IMA-Daily Update Page 1

TABLE OF CONTENTS

No. Title Media Source Page

1.

2.

3.

4.

5.

6.

7.

8.

9.

Ex-Freeport Gold Mine Will Be Turned Over to Antam, Here's the Opinion of IMA and Perhapi Tambang emas eks Freeport bakal diserahkan ke Antam, begini pendapat IMA dan Perhapi ANTM's Haltim Ferronickel Smelter Progress Reaches 98 Percent Progres Smelter Feronikel Haltim Milik ANTM Capai 98 Persen Semester I, Coal Energy Mix Increases, Gas Even Declines Semester I, Bauran Energi Batu Bara Melesat, Gas Malah Turun DPR Approves the Budget Ceiling for ESDM of Rp7 T in the 2021 Draft State Budget DPR Restui Pagu Anggaran ESDM Rp7 T dalam RAPBN 2021 Antam is Ready to Manage the Ex-Freeport Gold Mining Area in Papua Antam Siap Kelola Eks Wilayah Tambang Emas Freeport di Papua Freeport has prepared 50,000 rapid test kits for the Covid-19 outbreak Freeport siapkan 50.000 alat rapid tes hadapi wabah Covid-19 Working on the ex-Freeport mine, Antam's (ANTM) gold business can shine even more Garap Tambang Eks Freeport, Bisnis Emas Antam (ANTM) Bisa Makin Moncer This is the Miner's Remarks about the Nickel Price Still Under HPM Ini Curhatan Penambang soal Harga Nikel Masih di Bawah HPM Building a Smelter in Palu, TMM is Ready to Absorb Low Grade Nickel Ore Bangun Smelter di Palu, TMM Siap Serap Bijih Nikel Kadar Rendah

Kontan Bisnis CNBC Indonesia CNN Indonesia Dunia Energi Kontan Bisnis CNBC Indonesia Media Indonesia

3

6

8

10

11

13

14

16

19

IMA-Daily Update Page 2

10.

11.

12.

13.

14.

15.

16.

17.

The Promising Ex-Freeport Gold Mine, This Is The Reserves Tambang Emas Eks Freeport Menjanjikan, Segini Cadangannya Coal is being hardy, one step closer to US$ 60/ton Tumben Batu Bara Tahan Banting, Sejengkal Lagi ke US$ 60/ton Indonesians turn to illegal gold mining as coronavirus pandemic hits economy Glencore tags $355m to extend life of Australian copper assets Rio Tinto to cater to Chinese portside customers States to approve land acquisition process for private coal miners Exploration group says Timmins could become new nickel mining capital of Ontario Top 10 gold producing countries

Bisnis CNBC Indonesia South China Morning Post Mining.com Australian Mining Business Standard CBC News Mining.com

21

22

23

25

26

26

28

29

IMA-Daily Update Page 3

Ex-Freeport Gold Mine Will Be Turned Over to Antam, Here's

the Opinion of IMA and Perhapi Reporter: Ridwan Nanda Mulyana | Editor:

Khomarul Hidayat

A NUMBER of mining associations also

opened their voices regarding the assign-ment given by State-Owned Enterprises (SOE/BUMN) Minister Erick Thohir to PT Aneka Tambang Tbk (ANTM) to manage the Wabu Block, a gold mine from the shrinking area of PT Freeport Indonesia (PTFI).

Chairman of the Association of Indonesian Mining Experts (Perhapi) Rizal Kasli said that former areas of contract of work (CoW/KK) that have been shortened or returned to the state can become state reserved areas (WPN) and special mining business areas (WUPK) with priority bidding to SOE. So, ANTM, as part of the state-owned mining industry holding company, MIND ID, can indeed get priority to manage the Wabu Block.

However, mining management in the Wabu Block is not without obstacles. Rizal said

that the heavy terrain and no infra-structure built in the area were the main

challenges. "So that anyone who will enter the area will face infrastructure constraints

because it is located in the middle of the Papua mainland. Far from the sea which is

the cheapest mode of transportation," Rizal told Kontan.co.id, Wednesday (23/9).

With the isolation conditions of the area, Rizal reminded, that ANTM must first

develop infrastructure so that the project can run. Rizal also suggested...

Tambang emas eks Freeport bakal diserahkan ke Antam,

begini pendapat IMA dan Perhapi Reporter: Ridwan Nanda Mulyana | Editor:

Khomarul Hidayat

SEJUMLAH asosiasi pertambangan ikut

buka suara terkait dengan penugasan yang diberikan Menteri Badan Usaha Milik Negara (BUMN) Erick Thohir kepada PT Aneka Tambang Tbk (ANTM) untuk mengelola Blok Wabu, tambang emas hasil penciutan wilayah PT Freeport Indonesia (PTFI).

Ketua Umum Perhimpunan Ahli Pertam-bangan Indonesia (Perhapi) Rizal Kasli mengatakan, eks wilayah kontrak karya (KK) yang diciutkan atau dikembalikan ke negara dapat menjadi wilayah pencadangan negara (WPN) dan wilayah usaha pertambangan khusus (WUPK) dengan prioritas penawaran kepada BUMN. Sehingga, ANTM selaku bagian dari holding industri pertambangan BUMN, MIND ID, memang bisa mendapat prioritas untuk mengelola Blok Wabu.

Kendati begitu, pengelolaan tambang di Blok Wabu bukanlah tanpa kendala. Rizal bilang, beratnya medan serta belum adanya infrastruktur yang terbangun di wilayah tersebut menjadi tantangan utamanya. "Sehingga siapapun yang akan masuk ke wilayah tersebut akan menghadapi kendala infrastruktur karena letaknya yang di tengah-tengah daratan Papua. Jauh dari laut yang merupakan moda transportasi ter-murah," kata Rizal kepada Kontan.co.id, Rabu (23/9).

Dengan kondisi isolasi daerah tersebut, Rizal mengingatkan, ANTM mau tidak mau harus terlebih dulu mengembangkan infrastruktur agar proyek bisa berjalan. Rizal pun menyarankan...

IMA-Daily Update Page 4

Rizal also suggested the management of

the Wabu Block using the Roster system so

that all processing processes could be

carried out in the area to produce gold

bullion. Then, the results are sent to a

precious metal processing and refining

plant in Jakarta. Even so, a deeper study

must first be carried out by ANTM.

"All of these must be studied in depth from

a technical, economic, environmental ,

socio-cultural and legal supporting

capacity so that the project is feasible,"

said Rizal.

Even so, Rizal is sure, ANTM already has

the experience and ability to carry out

mining in isolated areas. He said that the

human resources and experts in Indonesia

are qualified to carry out mining,

processing and refining methods. "Antam

also has experience in managing gold

mines in several areas, although the gold

reserves are not as large as those in the

Wabu Block," said Rizal.

Based on information obtained by Perhapi,

the gold geological resources in the block are approximately 8 million ounces with a

cog of around 1.0 g/t. "This is certainly very interesting to be developed. What

needs to be done is to conduct a detailed study for the development of the project,"

said Rizal.

The same thing was conveyed by the Indonesian Mining Association (IMA).

Contacted separately, IMA's Acting Executive Director, Djoko Widajatno, said

that formally, referring to the Minerba Law, the decision to assign ANTM to

manage the Wabu Block was indeed correct. However , how ideal this

management is, remains to be seen further.

Rizal pun menyarankan pengelolaan Blok Wabu dengan sistem Roster sehingga semua proses pengolahan dapat dilakukan di daerah tersebut sampai menghasilkan bullio emas. Lalu, hasilnya baru dikirim ke pabrik pengolahan dan pemurnian logam mulia di Jakarta. Kendati begitu, kajian yang lebih mendalam harus terlebih dulu dilakukan ANTM.

"Ini semua harus dikaji secara mendalam baik dari segi teknis, ekonomis, daya dukung lingkungan, social budaya dan hukum agar proyek feasible untuk dikerja-kan," ujar Rizal.

Kendati begitu, Rizal yakin, ANTM sudah memiliki pengalaman dan kemampuan untuk melakukan penambangan di daerah yang terisolasi. Kata dia, sumber daya manusia dan tenaga ahli yang ada di Indonesia sudah mumpuni untuk menjalan-kan metode penambangan, pengolahan dan pemurnian. "Antam juga sudah memiliki pengalaman dalam mengelola tambang emas di beberapa wilayah walaupun cadangan emasnya belum sebesar yang di Blok Wabu," tutur Rizal.

Berdasarkan informasi yang didapat Perhapi, sumber daya (geological resources) emas di blok tersebut kira-kira 8 juta ounces dengan cog sekitar 1.0 g/t. "Hal ini tentu sangat menarik untuk dikembangkan. Yang perlu dilakukan adalah melakukan studi detail untuk pengembangan proyek ter-sebut," kata Rizal.

Hal senada juga disampaikan oleh Asosiasi Pertambangan Indonesia atau Indonesia Mining Association (IMA). Dihubungi ter-pisah, Pelaksana Harian Direktur Eksekutif IMA Djoko Widajatno mengatakan, secara formal, mengacu pada Undang-Undang Minerba, keputusan untuk menugaskan ANTM mengelola Blok Wabu memang sudah benar. Namun, seberapa ideal pengelolaan tersebut, masih harus dilihat lebih lanjut.

IMA-Daily Update Page 5

"It is legally correct. Is it ideal? It needs to be proven by the realization of a gold mine in Wabu, which contributes to the state," said Djoko when contacted by Kontan.co.id, Wednesday (23/9).

Djoko said that ANTM's Wabu Block management process is still long. This is because, conducting production operations, ANTM must first carry out further exploration in converting resources into reserves, determining the amount of reserves, a feasibility study, submitting an Amdal, as well as the construction of production infrastructure. "There is still a long way to go to the operation plan," he said.

However, Djoko is sure that, with the ability and experience, ANTM is technically competent. In addition, for investment capital, ANTM can also ask for support from MIND ID as the mining holding. "It remains only to maintain commitment and integrity," he added.

Just so you know, SOE Minister Erick Thohir has sent a letter to EMR Minister Arifin Tasrif regarding the management of the Wabu Block to Antam.

Erick said that Antam, as a state-owned gold mining company, does not have any new mines, even though Antam has quite a number of employees, reaching over 1,000 people.

