Coal price increased, Kobexindo (KOBX) Heavy Equipment Sales Soar 200 Percent
Coal price increased, Kobexindo (KOBX) Heavy Equipment Sales Soar 200 Percent
04 Apr 2022, 02:13 PM 4910

PT Kobexindo Tractors Tb k. ( KOBX ) posted heavy equipment sales of US$ 89.99 million, up 205.1 percent year-on-year (YoY) last year. Andry B Limawan, President Director of Kobexindo , explained that the heavy equipment unit sales segment was the highest contributor, amounting to 75.42 percent of total consolidated revenue. "This achievement is the best performance in the last three years before the pandemic. The positive catalyst for the surge came from the skyrocketing prices of coal and mineral commodities at the end of 2020," Andry said in his statement, Monday (4/4/2022).Andry continued, the increase in coal prices has triggered mining producers to resume operations and increase productivity through the purchase of heavy equipment, both to increase their fleet and to upgrade units.Meanwhile, the revenue growth of the issuer codenamed  KOBX  was recorded at 134 percent throughout 2021 to US$119.32 million, an increase compared to 2020 of US$50.97 million. In addition to heavy equipment sales, the company's revenue was also contributed by four other segments, namely sales of spare parts, repairs and mining contractors, heavy equipment rental, and building rental. The spare parts segment posted US$16.09 million, equivalent to a 13.48 percent contribution to revenue.Then, the repair service and mining contractor segments throughout 2021 posted revenues of US$7.70 million, equivalent to 6.46 percent of total revenue. Meanwhile, the heavy equipment rental segment was recorded at US$4.84 million or 4.05 percent, and the building rental segment was recorded at US$701 thousand or 0.59 percent of consolidated revenue.Meanwhile, as an effort to strengthen the structure and revenue portfolio, in 2021 KOBX has added business lines namely sales, repair and sales of spare parts for Mercedes-Benz heavy duty trucks, as well as mining contractors. Previously, the Association of Indonesian Heavy Equipment Sole Agents (PAABI) recorded sales in January 2022 reaching 1,700 units, above the monthly average in semester II/2021 of 1,400 units. Meanwhile, throughout 2021, heavy equipment sales rose 110 percent to 14,560 units from the 2020 achievement of 7,200 units. "Mining is the most significant driver, both in coal and nickel, which drives coal and nickel," said PAABI Chairman Etot Listyono.Source: https://market.bisnis.com/read/20220404/192/1518895/berkah-batu-bara-penjualan-alat-berat-kobexindo-kobx-melesat-200-persen

Indonesia Mining Association (IMA): There was confusion in the revocation of IUP
Indonesia Mining Association (IMA): There was confusion in the revocation of IUP
04 Apr 2022, 01:39 PM 7707

The Indonesian Mining Association aka the Indonesia Mining Association (IMA) highlighted the revocation of the Mining Business License (IUP) by the Minister of Investment/Head of the Investment Coordinating Board (BKPM). The Daily Executive Director of the Indonesian Mining Association (IMA) Executive, Djoko Widajatno, assessed that there was confusion in the revocation of the IUP by the Head of BKPM.According to Djoko, the revocation of the authority to revoke the IUP should be in the hands of the Minister of Energy and Mineral Resources based on Law Number 3 of 2020 (UU Minerba), while the revocation of the IUP by the Head of BKPM/Minister of Investment is only based on the rules at the presidential decree level (keppres). ), namely Presidential Decree Number 1 of 2022 concerning the Task Force (Satgas) for Land Use Management and Investment Management."So the question becomes whether the Presidential Decree hierarchy has defeated the Act, this is what makes the decision ambiguous," said Djoko to Kontan.co.id (1/4). As is known, the Minister of Investment/Head of BKPM, Bahlil Lahadalia revoked 387 IUPs from February 2 to March 5, 2022. The revoked IUPs consist of 250 IUPs for mineral mining and 137 IUPs for coal mining.Previously, the revocation of the IUP by the Minister of Investment/Head of BKPM was also questioned by Member of the Indonesian House of Representatives Commission VII Rico Sia in a Hearing Meeting with Commission VII DPR RI, last Thursday (31/1)."This permit was issued by ESDM, but how could it be revoked by another ministry," Rico asked in RDP (31/3).Rico's question was then responded to by the Director General of Mineral and Coal of the Ministry of Energy and Mineral Resources, Ridwan Djamaluddin, who was present at the RDP. Ridwan explained that currently all permits are centralized at BKPM through a one-door scheme or Online Single Submission (OSS).In this context, Presidential Decree No. 1 of 2022 has been issued which establishes a task force for land use management and investment management."The members are the Minister of Energy and Mineral Resources, the Minister of ATR, and the Minister of LHK. In fact, it was the task force that revoked this task, in which the chairman of this task force was the Minister of Investment. So the revocation and arrangement mechanism is carried out by a task force formed through Presidential Decree Number 1 of 2022," explained Ridwan in the RDP (31/3).A little information, Law Number 3 of 2020 does mention the revocation of IUP by the minister. Article 19 of Law Number 3 of 2020 states that an IUP or IUPK can be revoked by the Minister if the IUP or IUPK holder does not fulfill the obligations stipulated in the IUP or IUPK as well as the provisions of laws and regulations, the IUP or IUPK holder commits a criminal act as referred to in the Law. or the holder of an IUP or IUPK is declared bankrupt.Source: https://industri.kontan.co.id/news/indonesia-mining-association-ima-ada-kerancuan-dalam-pencabutan-iup

