Got a Quota of 700 Thousand Dapat Jatah 700 Ribu Ton, Tons, Freeport Maximizes the Freeport Maksimalkan Kuota Copper Concentrate Export Ekspor Konsentrat Tembaga Quota MANAJEMEN PT Freeport Indonesia PT FREEPORT Indonesia's management memastikan akan mengoptimalkan kuota ensures that it will optimize the copper ekspor konsentrat tembaga. concentrate export quota. Bersamaan itu, Freeport juga melanjutkan At the same time, Freeport is also pengembangan proyek tambang bawah continuing the development of under - tanah dan smelter. ground mining and smelter projects. Kementerian Energi dan Sumber Daya The Ministry of Energy and Mineral Mineral (ESDM) menerbitkan rekomendasi Resources (ESDM) issued a recommen - tambahan kuota ekspor untuk Freeport dation for an additional export quota for belum lama ini. Freeport recently. Direktur Pembinaan dan Pengusahaan The Director of Mineral Development and Mineral Kementerian Energi dan Sumber Business of the Ministry of Energy and Daya Mineral (ESDM), Yunus Saefulhak, Mineral Resources (ESDM), Yunus Saefulhak, explained that the additional menjelaskan bahwa tambahan kuota copper concentrate export quota for ekspor konsentrat tembaga untuk Freeport Freeport was around 500,000 tons. sekitar 500.000 ton. Previously, Freeport had pocketed an Sebelumnya, Freeport telah mengantongi export quota of 198,282 tons on March 8, kuota ekspor 198.282 ton pada 8 Maret 2019. 2019. Th us, Freeport Indonesia's total export Dengan demikian, total kuota ekspor quota rose to 700,000 tons. This quota is Freeport Indonesia menanjak menjadi valid until March 8, 2020. 700 .000 ton. Kuota ini berlaku hingga 8 Maret 2020. "Realization is according to schedule and target," said Riza Pratama, Vice President of "Realisasi sesuai jadwal dan target," kata Corporate Communications of Freeport Riza Pratama, Vice President Corporate Indonesia, Sunday (12/15). Communication Freeport Indonesia, Minggu (15/12). But he was reluctant to elaborate on the development of the export results. Namun dia enggan memerinci perkem - Referring to the data from the Central bangan hasil ekspor tersebut. Statistics Agency (BPS), copper concentrate Merujuk data Badan Pusat Statistik (BPS), exports from March to October this year ekspor konsentrat tembaga sejak Maret reached 425,183.14 tons, valued at US$ hingga Oktober tahun ini telah mencapai 805.17 million. 425.183,14 ton, senilai US$ 805,17 juta.

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Smelter goes on Smelter jalan terus Riza added, along with the use of export Riza menambahkan, bersamaan dengan quotas, Freeport is also committed to pemanfaatan kuota ekspor, Freeport juga continuing the development of under - berkomitmen melanjutkan pengembangan ground mines and smelters. tambang bawah tanah dan smelter . "The smelter project is in the front end "Proyek smelter sedang tahap front end engineering design (FEED) and ground engineering design (FEED) dan ground improvement phase," he said. improvement ," ujar dia. Freeport estimates that underground Freeport memperkirakan tambang bawah mines will operate optimally in the coming tanah akan beroperasi optimal pada 2022 2022. mendatang. While open pit mining operations will end Sedangkan operasional tambang terbuka in mid-2020. akan berakhir pada pertengahan tahun 2020. During the transition period, Freeport will optimize production from two under - Selama masa transisi, Freeport akan meng - ground mining areas that were developed optimalkan produksi dari dua area pertam - in 2004. bangan bawah tanah hasil pengembangan tahun 2004. Both are Grasberg Block Cave (GBC) and Deep Mill Level Zone (DMLZ). Keduanya adalah Grasberg Block Cave (GBC) dan Deep Mill Level Zone (DMLZ). Based on KONTAN notes, ore extraction activities at the GBC underground mine in Berdasarkan catatan KONTAN, kegiatan the second quarter of 2019 averaged 7,400 ekstraksi bijih di tambang bawah tanah metric tons of ore per day. GBC pada kuartal II-2019 rata -rata mencapai 7.400 metrik ton bijih per hari. Freeport is targeting production to increase to 15,000 metric tons of ore per Freeport menargetkan produksi naik day by the end of 2019. menjadi 15.000 metrik ton bijih per hari pada akhir 2019. While the DMLZ underground mine to the Sedangkan tambang bawah tanah DMLZ di east of the Grasberg block produces an sebelah timur blok Gra sberg rata-rata average of 7,700 metric tons of ore per day menghasilkan 7.700 metrik ton bijih per in the second quarter of 2019. hari pada kuartal II-2019. Ore extraction from the DMLZ under - Ekstraksi bijih dari tambang bawah tanah ground mine has the potential to increase DMLZ berpotensi meningkat hingga 11.000 to 11,000 metric tons of ore per day by the metrik ton bijih per hari pada akhir tahun end of 2019. Reporter: Filemon Agung, Editor: 2019. Reporter: Filemon Agung, Editor: Tedy Tedy Gumilar Gumilar

