Daily News Update Page 1

TABLE OF CONTENTS

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Check out the latest progress of three RPPs derived from the Minerba Law Simak perkembangan terkini tiga RPP turunan UU Minerba

Vale Indonesia (INCO) Continues to Pursue FID Downstreaming Projects in Pomalaa and Bahodopi Vale Indonesia (INCO) Terus Kejar FID Proyek Penghiliran di Pomalaa dan Bahodopi To Increase Coal Gasification, Government Promises to Spread Incentives Giatkan Gasifikasi Batu Bara, Pemerintah Janji Tebar Insentif

2021, the government targets to produce 550 million tons of coal and four new smelters 2021, Pemerintah Targetkan Produksi Batu Bara 550 Juta Ton dan Empat Smelter Baru

This year's coal DMO is targeted to reach 137.5 million tons DMO Batu Bara Tahun Ini Ditargetkan Capai 137,5 Juta Ton

The government is targeting 53 smelters by 2024, this is the realization Pemerintah targetkan ada 53 smelter hingga 2024, begini realisasinya Coal Prices & Demand Rise, Miners Are More Cuan Harga & Permintaan Batu Bara Naik, Penambang Makin Cuan Commodity Prices Rise, UNTR Confident Heavy Equipment Sales Will Increase Harga Komoditas Naik, UNTR Pede Penjualan Alat Berat Bakal Moncer ESDM Call the Nickel Project Capable of Absorbing 23 Thousand Workers ESDM Sebut Proyek Nikel Mampu Serap 23 Ribu Tenaga Kerja

China’s Seaborne Coal Imports Fell 15% in 2020 Endeavour Silver posts record quarterly production in two years

Kontan

Bisnis CNBC Indonesia

Dunia Energi

Bisnis

Kontan CNBC Indonesia Bisnis Dunia Tambang

Caixin Kitco News

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Six new coal projects in Xinjiang ‘unrelated to drop in imports from Australia’ Codelco to extend life of Salvador Division with Rajo Inca copper project UK signals approval for first coal mine in 30 years, disappointing campaigners Copper, iron ore price rally adds $250bn to Top 50 mining companies

Global Times Int'l Mining E&T Mining.com

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Daily News Update Page 3

Check out the latest progress of three RPPs derived from the

Minerba Law Reporter: Dimas Andi | Editor: Handoyo

THE GOVERNMENT has issued Law no. 3

of 2020 which incidentally is the result of the revision of Law No. 4 of 2009 concerning Mineral and Coal Mining on June 10, 2020. Now, the government is still trying to issue new implementing regulations for the Minerba Law.

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said, according to the provisions of Article 174 of Law no. 3/2020, implementing regulations must be enacted within one year from the time this Law takes effect on June 10, 2020. Then, the Directorate General of Mineral and Coal is currently drafting three Draft Govern-ment Regulations (RPP) as implementing regulations for Law no. 3/2020.

The first RPP concerning the Imple-mentation of Mining Business Activities or also known as the RPP for Exploitation. According to Kontan's records, the RPP Exploitation has substance related to the national mineral and coal management plan, business licensing, reserve resilience funds, People's Mining Permits (IPR), IUPK as a continuation of operations/contracts, divestment of shares, increasing added value, and transitional regulations.

"The RPP has been harmonized and is awaiting approval from the president," said Arifin in a virtual press conference, Thursday (7/1).

Second RPP regarding Mining Areas. The substance regulates the legal mining area, mining area planning,...

Simak perkembangan terkini tiga RPP turunan UU Minerba Reporter: Dimas Andi | Editor: Handoyo

PEMERINTAH telah menerbitkan UU No.

3 Tahun 2020 yang notabene adalah hasil revisi UU No. 4 Tahun 2009 tentang Pertambangan Mineral dan Batu Bara pada 10 Juni 2020. Kini, pemerintah masih terus mengupayakan terbitnya aturan pelaksana UU Minerba yang baru.

Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif menyebut, sesuai ketentuan Pasal 174 UU No. 3/2020, peraturan pelaksanaan harus ditetapkan dalam kurun waktu satu tahun sejak UU ini berlaku pada 10 Juni 2020. Lantas, Direktorat Jenderal Minerba tengah menyusun tiga Rancangan Peraturan Pemerintah (RPP) sebagai peraturan pelaksanaan UU No. 3/2020.

RPP pertama tentang Pelaksanaan Kegiatan Usaha Pertambangan atau di-kenal juga dengan nama RPP Pengusahaan. Dalam catatan Kontan, RPP Pengusahaan memiliki substansi yang berkaitan dengan rencana pengelolaan minerba nasional, perizinan berusaha, dana ketahanan cadangan, Izin Pertambangan Rakyat (IPR), IUPK sebagai kelanjutan operasi/kontrak, divestasi saham, peningkatan nilai tambah, serta peraturan peralihan.

“RPP ini telah diharmonisasi dan me-nunggu penetapan dari presiden,” tukas Arifin dalam konferensi pers virtual, Kamis (7/1).

RPP kedua tentang Wilayah Pertambangan. Substansinya mengatur tentang wilayah hukum pertambangan, perencanaan wilayah pertambangan,...

Daily News Update Page 4

mining area planning, investigation and research and assignments, determination of mining areas, changes in the status of WPN to WUPK, as well as mining data and information.

Currently, the RPP is waiting for the harmonization process. The third RPP is concerning Guidance and Supervision as well as Reclamation and Post-Mining in the Implementation of Mining Business Management. Tweedledum and tweedledee, this RPP is in the stage of waiting for the harmonization process.

Arifin also explained that the new Minerba Law in general seeks to regulate the im-provement of national mining governance, take sides with national interests, provide legal certainty and ease of investment, and improve environmental management.

"The Minerba Law is expected to be able to answer problems in the mineral and coal mining sector according to the challenges of the times and fulfill the mandate of Article 33 Paragraph 3 of the 1945 Constitution," he

concluded.

perencanaan wilayah pertambangan, penyelidikan dan penelitian sert a penugasannya, penetapan wilayah pertambangan, perubahan status WPN menjadi WUPK, serta data dan informasi pertambangan.

Saat ini, RPP tersebut sedang menunggu proses harmonisasi. RPP ketiga tentang Pembinaan dan Pengawasan serta Rekla-masi dan Pascatambang dalam Penyeleng-garaan Pengelolaan Usaha Pertambangan. Setali tiga uang, RPP ini sedang dalam tahap menanti proses harmonisasi.

Arifin pun menjelaskan, UU Minerba yang baru secara umum berusaha mengatur perbaikan tata kelola pertambangan nasional, keberpihakan pada kepentingan nasional, memberikan kepastian hukum dan kemudahan berinvestasi, hingga meningkat-kan pengelolaan lingkungan hidup.

“UU Minerba diharapkan bisa menjawab masalah-masalah di sektor pertambangan minerba sesuai tantangan zaman dan memenuhi amanat Pasal 33 Ayat 3 UUD 1945,” pungkas dia.

Vale Indonesia (INCO) Continues to Pursue FID Downstreaming

Projects in Pomalaa & Bahodopi Finna U. Ulfah

MINERAL mining issuer, PT Vale Indonesia

Tbk., Continues to pursue the realization of a final investment decision (FID) for a downstream project in Sulawesi.

Vale Indonesia Director Bernardus Irmanto said that his party was completing the third phase of the Front End Loading (FEL3) process and was still in the process of obtaining the key permits needed for FID.