"Because of that we sent a letter to the Minister of EMR (Arifin Tasrif). And we have coordinated with the Head of BPKM, so that the location that has been received by Freeport is given to the state as priority for SOE to be included in the gold management," he explained.

That way, Antam is not only a mini trading company but also a gold mining company. Erick said that...

"Secara hukum sudah benar. Apakah ideal? Perlu dibuktikan dengan terwujudnya tambang emas di Wabu, yang memberikan kontribusi pada negara," kata Djoko saat dihubungi Kontan.co.id, Rabu (23/9).

Djoko bilang, proses pengelolaan Blok Wabu oleh ANTM masih lah panjang. Sebab, melakukan operasional produksi, ANTM harus terlebih dulu melakukan eksplorasi lanjutan dalam mengkonversi sumberdaya menjadi cadangan, menentu-kan besaran cadangan, study kelayakan, mengajukan Amdal, serta konstruksi infra-struktur produksi. "Masih panjang menuju rencana operasi," sebutnya.

Meski demikian, Djoko yakin, kemampuan dan pengalaman, ANTM cukup kompeten secara teknis. Selain itu, untuk modal investasi, ANTM juga bisa minta sokongan dari MIND ID selaku holding pertam-bangan. "Tinggal menjaga komitmen dan integrity," imbuhnya.

Asal tahu saja, Menteri BUMN Erick Thohir sudah mengirim surat kepada Menteri ESDM Arifin Tasrif terkait dengan penge-lolaan Blok Wabu kepada Antam.

Erick menyebut, Antam sebagai per-usahaan tambang emas pelat merah tidak memilik tambang baru, padahal Antam memiliki cukup banyak karyawan yang hingga menembus 1.000 orang.

"Karena itu kami mengirim surat ke Menteri ESDM (Arifin Tasrif). Dan sudah koordinasi juga dengan Kepala BPKM, agar lokasi yang sudah diterima diberikan Freeport kepada negara diprioritaskan kepada BUMN untuk masuk dalam penge-lolaan emas itu," terangnya.

Dengan begitu, secara konkret Antam bukan hanya mini trading company tetapi juga perusahaan tambang emas. Erick bilang,...

IMA-Daily Update Page 6

Erick said that it was very painful for Antam to have no new gold mines, while

the prospect of gold in Indonesia was a big supply and in this condition the price of

gold was very good. "That's why we have the courage to enter the former Freeport

land," he said.

Referring to Kontan.co.id's report, to reach an agreement in obtaining a continuation of operations in the form of a Special Mining Business License (IUPK), PTFI must comply with a number of requirements. One of them is the shrinkage or reduction of the working area, which reached 58% from 212,950 hectares to 90,360 hectares.

On 2 July 2015, PTFI returned a number of copper and gold blocks to the state. One of them is the Wabu Block, which is estimated to have a copper potential of 4.3 million ores, and a fairly good gold content of 2.47 grams per tonne.

Erick bilang, sangat menyakitkan dalam posisi Antam yang tidak memiliki tambang emas baru, sementara prospek emas di Indonesia menjadi salah satu suplai yang besar dan dalam kondisi seperti ini harga emas sangat baik. "Karena itu kita mem-beranikan diri juga masuk ke lahan eks Freeport itu," tandasnya.

Merujuk pada pemberitaan Kontan.co.id, untuk mencapai kesepakatan dalam men-dapat kelanjutan operasi berupa Izin Usaha Pertambangan Khusus (IUPK), PTFI mesti menaati sejumlah persyaratan. Salah satu-nya ialah penyiutan atau pelepasan luas wilayah kerja yang mencapai 58% dari 212.950 hektare menjadi 90.360 hektare.

Pada 2 Juli 2015, PTFI pun mengembalikan sejumlah blok tembaga dan emas ke negara. Satu diantaranya adalah Blok Wabu, yang ditaksir memiliki potensi tembaga 4,3 juta ores, dan kandungan kualitas emas yang cukup bagus dengan 2,47 gram per ton.

ANTM's Haltim Ferronickel Smelter Progress Reaches 98

Percent Finna U. Ulfah

THE PROGRESS of the construction of the

East Halmahera ferronickel factory owned

by metal mining company PT Aneka Tambang Tbk. has reached 98 percent.

This smelter is considered to be a positive catalyst for Antam's future performance.

SVP Corporate Secretary Aneka Tambang Kunto Hendrapawoko said that the

factory's physical construction was almost complete and had successfully carried out

a no-load test.

Progres Smelter Feronikel Haltim Milik ANTM Capai 98

Persen Finna U. Ulfah

PROGRES pembangunan pabrik feronikel

Halmahera Timur milik emiten pertam-

bangan logam PT Aneka Tambang Tbk. telah mencapai 98 persen. Smelter ini

dinilai akan menjadi katalis positif bagi kinerja Antam di masa mendatang.

SVP Corporate Secretary Aneka Tambang

Kunto Hendrapawoko mengatakan bahwa konstruksi fisik pabrik telah hampir selesai

dan telah sukses melakukan uji coba tanpa beban atau no load test.

IMA-Daily Update Page 7

The issuer coded ANTM shares admits that it is also in the process of providing power plants. Based on Bisnis records, ANTM requires a supply of at least 75 megawatts (MW).

"The company ensures that governance and implementation of the fulfillment of the Haltim ferronickel plant power plant are pursued through the fastest mechanisms and methods in accordance with good GCG practices," said Kunto to Bisnis, Wednesday (23/9/2020).

Meanwhile, Minister of State-Owned Enterprises (SOE) Erick Thohir said that 36 companies were interested and had registered to take part in the electricity procurement tender at ANTM's ferronickel factory.

"Insha Allah, there is a solution, whether it is through a tender which has been opened today [Tuesday, 22 September 2020] in Antam, there are 36 enthusiasts, both from SOEs and the private sector, to make supplies, of course the cheapest price is chosen," said Erick in a joint meeting with Commission VI of the DPR. in Jakarta, Tuesday (22/9/2020).

For information, in mid -January, the company has pressed a memorandum of understanding (MOU) with PT Perusahaan Listrik Negara to work on electricity in the project. Currently, the electric power available in the project is 12 MW.

ANTM also hopes that the establishment of the Haltim ferronickel factory will be able to further increase the added value of the company's minerals which will be directly proportional to the resulting multiplier effect.

On the other hand, NH Korindo analyst Meilki Darmawan said that the completion of the Haltim smelter project next year will be a positive catalyst for the company's financial performance.

Emiten berkode saham ANTM itu mengaku juga tengah dalam proses penyediaan pembangkit listrik. Berdasarkan catatan Bisnis, ANTM membutuhkan pasokan setidaknya 75 megawatt (MW)

“Perusahaan memastikan tata kelola dan pelaksanaan pemenuhan pembangkit listrik pabrik feronikel Haltim ditempuh melalui mekanisme dan metode yang paling cepat sesuai dengan praktik GCG yang baik,” ujar Kunto kepada Bisnis, Rabu (23/9/2020).

Sementara itu, Menteri Badan Usaha Milik Negara (BUMN) Erick Thohir mengatakan bahwa sudah terdapat 36 perusahaan yang berminat dan mendaftarkan diri untuk mengikuti tender pengadaan listrik di pabrik feronikel milik ANTM.

“Insyaallah ada solusi apakah itu melalui tender yang sudah dibuka hari ini [Selasa 22 September 2020] di Antam ada 36 peminat, baik dari BUMNS maupun swasta untuk melakukan suplai itu tentunya dipilih yang harga termurah,” ujar Erick dalam rapat bersama Komisi VI DPR di Jakarta, Selasa (22/9/2020).

Sebagai informasi, pada medio Januari, perseroan telah menekan nota kese-pahaman atau memorandum of under-standing (MOU) dengan PT Perusahaan Listrik Negara untuk pengerjaan listrik di proyek tersebut. Saat ini, daya listrik yang tersedia di proyek tersebut sudah sebanyak 12 MW.

ANTM pun mengharapkan dengan berdiri-nya pabrik feronikel Haltim akan mampu lebih meningkatkan nilai tambah mineral perseroan yang akan berbanding lurus dengan multiplier effect yang dihasilkan.

Di sisi lain, Analis NH Korindo Meilki Darmawan mengatakan bahwa penye-lesaian proyek smelter Haltim pada tahun depan akan menjadi katalis positif bagi kinerja keuangan perseroan.

IMA-Daily Update Page 8

"We see that in 2021 there will be a significant increase in the contribution of the nickel segment to ANTM's revenue due to the additional capacity of the Halmahera smelter," said Meilki as quoted in his research publication, Wednesday (23/9/ 2020).

Meanwhile, ANTM recorded revenues of Rp 9.22 trillion in the first semester of 2020. The realization was down 36 percent compared to the same period last year amounting to Rp. 14.42 trillion. Editor: Rivki Maulana

“Kami melihat pada tahun 2021 akan ada peningkatan yang signifikan pada kontri-busi segmen nikel terhadap pendapatan ANTM karena adanya penambahan kapasitas dari smelter Halmahera itu,” papar Meilki seperti dikutip dari publikasi risetnya, Rabu (23/9/2020).

Adapun, ANTM mencatatkan pendapatan sebesar Rp9,22 triliun pada semester I/2020. Realisasi itu turun 36 persen di-bandingkan dengan periode yang sama tahun lalu sebesar Rp14,42 triliun. Editor : Rivki Maulana

Semester I, Coal Energy Mix Increases, Gas Even Declines

Anisatul Umah, CNBC Indonesia

MINISTER of Energy and Mineral

Resources (MEMR) Arifin Tasrif said that the coal energy mix for power generation fuel in the first semester reached 64.27%, higher than the target set at 62.72%.

But on the other hand, the gas absorption is even lower than the target, which is only 17.81% of the supposed target of 21.82%.

This means that, even in the midst of the Covid-19 pandemic, coal is still the mainstay of fuel for power plants in the country.

"The realization of the energy mix for electric power until June 2020 is still dominated by coal 64.27%," said Arifin in an online discussion on Wednesday (23/09/ 2020).

Meanwhile, the other energy mix, such as fuel oil (BBM), according to him, reached 3.75%, a slight difference from the target of 3.95%. For the new renewable energy mix such as water,...