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Adjustment of Royalties, Antam Penyesuaian Royalti, Antam Optimistic to Improve Its Optimistis Tingkatkan Performance Kinerjanya Kahfi Kahfi

PT ANEKA Tambang Tbk. (Antam) is PT ANEKA Tamban g Tbk. (Antam) opti - optimistic that it will be able to achieve mistis mampu mencapai kinerja yang lebih better performance next year in line with baik tahun depan seiring dengan terbitnya the issuance of Government Regulation Peraturan Pemerintah Nomor 81/2019 Number 81/2019 concerning Types and tentang Jenis dan Tarif atas Jenis Pene - Rates of Non-Tax State Revenues (PNBP). rimaan Negara Bukan Pajak (PNBP). Dede Izudin, Acting SVP of Corpo rate Dede Izudin, Plh SVP Corporate Secretary Secretary of Antam, said that the new Ant am, mengatakan bahwa aturan baru regulation regarding the type of PNBP will mengenai jenis PNBP akan meningkatkan improve the company's performance in the kinerja perusahaan di masa mendatang. future. Pasalnya, selain mengatur peningkatan Because, in addition to regulating the royalti nikel menjadi 10%, beleid itu juga increase in nickel royalties to 10%, the menurunkan royalti feronikel dari semula regulation also reduced ferronickel 4% menjadi 2%. royalties from 4% to 2%. Seperti di ketahui, feronikel merupakan As is known, ferronickel is Antam's second kontributor penjualan terbesar kedua bagi largest sales contributor from January to Antam sejak Januari –September 2019. September 2019. The company recorded Perusahaan mencatat produksi feronikel ferronickel production reaching 19,052 mencapai 19.052 ton nikel dalam feronikel tons of nickel in ferronickel (TNi) with a (TNi) dengan tingkat penjualan feronikel ferronickel sales rate of 19,703 TNi, or an 19.703 TNi, atau naik 3% di bandingkan increase of 3% compared to the same dengan periode yang sama tahun sebelum - period the previous year which amounted nya yang sebanyak 19.149 TNi. to 19,149 TNi. Penjualan feronikel selama Januari– Ferronickel sales during January -Septem- September 2019 juga merupakan ber 2019 were also the second largest kontributor terbesar kedua dari total contributor to Antam's total net sales of penjualan bersih Antam sebanyak Rp3,61 Rp3.61 trillion, or 15% of total net sales in triliun, atau 15% dari total penju alan the period. bersih di periode tersebut. "The company appreciates the Govern - “Perusahaan mengapresiasi langkah ment's move to change the composition of Pemerintah mengubah komposisi royalti nickel commodity royalties for the purpose komoditas nikel untuk tujuan hilirisasi,” of downstreaming," he said. katanya.