Vale Indonesia (INCO) Terus Kejar FID Proyek Penghiliran di

Pomalaa dan Bahodopi Finna U. Ulfah

EMITEN pertambangan mineral, PT Vale

Indonesia Tbk., terus mengejar realisasi peng-ambilan keputusan investasi final atau final investment decision (FID) untuk proyek peng-hiliran di Sulawesi.

Direktur Vale Indonesia Bernardus Irmanto mengatakan bahwa pihaknya tengah menye-lesaikan proses Front End Loading tahap ketiga (FEL3) dan masih dalam proses mendapatkan perizinan kunci yang dibutuhkan untuk FID.

Daily News Update Page 5

"There is a possibility that the project's FID should be pushed to a later date, depending on the progress of the work," said Irmanto to Bisnis, Thursday (7/1/ 2021).

For information, the issuer coded as INCO is planning to build a nickel smelter in Pomalaa, Central Sulawesi and a ferronickel smelter in Bahodopi, Southeast Sulawesi. The FID of the two projects was previously targeted for completion in the first quarter of 2021.

Meanwhile, the Pomala project is estimated to require an investment of around US$ 2.5 billion, while the Bahodopi project requires US$ 1.5 billion. However, Irmanto explained that the value of the project could change and was confirmed during the FID.

In addition, Irmanto also explained that the FID adjustment is likely to have an impact on the completion target of each project. INCO originally targeted the Pomalaa project to be completed in 2025, while the Bahodopi project would be completed in 2024.

"It all depends on the construction start time. We will review the impact again on the project completion time," said Irmanto.

On the other hand, INCO allocated a capital expenditure or capital expenditure of US$ 135 million in 2021, larger than the 2020 capex target of US$ 120 million. The capex allocation will come from the company's internal cash.

Irmanto explained that most of the capex was used for the furnace 4 rebuild project, then for mine development and equipment replacement.

The rebuild furnace 4 project will start from May to early November 2021.

“Ada kemungkinan FID proyek harus di dorong ke later date, tergantung dari progres pekerjaan itu,” ujar Irmanto kepada Bisnis, Kamis (7/1/2021).

Untuk diketahui, emiten berkode efek INCO itu berencana untuk membangun smelter nikel di Pomalaa, Sulawesi Tengah dan smelter feronikel di Bahodopi, Sulawesi Tenggara. FID kedua proyek itu sebelumnya ditargetkan rampung pada kuartal I/2021.

Adapun, proyek Pomala diperkirakan membutuhkan investasi sekitar US$2,5 miliar sedangkan proyek Bahodopi mem-butuhkan US$1,5 miliar. Namun, Irmanto menjelaskan bahwa nilai proyek tersebut dapat berubah dan dipastikan saat FID.

Selain itu, Irmanto juga menjelaskan bahwa penyesuaian FID kemungkinan akan berdampak pada target penyelesaian setiap proyek. INCO semula menargetkan proyek Pomalaa rampung pada 2025, sedangkan proyek Bahodopi rampung pada 2024.

“Semua tergantung dari waktu mulai konstruksinya. Kami akan kaji lagi dampaknya ke waktu penyelesaian proyek,” papar Irmanto.

Di sisi lain, INCO mengalokasikan belanja modal atau capital expenditure sebesar US$135 juta pada 2021, lebih besar dari-pada target capex 2020 sebesar US$120 juta. Alokasi capex itu akan berasal dari kas internal perseroan.

Irmanto menjelaskan bahwa sebagian besar capex tersebut digunakan untuk proyek rebuild furnace 4, kemudian untuk pengembangan tambang dan juga peng-gantian alat.

Proyek rebuild furnace 4 itu akan mulai berlangsung pada Mei hingga awal November 2021.

Daily News Update Page 6

On the other hand, with the progress of the project next year INCO projects that the

company's production volume will be at a lower level than in 2020 and 2019.

"What is clear is that the 2021 production

target will be below 70.00 tons because furnace 4 will be rebuilt from May to early

November," said Irmanto.

As an illustration, in the third quarter of 2020, INCO recorded 19,477 tonnes of

nickel in matte production volume. This realization was 4 percent higher than the

company's production volume in the previous quarter of 18,701 tons.

However, this realization was lower than the production in the third quarter of 2019

in the range of 19,820 tons.

Thus, in the first nine months of this year, INCO's nickel in matte production was

55,792 tonnes, up 10 percent compared to production in the same period last year of

50,531 tonnes. Ed itor: Apri anto C ahyo

Nugroho

Di sisi lain, dengan berjalannya proyek tersebut pada tahun depan INCO mem-proyeksi volume produksi perseroan akan berada di tingkat yang lebih rendah daripada 2020 maupun 2019.

“Target produksi 2021 yang jelas akan di bawah 70.00 ton karena furnace 4 akan di rebuild mulai Mei sampai awal November,” papar Irmanto.

Sebagai gambaran, pada kuartal III/2020, INCO mencacatkan volume produksi nikel dalam matte sebanyak 19.477 ton. Reali-sasi itu lebih tinggi 4 persen dibandingkan dengan volume produksi perseroan pada kuartal sebelumnya sebesar 18.701 ton.

Namun, realisasi itu lebih rendah daripada produksi kuartal III/2019 di kisaran 19.820 ton.

Dengan demikian, dalam sembilan bulan pertama tahun ini produksi nikel dalam matte INCO sebesar 55.792 ton, naik 10 persen dibandingkan dengan produksi pada periode yang sama tahun lalu sebesar 50.531 ton. Editor : Aprianto Cahyo Nugroho

To Increase Coal Gasification, Government Promises to Spread

Incentives Anisatul Umah, CNBC Indonesia

THE GOVERNMENT continues to intensify

the coal downstream program, especially in the gasification project, which is processing low calorie coal into Dimethyl Ether (DME) which can later be used to substitute Liquefied Petroleum Gas (LPG).

Giatkan Gasifikasi Batu Bara, Pemerintah Janji Tebar Insentif

Anisatul Umah, CNBC Indonesia

PEMERINTAH terus menggencarkan

program hilirisasi batu bara, khususnya

pada proyek gasifikasi, yakni mengolah

batu bara kalori rendah menjadi Dimethyl

Ether (DME) yang nantinya bisa digunakan

untuk substitusi Liquefied Petroleum Gas

(LPG).

Daily News Update Page 7

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said that he would provide many incentives for this coal gasification project. The goal is to make the downstream sector economical and competitive, so that later it can grow.

"We provide a lot of incentives, so that this downstream can be economical and competitive," he said in a press conference for the 2020 EMR Sector Performance Achievement and 2021 Work Plan, Thursday (07/01/2021).

According to him, if this gasification project develops, in the end it will reduce the number of LPG imports because DME products can be substituted for LPG. He admitted that LPG imports from year to year continued to increase, in line with the increasing demand for LPG in the country.

"Because the downstream utilization of coal can be used as a substitute for LPG. If it is possible to substitute for LPG, then this can secure a large amount of foreign exchange. The use of LPG every year continues to increase and we have coal to produce DME," he explained.

There are at least nine incentives being prepared by the government to advance this downstream coal industry.

Previously, the Special Staff of the Minister of ESDM for the Acceleration of Mineral and Coal (Minerba) Governance, Irwandy Arief, explained the nine incentives prepared by the government, including:

1. Up to 0% coal royalty for gasification.

2. Special coal price formula for gasification.

3. The validity period of the Mining Business License (IUP) is in accordance with the economic age of the gasification project.

Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif menuturkan bakal memberikan banyak insentif untuk proyek gasifikasi batu bara ini. Tujuannya yaitu agar sektor hilir ini bisa ekonomis dan kompetitif, sehingga nantinya bisa semakin berkembang.

"Banyak insentif yang kita berikan, supaya hilir ini bisa ekonomis dan kompetitif," ungkapnya dalam konferensi pers Capaian Kinerja Sektor ESDM 2020 dan Rencana Kerja 2021, Kamis (07/01/2021).

Menurutnya, bila proyek gasifikasi ini berkembang, pada akhirnya ini bisa menekan angka impor LPG karena produk DME bisa menjadi substitusi LPG. Dia mengakui impor LPG dari tahun ke tahun terus meningkat, seiring dengan semakin bertambahnya permintaan LPG di Tanah Air.

"Karena pemanfaatan hilirisasi batu bara itu bisa menjadi substitusi LPG. Kalau bisa

substitusi LPG, maka ini bisa amankan devisa cukup besar. Pemakaian LPG tiap

tahun terus meningkat dan kita punya batu bara untuk memproduksi DME," jelasnya.

Terdapat setidaknya sembilan insentif yang tengah disiapkan pemerintah guna

memajukan industri hilir batu bara ini.

Sebelumnya, Staf Khusus Menteri ESDM Bidang Percepatan Tata Kelola Mineral dan Batu Bara (Minerba) Irwandy Arief memaparkan sembilan insentif yang disiapkan pemerintah di antaranya:

1. Royalti batu bara untuk gasifikasi hingga 0%.

2. Formula harga khusus batu bara untuk gasifikasi.

3. Masa berlaku Izin Usaha Pertambangan (IUP) sesuai umur ekonomis proyek gasifikasi.

Daily News Update Page 8

According to him, the first to third incentives are being discussed by the Ministry of ESDM, in this case the Directorate General of Mineral and Coal together with the Ministry of Finance.

"This will be very helpful, for example in encouraging the downstreaming of coal in gasification, both in syngas, methanol and DME," he said in the 'Indonesia Mining Outlook 2021' via YouTube, Tuesda y (15/12/2020).

He also continued, other incentives include:

4. Tax holiday (corporate income tax specifically according to the economic age of coal gasification).

5. Exemption from VAT for coal processing services to syngas by 0%.

6. Exemption of local content EPC VAT.

According to him, the points proposed from number four to six are being discussed at the Ministry of Finance and the Coordinating Ministry for Economic Affairs.

7. The benchmark price for gasification products such as the DME benchmark price.

8. Transfer of part of the LPG subsidy to DME according to the portion of the substituted LPG.

According to him, the two incentives are being discussed at the Ministry of Energy and Mineral Resources and the Ministry of Finance.

9. Assurance of off takers (buyers) of downstream products. The discussion is being carried out by the Ministry of BUMN.

"Yesterday we signed the cooperation agreement between Pertamina, PTBA, and Air Products to build, produce later DME, Pertamina off takers. Followed by other PKP2B which will become IUPK," he said. (wia)

Insentif pertama sampai ketiga menurut-nya sedang dibahas oleh Kementerian

ESDM, dalam hal ini Direktorat Jenderal Minerba bersama dengan Kementerian

Keuangan.

"Ini nanti sangat membantu, misalnya di dalam mendorong hilirisasi batu bara di

dalam gasifikasi, baik di dalam syngas, metanol, dan DME," ungkapnya dalam

'Indonesia Mining Outlook 2021' melalui YouTube, Selasa (15/12/2020).

Dia pun melanjutkan, insentif lainnya antara lain:

4. Tax holiday (PPh badan secara khusus sesuai umur ekonomis gasifikasi batu-

bara).

5. Pembebasan PPN jasa pengolahan batubara menjadi syngas sebesar 0%.

6. Pembebasan PPN EPC kandungan lokal.

Poin poin usulan dari nomor empat sampai

enam menurutnya sedang dibahas di Kementerian Keuangan dan Kementerian

Koordinator Bidang Perekonomian.

7. Harga patokan produk gasifikasi seperti harga patokan DME.

8. Pengalihan sebagian subsidi LPG ke DME sesuai porsi LPG yang disubstitusi.

Kedua insenti f tersebut menurutnya sedang dibahas di Kementerian ESDM dan

Kementerian Keuangan.

9. Kepastian off taker (pembeli) produk hilirisasi. Pembahasannya sedang di-

lakukan oleh Kementerian BUMN.

"Kemarin sudah tanda tangan kese-

pahaman kerja sama Pertamina, PTBA, dan Air Product bangun, hasilkan nanti DME,

off taker Pertamina. Disusul PKP2B lainnya yang akan jadi IUPK," tuturnya. (wia)

Daily News Update Page 9

2021, the government targets to produce 550 million tons of coal

and four new smelters Yurika

AMID various global conditions, invest-

ment in the mineral and coal (Minerba) sector reached US$ 3.9 billion of the total investment in the Energy and Mineral Resources sector of US$ 24.4 billion. Non-Tax State Revenue (PNBP) for the 2020 mineral and coal sector is Rp 34.6 trillion or 110% of the target.

Arifin Tasrif, Minister of Energy and Mineral Resources (ESDM), said that in 2020, Law Number 3 of 2020 concerning Amendments to Law Number 4 of 2009 concerning Mineral and Coal Mining has been successfully issued which will be effective June 10, 2020.

"The law is expected to be able to answer various problems of activities in the mineral and coal mining sector and in accordance with the demands of the times to realize justice and social welfare in accordance with the mandate of Article 33 paragraph 3 of the 1945 Constitution," said Arifin, Thursday (7/1).

Arifin added, in 2020 the realization of the use of domestic coal (Domestic Market Obligation/DMO) reached 132 million tons from a production of 558 million tons. Meanwhile, the coal DMO in 2021 is targeted at 137.5 million tons of the production target of 550 million tons.

"The downstreaming of coal continues to be encouraged, one of which is through the use of coal to become Dimethyl Ether (DME) as an alternative energy for LPG substitution," said Arifin.

2021, Pemerintah Targetkan Produksi Batu Bara 550 Juta Ton dan Empat Smelter Baru

Yurika

DI TENGAH berbagai kondisi global, investasi sektor mineral dan batu bara (Minerba) mencapai US$3,9 miliar dari total investasi sektor Energi dan Sumber Daya Mineral sebesar US$ 24,4 miliar. Penerimaan Negara Bukan Pajak (PNBP) sektor minerba 2020 sebesar Rp34,6 triliun atau 110% dari target.

Arifin Tasrif, Menteri Energi dan Sumber Daya Mineral (ESDM), mengatakan pada 2020 telah berhasil diterbitkan Undang-Undang (UU) Nomor 3 Tahun 2020 tentang Perubahan atas UU Nomor 4 Tahun 2009 tentang Pertambangan Mineral dan Batubara yang berlaku efektif 10 Juni 2020.

“Undang-undang tersebut diharapkan dapat menjawab berbagai permasalahan kegiatan di sektor pertambangan mineral dan batu bara dan sesuai dengan tuntutan perkembangan zaman untuk mewujudkan keadilan dan kesejahteraan mayarakat sesuai dengan amanat Pasal 33 ayat 3 UUD 1945,” ujar Arifin, Kamis (7/1).

