or control shares in Cardinal intend to accept the improved Shandong offer in respect of all of the shares they own or control on Monday, 14 September 2020, subject to there being no superior proposal.

IMA-Daily Update Page 29

The recommended improved Shandong offer of $1.00 cash per share values Cardinal at approximately $565.6 million on a fully diluted basis and represents an attractive premium of approximately 11.1% to the revised Nordgold takeover bid of A$0.90 cash per share.

The bidding war for Cardinal Resources began in mid-March when Nordgold tabled an unconditional, on-market offer to acquire all un-owned Cardinal shares for $0.45 a share. This offer was challenged by Shandong in June, when it tabled a conditional off-market takeover offer of $0.60 a share — a 31% premium on Nordgold’s offer.

In mid-July, Nordgold upped its initial offer to $0.66 cents per share, which a week later saw Shandong up its offer to $0.70 a share.

On 2 September, Nordgold once again tabled a competing offer of $0.90 a share. Cardinal shareholders were advised to take no action on this offer given Shandong’s matching rights, which afforded Shandong the opportunity to provide a matching or superior proposal to the revised Nordgold on‐market takeover offer.

Cardinal received Shandong’s counter offer on 7 September of $1.00 per share.

While Shandong’s latest offer is no longer subject to Chinese Regulatory Approvals or FIRB Approval, which had already been granted, it remains subject to a number of conditions, including the minimum acceptance condition of 50.1%, which was set out in the Bid Implementation Agreement entered into by Cardinal and Shandong in June.

The Cardinal board says that it has no reason to believe that the remaining conditions of the improved Shandong offer cannot be satisfied within a reasonable time frame based on the information available to it and in careful consultation with Cardinal’s advisers.

Gold miners present strong value as gold prices rise – Franklin Templeton Investments

By Neils Christensen

UNPRECEDENTED central bank action to pump stimulus into financial markets to support the global economy devastated by the COVID-19 pandemic pushed prices to all-time highs in August. Now one fund manager is expecting a new factor to drive prices back above $2,000 an ounce.

Steve Land, vice president and portfolio manager of Franklin Gold and Precious Metals Fund within the Franklin Equity Group, said that despite gold nearly 30% rally this year, the precious metal still has room to run higher. He added that he sees gold prices pushing back above $2,000 as market volatility starts to pick up.

"Gold may benefit from bouts of elevated market volatility and mounting concerns over the coronavirus's economic impact as investors seek perceived safe-haven assets," he said in a report published last week.

IMA-Daily Update Page 30

"A classic feature of gold is its very low correlation with other asset classes, supporting increased interest in owning it as a portfolio diversification tool in uncertain markets."

The comments come as U.S. equity markets saw their worst weekly performance since early-June. The Dow Jones Industrial Average lost 3% in a two-day selloff last week. The blue-chip index hit significant resistance at 29,000 points.

With gold prices expected to push higher, Land said that he recommends investors paying more attention to the equity mining space. He sees three factors to drive mining equities higher.

"In our view, peak gold prices present gold producers with opportunities to redefine themselves as a vital part of a diversified investment portfolio," he said.

The first factor making the mining sector attractive is low costs compared to rising prices. Land noted that mining production costs have been relatively stable between 2013 and 2019. He added that he doesn't expect costs to exceed $1,200 an ounce for most mining companies anytime soon, especially as energy costs remain subdued.

"Higher gold prices can flow straight to the bottom line," he said. "In our view, the recent rally in gold prices should provide a significant lift in cash flow across the industry. Management teams look increasingly focused on turning higher gold prices into free cash flow that can be returned to shareholders via dividends or reinvested in high-return projects."

The second factor to drive value for investors is increased merger and acquisition activity in the mining sector. Land said that with more cash on hand, mining companies will look to expand their production and market capitalization, which would make them more attractive to larger investment funds.

"Companies with multiple mining assets also help to diversify portfolio risk for generalist investors," he said. "Additionally, in a world dominated by index funds, we believe there are tangible advantages to having a larger market capitalization and better trading liquidity."

The third factor Land said he sees driving the gold prices is a further evolution in the physical market. More than a decade ago, the investment market was transformed as exchange-traded products gave investors direct access to gold. Land said he sees the potential for physical gold.

"Most of the gold items sold today are almost identical to those made 100 years ago. We believe more should be done to support the physical ownership of gold; new product introductions could represent a solid source of demand growth looking forward," he said.

Prominent Hill: Priority and production

OZ Minerals has allocated an additional $6m-$9m in capital expenditure for its Prominent Hill mine this year, after deferring funding earlier in 2020 due to uncertainties posed by COVID-19.

IMA-Daily Update Page 31

Located in one of the world’s most mining-friendly locations, Prominent Hill possesses highly competitive fundamentals.

The large copper-gold mine, located 650km north west of Adelaide and 130km south-east of Coober Pedy in South Australia,

delivers a high grade resource, with the ore processed using conventional methods.

The underground decline development at Prominent Hill will allow OZ Minerals to begin mining the western side of the Malu orebody in a bottom-up sequence.