PP Precision Pockets Contract of IDR 1 T in First Quarter-2022
PP Precision Pockets Contract of IDR 1 T in First Quarter-2022
04 Apr 2022, 01:02 PM 5036

PT PP Presisi Tbk pocketed a new contract worth IDR 1 trillion in the first three months of 2022. This figure increased significantly by 26% year on year (yoy) from the same period last year of IDR 444.1 billion. The new contract was obtained from mining development for the Weda Bay Project amounting to Rp 222.5 billion, Halim Airport Revitalization Rp 46.7 billion, North Sumatra Binjai Railway Rp 85.8 billion and subsidiary PT LMA in the Basic Engineering Design Road Hauling project amounting to Rp 72. ,6 billion.President Director of PT PP Presisi Rully Noviandar said, all of these projects were nickel mining service projects and civil work projects that his party had worked on both from PP Presisi and from PT LMA.Meanwhile, based on the new contract business line until March 2022, it was obtained from the civil work business line of Rp 392.4 billion (up 38.4%), mining services Rp 538.2 billion (52.67%), structure work Rp. 6.92%), production plant and heavy equipment rental Rp 20.6 billion (2.01%)."Until March 2022, new contracts from external parties dominate the acquisition of new contracts with a contribution of 95% coming from the non PP group and 4% from the group," said Rully in a written statement, Monday (4/4/2022).He added, with the dominance of the acquisition of new contracts, this made the Company's positioning as the main contractor of civil construction and mining services increase.With these competitive numbers, Rully is optimistic that his party will be able to achieve the 2022 target by making mining services the main contributor to the Company's performance. Recurring income from this business is also believed to support cash flow .In addition to focusing on obtaining new contracts, PT PP Presisi also focuses on performance progress, both in civil works and mining services, which is reflected in the continuous acquisition of new contracts in the mining development of the Weda Bay Project."The company will continue to seek new contracts and even exceed it by focusing on the nickel mining sector and integrated national strategic projects," concluded Rully.Source: https://www.cnbcindonesia.com/market/20220404132920-17-328560/pp-presisi-kantongi-kontrak-rp-1-t-di-kuartal-i-2022

GroundProbe opens larger, more advanced geotechnical support service centre in Balikpapan, Indonesia
GroundProbe opens larger, more advanced geotechnical support service centre in Balikpapan, Indonesia
04 Apr 2022, 10:10 AM 5018