Semester I, Bauran Energi Batu Bara Melesat, Gas Malah Turun

Anisatul Umah, CNBC Indonesia

MENTERI Energi dan Sumber Daya Mineral

(ESDM) Arifin Tasrif mengatakan bauran energi batubara untuk bahan bakar pem-bangkit listrik pada semester I mencapai 64,27%, lebih tinggi dari target yang ditetap-kan sebesar 62,72%.

Namun di sisi lain, untuk serapan gas malah lebih rendah dibandingkan target yakni hanya 17,81% dari target seharusnya 21,82%.

Ini artinya, meski di tengah pandemi Covid-19, batu bara masih menjadi andalan bahan bakar pembangkit listrik di Tanah Air.

"Realisasi bauran energi untuk tenaga listrik hingga Juni 2020 masih didominasi oleh batu bara 64,27%," tutur Arifin dalam diskusi daring pada Rabu (23/09/2020).

Sementara untuk bauran energi lainnya seperti bahan bakar minyak (BBM) menurutnya mencapai 3,75%, beda tipis dari target sebesar 3,95%. Untuk bauran energi baru terbarukan seperti air...

IMA-Daily Update Page 9

For the new renewable energy mix such as water, it reached 8.04%, higher than the

target of 6.23%, geothermal 5.84% or higher than the target of 4.94%, and other

EBT 0.29% of the target. 0.34%.

When compared to the target, it can be seen that the portion of the EBT mix has

actually increased during the Covid-19 pandemic.

Arifin further said that the government has

plans to add a smart grid. A smart grid is a power grid system equipped with

advanced information and communication technology so that the use of electricity can

be more efficient. The use of renewable energy sources allows customer

participation in the provision of electric power.

"We also plan to add a smart grid in terms of meeting the target of the EBT mix in the

electric power system. The installation of a smart grid has been mandated by

Presidential Decree 18 of 2020 which is one of the solutions that must be

implemented," he explained.

According to him, the development of a smart grid in Java has been implemented

with a digital system. Smart grid development is also being carried out

outside Java Island. Some of the locations are Selayar, Tahuna, Medang, Semau, Bali

Eco Smart Grid Lora, Smart Micro Grid Sumba Green Island.

"Of course all of these programs will

continue to be sustainable so that Indonesia can produce a perfect

electrification target that can be enjoyed by the public," he said. (wia)

Untuk bauran energi baru terbarukan seperti air mencapai 8,04%, lebih tinggi dari target yang sebesar 6,23%, panas bumi 5,84% atau lebih tinggi dari target 4,94%, dan EBT lainnya sebesar 0,29% dari target 0,34%.

Bila dibandingkan target, terlihat porsi bauran EBT malah meningkat di saat pandemi Covid-19 ini.

Lebih lanjut Arifin mengatakan bahwa pemerintah memiliki rencana untuk melakukan penambahan smart grid. Smart grid merupakan sistem jaringan tenaga listrik yang dilengkapi dengan teknologi informasi dan teknologi komunikasi canggih sehingga penggunaan tenaga listrik bisa lebih efisien. Pemanfaatan sumber energi terbarukan memungkinkan partisipasi pelanggan dalam penyediaan tenaga listrik.

"Kita juga rencanakan penambahan smart grid dalam hal pemenuhan target bauran EBT dalam sistem tenaga listrik. Pemasangan smart grid telah diamanatkan Perpres 18 Tahun 2020 yang merupakan salah satu solusi yang harus diterapkan," jelasnya.

Menurutnya pengembangan smart grid di Pulau Jawa sudah diterapkan dengan

sistem digital. Pengembangan smart grid juga dilakukan di luar Pulau Jawa.

Beberapa lokasinya yakni Selayar, Tahuna, Medang, Semau, Bali Eco Smart Grid Lora,

Smart Micro Grid Sumba Green Island.

"Tentu saja seluruh program ini akan terus

berkelanjutan sehingga Indonesia bisa menghasilkan target elektrifikasi yang

sempurna yang dapat dinikmati masya-rakat," tuturnya. (wia)

IMA-Daily Update Page 10

DPR Approves the Budget Ceiling for ESDM of Rp7 T in the

2021 Draft State Budget

COMMISSION VII of the House of

Representatives (DPR) approved the budget ceiling for the Ministry of Energy and Mineral Resources (MEMR) of Rp 7 trillion in the 2021 Draft State Budget (RAPBN). This approval was made after discussions with the budget agency (banggar) some time ago.

"Commission VII approved the budget (Ministry of EMR) 2021 after discussions were held in the workshop, the total budget was Rp 7 trillion," said Chairman of Commission VII DPR Sugeng Suparwoto in a virtual hearing (RDP), Wednesday (23/9).

When compared to this year, the Ministry of EMR budget ceiling for next year will increase by 13 percent.

He explained that the funds consisted of management support (dukman) of Rp. 618 billion. This dukman is divided into the Secretariat General (Setjen) of the Ministry of EMR of Rp 437 billion, Inspectorate General (Itjen) of Rp 131 billion, and the General Secretariat of the National Energy Council (DEN) of Rp 49 billion.

Then, the Geological Agency gets an allocation of Rp 1 trillion, the Directorate General (Ditjen) Minerba Rp 458 billion, the MEMR Research and Development Agency (Balitbang) Rp 521 billion, and the Human Resources Development Agency of the Ministry of EMR Rp 489 billion.

Furthermore, the Directorate General of Oil and Gas amounting to Rp 2 trillion, the Directorate General of Electricity Rp 174 billion, the Directorate General of...

DPR Restui Pagu Anggaran ESDM Rp7 T dalam RAPBN 2021

KOMISI VII Dewan Perwakilan Rakyat

(DPR) menyetujui pagu anggaran Kemen-terian Energi dan Sumber Daya Mineral (ESDM) sebesar Rp7 tril iun dalam Rancangan Anggaran Pendapatan dan Belanja Negara (RAPBN) 2021. Perse-tujuan ini dilakukan setelah ada pem-bahasan dengan badan anggaran (banggar) beberapa waktu lalu.

"Komisi VII setujui anggaran (Kementerian ESDM) 2021 setelah dilakukan pem-bahasan di banggar, total anggaran Rp7 triliun," ungkap Ketua Komisi VII DPR Sugeng Suparwoto dalam rapat dengar pendapat (RDP) secara virtual, Rabu (23/9).

Jika dibandingkan tahun ini, pagu anggaran Kementerian ESDM untuk tahun depan naik 13 persen.

Ia menjabarkan dana itu terdiri dari dukungan manajemen (dukman) sebesar Rp618 miliar. Dukman ini terbagi untuk Sekretariat Jenderal (Setjen) Kementerian ESDM sebesar Rp437 miliar, Inspektorat Jenderal (Itjen) Rp131 miliar, dan Setjen Dewan Energi Nasional (DEN) Rp49 miliar.

Kemudian, Badan Geologi mendapatkan jatah sebesar Rp1 tril iun, Direktorat Jenderal (Ditjen) Minerba Rp458 miliar, Badan Penelitian dan Pengembangan (Balitbang) ESDM Rp521 miliar, dan Badan Pengembangan Sumber Daya Manusia Kementerian ESDM Rp489 miliar.

Selanjutnya, Direktorat Jenderal Migas sebesar Rp2 triliun, Direktorat Jenderal...

IMA-Daily Update Page 11

the Directorate General of New and Renewable Energy and Energy Conservation (EBTKE) Rp 1.34 trillion, the Downstream Regulatory Agency (BPH) Oil and Gas Rp 271 billion, and the Aceh Oil and Gas Manage-ment Agency (BPMA) Rp 69 billion.

Previously, President Joko Widodo (Jokowi) targeted the total expenditure in the 2021 Draft State Budget of Rp 2,747.5 trillion. Meanwhile, state revenue is only Rp 1,776.4 trillion.

Thus, the budget deficit in the 2021 Draft State Budget soared to 5.5 percent. This figure is up from the previous prediction of only 4.5 percent-4.7 percent.

Jokowi detailed some of the spending, one of which is the health sector. The funds prepared are Rp 169.7 tril l ion or equivalent to 6.2 percent of gross domestic product (GDP).

Then, the education budget is set at Rp 549.5 trillion or 20 percent of the total expenditure in the APBN. Then, the development of communication and information technology (ICT) in 2021 is Rp 30.5 trillion.

Meanwhile, the allocation of infrastructure development is Rp.414 tril l ion, food security is Rp.104.2 tril l ion, social protection is Rp.419.3 trillion, and tourism is Rp.14.4 trillion. (aud/sfr)

Direktorat Jenderal Ketenagalistrikan Rp174 miliar, Direktorat Jenderal Energi Baru Terbarukan dan Konservasi Energi (EBTKE) Rp1,34 triliun, Badan Pengatur Hilir (BPH) Migas Rp271 miliar, dan Badan Pengelola Migas Aceh (BPMA) Rp69 miliar.

Sebelumnya, Presiden Joko Widodo (Jokowi) menargetkan total belanja dalam RAPBN 2021 sebesar Rp2.747,5 triliun. Sementara, pendapatan negara hanya Rp1.776,4 triliun.

Dengan demikian, defisit anggaran dalam RAPBN 2021 melonjak menjadi 5,5 persen. Angka tersebut naik dari prediksi sebelum-nya yang hanya 4,5 persen-4,7 persen.

Jokowi merinci beberapa belanja yang akan dilakukan salah satunya adalah sektor kesehatan. Dana yang disiapkan sebesar Rp 169,7 triliun atau setara dengan 6,2 persen terhadap produk domestik bruto (PDB).

Kemudian, anggaran pendidikan ditetap-kan sebesar Rp549,5 triliun atau 20 persen dari total belanja di APBN. Lalu, pem-bangunan teknologi komunikasi dan informasi (ICT) pada 2021 sebesar Rp30,5 triliun.

Sementara, pembangunan infrastruktur dialokasikan sebesar Rp414 tril iun, ketahanan pangan Rp104,2 triliun, perlin-dungan sosial Rp419,3 tril iun, dan pariwisata Rp14,4 triliun. (aud/sfr)

Antam is Ready to Manage the Ex-Freeport Gold Mining Area in Papua

Rio Indrawan

PT ANEKA Tambang Tbk (ANTM), a

subsidiary of mining holding MIND ID, stated its readiness to manage the Wabu mine block, which is the former mining area of PT Freeport Indonesia.