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Dede said, the reduction in ferronickel Dede menuturkan, penurunan tarif royalti royalty rates is expected to have a positive feronike l diharapkan membawa dampak impact on the company's performance in positif bagi kinerja perusahaan pada 2020. 2020. The company considers that the Perusahaan menilai penyesuaian tarif adjustment of the royalty rate for royalti untuk feronikel sangat baik untuk ferronickel is very good for the company's kemajuan perusahaan, meskipun di sisi progress, althoug h on the other hand there lain ada peningkatan royalti bijih nikel. is an increase in nickel ore royalties. “Tahun depan sudah tidak a da lagi ekspor "Next year there will be no more nickel ore bijih nikel, sehingga optimalisasi kinerja exports, so optimizing the performance of komoditas feronikel dan emas menjadi ferronickel and gold commodities will be penting,” ujarnya. important," he said. Dalam laporan tertulis perusahaan, komo - In the company's written report, gold ditas emas memang menjadi kontributor comm odities were indeed the biggest terbesar penjualan Antam sepanjang Januari–September 2019. contributor to Antam's sales during January-September 2019. Nilai penjualan bersih Antam pada Januari–September 2019 tercatat sebesar Antam's net sales value in January - Rp24,53 triliun. Jumlah tersebut tumbuh September 2019 was recorded at Rp24.53 23% dibandingkan dengan capaian pen - trillion. The number grew 23% compared jualan pada periode yang sama tahun lalu to the sales achievements in the same senilai Rp19,95 triliun. period last y ear amounting to Rp19.95 trillion. Komoditas emas merupakan komponen terbesar pe ndapatan Antam dengan Gold commodity is the largest component kontribusi mencapai Rp17,03 triliun, atau of Antam's revenue with a contribution of 69% dari total penjualan bersih pada Rp17.03 trillion, or 69% of total net sales Januari–September 2019. in January-September 2019. Tahun ini, Antam terus berupaya meng - This year, Antam continues to optimize optimalkan kinerja produksi dan penjualan production and sales performa nce to boost untuk menggenjot PNBP. PNBP. Tahun lalu saja Antam telah m enyetor Last year Antam deposited Rp576 billion Rp576 miliar sebagai PNBP, sehingga as PNBP, earning an award as one of the memperoleh penghargaan sebagai salah largest PNBP providers in the mining satu pemberi PNBP terbesar di sektor sector in the Subroto Award held by the pertambangan dalam Subroto Award yang Ministry of ESDM. digelar oleh Kementerian E SDM. Antam was also nominated for the Antam juga masuk ke dalam nominasi category of companies with the best PNBP untuk kategori perusahaan dengan payers, the company with the largest PNBP pembayar PNBP terbaik, perusahaan payers, and the mining companies that dengan pembayar PNBP terbesar, dan carried out the best integrated down - perusahaan tambang yang melaksanakan streaming by the Indonesian Mining hilirisasi terintegrasi terbaik oleh Association (IMA). Editor: Lili Sunardi Indonesian Mining Association (IMA). Editor : Lili Sunardi

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Coal Reference Prices Rise Thin Harga Acuan Batu bara Naik to USD66.3 per Ton Tipis Jadi USD66,3 per Ton Irene, Journalist Irene, Jurnalis