It will also open up the pathway to bottom-up mining from deeper underground from mid to late 2021.

According to OZ Minerals chief executive Andrew Cole, with sustainable annualised rates at or above 4mt per year in recent months, the company has brought forward future decline development spend to further consolidate underground ore movement.

“We will increase mining rates to between 4mt per year to 5mt per year from 2022, prior to any additional tonnage from a potential underground expansion,” he said.

“A study update is expected towards the end of the year on the expansion which is contemplating a shaft haulage system.”

Prominent Hill was discovered in 2001 by Adelaide-based Minotaur Exploration and was considered the most significant Greenfield discovery in Australia for a decade.

Indeed, it produces one of the highest grades of copper concentrate traded on the open market.

There are also significant opportunities for organic growth.

The 24-hour operation is comprised of the Ankata underground mine, a conventional crushing, grinding and flotation processing plant, and a permanent accommodation village for its staff.

The Malu open pit mine concluded operations in Q1 2018.

Prominent Hill has a workforce of about 1200 employees, including contractors.

Concentrate is transported via the Adelaide to Darwin railway to the Port of Darwin. Prominent Hill delivers around 600t of concentrate per day, six days per week, to the port.

Geology

Prominent Hill is an iron oxide/copper/gold deposit located in the Gawler Craton, which covers about 600,000km2 of South Australia. As well as Prominent Hill, the prolific site hosts Olympic Dam and Carrapateena, and a number of other smaller and subeconomic copper-gold deposits.

Most of these deposits are thought to be genetically related to the Gawler Range Volcanic–Hiltaba magmatic event which affected the central and eastern portions of the Craton millions of years ago.

Copper-gold-silver mineralisation at Prominent Hill is mostly hosted within hematite-matrix breccia, with copper mineralisation occuring as disseminations of chalcocite, bornite and chalcopyrite in the matrix of the breccia.

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Mineral Resource

The Prominent Hill Mineral Resource as at June 30, 2019, has been estimated at 140mt, grading 1% copper and 0.7g/t gold, and represents a combination of both copper and gold mineralisation.

This estimate includes mineralisation from both the Prominent Hill underground and surface stockpiles, and is inclusive of the Ore Reserves.

The mine life has been extended until 2030 following a 50% increase to underground Proved Reserves.

History

OZ Minerals is a copper-focused, global, modern mining company based in South Australia.

Listed on the Australian Securities Exchange, the company has a growth strategy focused on creating value for all stakeholders.

As well as Prominent Hill, OZ owns the copper mine at Carrapateena, and has assets in the Carajas province of Brazil.

It also has a pipeline of earn-in agreements with experienced exploration companies in Australia and internationally.

Focused on creating a pipeline of opportunities, OZ maintains a commitment to safety, capital discipline and values to underpin its operations.

OZ Minerals prides itself on being a modern mining company that adapts to changing environments, harnessing the innovative ideas of its people and collaborating to leverage the experience of those around.

Australia’s third largest copper producer, OZ Minerals was formed in 2008 by the merger of two Australian non-ferrous metals mining businesses – Oxiana and Zinifex.

A proportion of OZ Minerals’ assets – excluding Prominent Hill – were then acquired in 2009 by China Non Ferrous Metals (Minmetals), the company now operating as MMG.

In 2011, OZ Minerals purchased the Carrapateena exploration project.

In 2012, the Prominent Hill operation was expanded to include underground mining at Ankata, and in 2015, a second underground mine, Malu Underground, was commissioned. The underground operations were subsequently integrated from an operational perspective.

Forecasts

In July, OZ Minerals raised its full-year copper and gold production targets following a better-than-expected first-half performance across the two SA mines.

The upbeat outlook comes as the price of copper soars on the back of demand hopes in China, the world’s top consumer of the metal, and supply problems across South America, where the coronavirus pandemic has reduced workforce numbers.

OZ Minerals said it has increased copper production guidance at its Prominent Hill and Carrapateena mines, and now expects to produce 88,000-105,000t of copper, up from 83,000-100,000t.

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It also lifted gold production guidance from 207,000-234,000oz to 227,000-249,000oz due to the solid performance of the mines, and cost reductions aided by increased 2020 gold price assumptions to US$1620/oz.

The company further aims to finalise its acquisition of Cassini Resources in October.

“The acquisition, should it be supported by Cassini shareholders, will consolidate ownership of the West Musgrave project to 100 per cent and provide development optionality,” Cole said.

“We remain focussed on completing the transaction in the coming months.”

Mr Cole said his team had delivered a solid quarter while adjusting to COVID.

“The ongoing focus to protect the health and safety of our employees and other stakeholders through the COVID-19 pandemic has pleasingly resulted in no cases identified at Prominent Hill or Carrapateena to this point,” Mr Cole said.

“The number of people from our Brazil team who are currently positive for COVID-19 is in single digits and they are recovering at home.

“However, to ensure ongoing employee safety and continued operations, extensive preventative and contingency measures remain in place should conditions deteriorate.” OZ Minerals’ shares have more than doubled in value since March, when they were trading around $7. The stock peaked above $14 in August.