Antam Siap Kelola Eks Wilayah Tambang Emas Freeport di Papua

Rio Indrawan

PT ANEKA Tambang Tbk (ANTM), anak

usaha dari holding tambang MIND ID menyatakan kesiapannya untuk mengelola blok tambang Wabu, yang merupakan eks wilayah tambang PT Freeport Indonesia.

IMA-Daily Update Page 12

The Ministry of State-Owned Enterprises (SOEs) is known to have officially asked the Ministry of Energy and Mineral Resources (MEMR) to provide manage-ment with the Wabu mine, which stores gold reserves to Antam.

Kunto Hendrapawoko, Antam's Senior Vice President of Corporate Secretary, said that Antam is ready to manage a prospective gold mining area in Papua. This opportunity is a good prospect for Antam as part of the MIND ID Mining Industry Holding to strengthen the Company's gold commodity portfolio, especially with the current composition of MIND ID members.

"As well as opening up opportunities for synergy in the management of national mining assets to support the development of an integrated downstream mineral business," said Kunto when contacted by Dunia Energi, Wednesday (23/9).

According to Kunto, in terms of capability, Antam is quite capable of managing a new gold mine. Currently, Antam has been managing gold commodities from up-stream to downstream, from exploration, mining carried out in the Pongkor and Cibaliung gold mines to gold management which is carried out through the Precious Metal Processing and Refinery Plant managed by UBPP Logam Mulia.

"Currently, the production capacity of Antam's gold mine is around 2 tons per year," he said.

For the gold commodity, Kunto continued, currently Antam is actively conducting exploration activities in the company's IUP areas such as in Pongkor.

"As well as a review in several prospect areas such as the Bintang Mountains, Papua and Papandayan in West Java," said Kunto.

Kementerian Badan Usaha Milik Negara (BUMN) diketahui telah secara resmi meminta Kementerian Energi dan Sumber Daya Mineral (ESDM) untuk memberikan hal pengelolaan tambang Wabu yang menyimpan cadangan emas ke Antam.

Kunto Hendrapawoko, Senior Vi ce President Corporate Secretary Antam, mengungkapkan kesiapan Antam untuk mengelola wilayah tambang emas prospektif di Papua. Kesempatan tersebut menjadi prospek yang baik bagi Antam sebagai bagian dari Holding Industri Pertambangan MIND ID untuk mem-perkuat portofolio komoditas emas Perusahaan terlebih dengan komposisi anggota MIND ID saat ini.

“Serta membuka kesempatan sinergi pengelolaan aset pertambangan nasional untuk mendukung pengembangan hiliri-sasi bisnis mineral yang terintegrasi,” kata Kunto saat dihubungi Dunia Energi, Rabu (23/9).

Menurut Kunto, dari sisi kemampuan, Antam sudah cukup mumpuni mengelola tambang emas baru. Saat ini Antam telah mengelola komoditas emas dari hulu ke hilir, mulai dari eksplorasi, penambangan yang dilakukan di tambang emas Pongkor dan Cibaliung hingga pengelolaan emas yang dilakukan melalui Pabrik Pengolahan dan Pemurnian Logam Mulia yang dikelola UBPP Logam Mulia.

“Saat ini kapasitas produksi dari tambang emas Antam ada di kisaran 2 ton per tahun,” kata dia.

Untuk komoditas emas sendiri lanjut Kunto, saat ini Antam aktif melakukan kegiatan eksplorasi di wilayah IUP per-usahaan seperti di Pongkor.

“Serta tinjauan di beberapa daerah prospek seperti di wilayah Pegunungan Bintang, Papua dan Papandayan di Jawa Barat,” ujar Kunto.

IMA-Daily Update Page 13

Erick Thohir, Minister of SOEs, previously encouraged Antam to manage the former Freeport land so that Antam could have a new gold mining area.

According to Erick, as a state-owned company with nearly 1,000 employees, Antam currently only sells gold products, but does not own the land for these commodities to be mined. In fact, through Freeport Indonesia is one of the largest gold suppliers in the world.

"Moreover, it is very painful if we see how the prospect of this gold becomes a large supply, in conditions like this the price of gold is very good. So we have the courage to enter the former Freeport land,” said Erick. (RI)

Erick Thohir, Menteri BUMN, sebelumnya mendorong agar Antam bisa mengelola lahan eks Freeport agar Antam bisa memiliki wilayah tambang emas baru.

Menurut Erick sebagai BUMN yang memiliki hampir 1.000 pegawai, Antam saat ini hanya menjual produk emas, tapi tidak memiliki lahan dari komoditas tersebut yang bisa ditambang. Padahal melalui Freeport Indonesia menjadi salah satu pemasok terbesar emas di dunia.

“Apalagi sangat menyakitkan kalau kita lihat bagaimana prospek emas ini menjadi supply yang besar, dalam kondisi seperti ini harga emas sangat baik. Jadi kita beranikan diri masuk ke lahan eks Freeport itu,” kata Erick. (RI)

Freeport has prepared 50,000 rapid test kits for the Covid-19

outbreak Reporter: Noverius Laoli | Editor: Noverius

Laoli

PT FREEPORT Indonesia ensures that the health protocol and medical treatment related to Covid-19 are running well. The proof, the cure rate from Covid-19 reached 93% of the total positive cases.

A total of 237 employees were declared cured of Covid-19 out of a total of 256 employees infected with Corona according to data as of July 18, 2020.

"We continue to work with International SOS tirelessly, and coordinate with the government to provide the best medical care that we can provide in accordance with the global Covid-19 mitigation procedures. We are grateful that...

Freeport siapkan 50.000 alat rapid tes hadapi wabah Covid-

19 Reporter: Noverius Laoli | Editor: Noverius

Laoli

PT FREEPORT Indonesia memastikan protokol kesehatan dan penanganan medis terkait Covid-19 berjalan baik. Buktinya, tingkat kesembuhan dari Covid-19 mencapai 93% dari total kasus positif.

Sebanyak 237 karyawan dinyatakan sembuh dari Covid-19 dari total 256 karyawan yang terjangkit Corona sesuai data per 18 Juli 2020.

“Kami terus bekerja sama dengan Inter-national SOS tanpa kenal lelah, serta ber-koordinasi dengan pemerintah untuk menye-diakan penanganan medis terbaik yang dapat kami berikan sesuai dengan prosedur mitigasi global Covid-19. Kami bersyukur...

IMA-Daily Update Page 14

We are grateful that the medical treatment for Covid-19 has shown good results and more employees are recovering," said PT Freeport Indonesia President Director Tony Wenas in his statement, Wednesday (23/9).

Since May 2020, Freeport Indonesia has provided 50,000 rapid test kits as well as PCR tools to expand the detection or tracing range to find out and immediately take medical action if an employee is found to be positive for Covid-19.

In addition to fully alerting Freeport Tembagapura Hospital , PT Freeport Indonesia has also alerted three isolation barracks for employees affected by Covid-19.

To date, PT Freeport Indonesia has allocated Rp 17 billion to mitigate and overcome the impact of Covid-19 in the Freeport Indonesia area.

Not only conducting tests on 8,000 samples with 2 PCR devices, Freeport also added 60 medical personnel, both doctors and nurses, to be able to deal with Covid-19.

During his visit to Freeport Tembagapura Hospital, Tony Wenas expressed his appreciation for the hard work of these medical personnel. "I spoke directly to the doctors and nurses to appreciate their hard work," he said.

Kami bersyukur penanganan medis covid-19 menunjukan hasil yang baik dan semakin banyak karyawan yang sembuh,” ujar Presiden Direktur PT Freeport Indonesia Tony Wenas dalam keterangannya, Rabu (23/9).

Sejak Mei 2020, Freeport Indonesia telah menyediakan 50.000 alat rapid test juga alat PCR untuk memperluas jangkauan deteksi atau tracing untuk mengetahui dan segera melakukan tindakan medis apabila ada karyawan diketahui positif Covid-19.

Selain menyiagakan penuh RS Freeport Tembagapura, PT Freeport Indonesia juga menyiagakan tiga barak isolasi bagi para karyawan yang terkena Covid-19.

Hingga saat ini PT Freeport Indonesia telah mengalokasikan dana Rp 17 miliar untuk memitigasi dan menanggulangi dampak Covid-19 di kawasan Freeport Indonesia.

Tak hanya melaksanakan tes terhadap 8.000 sampel dengan 2 alat PCR, Freeport juga menambah 60 tenaga medis baik dokter maupun perawat untuk dapat menanggu-langi Covid-19.

Dalam kunjungannya ke RS Freeport Tembagapura, Tony Wenas memberikan apresiasi atas kerja keras para tenaga medis tersebut. “Saya sempat berbicara langsung dengan dokter dan suster untuk apresiasi kerja keras mereka,” katanya.

Working on the ex-Freeport mine, Antam's (ANTM) gold business can

shine even more Finna U. Ulfah

PT ANEKA Tambang Tbk., believes the support from the Ministry of SOEs to work on the former Freeport mine land can strengthen the company's gold commodity portfolio.

Garap Tambang Eks Freeport, Bisnis Emas Antam (ANTM) Bisa

Makin Moncer Finna U. Ulfah

PT ANEKA Tambang Tbk., meyakini dukungan

dari Kementerian BUMN untuk menggarap lahan eks tambang Freeport dapat memper-kuat portofolio komoditas emas perseroan.

IMA-Daily Update Page 15

SVP Corporate Secretary Aneka Tambang Kunto Hendrapawoko said the company

welcomed the support provided by the Ministry of SOE.

"This opportunity is a good prospect for

Antam as part of the MIND ID Mining Industry Holding to strengthen the

company's gold commodity portfolio," Kunto told Bisnis, Wednesday (23/9/

2020).

Meanwhile, the issuer coded for securities ANTM is stil l actively conducting exploration activities in the company's IUP (Mining Business License) areas such as in Pongkor. In fact, currently ANTM admits that it is conducting several reviews in prospect areas such as the Bintang Mountains, Papua and Papandayan, West Java.

This step is also part of the company's efforts to maintain the sustainability of its mineral resources and reserves by prioritizing operations in accordance with good mining principles.