GroundProbe, a member of the Orica Group, recently celebrated the relocation of their office, facilities and Geotechnical Support Service (GSS) centre in Balikpapan, Indonesia, to better serve their growing Asian customer base. The centre, originally opened in 2012, will provide 24/7 real-time remote radar and laser monitoring services for mine slopes and tailings dams, globally.“Our state-of-the-art centre provides the most technologically advanced solution for remote monitoring in the region. It has been developed with high-tech infrastructure to ensure smooth support delivery, offerscollaboration opportunities to our global customers, and is designed to facilitate advanced software development and technology implementation in engagement with Orica technology roadmap,” said DavidNoon, GroundProbe’s Chief Executive Officer.Celebrating the event, Noon said: “We are proud of our accomplishments here in Indonesia and look forward to providing our valued Asian customers with even more expert GSS support during this time of rapidgrowth across the mining sector, specifically the rising importance placed on tailings dam monitoring.”Celebrating 10 years since establishing the centre with one engineer, it has grown exponentially, with over 60 geotechnical engineers, monitoring more than 100 systems from multiple stations, 24/7, with more than one-third of the geotechnical engineers, being female. Also located within the same building is the GroundProbe office, with operational and support staff members assigned to deliver value-added technology and services to customers through smarter technology adoption and operational optimisation.Globally, GroundProbe’s GSS team of currently more than 120 highly experienced engineers and radar operators have extensive radar knowledge and experience and is one of the largest assembled teams ofgeotechnical mining professionals in the world. The talented team has provided early warning to mine sites for more than slope failures.GroundProbe operates two additional high-tech monitoring centres in Santiago, Chile, and Belo Horizonte, Brazil, providing support in four languages – Portuguese, Spanish, English, and Bahasa. “GroundProbe’s purpose every day is to create and apply innovative technologies that deliver high-value information to our customers, helping them to better manage risk. To this, we look forward to a continuedfocus on assisting Indonesian miners in keeping themselves and the wider community safe,” said Noon.Source: https://im-mining.com/2022/04/04/groundprobe-opens-larger-more-advanced-geotechnical-support-service-centre-in-balikpapan-indonesia/

Perhapi Suggests Government to Secure Ex-PKP2B Land from Unlicensed Miners
Perhapi Suggests Government to Secure Ex-PKP2B Land from Unlicensed Miners
04 Apr 2022, 09:01 AM 5385

The Association of Indonesian Mining Experts (Perhapi) is of the view that the government needs to pay attention to aspects of resource and reserve conservation, acceleration of economic growth, as well as economic equity in shrinking the land of former companies holding Coal Mining Concession Work Agreements (PKP2B).This was conveyed by the Chairperson of Perhapi Rizal Kasli, when asked for his opinion regarding the phenomenon of land shrinking of former PKP2B holders that occurred in recent times. According to him, the government needs to see the land that was shrunk from the former PKP2B as state assets that must be properly secured.For this reason, the government needs to strictly maintain the ex-PKP2B land so that it is not later used by unlicensed miners (PETI). The next stage, the government then follows up on the ex-PKP2B land according to applicable regulations: it is auctioned with top priority given to State-Owned Enterprises (BUMN) or Regional-Owned Enterprises (BUMD) before being auctioned off to third parties in a transparent manner."(Illegal mining without a permit) is a loss for the State because the State will not get anything from the PETI operations and it is the responsibility of the State in the future to repair the environmental damage it causes," said Rizal to Kontan.co.id (4/4). ).In the last few years, land reduction has been carried out several times for a number of companies holding PKP2B. Most recently, land shrinkage was carried out in the mining concession of PT Multi Harapan Utama (MHU).After obtaining an extension of the coal mine production operating permit for 10 years, the company's concession area, whose PKP2B period expired on April 1, 2022, was set at 30,409 ha or decreased by 23.92%. Previously, MHU's land was recorded at 39,972 ha.According to Kontan.co.id's records, in the future there are still two of the seven first generation PKP2Bs waiting for the extension of the operating license. The two companies are PT Kideco Jaya Agung (47,500 ha/13 March 2023), and PT Berau Coal (108.009/26 April 2025).Source: https://industri.kontan.co.id/news/perhapi-sarankan-pemerintah-amankan-lahan-eks-pkp2b-dari-penambang-tanpa-izin

Wilton Resources pares stake in subsidiary to fund Indonesia project
Wilton Resources pares stake in subsidiary to fund Indonesia project
04 Apr 2022, 08:29 AM 5065