Arifin menambahkan, pada 2020 realisasi pemanfaatan batubara domestik (Domestic Market Obligation/DMO) mencapai 132 juta ton dari produksi sebesar 558 juta ton. Sedangkan DMO batu bara pada 2021 ditargetkan sebesar 137,5 juta ton dari target produksi 550 juta ton.

“Hilirisasi batu bara terus didorong, salah satunya melalui pemanfaatan batu bara menjadi Dimethyl Ether (DME) sebagai alternatif energi untuk substitusi LPG,” ujar Arifin.

Daily News Update Page 10

Arifin conveyed that in support of mineral downstreaming, the realization of the

number of smelters until 2020 reached 19 smelters. It consists of 13 smelters of nickel,

two bauxite smelters, one iron smelter, two copper smelters and one manganese

smelter.

"In 2021, it is planned that there will be four

additional smelters operating, bringing the number of smelters to 23," said Arifin. (RA)

Arifin menyampaikan, mendukung hiliri-sasi mineral, realisasi jumlah smelter

hingga 2020 mencapai 19 smelter. Terdiri dari nikel 13 smelter, bauksit dua smelter,

besi satu smelter, tembaga dua smelter, dan mangan satu smelter.

“Pada 2021 direncanakan akan terdapat empat tambahan smelter yang akan ber-

operasi, sehingga jumlah smelter menjadi 23 unit,” tandas Arifin. (RA)

This year's coal DMO is targeted to reach 137.5 million tons

Denis Riantiza Meilanova

THE MINISTRY of Energy and Mineral

Resources is targeting the fulfillment of coal for domestic needs or the domestic

market obligation (DMO) to reach 137.5 million tons by 2021.

This target is lower than the target set by the government last year which was 155

million tons.

ESDM Minister Arifin Tasrif said that the

realization of the coal DMO in 2020 was indeed lower than the target set. This is

due to a decline in domestic coal demand due to the impact of the Covid -19

pandemic, especially from the electricity sector.

"If you look at the proportion, the fulfillment of domestic coal is still small

from the target. This is because most of them are absorbed in the energy sector,

while in the industrial sector there is a weakening, including cement that uses

coal," Arifin said in an online press conference, Thursday. (7/1/2021).

DMO Batu Bara Tahun Ini Ditargetkan Capai 137,5 Juta

Ton Denis Riantiza Meilanova

KEMENTERIAN Energi dan Sumber Daya

Mineral menargetkan pemenuhan batu bara untuk kebutuhan dalam negeri atau domestic market obligation (DMO) men-capai 137,5 juta ton pada 2021.

Target tersebut lebih rendah dari target yang ditetapkan pemerintah pada tahun lalu yang mencapai 155 juta ton.

Menteri ESDM Arifin Tasrif mengatakan bahwa realisasi DMO batu bara pada 2020 memang lebih rendah dari target yang ditetapkan. Hal ini disebabkan adanya penurunan permintaan batu bara dalam negeri akibat dampak pandemi Covid-19, terutama dari sektor kelistrikan.

"Kalau lihat dari proporsinya, pemenuhan batu bara dalam negeri masih kecil dari target. Ini karena kebanyakan yang nyerap di sektor energi, sementara di sektor industrinya ada pelemahan, antara lain semen yang menggunakan batu bara," ujar Arifin dalam konferensi pers secara daring, Kamis (7/1/2021).

Daily News Update Page 11

Realization of coal DMO in 2020 was

recorded at only 132 million tons or only

85 percent of the target set.

Arifin said that the government will

continue to encourage the use of coal for

domestic interests, one of which is to

support the use of coal into dimethyl ether

as an alternative energy for LPG

substitution.

This year, the Ministry of ESDM targets

coal production to reach 550 million tons,

unchanged from 2020, while the

realization of coal production in 2020 was

recorded at 558 million tons. Editor: Zufrizal

Realisasi DMO batu bara pada 2020 tercatat hanya mencapai 132 juta ton atau hanya 85

persen dari target yang ditetapkan.

Arifin menuturkan bahwa pemerintah akan

terus mendorong pemanfaatan batu bara untuk kepentingan dalam negeri, salah

satunya mendukung pemanfaatan batu bara menjadi dimetil eter sebagai alternatif

energi untuk substitusi LPG.

Tahun ini Kementerian ESDM menargetkan

produksi batu bara dapat mencapai 550 juta ton, tidak mengalami perubahan dari 2020,

sedangkan realisasi produksi batu bara pada 2020 tercatat mencapai 558 juta ton. Editor :

Zufrizal

The government is targeting 53

smelters by 2024, this is the realization

Reporter: Dimas Andi | Editor: Anna Suci Perwitasari

THE GOVERNMENT through the Ministry

of Energy and Mineral Resources (ESDM) continues to encourage downstreaming in

the mining sector, one of which is through the construction of mineral refining

facilities or smelters.

ESDM Minister Arifin Tasrif explained,

until 2020 the total realization of smelter construction was recorded at only 19 units.

This number consists of 13 nickel smelters, 2 bauxite smelters, 1 iron smelter, 2

copper smelters, and 1 manganese smelter.

The total investment for smelter construction until the first half of 2020

reached US$ 12.06 billion.

Pemerintah targetkan ada 53

smelter hingga 2024, begini realisasinya

Reporter: Dimas Andi | Editor: Anna Suci Perwitasari

PEMERINTAH melalui Kementerian

Energi dan Sumber Daya Mineral (ESDM) terus mendorong hilirisasi di sektor

pertambangan, salah satunya melalui pembangunan fasilitas pemurnian mineral

atau smelter.

Menteri ESDM Arifin Tasrif memaparkan,

hingga tahun 2020 total realisasi pem-bangunan smelter tercatat baru 19 unit.

Jumlah ini terdiri dari 13 smelter nikel, 2 smelter bauksit, 1 smelter besi, 2 smelter

tembaga, dan 1 smelter mangan.

Adapun total investasi pembangunan smelter hingga semester pertama 2020

mencapai US$ 12,06 miliar.

Daily News Update Page 12

This year, the government projects an

additional four new smelters to operate,

bringing the number of smelters available

to 23. The four smelters consist of three

nickel smelters and one lead and zinc

smelter.

The number of smelters will increase in

2022 to 28 units in line with the projected

addition of 1 nickel smelter, 1 bauxite

smelter, 2 iron smelters, and 1 lead and

zinc smelter. Until in the end, in 2023 and

2024 Indonesia is targeted to have 53

operating smelters. This number consists

of 4 copper smelters, 30 nickel smelters, 11

bauxite smelters, 4 iron smelters, 2

manganese smelters, and 2 lead and zinc

smelters.

Furthermore, the total investment to reach

a total of 53 smelters is US$ 21.59 billion.

When detailed, the investment for a copper

smelter is US$ 4.69 billion, a nickel smelter

is US$ 8 billion, a bauxite smelter is US$

8.64 billion, an iron smelter is US$ 193.9

million, a manganese smelter is US$ 23. 9

million, and lead and zinc smelters of US$

28.8 million.

"Accelerating smelter construction is one

of the main focuses of the work plan in the

mineral and coal sub-sector in 2021," said

Arifin in a virtual press conference,

Thursday (23/1).