According to Kunto, a review of prospective areas is also proof that the company is a commodity company that manages gold commodities from upstream to downstream, not only as a gold trading company.

Kunto explained the company's business activities in gold commodities, from

exploration, mining which is carried out in the Pongkor and Cibaliung gold mines to

gold management which is carried out through the Precious Metal Processing and

Refinery Plant managed by UBPP Logam Mulia.

"Currently, the production capacity of

Antam's gold mine is around 2 tons per year," said Kunto.

SVP Corporate Secretary Aneka Tambang Kunto Hendrapawoko mengatakan per-

seroan menyambut baik dukungan yang diberikan Kementerian BUMN.

“Kesempatan ini menjadi prospek yang baik bagi Antam sebagai bagian dari

Holding Industri Pertambangan MIND ID untuk memperkuat portofolio komoditas

emas perseroan,” ujar Kunto kepada Bisnis, Rabu (23/9/2020).

Adapun, emiten berkode efek ANTM itu masih aktif melakukan kegiatan eksplorasi

di wilayah IUP (Izin Usaha Pertambangan) perseroan seperti di Pongkor. Bahkan, saat

ini ANTM mengaku tengah melakukan beberapa tinjauan di daerah prospek

seperti di wilayah Pegunungan Bintang, Papua dan Papandayan, Jawa Barat.

Langkah itu juga sebagai upaya perseroaan menjaga kesinambungan jumlah sumber

daya dan cadangan mineral yang dimiliki dengan mengedepankan operasi sesuai

dengan prinsip-prinsip penambangan yang baik.

Menurut Kunto, tinjauan ke wilayah prospektif juga menjadi bukti bahwa

perseroan merupakan perusahaan komo-ditas yang mengelola komoditas emas dari

hulu ke hilir, tidak hanya sebagai per-usahaan perdagangan emas.

Kunto menjelaskan aktivitas bisnis per-seroan di komoditas emas mulai dari

eksplorasi, penambangan yang dilakukan di tambang emas Pongkor dan Cibaliung

hingga pengelolaan emas yang dilakukan melalui Pabrik Pengolahan dan Pemurnian

Logam Mulia yang dikelola UBPP Logam Mulia.

“Saat ini kapasitas produksi dari tambang emas Antam ada di kisaran 2 ton per

tahun,” papar Kunto.

IMA-Daily Update Page 16

For information, SOE Minister Erick Thohir admitted that he had sent a letter to Minister of Energy and Mineral Resources (MEMR) Arifin Tasrif so that ANTM could manage the former PT Freeport Indonesia mining land that had been given to the state.

According to Erick, the management of the former Freeport mine by Antam has made the state-owned company not only become an intermediary, but also a gold mining company.

"Especially if we see it is very painful for gold prospects in Indonesia, to become one of the largest suppliers. In these conditions the price of gold is also very good. Therefore, we have the courage to enter the former Freeport land,” said Erick in a joint meeting with the House of Rep. Commission VI in Jakarta, Tuesday (22/9/2020).

At the close of trading today, ANTM shares closed up 15 points or 2.04 percent to 750. ANTM shares opened at position 755 and moved in the range of 735 to 780. Total trading transactions of Antam's shares reached 95.41 million shares with a transaction value of Rp72.22 billion. Editor: Rivki Maulana

Untuk diketahui, Menteri BUMN Erick Thohir mengaku sudah mengirim surat kepada Menteri Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif agar ANTM dapat mengelola lahan tambang bekas PT Freeport Indonesia yang sudah diberikan ke negara.

Menurut Erick, pengelolaan tambang eks Freeport oleh Antam membuat perusahaan pelat merah itu tidak sekadar menjadi perantara, tetapi menjadi perusahaan penambang emas.

“Apalagi kalau kita lihat sangat menyakit-kan prospek emas di Indonesia, menjadi salah satu suplier terbesar. Dalam kondisi seperti ini harga emas juga sangat baik. Karena itu kita memberanikan diri masuk ke lahan eks Freeport itu,” ujar Erick dalam rapat bersama Komisi VI DPR di Jakarta, Selasa (22/9/2020).

Pada penutupan perdagangan hari ini, saham ANTM ditutup menguat 15 poin atau 2,04 persen ke posisi 750. Saham ANTM dibuka di posisi 755 dan bergerak di rentang 735 s.d 780. Total transaksi per-dagangan saham Antam mencapai 95,41 juta lembar dengan nilai transaksi Rp72,22 miliar. Editor : Rivki Maulana

This is the Miner's Remarks about the Nickel Price Still Under HPM

Wilda Asmarini, CNBC Indonesia

THE INDONESIAN Nickel Miners

Association (APNI) revealed that the price of nickel ore based on actual transactions between miners and buyers is still below the Mineral Reference Price (HPM) set by the Ministry of Energy and Mineral Resources every month.

Ini Curhatan Penambang soal Harga Nikel Masih di Bawah HPM

Wilda Asmarini, CNBC Indonesia

ASOSIASI Penambang Nikel Indonesia (APNI) mengungkapkan harga bijih nikel berdasar-kan transaksi aktual antara penambang dan pembeli hingga saat ini masih berada di bawah Harga Patokan Mineral (HPM) yang telah ditetapkan Kementerian Energi dan Sumber Daya Mineral setiap bulannya.

IMA-Daily Update Page 17

APNI Secretary General Meidy Katrin Lengkey said this was not in line with government regulations where HPM had to be the benchmark for domestic buying and selling prices. As is known, on April 14, 2020, the Minister of EMR No.11 of 2020 on Procedures for Setting Benchmark Prices for Metal Mineral and Coal Sales was promulgated.

This regulation states that HPM for metal is the lower limit price in calculating the obligation to pay production fees by the holders of Production Operation IUP and Production Operation IUPK. This metal HPM is also a reference for selling prices for IUP and IUPK holders for the sale of nickel ore. However, if the transaction price is lower than the HPM for the metal, then the sale can be made under the HPM with a maximum difference of 3% from the HPM.

With this regulation not implemented by smelter business actors, Meidy continued, his party asked the government to be firm in implementing and supervising this nickel trading system.

"In essence, APNI asks the government to be firm in the implementation and supervision of the nickel trade system which is clearly stated in the Regulation of the Minister of EMR No.11 of 2020," she said via short message to CNBC Indonesia on Wednesday (23/09/2020).

According to her, the HPM that has been determined by the government is fair, both for miners and owners of processing and refining facilities (smelters).

"HPM is very fair for miners and smelters. This is also related to state revenues," she said.

In addition, he also hopes that the surveyors can be fair and impartial in conducting analysis. For this reason,...

Sekretaris Jenderal APNI Meidy Katrin Lengkey mengatakan hal ini tidak sejalan dengan aturan pemerintah di mana HPM harus menjadi patokan harga jual beli domestik. Seperti diketahui, pada 14 April 2020 telah diundangkan Peraturan Menteri ESDM No.11 tahun 2020 tentang Tata Cara Penetapan Harga Patokan Penjualan Mineral Logam dan Batu bara.

Regulasi ini menyebutkan bahwa HPM logam merupakan harga batas bawah dalam penghitungan kewajiban pembayaran iuran produksi oleh pemegang IUP Operasi Produksi dan IUPK Operasi Produksi. HPM logam ini juga menjadi acuan harga penjualan bagi pemegang IUP dan IUPK untuk penjualan bijih nikel. Namun apabila harga transaksi lebih rendah dari HPM logam tersebut, maka penjualan dapat dilakukan di bawah HPM dengan selisih paling tinggi 3% dari HPM tersebut.

Dengan belum dilaksanakannya aturan ini oleh para pelaku usaha smelter, lanjut Meidy, pihaknya meminta pemerintah tegas dalam melaksanakan dan mengawasi tata niaga nikel ini.

"Intinya, APNI meminta pemerintah tegas dalam pelaksanaan dan pengawasan tata niaga nikel yang sudah jelas tertuang dalam aturan Permen ESDM No.11 tahun 2020," tuturnya melalui pesan singkat kepada CNBC Indonesia pada Rabu (23/09/2020).

Menurutnya, HPM yang selama ini di-tetapkan pemerintah sudah adil, baik bagi penambang maupun pemilik fasilitas pengolahan dan pemurnian (smelter).

"HPM sangat fair untuk penambang dan smelter. Ini juga terkait ke penerimaan negara," ujarnya.

Selain itu, pihaknya juga berharap agar pihak surveyor juga bisa adil dan tidak memihak dalam melakukan analisa. Untuk itu,...

IMA-Daily Update Page 18

For this reason, the Association recommends that the sampling process should be immediately divided into four parts, namely for surveyors, sellers, buyers and duplicates in the event of a dispute.

"Surveyors, as the miners' life end, must also be fair in conducting analysis," she concluded.

Based on information obtained by CNBC Indonesia, nickel contracts after the formation of the HPM Task Force were contracts with nickel content of 1.9% and 2%. The price in the contract is in accordance with HPM but with a number of conditions.

These requirements include a penalty for nickel content, namely if the nickel content received by the smelter is 0.1% lower than the level written in the contract, the price will decrease by US$ 7. Likewise with the moisture content (MC), namely If the MC is more than 30%, then a fine of US5% per wet metric ton (wmt) will be imposed.

Thus, if the initial contract price was US$ 37 per wmt, then the actual price received by miners could only be half, which was around US$ 15 per wmt.

To oversee the implementation of the Minister of EMR Regulation on HPM, the government has even formed a supervisory team for the domestic nickel trade system. This supervisory team was formed by the Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan in mid-August.

This was stated in the Decree of the Coordinating Minister for Marves of the Republic of Indonesia Number 108 of 2020 concerning the Work Team to Supervise the Implementation of the Mineral Reference Price (HPM) for Nickel, which was set on August 13, 2020 yesterday.

Untuk itu, Asosiasi menyarankan agar dalam pengambilan sampel harus langsung dibagi menjadi empat bagian yaitu untuk surveyor, penjual, pembeli dan duplikat jika terjadi dispute.

"Surveyor sebagai ujung nyawa penam-bang juga harus fair dalam melakukan analisa," pungkasnya.