GOLD miner Wilton Resources : 5F7 +11.11% has sold some 742 million shares in its subsidiary Wilton Makmur Indonesia for about S$3.5 million in cash, effectively reducing its stake in the company from 91.34 per cent to 86.56 per cent.In its announcement on Monday (Apr 4), Wilton Resources said it intends to use net proceeds from the sale to fund leaching activities at its processing facility at its Ciemas Gold Project in West Java, Indonesia.Proceeds will also be used to fund the progress construction of a 500 tonnes-per-day flotation and carbon-in-leach mineral processing facility at the project, and for general working capital purposes of the group.Highlighting that it had a negative working capital of 87.49 million rupiah (S$8.3 million) as at end-2021, the group said its sale of shares in Wilton Makmur enables it to raise funds within a short period of time to increase its working capital, which is needed to fund its construction activities for the Ciemas Gold Project.Wilton Makmur is an investment holding company listed on the Indonesia Stock Exchange. Its subsidiaries are principally engaged in gold mining activities in Indonesia.The purchasers are Chong Thim Pheng, executive chairman of Hotel Re! Singapore and a substantial shareholder of Wilton Resources, as well as his son-in-law Ong Kok Heng. Ong is currently director at fund management company Euro Asia Asset Management.Chong and Ong have also been granted an option to buy 530 million more shares in Wilton Makmur, representing a further 3.41 per cent interest in the company, for S$3.5 million in cash with a put option.About S$7 million in net proceeds from both the sale and option shares in Wilton Makmur collectively represent a loss of S$1.5 million over their open market value as at Mar 28, 2022, and a gain of S$5.5 million over their book value as at Dec 31, 2021.Based on the unaudited financial statements of Wilton Resources for the fiscal year ending Dec 31, 2021, the net loss attributable to the sale and option shares in Wilton Makmur amounted to 860 million rupiah and 610 million rupiah, respectively.Shares of Catalist-listed Wilton Resources ended flat at S$0.017 before the group requested for a trading halt on Mar 30, pending its release of the announcement. Its shares resume trading today.Source: https://www.businesstimes.com.sg/asean-business/wilton-resources-pares-stake-in-subsidiary-to-fund-indonesia-project

MIND ID Trial of Mine Wastewater Management Digital Application
MIND ID Trial of Mine Wastewater Management Digital Application
02 Apr 2022, 04:15 PM 5181

BUMN Holding Mining Industry Indonesia (MIND ID), conducted a digital application trial to increase the effectiveness of mine waste water management. The application, called MASTERMINE , is designed to make it easier to monitor the quality of mine waste water by changing it from manual to digital.MIND ID Business Development Director Dilo Seno Widagdo said digital transformation has become one of MIND ID's main strategic themes. With this theme, MIND ID seeks to increase cost competitiveness through digital."The company is trying to apply the latest technology and the application of digitalization in all lines of the value chain to be able to create cost savings and business continuity," said Dilo, Saturday (2/4).MASTERMINE is an application developed by the POWERxWIT team, winners of the MIND ID Goes Digital competition in 2021. This application created by the nation's children is being tested at PT Bukit Asam Tbk (Bukit Asam) and is expected to be fully operational in the 4th quarter of 2022.The basic philosophy of MASTERMINE is a chemically and digitally integrated system to be able to process, monitor, and control an online mine waste water treatment system that is easy to use.Through this application, mine workers can monitor the quality of mine waste water and adjust the dose of reagents injected into mine waste water in real time.MASTERMINE also has an alert & notification feature that serves to warn workers when there is a decrease in the quality of mine waste water.That way, users of this application can immediately take corrective action by adjusting the reagent dosage further. In short, this process can ensure the consistency of mining wastewater is within the quality standards according to digitally applicable regulations.The development of the MASTERMINE application was motivated by the need for waste management as a commitment to implementing good mining practices.Dilo said, as a natural resource management company, mining operations and mineral processing, MIND ID Group produces by-products that require high priority handling.“Waste treatment is one element of mining operational costs which are quite high. The MASTERMINE application is expected to generate an efficiency value of 10 to 20 percent of the total cost of treating mine wastewater,” said Dilo.Hustler POWERxWIT, Rhesa Avila Zainal said, the MASTERMINE application proves that the work of the nation's children can support the progress of the mining industry in Indonesia."In the future, the mining industry's digitalization climate will be higher, mining operations will be more efficient and more environmentally friendly. The use of digital applications must be a priority for all mineral and coal mining businesses in Indonesia," said Rhesa.Source: https://www.republika.co.id/berita/r9pr49349/mind-id-uji-coba-aplikasi-digital-pengelolaan-air-limbah-tambang