He also emphasized that the smelter

construction was carried out in order to

increase the added value of minerals while

creating a multiplier effect on the national

economy.

Di tahun ini, pemerintah memproyeksikan ada tambahan empat smelter baru yang

beroperasi sehingga jumlah smelter yang tersedia menjadi 23 unit. Keempat smelter

tersebut terdiri dari tiga smelter nikel dan satu smelter timbal dan seng.

Jumlah smelter akan semakin meningkat di tahun 2022 menjadi 28 unit seiring adanya

proyeksi penambahan 1 smelter nikel, 1 smelter bauksit, 2 smelter besi, dan 1

smelter timbal dan seng.

Hingga pada akhirnya, di tahun 2023 dan

2024 nanti Indonesia ditargetkan memiliki 53 smelter yang beroperasi. Jumlah

tersebut terdiri dari 4 smelter tembaga, 30 smelter nikel, 11 smelter bauksit, 4 smelter

besi, 2 smelter mangan, dan 2 smelter timbal dan seng.

Lebih lanjut, total investasi untuk men-capai total 53 smelter tersebut mencapai

US$ 21,59 miliar. Bila dirinci, investasi untuk smelter tembaga sebesar US$ 4,69

miliar, smelter nikel sebesar US$ 8 miliar, smelter bauksit sebesar US$ 8,64 miliar,

smelter besi sebesar US$ 193,9 juta, smelter mangan sebesar US$ 23,9 juta, dan

smelter timbal dan seng sebesar US$ 28,8 juta.

“Percepatan pembangunan smelter men-jadi salah satu fokus utama rencana kerja

di subsektor minerba tahun 2021,” kata Arifin dalam konferensi pers virtual, Kamis

(23/1).

Ia pun menegaskan bahwa pembangunan

smelter dilakukan guna meningkatkan nilai tambah mineral sekaligus menciptakan

efek berganda atau multiplier effect bagi perekonomian nasional.

Daily News Update Page 13

Coal Prices & Demand Rise, Miners Are More Cuan

Emir Yanwardhana, CNBC Indonesia

THE INCREASE in coal prices made coal

companies scramble for cuan at the beginning of this year. This price increase was supported by increased demand from China, which had difficulty getting supplies from within the country.

Executive Director of the Indonesian Coal Mining Association (APBI) Hendra Sinadia said from year to year the trend of coal prices is like that, namely that it will increase at the end of the year due to an increase in demand in winter. Moreover, he added, China's economy is now recovering, thus making coal demand even greater.

"The positive sentiment in the world economy is improving, there are vaccinations. China is also currently experiencing domestic (coal supply) difficulties, so that domestic prices are high. So, China is better off importing to maintain electricity prices," he told CNBC Indonesia, Thursday (7/1 2021).

Hendra explained, the increase in coal prices is expected to continue to strengthen during the first quarter. In February, according to him, demand for coal will also increase, given the moment of the Chinese New Year.

For information, several major cities in China limit the use of electricity due to a shortage of coal supplies. In addition, the price of the black gold commodity also increased due to restrictions on import quotas from Australia, so that coal supply to China was running low.

Harga & Permintaan Batu Bara Naik, Penambang Makin Cuan

Emir Yanwardhana, CNBC Indonesia

KENAIKAN harga batu bara membuat

perusahaan batu bara berebut cuan pada awal tahun ini. Kenaikan harga ini di-dukung naiknya permintaan dari Tiongkok yang kesulitan mendapatkan pasokan dari dalam negerinya.

Direktur Eksekutif Asosiasi Pertambangan Batu Bara Indonesia (APBI) Hendra Sinadia mengatakan dari tahun ke tahun tren harga batu bara memang seperti itu, yakni akan naik di akhir tahun karena ada peningkatan permintaan di musim dingin. Apalagi, imbuhnya, ekonomi China kini semakin pulih, sehingga membuat per-mintaan batu bara semakin besar.

"Sentimen positif ekonomi dunia membaik, ada vaksinasi. China juga sekarang kesulitan (pasokan batu bara) dalam negeri, sehingga harga domestiknya tinggi. Jadi, China lebih baik impor untuk menjaga harga listrik," katanya kepada CNBC Indonesia, Kamis (7/1/2021).

Hendra menjelaskan, kenaikan harga batu bara diperkirakan masih akan menguat selama kuartal I ini. Pada Februari menurutnya permintaan batu bara juga akan meningkat mengingat ada momen tahun baru China.

Sebagai informasi, beberapa kota besar di China membatasi penggunaan listrik karena kekurangan pasokan batu bara. Selain itu, harga komoditas emas hitam itu juga naik karena adanya pembatasan kuota impor dari Australia, sehingga suplai batu bara ke Tiongkok menipis.

Daily News Update Page 14

Hendra said Indonesia could not yet fill the role of Australia in coal supply because the

quality of the coal produced was different from Indonesia's production.

"Australia has 8,000-9,000 Gar of calorie

coal, our quality is only 4,000-5,000 Gar. While in China the challenge is still the

same, namely the limited domestic supply," he explained.

Hendra did not deny that currently coal companies are looking for a way to

increase coal prices, especially considering that domestic supply is still safe. As is well

known, the government requires that at least 25% of the coal produced is sold to

meet domestic needs.

"The domestic supply for electricity, 80%

has been contracted, only seven to eight companies do. So, domestic supply can still

be fulfilled," he said. (wia)

Hendra mengatakan, Indonesia belum bisa mengisi peran dari Australia untuk suplai batu bara karena kualitas batu bara yang dihasilkan berbeda dengan produksi RI.

"Australia batu baranya berkalori 8.000-9.000 Gar kualitasnya, kita hanya 4.000-5.000 Gar. Sementara di China challenge-nya masih sama yaitu keterbatasan pasokan dalam negeri," jelasnya.

Hendra pun tidak menampik bahwa saat ini perusahaan batu bara tengah mencari cuan dari kenaikan harga batu bara, apalagi melihat pasokan dalam negeri juga masih aman. Seperti diketahui, pemerintah mewajibkan minimal 25% dari produksi batu bara yang diproduksi dijual untuk memenuhi kebutuhan dalam negeri.

"Pasokan dalam negeri untuk keterlistirkan, 80% sudah terkontrak, hanya dilakukan tujuh sampai delapan perusahaan saja. Jadi, pasokan dalam negeri masih bisa ter-penuhi," katanya. (wia)

Commodity Prices Rise, UNTR Confident Heavy Equipment

Sales Will Increase Finna U. Ulfah

PT UNITED Tractors Tbk. targeting sales

of 1,700 heavy equipment units throughout 2020. The company is optimistic that this target can be met in line with the rising trend in commodity prices.

The issuer coded UNTR shares targets heavy equipment sales to reach 1,700 units, higher than the previous year. In 2020, the Astra group entity targets sales of Komatsu heavy equipment to reach 1,300 to 1,400 units.

Harga Komoditas Naik, UNTR Pede Penjualan Alat Berat

Bakal Moncer Finna U. Ulfah

PT UNITED Tractors Tbk. menargetkan

penjualan alat berat sebanyak 1.700 unit

sepanjang 2020. Perseroan optimis target tersebut bisa terpenuhi seiring dengan

tren kenaikan harga komoditas.

Emiten berkode saham UNTR itu menar-getkan penjualan alat berat mencapai

1.700 unit, lebih tinggi daripada tahun sebelumnya. Pada 2020, entitas grup Astra

itu menargetkan penjualan alat berat Komatsu sebesar 1.300 hingga 1.400 unit.