Berdasarkan informasi yang CNBC Indonesia peroleh, kontrak nikel setelah dibentuknya Satgas HPM yaitu kontrak dengan kadar nikel 1,9% dan 2%. Harga dalam kontrak tersebut sudah sesuai dengan HPM namun dengan sejumlah syarat.

Persyaratan tersebut antara lain adanya penalti kadar nikel, yakni bila kadar nikel yang diterima smelter lebih rendah 0,1% dari kadar yang tertulis dalam kontrak, maka harga akan turun sebesar US$ 7. Begitu juga dengan kandungan air (Moisture Content/ MC) yakni bila MC lebih dari 30%, maka akan dikenakan denda sebesar US% 5 per wet metric ton (wmt).

Dengan demikian, bila awalnya harga terkontrak sebesar US$ 37 per wmt, maka harga aktual yang diterima penambang bisa hanya separuhnya yakni sekitar US$ 15 per wmt.

Untuk mengawasi pelaksanaan Peraturan Menteri ESDM tentang HPM ini, pemerintah bahkan telah membentuk tim pengawas tata niaga nikel domestik. Tim pengawas ini dibentuk oleh Menteri Koordinator Bidang Kemaritiman dan Investasi (Menko Marves) Luhut Binsar Pandjaitan pada pertengahan Agustus lalu.

Hal ini tertuang dalam Keputusan Menko Marves RI Nomor 108 Tahun 2020 tentang Tim Kerja Pengawasan Pelaksanaan Harga Patokan Mineral (HPM) Nikel, yang telah ditetapkan pada 13 Agustus 2020 kemarin.

IMA-Daily Update Page 19

Previously, the Director of Mineral Development and Business of the Ministry of EMR, Yunus Saefulhak, said that the HPM which was set was below the international market price with the aim of developing investment in smelters in the country. However, it does not mean that the price is too low because it is to protect the business continuity and profitability of the miners.

"Yes, US$ 30-32 per tonne is fair enough because it has paid attention to the management of good mining practice," he said at the EMR Ministry Office, Friday (07/08/2020). (wia)

Sebelumnya, Direktur Pembinaan dan Pengusahaan Mineral Kementerian ESDM Yunus Saefulhak mengatakan HPM yang ditetapkan berada di bawah harga pasar internasional dengan tujuan untuk mengembangkan investasi di bidang smelter di dalam negeri. Namun tidak juga berarti harga terlalu rendah karena untuk melindungi keberlanjutan usaha dan profitabilitas penambang.

"Ya US$ 30-32 per ton itu sudah cukup adil karena sudah memperhatikan yang namanya pengelolaan good mining practice," tuturnya di Kantor Kementerian ESDM, Jumat, (07/08/2020). (wia)

Building a Smelter in Palu, TMM is Ready to Absorb Low

Grade Nickel Ore

RECENTLY, PT Trinitan Metals & Minerals

Tbk (TMM) signed a Joint Agreement for the Construction of a Nickel Smelter in the Palu Special Economic Zone with PT Bangun Palu Central Sulawesi (BPST). The two parties agreed to realize the construction of a nickel smelter on an area of 200 hectares, which is located in the Palu Special Economic Zone (SEZ/KEK).

PT TMM is a company engaged in the development of mineral refining techno-logy, mining waste management and mining exploration. One of the develop-ments currently being carried out by TMM is to utilize the Hydrometallurgical Step Temparature Acid Leach (STAL) techno-logy in Indonesia to carry out a layered refining process, resulting in minimal solid waste, minimal use of water and energy.

Bangun Smelter di Palu, TMM Siap Serap Bijih Nikel Kadar

Rendah

BELUM lama ini, PT Trinitan Metals & Minerals Tbk (TMM) melakukan penandatanganan Surat Kesepakatan Bersama Pembangunan Smelter Nikel di Kawasan Ekonomi Khusus Palu dengan PT Bangun Palu Sulawesi Tengah (BPST). Kedua belah pihak sepakat untuk mewujudkan pembangunan smelter nikel di atas lahan seluas 200 Ha, yang berlokasi di lingkungan Kawasan Ekonomi Khusus (KEK) Palu.

PT TMM merupakan perusahaan yang ber-gerak di bidang pengembangan tehnologi pemurnian mineral, pengelolaan limbah pertambangan dan eksplorasi tambang. Salah satu pengembangan yang sedang dilakukan oleh TMM adalah memanfaatkan teknologi Hidrometalurgi Step Temparature Acid Leach (STAL) di Indonesia untuk melakukan proses pemurnian berlapis, sehingga menghasilkan limbah padat yang sangat minim, penggunaan air dan energi yang minimal.

IMA-Daily Update Page 20

President Director of PT TMM Tbk, Petrus

Tjandra in a press statement on

Wednesday (23/9) said that his party

would cooperate with APNI (Indonesian

Nickel Miners Association) to absorb low

grade laterite nickel ore (below 1.7%)

from nickel miners.

"TMM has STAL technology which is a

solution for processing low grade nickel

laterite, because it is able to process low

grade nickel into 99.96% nickel (LME

Grade), as well as nickel sulfate (NiSO4)

and cobalt sulfate (CoSO4) battery grade.

we are ready to absorb low grade laterite

nickel ore from the miners," said Petrus

Tjandra.

According to him, the calculation of the

Mineral Reference Price (HPM) has also

been calculated by TMM in a feasibility

study for STAL technology.

Regarding HPM, Petrus explained that

mine owners always ask TMM's purchase

price for their low grade laterite nickel ore.

According to Petrus, his party has

repeatedly emphasized to mine owners

that TMM will follow the HPM regulations

set by the government.

"This effort is one of our steps to support

the nickel downstream program run by the

Government, as well as a form of our

concern for fellow miners, to provide

solutions in the form of income from the

sale of their nickel mining products,"

explained Petrus Tjandra. (OL-13)

Direktur Utama PT TMM Tbk, Petrus Tjandra dalam keterangan pers, Rabu (23/9) mengatakan bahwa pihaknya akan bekerja sama dengan APNI (Asosiasi Penambang Nikel Indonesia) untuk menyerap bijih nikel laterit kadar rendah (dibawah 1.7%) dari para penambang nikel.

"TMM memiliki teknologi STAL yang merupakan solusi bagi pengolahan nikel laterit kadar rendah, karena mampu mengolah low grade nikel menjadi nikel 99,96% (LME Grade), serta nikel sulfat (NiSO4) dan kobalt sulfat (CoSO4) battery grade. Karena itu, kami siap untuk menyerap bijih nikel laterit kadar rendah dari para penambang," ujar Petrus Tjandra.

Menurut dia, perhitungan Harga Patokan Mineral (HPM) juga telah dikalkulasikan oleh TMM dalam studi kelayakan (feasibility study) untuk teknologi STAL.

Terkait HPM, Petrus menjelaskan bahwa para pemilik tambang selalu menanyakan harga beli yang ditetapkan TMM untuk bijih nikel laterit kadar rendah milik mereka. Menurut Petrus, pihaknya pun telah berulang kali menekankan kepada para pemilik tambang, bahwa TMM akan mengikuti aturan HPM yang ditetapkan pemerintah.

"Upaya ini merupakan salah satu langkah kami untuk mendukung program hilirisasi nikel yang dijalankan oleh Pemerintah, sekaligus bentuk kepedulian kami ter-hadap rekan-rekan penambang, untuk memberikan solusi berupa income dari penjualan hasil tambang nikel milik mereka," jelas Petrus Tjandra. (OL-13)

IMA-Daily Update Page 21

The Promising Ex-Freeport Gold Mine, This Is The Reserves

Denis Riantiza Meilanova

THE MINING company holding, Mining

and Industry Indonesia (MIND ID) stated

its readiness with PT Aneka Tambang Tbk.

(ANTM) to manage the Wabu Block in

Papua.

The mining block is a former PT Freeport

Indonesia working area that has been

handed over to the government.

"Very ready. The potential of Wabu Block

is very good," said MIND ID Senior Vice

President Corporate Secretary Rendi

Witular when contacted by Bisnis,

Wednesday (23/9/2020).

According to Rendi, the open pit mining

area has gold potential which is estimated

to reach 8.1 million troy ounces.

He emphasized that although it is a former

Freeport working area, the Wabu Block has

never been mined or exploited at all.

Rendi could not reveal further about the

block management plan. Currently, his

party is still waiting for further directions

from the government.

However, he confirmed that when the

Wabu Block management permit was

granted, Antam would collaborate with the

Papuan regional government through a

Papuan regional-owned company to

manage the block.

"Of course we will manage together with

the Papua ROEs," he said.

Tambang Emas Eks Freeport Menjanjikan, Segini

Cadangannya Denis Riantiza Meilanova

HOLDING perusahaan tambang, Mining

and Industry Indonesia (MIND ID) menyatakan kesiapannya bersama PT Aneka Tambang Tbk. (ANTM) untuk mengelola Blok Wabu di Papua.

Blok tambang tersebut merupakan bekas wilayah kerja PT Freeport Indonesia yang telah diserahkan ke pemerintah.

"Sangat siap. Potensinya Blok Wabu sangat bagus," ujar Senior Vice President Corporate Secretary MIND ID Rendi Witular ketika dihubungi Bisnis, Rabu (23/9/2020).

Menurut Rendi, wilayah tambang terbuka tersebut memiliki potensi emas yang diperkirakan mencapai 8,1 juta troy ounce.

Dia menegaskan bahwa meski merupakan bekas wilayah kerja Freeport, Blok Wabu belum pernah ditambang atau dieksploi-tasi sama sekali.

Rendi belum bisa mengungkapkan lebih jauh mengenai rencana pengelolaan blok tersebut. Saat ini , pihaknya masih menunggu arahan lebih lanjut dari pemerintah.

Namun, dia memastikan bahwa bila nantinya izin pengelolaan Blok Wabu telah diberikan, Antam akan menggandeng pemerintah daerah Papua melalui badan usaha milik daerah Papua untuk mengelola blok tersebut.

"Tentunya kami akan mengelola bersama dengan BUMD Papua," katanya.

IMA-Daily Update Page 22

Previously, in a joint working meeting of the House of Representatives Commission VI in Jakarta, Tuesday (22/9/2020), SOEs Minister Erick Thohir admitted that he had sent a letter to Minister of EMR Arifin Tasrif so that Antam could manage the mine in the former Freeport area.