MINISTER of Energy and Mineral Resources MENTERI Energi dan Sumber Daya Mineral (ESDM) Arifin Tasrif set a market selling price (ESDM) Arifin Tasrif menetapkan harga jual for coal commodities in December 2019 of pasar untuk komoditas batu bara di Desember USD66.30 per ton or edged up USD0.3 per ton 2019 sebesar USD66,30 per ton atau naik tipis from the November Reference Coal Price USD0,3 per ton dari Harga Ba tu bara Acuan (HBA) of USD66.27 per ton. (HBA) November sebesar USD66,27 per ton. "This provision refers t o the Ministerial "Ketetapan ini mangacu pada Keputusan Decree No. 246 K/30/MEM/2019," said the Menteri Nomor 246 K/30/MEM/2019," Head of the Communication and Public kata Kepala Biro Komunikasi, Layanan Information Services and Cooperation Informasi Publik dan Kerja Sama (KLIK) (KLIK) Ministry of ESDM, Agung Pribadi, in Kementerian ESDM Agung Pribadi, dalam his statement, in Jakarta, Saturday (12/14/ keterangannya, di Jakarta, Sabtu (14/12/ 2019). 2019). The main factor, explained Agu ng, from the Faktor utama, jelas Agung, dari kenaikan December 2019 HBA increase was an HBA Desember 2019 adalah peningkatan increase in demand for coal stockpiles permintaan untuk stok batu bara menjelang ahead of winter. This increase is the third musim dingin. Kenaikan ini merupakan kali time the monthly HBA has increased since ketiga HBA bulanan mengalami kenaikan August 2018 and recorded the lowest figure sejak Agustus 2018 da n mencatatkan angka for the past two years in the annual avera ge. terendah selama dua tahun terakhir dalam rerata tahunan. "The average HBA from January -December 2019 reached USD77.89 per ton, lower than "Rata-rata HBA dari Januari -Desember 2019 the average HBA in 2017 which amounted mencapai USD77,89 per ton, lebih kecil to USD85.92 per ton, and the HBA in 2018 memang dibanding rerata HBA tahun 2017 which reached USD98.96 per ton. This yang sebesar USD85,92 per ton, dan HBA condition is inseparable from pressures on tahun 2018 yang men capai USD98,96 per market dema nd," Agung added. ton. Kondisi ini tak lepas dari tekanan permintaan pasar," Agung menambahkan. The December HBA will be used for direct sales (spot) for one month at the Free On HBA bulan Desember akan digunakan untuk Board delivery point on the transport ship penjualan langsung (spot) selama satu bulan (FOB Veseel). pada titik serah penjualan secara Free on Board di atas kapal pengangkut ( FOB Veseel). The HBA value itself is obtained by an average of four coal price indices that are Nilai HBA sendiri diperoleh rata -rata empat commonly used i n world coal trading, indeks harga batubara yang umum digunakan dalam perdagangan batubara dunia, yaitu namely the Indonesia Coal Index (ICI), the Indonesia Coal Index (ICI), Newcastle Export Newcastle Export Index (NEX), the Global Index (NEX), Globalcoal Newcastle Index Coal Newcastle Index (GCNC), and Platt's (GCNC), dan Platt's 5900 pada b ulan sebelum- 5900 in the previous month. nya.