Daily News Update Page 15

United Tractors Corporate Secretary Sara K. Loebis said the increase in commodity prices, ranging from coal to crude palm oil or crude palm oil, would bring fresh air to the company.

"The projected increase in sales of heavy equipment, we estimate, comes from sectors that use small and medium sized heavy equipment, such as plantations and construction," said Sara to Bisnis, Thursday (7/1/2021).

In addition, he also assessed that demand from the mining sector is projected to grow as well, but will be driven more by efforts to replace outdated equipment, not projected increases in production.

Sara said, UNTR will continue to monitor the development of the market to what extent there will be a possibility of a significant increase, given the current utilization of tools in the mining sector is still considered not optimal.

UNTR posted heavy equipment sales of 136 units in November 2020, corrected from the previous month's acquisition after posting a consecutive increase in sales since June 2020.

Thus, during the 11 months of 2020, UNTR posted sales of 1,481 units of heavy equipment or 30 percent of the heavy equipment market share. Compared to last year, sales of heavy equipment in the 11 months of 2020 decreased 47.9 percent compared to the same period last year of 2,843 units.

Sales of UNTR's heavy equipment until November 2020 were mostly contributed by the mining sector by 36 percent, followed by the construction sector by 34 percent, the forestry sector by 19 percent, and by 11 percent for the agriculture sector. Editor: Rivki Maulana

Sekretaris Perusahaan United Tractors Sara K. Loebis mengatakan kenaikan harga komoditas, mulai dari batu bara hingga minyak sawit mentah atau crude palm oil akan membawa angin segar bagi per-seroan.

“Proyeksi peningkatan penjualan alat berat kami perkirakan datang dari sektor yang menggunakan alat berat ukuran kecil dan menengah, seperti perkebunan dan konstruksi,” ujar Sara kepada Bisnis, Kamis (7/1/2021).

Selain itu, dia juga menilai permintaan dari sektor pertambangan diproyeksi ikut tumbuh, tetapi lebih didorong oleh upaya penggantian alat yang sudah usang bukan proyeksi peningkatan produksi.

Sara menuturkan, UNTR akan terus memonitor perkembangan pasar terhadap sejauh mana akan ada kemungkinan peningkatan yang signifikan, mengingat utilisasi alat yang ada saat ini di sektor pertambangan dinilai masih belum semua optimal.

UNTR membukukan penjualan alat berat sebesar 136 unit pada November 2020, terkoreksi dari perolehan bulan sebelum-nya setelah membukukan kenaikan penjualan beruntun sejak Juni 2020.

Dengan demikian, sepanjang 11 bulan 2020 UNTR membukukan penjualan alat berat sebanyak 1.481 unit atau 30 persen pangsa pasar alat berat. Dibandingkan dengan tahun lalu, penjualan alat berat di 11 bulan 2020 turun 47,9 persen di-bandingkan periode yang sama tahun lalu sebesar 2.843 unit.

Penjualan alat berat UNTR hingga November 2020 sebagian besar disumbang sektor pertambangan sebesar 36 persen, disusul sektor konstruksi sebesar 34 persen, sektor kehutanan sebesar 19 persen, dan sebesar 11 persen untuk sektor agrikultur. Editor : Rivki Maulana

Daily News Update Page 16

ESDM Call the Nickel Project

Capable of Absorbing 23 Thousand Workers

Author: Edo Fernando, Editor: Umar RP.

THE MINISTRY of Energy and Mineral

Resources said that the existence of the smelter construction could open up new job opportunities for new graduates. The number of workers that can be absorbed in this project is estimated at 23,202 workers.

This amount is broken down into vacancies for Mining Engineering graduates of around 9,804 people, then for Geological Engineering graduates as many as 8618 people, Geophysical Engineering as many as 3,570 people, and Metallurgical , Materials and Chemical Engineering as many as 1,210 people.

The Ministry of Energy and Mineral Resources explained the opportunity for employment of the smelter and nickel mining project in a 2020 Mining Showcase Booklet. The booklet is entitled Indonesian Coal Investment Opportunities and the data revealed is based on the results of research conducted by the Ministry of Research, Technology and Higher Education in 2019.

Not only that, in the booklet, the Ministry of Energy and Mineral Resources also explains about the size of existing coal processing plants in Indonesia which is recorded until the end of 2020. The number of processing plants reaches 7 units. In details, 2 units are in the South Sumatra region, then 1 unit is in the Lampung area, 1 unit in the Central Kalimantan area, 2 units in North Kalimantan and also 1 unit in Southeast Sulawesi.

ESDM Sebut Proyek Nikel

Mampu Serap 23 Ribu Tenaga Kerja

Penulis : Edo Fernando, Editor : Umar RP.

KEMENTERIAN Energi dan Sumber Daya

Mineral mengatakan bahwa keberadaan pembangunan smelter mampu membuka kesempatan penawaran lapangan pekerjaan baru untuk para lulusan baru. Jumlah tenaga kerja yang mampu diserap dalam proyek ini diperkirakan mencapai 23.202 tenaga kerja.

Jumlah sebanyak itu dirincikan menjadi lowongan untuk lulusan Teknik Pertam-bangan sekitar 9.804 orang, kemudian untuk lulusan Teknik Geologi sebanyak 8618 orang, Teknik Geofisika sebanyak 3.570 orang, serta Teknik Metalurgi, Material dan Kimia sebanyak 1.210 orang.

Pihak Kementerian Energi dan Sumber Daya Mineral menyampaikan paparan peluang penyerapan tenaga kerja dari proyek smelter dan tambang nikel itu dalam sebuah Booklet Etalase Tambang 2020. Booklet tersebut ber-judul Peluang Investasi Batubara Indonesia dan data yang diungkap berdasarkan dari hasil riset yang dilakukan Kemenristekdikti pada tahun 2019 lalu

Tidak hanya itu, dalam booklet tersebut Kementerian Energi dan Sumber Daya Mineral juga menjelaskan soal besaran pabrik pengolahan batubara eksisting di Indonesia yang tercatat hingga akhir tahun 2020. Jumlah pabrik pengolahan itu men-capai 7 unit. Rinciannya, sebanyak 2 unit terdapat di wilayah Sumatera Selatan, kemudian 1 unit berada di daerah Lampung, 1 unit di daerah Kalimantan Tengah, 2 unit di Kalimantan Utara dan juga 1 unit di Sulawesi Tenggara.

Daily News Update Page 17

Meanwhile, related to the amount of availability and production in several processing plants, the numbers also provide interesting potential. For example, a briquette processing factory owned by PT Thriveni in Banyuasin, South Sumatra, which has a feedstock of 130,000 and production per year can reach 79 thousand to 85 thousand tons.

The briquette processing factory owned by PT Bukit Asam which is located in Tanjung Enim, South Sumatra also has potential. The factory has feedstock of 30 thousand to 40 thousand, of which the production is between 10 thousand and 20 thousand tons annually. Plus those in Tarahan Lampung, where the number of feedstock reaches 12 thousand and production reaches 7 thousand tons per year.

This figure does not include processing factories that are currently under construction, such as a briquette factory capable of producing 1 million tonnes of briquettes per year owned by PT ZIG Resources Technology. Then there is also a semi-coking factory owned by PT Megah Energi Khatulistiwa which is capable of producing 600 thousand tons per year.