According to him, the management of the former Freeport mine by Antam has made the state-owned company not only become an intermediary, but also a gold mining company. Editor: Zufrizal

Sebelumnya, dalam rapat kerja bersama Komisi VI DPR di Jakarta, Selasa (22/9/2020), Menteri BUMN Erick Thohir mengaku telah mengirim surat kepada Menteri Energi dan Sumber Daya Mineral Arifin Tasrif agar Antam bisa mengelola tambang bekas wilayah Freeport.

Menurutnya, pengelolaan tambang eks Freeport oleh Antam membuat perusahaan pelat merah itu tidak sekadar menjadi perantara, tetapi menjadi perusahaan penambang emas. Editor : Zufrizal

Coal is being hardy, one step closer to US$60/ton

Tirta Citradi, CNBC Indonesia

NEWCASTLE thermal coal price for

actively traded contracts continued to strengthen yesterday, Wednesday (23/9/ 2020). Now the coal price is getting closer to US$ 60/ton.

The coal price closed up 0.42% to US$ 59.4/ton. Coal has strengthened in seven consecutive trading days and is now the highest level since the last five months or to be precise since April 14, 2020.

The tight supply of domestic Chinese coal has made local coal prices soar. In fact, it is so high, the spread between the coal price benchmarks of China and Australia is the widest range this month.

The price of thermal coal for a calorific value of 5,500 Kcal/kg imported from Australia touched the level of US$ 39.35/ton, lower than the domestic price of Chinese coal for the same caloric value on 11 September.

Tumben Batubara Tahan Banting, Sejengkal Lagi ke US$60/ton

Tirta Citradi, CNBC Indonesia

HARGA batu bara termal Newcastle untuk

kontrak yang aktif diperdagangkan masih lanjut menguat kemarin, Rabu (23/9/2020). Kini harga batu bara semakin dekati level US$ 60/ton.

Harga batu bara ditutup menguat 0,42% ke US$ 59,4/ton. Batu bara menguat dalam tujuh hari perdagangan secara beruntun dan kini menjadi level tertinggi sejak lima bulan terakhir atau tepatnya sejak 14 April 2020.

Ketatnya pasokan batu bara domestik China membuat harga batu bara lokalnya melambung tinggi. Bahkan saking tingginya, selisih (spread) antara harga batu bara patokan China dan Australia berada pada rentang paling lebar di bulan ini.

Harga batu bara termal untuk nilai kalori 5.500 Kcal/kg yang diimpor dari Australia sempat menyentuh level US$ 39,35/ton lebih rendah dari harga batu bara domestik China untuk nilai kalori yang sama 11 September lalu.

IMA-Daily Update Page 23

This makes Chinese consumers and buyers of coal import from Australia because it is more profitable. Chinese demand has recovered in the past two weeks as market players expect Beijing to lift restrictions.

China's interest in seaborne coal may remain strong in the coming weeks, as there are signs that customs authorities are likely to ease import restrictions.

Authorities at the ports of Guangzhou and Fuzhou in southern China's Guangdong and Fujian provinces are each looking at how much stocks of imported coal are waiting for customs at the ports.

The move could signal a possible easing of import restrictions, while the Guangzhou port could remove 1.5 million tonnes of imported coal hoarded, market players said.

On the other hand, the local government also continues to strive to boost coal production so that it can meet domestic needs and make prices drop to a level where it does not erode the margins of util ity companies or miners. CNBC INDONESIA RESEARCH TEAM (twg/twg)

Hal ini membuat para konsumen dan pembeli batu bara China mengimpor dari Australia karena lebih menguntungkan. Permintaan China telah pulih dalam dua minggu terakhir karena pelaku pasar memperkirakan Beijing akan mencabut pembatasan.

Minat China terhadap batu bara lintas laut (seaborne) dapat tetap kuat dalam beberapa minggu mendatang, karena ada tanda-tanda bahwa otoritas bea cukai tampaknya akan melonggarkan pembatasan impor.

Pihak berwenang di pelabuhan Guangzhou dan Fuzhou di provinsi Guangdong dan Fujian di China selatan masing-masing sedang melihat berapa banyak stok batu bara impor yang menunggu untuk bea cukai di pelabuhan.

Langkah tersebut dapat menandakan kemung-kinan pelonggaran pembatasan impor, semen-tara pelabuhan Guangzhou dapat menghapus 1,5 juta ton batu bara impor yang ditimbun, kata pelaku pasar.

Di sisi lain pemerintah setempat juga terus berupaya untuk menggenjot produksi batu baranya agar bisa mencukupi kebutuhan domestik serta membuat harganya turun ke level di mana tidak menggerus margin per-usahaan utilitas maupun penambang. TIM RISET CNBC INDONESIA (twg/twg)

Indonesians turn to illegal gold mining as coronavirus pandemic hits

economy The price of gold has soared, fuelling a boom in illegal panning in rivers near US company

Freeport’s Grasberg mine and other places in Indonesia

Police arrested 400 illicit gold miners in a conservation area in Kalimantan, amid concerns the use of mercury can harm miners and the environment

WITH the coronavirus devastating jobs across the country, desperate Indonesians are flocking to illegal gold mines as the soaring price of the precious metal overrides the risk to their lives and the environment.

Spooked by the economic destruction wrought by the pandemic, consumers and investors around the world have been snapping up gold, which is seen as a hedge against volatility, sending its price to a record above US$2,000 an ounce last month.

IMA-Daily Update Page 24

The surge in demand has fuelled a boom in mineral-rich Indonesia’s illegal mining industry, with workers ignoring the threat of arrest, mercury poisoning or being caught in the middle of gun battles.

Father-of-two Mustafa is among the hundreds who play a daily game of cat-and-mouse with authorities in the restive Papua region as they pan for nuggets in a river near US-based Freeport’s sprawling Grasberg site – one of the world’s biggest gold mines.

On a good day, Mustafa collects a gram of gold by sifting through the mud with a fabric filter, which he can sell to a local trader for about 800,000 rupiah (US$55) – no small sum in one of Indonesia’s poorest regions.

The miners here do not use mercury, he said, but there are plenty of other dangers lurking in Indonesia’s rugged easternmost territory.

Fear of arrest is ever-present and so is being caught in the middle of deadly fights between security forces and independence-seeking rebels locked in a decades-old insurgency.

“There are more of us here now during the pandemic because the price of gold has jumped,” said Mustafa. “We’re risking arrest by security forces, but we don’t have any option because we need money to support our families.”

The arduous job also carries the risk of catching the coronavirus or skin infections from wading through waters chock full of waste from the nearby mine.

“This is very dangerous for our health. Me and some of my friends have skin diseases,” Mustafa said. “But thank god, so far no one has got the virus.”

Thousands of kilometres to the west in Kalimantan – Indonesia’s section of Borneo island – police this month arrested 400 gold miners accused of operating illegally in a conservation area, a crime punishable by up to 15 years in prison.

Here, the dangers of mercury to both miners and the environment is severe, said Sustyo Iriyono, the environment ministry’s director of prevention and forest protection.

“The recent arrests in Kalimantan show that illegal activity was huge,” he said.

While the ministry does not yet have hard data, Iriyono said illicit mining has spiked nationwide, including on the densely populated Java island and remote Sumbawa.

“The high price of gold during the pandemic is the stimulus behind this … illegal activity,” he said. “They’re making profits by destroying the environment. We’re trying to find a solution.”

Environmental activist Aiesh Rumbekwan said the “massive increase” in unsanctioned mining was being driven by people desperate to feed their families in the pandemic-battered economy.

Government aid has been slow to reach many parts of the sprawling archipelago nation.

“Illegal miners (often) use mercury to speed up the process and that will harm the environment and places where this activity connects to water sources like lakes or rivers,” said Rumbekwan, who heads the Papua chapter of environmental network Walhi. “It could lead to an ecological disaster.”

IMA-Daily Update Page 25

Indonesia banned the use of mercury for artisanal miners in 2017. But the dangerous metal, which can affect the nervous system and cause disabilities in newborn children, can still be

bought on the black market.

The livelihoods of at least one million Indonesians are supported by small-scale mining, according to the United Nations Development Programme (UNDP), which promotes mercury-

free technologies.

Despite pandemic restrictions, there are reports of unlicensed operators bringing scores of

domestic migrants to makeshift mines sites across the country, which have long been prone to fatal accidents.

“There’s no control from the authorities,” Rumbekwan said.

Glencore tags $355m to extend life of Australian copper assets Cecilia Jamasmie

MINER and commodities giant Glencore (LON: GLEN) said on Wednesday it will

invest A$500 million (about $355m) to extend the life of its copper smelter and refinery in the Australian state of Queensland beyond 2022.

The decision follows an agreement with the State Government, which is providing a one-off

incentive as part of its North Queensland Recovery Plan.

The undisclosed amount is intended to help Glencore mitigate the negative costs of keeping the assets running, the company said. Both, the copper smelter in Mount Isa and the refinery

in Townsville, have high fixed costs and struggle to compete internationally, Glencore noted.

The support package will allow for the bricks lining the Mount Isa smelter in the north west of

the state to be replaced late next year, a process that occurs every four years.

The government’s backing also secures the stability of 570 direct smelter and refinery workers, and a further 1,000 indirect jobs for the next two years.

Glencore said it would undertake further studies to examine the economic feasibility of large

scale e-recycling or custom smelting into the future.

As part of an A$8 billion ($5.7bn) funding package, the Queensland State government will also

spend A$50 million ($36m) on the Mount Isa rail line to boost capacity between the state’s north-west minerals province and Townsville, which is its largest port.

The Mount Isa Mines (MIM) complex is Australia’s second largest copper producer.

IMA-Daily Update Page 26

Rio Tinto to cater to Chinese portside customers Vanessa Zhou

RIO Tinto has inked an agreement to develop blending operations within the Port of Dalian

in China as it moves to expand its offering to customers across Asia.

Dalian Port company will act as a transhipment hub where Rio Tinto plans to sell iron ore directly to customers who do not participate in the seaborne market, including portside customers in northern China.

This will be Rio Tinto’s first iron ore blending operation in a bonded area.

Rio Tinto vice president sales and marketing, iron ore, Simon Farry said the company was very pleased to be working with Dalian Port to establish blending capabilities within the bonded area.