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Meanwhile, the majority of the reference Sementara itu, mayoritas harga acuan prices for 20 metal minerals (Reference untuk 20 mineral logam (Harga Mineral Mineral Prices/HMA) also experienced Acuan/HMA) juga mengalami fluktuasi price fluctuations in December 2019. For harga di bulan Desember 2019. Misalnya, example, for Nickel prices fell to USD untuk harga Nikel turun menjadi USD 16,107.27/dry metric tons (dmt) from the 16.107,27/dry metric ton (dmt) dari bulan previous month, namely USD17,456.43/ sebelumnya, yaitu USD17.456,43/dmt. dmt. 1. Kobalt: USD35.500,00/dmt, turu n dari 1. Cobalt: USD35,500.00/dmt, down from USD36.035,71/dmt USD36,035.71/dmt 2. Timbal: USD2.145,20/dmt, naik dari USD 2. Lead: USD 2,145.20/dmt, up from USD 2.126,24/dmt 2,126.24/dmt 3. Seng: USD2.515,34/dmt, naik dari USD 3. Zinc: USD 2,515,34/dmt, up from USD 2.365,19/dmt 2,365.19/dmt 4. Aluminium: USD1.758,05/dmt, naik dari 4. Aluminum: USD1.758.05/dmt, up from USD1.721,38/dmt USD1.721.38/dmt 5. Tembaga: USD5.851,98/dmt, naik dari 5. Copper: USD5,851.98/dmt, up from USD5.697,05/dmt USD5,697.05/dmt 6. Emas sebagai mineral ikutan: USD 6. Gold as an associated mineral: USD 1.484,03/ounce, turun dari USD 1,484.03/ounce, down from USD 1.498,65/ounce 1,498.65/ounce 7. Perak sebagai mineral ikutan: USD 7. Silver as an associated mineral: USD 17,49/ounce, naik dari USD17,68/ 17,49/ounce, up from USD17.68/ounce ounce. 8. Tin ingots of Pb 300, Pb 200, Pb 100, Pb 8. Ingot timah Pb 300, Pb 200, Pb 100, Pb 050, 4NINE: according to the price of tin 050, 4NINE: sesuai harga ingot timah ingots published by ICDX on the day of yang dipublikasikan ICDX pada hari sale penjualan 9. Gold metal and silver metal according to 9. Logam emas dan Logam perak sesuai the price of gold metal published by the harga logam emas yang dipublikasikan London Bullion Market Association London Bullion Market Association (LBMA) on the day of sale (LBMA) pada hari penjua lan 10. Manganese: USD3,72/dm t, down from 10. Mangan: USD3,72/dmt, turun dari USD4,18/dmt USD4,18/dmt 11. Laterite/Hematite/Magnetite Iron Ore: 11. Bijih Besi Laterit/Hematit/Magnetit: USD1,19/dmt, down from USD1,31/dmt USD1,19/dmt, turun dari USD1,31/dmt 12. Chrome Ore: USD2.17/dmt, down from 12. Bijih Krom: USD2,17/dmt, turun dari USD2.86/dmt USD2,86/dmt 13. Ilmenite Concentrate: USD4,39/dmt, up 13. Konsentrat Ilmenit: USD4,39/dmt, naik from USD4,24/dmt dari USD4,24/dmt

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14. Titanium Concentrate: USD10,45/dmt, 14. Konsentra t Titanium: USD10,45/dmt, up from USD10,17/dmt naik dari USD10,17/dmt HMA is one of the variables in determining HMA adalah salah satu variabel dalam metal mineral benchmark prices (HPM) menentukan Harga Patokan Mineral (HPM) based on the formula regulated in the logam berdasarkan formula yang diatur Ministry of ESDM Regulation No. 2946 dalam Kepmen ESDM Nomor 2946 K/30/MEM/ 2017 concerning Formula for K/30/MEM/2017 tentang Formula Untuk Determi nation of Metal Mineral Benchmark Penetapan Harga Patokan Min eral Logam. Prices. Other metal HPM determination Variabel penentuan HPM logam lainnya va riables are metal mineral value /content, adalah nilai/kadar mineral logam, constants, corrective factors, treatment konstanta, corrective factor, treatment costs, refining charges, and payable metal. cost, refining charges, dan payable metal. The amount of HMA is determined by the Besaran HMA ditetapkan oleh Menteri Minister of ESDM every month and refers ESDM setiap bulan dan mengacu pada to the publication of metal mineral prices publikasi harga mi neral logam pada index on world indexes, including the London dunia, antara lain oleh London Metal Metal Exchange, the London Bullion Market Exchange, London Bullion Market Association, the Asian Metal and the Association, Asian Metal dan Indonesia Indonesia Commodity and Derivatives Commodity and Derivatives Exchange Exchange (ICDX). (fbn) (ICDX). (fbn)

PURIFYING MINE WATER MEMURNIKAN AIR TAMBANG BUMI Business Unit, KPC Unit Usaha BUMI, KPC Sediakan Provides Clean Water for 8,000 Air Bersih untuk 8.000 KK di Households in East Kutai Kutai Timur Gora Kunjana Gora Kunjana