Safe Bet or Safety Risk? China’s Mixed Relationship With Coal
Safe Bet or Safety Risk? China’s Mixed Relationship With Coal
02 Apr 2022, 09:01 AM 9024

In late February, fourteen workers died after a coal mine collapsed in China, trapping them. Among the world’s deadliest, coal mines in China are reminiscent of an age gone by, with much of the globe recognizing the wide-ranging harmful impacts of producing and consuming fossil fuels. Yet, China’s dependence on and high coal production signals a disconnect with this awareness. This disconnect mirrors the policies of the other major fossil fuel producers and consumers, including the United States, India, and Japan, who, along with China, refused to sign onto a coal phaseout pledge at the 2021 COP26 Climate Conference. The continued production and usage of coal make improvements in industry-related human rights and energy security impossible. The coal miners’ deaths and China’s weak energy security are symptoms of an issue that may begin to affect the other major producers and consumers. Despite various countries around the world making pledges to combat climate change and transition to clean energy, China doesn’t seem to agree — or at least refuses to acknowledge the critical impact its coal sector has on the environment. Instead, it has expanded production, generating 220 million metric tonnes a year of extra coal, a nearly six per cent rise from last year. The country already mines and burns more coal than the rest of the world combined, and it isn’t predicted to slow down, either. Expectations are high that China needs even more coal to fuel its economic recovery, slowed down by its “no-tolerance” policy towards COVID-19, renewed outbreaks, and a worsening real-estate crisis. What’s more, recent increases in the price of coal due to an export ban on coal from Indonesia illustrate the volatility of the energy source in terms of energy security. China had been importing coal from Indonesia to keep up with domestic demand, which the export ban threatened its ability to meet. Given the heightened attention placed on environmental regulation policies, countries can no longer outsource their demand to other coal-producing countries, explaining in part China’s increased production. In fact, three new mines were approved on February 21, requiring a total investment of $3.8 billion USD and producing a staggering 19 million tonnes of coal per year. With the recent COP26 discussions earlier this fall, it may surprise many that China has decided to ramp up its production and usage of a material that has significant negative effects on the environment. After all, China and the United States agreed to work together to achieve the 1.5°C temperature target, which would require emissions cuts, transitions to clean energy, and de-carbonization. Yet, even this was only achieved after intense discussion, with the absolute refusal of China to “phase out” the use of coal, instead finally adopting the phrase “phase down” as an alternative. “Carbon peak and carbon neutrality cannot be realized overnight,” Xi Jinping stated in a speech at the World Economic Forum. In addition to its environmental impact, coal as an industry poses numerous issues related to both safety and human rights. Chinese coal mines, specifically, are known to be some of the world’s deadliest, with poor safety standards and frequently suffering from explosions and gas leaks. Recent findings from the National Mine Safety Administration showed that some mining companies still have “weak safety development concepts, inadequate learning from accidents, inadequate investigation and management of potential safety risks, and weak basic safety management.”The aforementioned environmental degradation and pollution issues also have immediate impacts on communities. In mining areas, the industry has polluted water supplies and radically transformed the landscape by littering the ground with toxic gangue — the worthless material from which ore is mined. The toxic smoke from burning coal is well known to cause health problems, with the true severity of the impact becoming increasingly understood as scientists continue to learn more about its effects. In 2015, researchers at Berkeley Earth, an environmental research organization, found air pollution contributed to 1.6 million premature deaths per year. Energy security is another risk plaguing China’s economy. Such a high reliance on coal creates an inability to cope with inevitable fluctuations in supply and shortages. Faced with doubling coal prices last September, “Blackouts followed as China’s [utility companies] ran flat out to meet strong demand.” Environmental phenomena, including heavy rains and flooding earlier in the year, also hindered China’s ability to mine more to keep up with demand. Put together, the two create a situation whereby the country’s energy grid is highly vulnerable and insecure. Workers sort coal as part of the production process. “Sorting coal out of waste stone” by LHOON is licensed under CC BY-SA 2.0.So, is there a solution? Models and analyses show that a coal phaseout is unlikely in China, and the country’s refusal to adopt terminology pledging a phaseout at the COP26 summit signals the same. For such commitment to occur, coal-related industries and the general public must benefit from decreased consumption and production. Focusing on other key issues, such as coal use efficiency, implementing carbon capture and storage facilities, and significant investment in renewable energy, is critical. Without improving in these respects and implementing such technologies in the energy industry, phaseout policies will be impossible in the future. Unfortunately, China has not yet moved to take these measures.Although researchers at the Chinese Taiyuan University of Technology conclude that coal is still a source of stable economic and social development for the country, evidence and case studies of phaseouts in other contexts also show positive results. For example, a study done in Germany shows that emissions standards are achievable without immediately eliminating coal entirely and that governments could externalize and redistribute the costs of green energy transformation among other industries. In Canada, employment in a growing renewable energy sector is predicted to outpace coal industry job loss. A full transition away from coal would definitively guarantee industry workers’ safety, but a phaseout simply isn’t a commitment China is willing to make at this time. The German researchers recommend a “smooth and mature transition plan” away from coal instead of a full-fledged phaseout policy. China’s commitment to “phasing down” on the use of coal seems like one at first glance. Yet, the approval of new mines raises questions regarding the government’s true commitment to even this more limited goal. A complete commitment to phasing out coal by China would immediately and drastically increase mine safety, lowering the risk of incidents like the recent collapse, improve energy security, and safeguard the general population and environment. But at this time, it doesn’t make sense for the government to place all of their bets on renewable energy if there is still steady growth through coal, nor is it foremost in their policy agenda to fully follow through on the phase down declaration. At the moment, government models and policies do not consider the “externalities” that are the environmental and safety impacts of the coal industry. And until China invests in alternative energy projects and incorporates emissions-reducing technologies, this inconsideration will remain. Source: https://www.mironline.ca/safe-bet-or-safety-risk-chinas-mixed-relationship-with-coal/