The ESDM also reports that in Indonesia, the cost of producing coal is the lowest when compared to thermal coal exporting countries on the global market. The production cost is known to be USD41.5 per ton.

Sedangkan terkait jumlah ketersediaan dan produksi di beberapa pabrik pengolahan itu jumlahnya juga memberikan potensi yang menarik. Misalnya pabrik pengolahan briket milik PT Thriveni yang ada di Banyuasin Sumatera Selatan yang memiliki feedstock sebesar 130.000 dan produksi per tahun bisa mencapai 79 ribu sampai dengan 85 ribu ton.

Pabrik pengolahan briket milik PT Bukit Asam yang berada di Tanjung Enim, Sumatera Selatan juga memiliki potensi. Pabrik itu memiliki feedstock sebanyak 30 ribu sampai dengan 40 ribu, di mana produksinya antara 10 ribu sampai dengan 20 ribu ton setiap tahunnya. Ditambah lagi yang ada di Tarahan Lampung yang jumlah feedstock-nya mencapai 12 ribu dan produksi mencapai 7 ribu ton per tahun.

Jumlah itu belum termasuk pabrik peng-olahan yang saat ini masih dalam tahap pembangunan, seperti pabrik briket yang mampu memproduksi briket mencapai 1 juta ton per tahun milik PT ZIG Resources Technology. Kemudian ada juga pabrik semi kokas milik PT Megah Energi Khatulistiwa yang mampu memproduksi 600 ribu ton per tahun.

Pihak ESDM juga melaporkan bahwa untuk di Indonesia, biaya produksi batubaranya adalah yang paling rendah jika dibandingkan dengan negara eksportir batubara termal yang ada di pasar global. Biaya produksi itu diketahui sebesar USD41,5 per ton.

China’s Seaborne Coal Imports Fell 15% in 2020

A NEW report by logistics service provider Elane Inc. estimates China’s coal imports by sea

last year fell 15% year-on-year to 240 million tons, mainly caused by the decline in the volume imported from May to October. The volume of coal imported returned to growth of 15% year-on-year in December.

Daily News Update Page 18

Imports from China’s top two suppliers Indonesia and Australia both dropped 19% last year from 2019, to 130 million tons and 68.05 million tons, respectively. However, imports from Russia rose 17% year-on-year during the same period to 19.7 million tons.

What’s the background: The slump in coal imports came as the government tightened regulations in May. One coking coal trader at Hebei province’s Jingtang port told Caixin that authorities required them to “import coal strictly in accordance with monthly import quotas.”

There were no specific standards limiting coal import volume in previous years, a coal analyst told Caixin, adding that imports usually increase when demand for power increases in order to bring down prices.

A report published by Essence Securities on Saturday said new import quotas will be given out this month, which could ease the tight supply.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.

Contact reporter Lu Yutong (yutonglu@caixin.com) and editor Marcus Ryder (marcusryder@caixin.com)

Endeavour Silver posts record quarterly production in two years By Vladimir Basov

ENDEAVOUR Silver (TSX: EDR, NYSE: EXK) reported today its highest quarterly production in the last two years from Guanacevi, Bolañitos and El Compas mines in Mexico.

The company said that Q4 2020 production was 1,117,289 silver ounces (oz) and 12,568 gold oz for 2.1 million silver equivalent oz (“AgEq”), which is 25% more than in Q4 2019.

Endeavour Silver added that the company’s 2020 full year production “met its original guidance” notwithstanding the government mandated two-month suspension of operations due to the pandemic.

In fiscal 2020, its silver production totaled 3,513,767 oz and gold production totaled 37,139 oz for 6.5 million oz AgEq, a 9% decline over 2019.

The company withdrew its 2020 production guidance in early April due to the COVID-19 pandemic and the temporary shutdown mandated by the Mexican government and chose not to issue revised guidance when production was resumed at the end of May due to continued uncertainty caused by the ongoing pandemic.

CEO Bradford Cooke commented, “Endeavour enjoyed its strongest operational performance in two years thanks to the measures we initiated in 2019 to return the Guanacevi and Bolañitos mines to profitability. I would like to commend our operations team for their hard work, commitment and resilience during the global pandemic to meet our safety and production goals last year.”

Daily News Update Page 19

Six new coal projects in Xinjiang ‘unrelated to drop in imports from Australia’

By Huang Lanlan

CHINA's energy administrators have announced the approval of six construction projects for

coal development bases, and the move has little to do with the drop in coal imports form

Australia, industry insiders told the Global Times Thursday.

The projects were approved last week and are all located in Northwest China's Xinjiang Uygur

Autonomous Region, according to a notice released by China's National Energy

Administration (NEA) on its website on Wednesday.

With a total investment of 7.998 billion yuan ($1.237 billion), the six projects are expected to

jointly produce 15.3 million tons of coal per year, read the notice.

The projects were authorized amid declining supplies from overseas countries including

Australia, but they actually have little to do with the import reduction, said coal industry

expert Pan Weier, a former official of China's State Administration for Coal Mine Safety.

"Unlike import-dependent petroleum, China is basically self-sufficient in terms of coal

resources," Pan told the Global Times on Thursday. "The import decreases from Australia or

other countries won't cause a shortage in China's domestic market."

China produced 3.48 billion tons of raw coal in the first 11 months of 2020, according to data

released by the National Bureau of Statistics.

Australia's coal is far less important to China than some may think, analysts said. It exported

some 75 million tons of coal to China in 2019, according to data from industry website

cctd.com.cn. The amount accounted for just 2 percent of China's coal consumption, and "is not

worth mentioning at all," said Lin Boqiang, director of the China Center for Energy Economics

Research at Xiamen University.

Including the latest batch of six, the authorities approved 22 coal mining projects in 2020,

with a total annual production of 42.6 million tons, according to information on the NEA's

website. Twenty of these projects are in Xinjiang, which is reportedly China's fourth-largest

coal-producing area after Inner Mongolia, Shanxi and Shaanxi provinces.

There is likely to be a tight balance of coal supply and demand in 2021, as the global economic

recovery from the COVID-19 pandemic will drive growth in coal consumption, the China

National Coal Association estimated in December 2020.

Daily News Update Page 20

Codelco to extend life of Salvador Division with Rajo Inca copper project

Posted by Daniel Gleeson

THE CODELCO board has approved the development of the $1.383 billion Rajo Inca

structural project, part of its Salvador Division in Chile’s Atacama.

The figure is 33% less than the investment contemplated by Codelco in 2014 thanks to the use and optimisation of existing infrastructure within the division, especially in the mine areas and the tailings deposit. Ongoing maintenance of the concentrator and hydro-metallurgical plants has also helped bring down this figure.

The savings were also achieved through the planned reuse of mining equipment. When it enters operations, Rajo Inca will require 25-30 300-ton capacity trucks, hydraulic shovels and large tonnage front end loaders. Most of this equipment will come from other Codelco divisions, the company says.

The structural project includes a 22-month pre-stripping period and a seven-month ramp up of the concentrator plant. Commissioning will begin in the second half of 2022, with production reaching a annualised rate of 90,000 t/y of copper in the first half of 2023.

After the favourable Environmental Qualification Resolution obtained in February 2020 and the approval of the funds by the board of directors, the structural project will mean a rebirth for Salvador, as it will become a more modern, “technologised”, sustainable and productive operation, the company said. Its development will add 47 more years of life to this camp.