PT BUMI Resources Tbk. (BUMI) through PT BUMI Resources Tbk. (BUMI) melalui its subsidiary PT Kaltim Prima Coal (KPC) anak usahanya PT Kaltim Prima Coal (KPC) conducted a Mine Water Utilization melakukan program Pemanfaatan Air program to support the supply of raw water Tambang guna mendukung penyediaan air for clean water for the needs of the WTP baku untuk air bersih bagi kebutuhan WTP (Water Treatment Plant), better known as (Water Treatment Plant) yang lebih the Kudungga WTP in East Kutai Regency dikenal dengan Instalasi Pengolahan A ir (Kutim), East Kalimantan Province. (IPA) Kudungga di Kabupaten Kutai Timur (Kutim), Propinsi Kalimantan Timur. With a capacity of 100 liters/second, the Kudungga WTP c an serve the needs of clean Dengan kapasitas 100 liter/detik, IPA water reaching 8,000 families in the Kudungga ini dapat melayani kebutuhan districts of North Sangatta and South air bersih mencapai 8,000 Kepala Keluarga Sangatta. (KK) di kecamatan Sangatta Utara dan Sangatta Selatan.

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Kud ungga WTP, BUMI's official statement IPA Ku dungga, demikian keterangan resmi received in Jakarta, Friday (12/13/2019), is a BUMI yang diterima di Jakarta, Jumat collaborative project between KPC and the (13/12/2019), merupakan proyek kolaborasi Kutim Regency Government (Pemkab) with antara KPC dengan Pemerintah Kabupaten APBD funds amounting to Rp45 billion. In this (PemKab) Kutim dengan dana APBD sebesar case, the physical construction of the Natura l Rp45 miliar. Dalam hal ini, pembangungan Sciences is carried out by the District fisik IPA dilakukan ole h PemKab melalui Government through the Public Works Office, Dinas Pekerjaan Umum, pengoperasian oleh operation by the PDAM, while the water is PDAM, sementara airnya disediakan oleh KPC provided by KPC from the forest area around dari areal hutan di sekitar Pit Jupiter ber - the Jupiter Pit with a capacity of 12 million kapasitas 12 juta m3. m3. Dukungan air baku dari area tambang KPC Raw water support from the KPC min ing tersebut telah menambah pelayanan PDAM area has increased the East Kutai PDAM Kutai Tim ur hingga 80% kebutuhan air. service to 80% of water needs. Analisis uji kualitas air baku air minum Analysis of water quality testing for drinking dilakukan oleh pihak independen ber - water is carried out by an independent party sertifikat Komite Akreditasi Nasional (KAN) certified by the National Accreditation dan diakui secara nasional. Hasil uji kualitas Committee (KAN) and nationally recognized. air baku untuk air bersih sangat baik dan The res ults of the raw water quality test for bebas dari kandu ngan logam berat yang clean water are very good and free from heavy berbahaya bagi kesehatan, serta memenuhi metal content which is harmful to health, as standar baku mutu air baku untuk air bersih well as meeting the standard quality Departemen Kesehatan RI. standards for clean water for the Ministry of Air baku dengan kualitas yang baik ini telah Health of the Republic of Indonesia. membantu secara signifikan biaya opera - This g ood quality raw water has significantly sional IPA Kudungga dari sisi penghemata n helped the Kudungga WTP operational costs penggunaan bahan kimia. in terms of saving the use of chemicals. Melalui program dukungan air bersih bagi Through the clean water support program masyarakat ini KPC dan pemerintah Kabu - for the community, KPC and the East Kutai paten Kutai Timur telah turut mendorong Regency government have also contributed tercapainya Tujuan Pembangunan Berkelan - to the ach ievement of the Sustainable jutan (Sustainable Development Goals –SDGs) Development Goals (SDGs) by fulfilling dengan terpenuhinya air be rsih dan sanitasi partnerships in clean water and proper layak secara kemitraan di wilayah kota sanitation in the Sangatta city area. Sangatta. KPC is the Best in CSR by CNBC and is KPC sebagai yang Terbaik dalam CSR oleh committed to further strengthening its CNBC dan berkomitmen untuk semakin partnership with the authorities in the memperkuat kemitraannya dengan pihak berwenang dalam penyediaan air bersih supply of clean water to the Community. kepada Komunitas. BUMI and KPC's Managing Director, Saptari Direktur Utama BUMI dan KPC, Saptari Hoedaja stated, this is another example of Hoedaja menyatakan, hal ini adalah contoh BUMI Group's ongoing support to the lain dari dukungan berkelanjutan BUMI Government by utilizing ex-mining water Group kepada Pemerintah dengan meman - and supplying clean water to the faatkan air bekas tambang dan memasok air community. bersih ke masyarakat.