Copper Tightness ‘Is Far Beyond a Price Issue,’ Freeport CEO Says
Copper Tightness ‘Is Far Beyond a Price Issue,’ Freeport CEO Says
01 Apr 2022, 10:12 AM 8072

Freeport-McMoRan Inc. and Goldman Sachs Group Inc. share a bullish outlook for copper. They appear to diverge, however, on how much of an impact higher prices would have on supply growth.Goldman analyst Nicholas Snowdon told a copper conference Wednesday that current near-record prices need to go much higher in order to stimulate a supply response. The next day, Freeport boss Richard Adkerson said market tightness “is far beyond a price issue.”So while copper companies like Freeport, the top publicly trader producer, are raking in the cash, there’s not much they can do to significantly accelerate projects given a deterioration of deposit quality and more demanding operating environments, Adkerson said in an interview. That’s a problem, with copper demand set to surge in the clean energy transition.“Even if the price of copper were to double overnight it would still be years before we had significant incremental production coming on,” he said. “The market is going to need it far faster than companies like ours can produce it.”Asked about the impact of China’s recent Covid lockdowns, Adkerson said copper demand from the Asian nation “has remained remarkably strong,” with the company not seeing any issues selling its material to smelters there.Russia’s invasion of Ukraine has less of an impact on copper than other commodities given Russia accounts for less than 5% of global supply. Still, any meaningful disruption can be felt in the current tight market, he said. The big unanswered question is how the war will affect the global economy, and therefore copper demand, going forward. “Nobody has a clear idea right now,” Adkerson said.Unless there’s a significant economic disruption, copper will become scarce as demand picks up from the electric vehicle and renewable energy sectors, Adkerson, 75, said. Scrap and substitution will have to help ease looming shortfalls, he added. Phoenix-based Freeport is doing its bit to lift global production. A new underground operation in Indonesia is ramping up to become the second-largest copper mine in the world, and the company is expanding mines in Arizona and working on new technologies to extract more metal. In Chile, Freeport is deferring a decision on a major investment until there’s greater certainty as the new government prepares to raise taxes. Besides the fiscal situation, Adkerson expressed confidence in Chile as an assembly of elected delegates writes a new constitution.  Asked if the difficulties in building new mines make buying assets more attractive, he said acquisitions aren’t part of Freeport’s fundamental strategy, although if opportunities arose they would be considered. While the focus is on expanding existing mines, “if there was an opportunity that came about where we could create value for shareholders, we are in a position to be able to execute on that,” he said.Source: https://www.bloomberg.com/news/articles/2022-03-31/freeport-ceo-says-copper-tightness-is-far-beyond-a-price-issue

Advertisement


GET YOUR PASS