“Dalian’s location, blending capabilities and willingness to support this initiative makes Dalian Port the right partner for us,” Farry said.

“Establishing a transhipment hub in China, which allows us to offer new blended products in other Asian markets, will enhance our ability to deliver quality and consistent products, and provide innovative solutions to meet our customers’ needs.”

The iron ore major stated that the Rio Tinto Blend Fines (RTBF) had been successful in the Chinese markets.

RTBF blends supplementary product (SP) 10 from Western Australia with high-grade concentrate from Iron Ore Company of Canada – a joint venture among Rio Tinto, Mitsubishi and the Labrador Iron Ore Royalty Income Corporation.

Dalian Port has built its revenue on the back of growing iron ore imports and steel markets in northern China – a region that is concentrated with steel production and proximate to major iron ore mines.

States to approve land acquisition process for private coal miners Shreya Jai | New Delhi

THE UNION ministry of coal wants mine-bearing states to choose the legal framework they

will follow for land acquisition by private coal miners as part of the ongoing commercial coal auction.

This comes after some states protested that the Centre was encroaching on their right to approve land acquisition for private miners.

IMA-Daily Update Page 27

The coal ministry has proposed that states can choose between the Coal Bearing Areas (Acquisition & Development) Act, 1957, and the Right to Fair Compensation and

Transparency in Land Acquisition, Rehabilitation and Resettlement (LARR) Act, 2013. The compensation amount is the same under both.

To ease the mining process under the auction, the Centre was considering allowing land

acquisition under the CBA Act. This would entail the Centre acquiring land and then leasing it to private miners.

“The Centre is thinking on an initiative wherein land acquisition would be allowed under the

CBA Act and the land could then be given to private miners on lease,” said M Nagaraju, joint secretary, ministry of coal and nominated authority for commercial coal auction, during an

industry meeting.

However, states like Chhattisgarh and Jharkhand and local activist groups in these states protested against any amendment to the CBA Act. Activists said the amendment would take

away states’ authority on land and revenue garnered from it.

Sources said similar concerns were aired by some non-Bharatiya Janata Party ruled mineral rich states during stakeholder discussions earlier this month. To address this, the coal

ministry is planning to let states choose. “It will be up to the states. If they want to follow the amended CBA Act and ease the land acquisition and thereby private investment in their states

or want to continue with existing provisions of LARR Act,” said an executive privy to the discussion.

The CBA Act provides for acquisition of land containing or likely to contain coal deposits and

for matters connected with it. Under this Act, the land is acquired for government companies only for coal mining and activities strictly incidental to mining purposes.

Additionally, the Centre will “de-centralise” the acquisition process for private coal miners.

“We have proposed to the mine bearing states that land officers in the states oversee the process of acquisition for private coal miners. The Centre will have no role and states will

have full authority,” said the official.

The approval for land acquisition by Central public sector utilities, including Coal India, however, would remain under the ambit of the Centre, said an official.

In June, the Centre had started the auction for commercial mining and sale of coal by private

firms. Bidding terms were liberalised to attract foreign players, non-mining entities, and large miners. It amended the Coal Mines Special Provisions Act, 2015, in May to simplify the

auction.

The online auction of coal blocks for commercial mining and sale for private companies will commence in October and final winners will be declared in November.

IMA-Daily Update Page 28

Exploration group says Timmins could become new nickel mining capital of Ontario

THERE could be a bright future in nickel for the city that has been known for its heart of gold.

Exploration company Canada Nickel is developing its Crawford Nickel Cobalt Sulphide Project, a significant nickel deposit north of Timmins, and officials with the company say

they're committed to extracting and processing the mineral in an environmentally-friendly way.

A subsidiary called NetZero Metals, will be researching ways to start a processing facility that

would produce zero-carbon nickel, cobalt and iron.

Mark Selby, Canada Nickel's CEO, said he's optimistic about Timmins' future.

"We've got the real potential to turn Timmins into a significant nickel district. And become,

we hope, one of the largest nickel sulfide operating regions in the world," Selby said.

Pushing the market forward is an increase in demand for electric vehicles– and their nickel-reliant batteries– as well as strong growth in the stainless steel market.

But what makes the Crawford Nickel Cobalt Sulphide Project unique is what Selby calls its "net zero" approach.

"One, our waste rock and tailings naturally absorbs CO2 when exposed to air," he said. "The

second thing is all the electricity in that region is all hydro electric based which is obviously zero carbon. And the third reason is Timmins an area that is supportive of down stream

processing."

"So there's the potential to be able to have processing plants located near the mine site and be able to capture the gases from those plants...with the tailings and waste rock to absorb that

CO2," he said.

That's a far cry from other countries like Indonesia, that produce significant amounts of nickel

but uses less environmentally friendly coal-powered electricity.

Selby adds that delivering the zero waste final product is also the "right thing to do."

"We think the electric vehicle market is going to be extremely keen to get that type of material."

Nickel could be ready to be produced by the middle of the decade, Selby said, as their preliminary economic assessment is expected to be completed by the end of 2020.

Following that, the company moves into a feasibility study, which will allow them to get

construction financing. All told, Selby said the project would be considered a "large scale" operation.

IMA-Daily Update Page 29

"It's similar to what Detour Gold would be doing or IAMGOLD is doing," Selby said. "So it's about a two-year construction to build the project. And when you build in the permitting

timelines, we'd be looking to operate sometime in the 2024-2025 time period."

"It's still early days with our project," he added. "But we think we're on the path to something that'll actually produce more nickel than Sudbury on an annual basis."

Top 10 gold producing countries Frank Holmes - U.S. Global Investors

GOLD is one of the rarest elements in the world, making up roughly 0.003 parts per million

of the earth’s crust. But how much gold is the world digging up each year and what countries

produce the most?

In 2019, global gold mine production was a reported 3,463.7 tonnes – down one percent from the year prior – and the first year-over-year decline in output since 2008. Gold production has

remained relatively steady since 2010, raising the question I’ve explored over the years –

have we reached peak gold?

The idea is that all the easy gold has already been discovered and explorers have to dig

deeper to find economically viable deposits. For example, South Africa was once the top gold-producing country by far, digging up over 1,000 tonnes in 1970, but annual output has fallen

steadily since. On the other hand, several nations have emerged in the last few years as growing gold producers.

As seen in the chart below, China takes the number one spot of global gold producers by a

wide margin. The top 10 rankings saw a big shift in 2019 – Russia took the lead over Australia to claim second, Indonesia fell off the list and Brazil joined the ranks as the tenth largest

producer. Ghana also jumped ahead of South Africa to become the continent’s top producer.

IMA-Daily Update Page 30

Below are more details on the top 10 countries with the largest gold production in 2019, beginning with the top producer and top consumer of bullion, China. All data is from the World Gold Council.

1. China – 383.2 tonnes

For many years, China has been the top producing nation, accounting for 11 percent of global mine production. However, production fell from nearly 400 tonnes last year, representing the third consecutive year of declines. The downtrend is largely due to tighter environmental policies imposed by the government. For example, stricter control over the use of cyanide at gold mines forced several operations to cut back production.

2. Russia – 329.5 tonnes

A massive 83 percent of European gold comes from Russia, which has been increasing its production every year since 2010. Russia took the lead over Australia to become the world’s second largest producer – mining 50 tonnes more in 2019 than the year prior. Who is the largest buyer of Russian gold? The Russian government, of course, which purchases around two-thirds of all gold produced locally.

3. Australia – 325.1 tonnes

Australia has posted seven consecutive years of increases in production, up by 4 percent in 2019. The minerals industry produces over half of Australia’s total exports and generates about 8 percent of GDP. Higher production at several mines and the ramp of projects such as Mount Morgans and Cadia Valley contributed to increased production.

4. United States – 200.2 tonnes

American gold output fell by 11 percent in 2019, ending five consecutive years of growth. Twelve states produced the gold, worth about $8.9 billion and accounting for 6.1 percent of the global total. Around 78 percent of gold produced in the U.S. is from Nevada. If the state was considered a country, it would be number six on this list with 173.6 tonnes mined in 2019.

IMA-Daily Update Page 31

5. Canada – 182.9 tonnes

Canada has held the number five spot for three years now, even with a slight decrease in output in 2019. New projects in Nunavat, Yukon and Quebec are expected to support stronger output in 2020. Canada’s gold mine production is estimated to grow by a compound annual growth rate of 2.7 percent from 2019 to 2023 to reach 7.6 million ounces.

6. Peru – 143.3 tonnes

Gold output fell for a fourth consecutive year in Peru largely due to crackdowns on illegal mining operations in the La Pampa region and lower grades at existing projects. Mining is a significant portion of Peru’s economy and accounts for over 28 percent of the region’s total output.

7. Ghana – 142.4 tonnes

Ghana is Africa’s largest producer of gold, beating out South Africa for the top spot in 2019, and is also known for its reserves of various industrial minerals. Industry majors such as AngloGold Ashanti and Gold Fields have shifted their focus from South Africa to Ghana where deposits are cheaper and easier to mine. The West African nation has around 1,000 metric tons of reserves and moved up to number seven on the list from 10 last year.

8. South Africa – 118.2 tonnes

Once the top gold-producer in the world by a wide margin, South Africa’s gold mines have been slowing every year since 2008, with the exception of 2013 when production rose by a few tonnes. The nation is struggling with rising costs for electricity and labor, with many mines closing due to unprofitability. South Africa is, however, still home to the world’s deepest gold mine, the Mponeng mine, extending 2.5 miles underground.

9. Mexico – 111.4 tonnes

Although production fell for a fourth consecutive year, Mexico remains a competitive gold source. Output has risen from just 50.8 tonnes in 2008 to over 130 tonnes in 2017, one of the largest increases in a nine-year span. Mexico is an attractive place for mining due to a relatively low cost of regulation. The 2019 slowdown is attributed to disputes between local communities and contractors.

10. Brazil – 106.9 tonnes

Brazil produced 10 more tonnes of gold than the year prior to make the number 10 spot on this list. Illegal mining activity has risen sharply in the last five years in the heart of the Amazon rainforest. President Jair Bolsonaro has pushed the country to develop the Amazon economically and tap its mineral riches.