The Salvador Division has operated since 1959 with underground mining and three small open pits. With the latest investment, production will increase by 50% from 60,000 t/y to 95,000 t/y of fine copper.

UK signals approval for first coal mine in 30 years, disappointing

campaigners By Jack Loughran

THE UK’s first deep coal mine in 30 years is set to go ahead after the government decided not

to intervene, angering environmental campaigners.

In October, Cumbria County Council approved the £165m West Cumbria Mining plan and it has now confirmed that the government will not interfere with its decision.

Daily News Update Page 21

However, green campaigners have cited concerns that the mine will make it difficult for the UK to adhere to its carbon reduction pledges.

Furthermore, former Liberal Democrat leader and current Westmorland and Lonsdale MP Tim Farron has said the project is a “complete disaster for our children’s future”.

“It’s utter and rank hypocrisy for this Conservative Government to claim one minute that they care about protecting our environment, and in the next give the green light to a deep coal mine,” he added.

Farron had urged Communities Secretary Robert Jenrick to challenge the planning application, although he decided against doing so.

Campaigners from Friends of the Earth have said the decision demonstrates “jaw-dropping inconsistency” from the Government, which rejected plans for an opencast mine at Druridge Bay in Northumberland last year.

The Government’s official report on this in September 2020 said the mine would not have been “environmentally acceptable”.

The mine will remove coking coal from beneath the Irish Sea for the production of steel in the UK and Europe. It has been approved twice since 2017.

Defending the project, West Cumbria Mining claims it would create 500 jobs and pay into a community fund for 10 years.

On hearing the news that the government would not submit a challenge, CEO Mark Kirkbride said: “I am delighted that the holding direction has been lifted following what has been an extremely rigorous planning process.

“My team and I are now looking forward to concluding planning sign-off and then being able to commence preparatory steps to begin site work later this year”.

Greenpeace UK’s policy director, Doug Parr, said: “We are in a climate emergency and in no way, shape, or form should this or any new coal mine be granted planning permission. How can the government expect to claim global leadership as it hosts international climate talks later this year after giving this the green light?

“Claims that it will be carbon neutral is like claiming an oil rig is a wind turbine. Of course, job creation is absolutely vital to communities but we must look forward to the jobs of 21st century, not back to those in declining industries. Robert Jenrick needs to immediately reverse his decision not to call this in and then can the project completely.”

Dr Ruth Balogh, who represents Friends of the Earth in the West Cumbria area, described the Government’s decision as “astonishing and desperately disappointing”.

“West Cumbria badly needs local jobs, but these should be generated by investing in clean energy and building a greener future, not industries that threaten the planet,” she said.

In response to the criticism, The Ministry of Housing, Communities and Local Government said: “The general approach of the secretary of state is not to interfere with the decision-making process of local councils on planning matters.

“The Government’s position is that these matters are generally best determined locally, by local councils that know their own area best, rather than by central government.”

Daily News Update Page 22

Copper, iron ore price rally adds $250bn to Top 50 mining companies Frik Els

PROPELLED by a fourth-quarter rally in copper and iron ore prices, MINING.COM’s ranking

of the world’s 50 most valuable mining companies jumps to a new record high of $1.3 trillion by year’s end.

The Top 50 most valuable mining companies added $250 billion in market capitalization over the three months to end December thanks to surging base metal and iron ore prices, and precious metals markets holding onto most of their 2020 gains.

Daily News Update Page 23

Measured from the height of the pandemic in March-April, the MINING.COM TOP 50* has now recovered by $580 billion amid predictions of a post-pandemic supercycle in commodities

demand thanks to construction and green infrastructure spending not only in China but also in the US and many parts of the developed and emerging world.

Iron ore price lit a fire under the top 4 producers, with a strengthening currency further

boosting BHP, Rio Tinto, and Fortescue’s US dollar value during the year.

Fortescue Metals Group was the best overall performer in 2020, climbing to number 4 after starting the year outside the top 10. US iron ore producer Cleveland Cliffs managed to climb

18 spots but fell just short of the ranking at position number 53.

Gold’s relative underperformance during the quarter saw two mid-tier producers – B2Gold

and Yamana Gold – fall out of the top 50 at year-end and replaced by Lundin Mining and Ivanhoe Mines. Once Endeavour (which also absorbed Samafo this year) and Teranga close

their combination, the merged entity would stand a good chance of entering the Top 50.

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Base metal miners stormed the rankings towards the end of the year, and Ivanhoe becomes the first non-producing company to rank among the Top 50 and joins other copper companies on the best performing list, notably Freeport McMoRan and KGHM.

FCX doubled over the course of the year, but is up an astonishing 400% from its covid-lows in March. KGHM briefly dropped out of the Top 50 at the end of the first quarter but is now back at no 35.

Quantum Minerals shares the honor of fastest climber this year with lithium miner SQM – while copper has rallied hard, the lithium market has at least put the worst behind it.

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* Notes:

As with any ranking, criteria for inclusion are contentious. We decided to exclude unlisted

and state-owned enterprises at the outset due to a lack of information.

That, of course, excludes giants like Chile’s Codelco, Uzbekistan’s Navoi Mining, which owns

the world’s largest gold mine, Eurochem, a major potash firm, trader Trafigura, top uranium producer Kazatomprom (partially listed on the LSE, but with only an estimated market value)

and numerous entities in China and developing countries around the world.

Another central criterion was the depth of involvement in the industry before an enterprise can rightfully be called a mining company.

For instance, should smelter companies or commodity traders that own minority stakes in mining assets be included, especially if these investments have no operational component or

not even warrant a seat on the board?

This is a common structure in Asia, and excluding these types of companies removed well-

known names like Japan’s Marubeni and Mitsui, Korea Zinc and Chile’s Copec.

Levels of operational involvement and size of shareholding were central considerations.

Do streaming and royalty companies that receive metals from mining operations without

shareholding qualify, or are they just specialized financing vehicles? We included Franco Nevada, Royal Gold and Wheaton Precious Metals.

What about diversified companies such as BHP or Teck with substantial oil and gas assets? Or oil sands companies that use conventional mining methods to extract bitumen, for that

matter?

Vertically integrated concerns like Alcoa and energy companies such as Shenhua Energy where power, ports and railways make up a large portion of revenues pose a problem as do

diversified companies such as Anglo American with separately listed majority-owned subsidiaries. We’ve included Angloplat in the ranking, as well as Kumba Iron Ore.

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Chemical companies are also problematic – should Albemarle not be ranked because its potash and lithium operations are such a small part of its overall revenues? The same issue

applied to FMC before it spun off its lithium business.

Many steelmakers own and often operate iron ore and other metal mines, but in the interest

of balance and diversity we excluded the steel industry, and with that many companies that have substantial mining assets including giants like ArcelorMittal, Magnitogorsk, Ternium,

Baosteel and others.

Head office refers to operational headquarters wherever applicable, for example BHP and Rio

Tinto are shown as Melbourne, Australia, but Antofagasta is the exception that proves the rule. We consider the company’s HQ to be in London, where it has been listed since the late

1800s.

Trading data are from primary listing exchange and currency cross-rates at the date of

publication. Market capitalization calculated at primary exchange, where applicable from total shares outstanding, not only free-floating shares.

Please let us know of any omissions, deletions or additions to the ranking or suggest a different methodology.