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"We hope that this facility will be seen as a “Kami berharap fasilitas ini akan dipandang model that can serve as an example in sebagai model yang dapat menjadi contoh meeting the needs of clean water that is dalam memenuhi kebutuhan air bersih needed in this region," he said. ♦ yang sangat dibutuhkan di wilayah ini,” katanya. ♦

Freeport Indonesia continues to Freeport Indonesia terus develop underground mining and mengembangkan proyek tambang smelter projects bawah tanah dan smelter Reporter: Filemon Agung | Editor: Noverius Reporter: Filemon Agung | Editor: Noverius Laoli Laoli

PT FREEPORT Indonesia continues to PT FREEPORT Indonesia terus menggarap work on underground mining projects as proyek tambang bawah tanah sebagai part of the open pit transition period. bagian dari masa transisi tambang terbuka. Vice President Corporate Communication PTFI Vice President Corporate Communi - PTFI Riza Pratama mengungkapkan, cation Riza Pratama revealed that the tambang bawah tanah Freeport tengah Freeport underground mine is in the dalam tahapan pengembangan. development stage. "Sedang masa pengembangan, tambang "As for the developmen t period, the open terbuka sendiri akan berakhir masa operasi pit mine will end its operation in the di pertengahan tahun depan," ungkap Riza middle of next year," said Riza when ketika dihubungi Kontan.co.id, Minggu contacted by Kontan.co.id, Sunday (12/15). (15/12). Riza further said, Freeport projects the Lebih jauh Riza menuturkan, Freeport memproyeksikan operasi optimal tambang optimal operation of underground mining bawah tanah akan terjadi d i tahun 2022 will occur in 2022. mendatang. Meanwhile, invest ment in underground Adapun, investasi untuk tambang bawah mining will continue after 2022 for tanah akan terus berjalan selepas 2022 decades to come. Riza explained, the hingga puluhan tahun ke depan. Riza estimated investment reached US$ 15.1 menjelaskan, estimasi investasi mencapai billion until 2041 when the Special Mining US$ 15,1 miliar hingga 2041 mendatang Business License (IUPK) period ended. dimana masa Izin Usaha Pertambangan Khu sus (IUPK) berakhir. Freeport Indonesia has been developing Freeport Indonesia sudah mengembangkan under ground mines since 2004. There are tambang bawah tanah sejak 2004 lalu. Saat currently two underground mines in ini sudah ada dua tambang bawah tanah operation and two under development. yang beroperasi dan dua yang sedang dikembangkan.

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Two existing underground mines, namely Dua tambang bawah tanah yang sudah ada Grasberg Block Cave (GBC) and Deep Mill yakni Grasberg Block Cave (GBC) dan Deep Level Zone (DMLZ). Mill Level Zone (DMLZ). Citing Kontan.co.id's notes, during the Mengutip catatan Kontan.co.id, Selama second quarter of 2019, ore extraction kuartal II 2019, kegiatan ekstraksi bijih di activities at the Grasberg Block Cave tambang bawah tanah Grasberg Block Cave underground mine reached an average of rata-rata mencapai 7.400 metrik ton bijih 7,400 metric tons of ore per day. FCX is per hari. FCX menargetkan, proses tersebut targeting, the process is targeted to ditargetkan bisa meningkat hingga 15.0 00 increase to 15,000 metric tons of ore per metrik ton bijih per hari pada akhir 2019. day by the end of 2019. Sedangkan tambang bawah tanah Deep While the Deep Mill Level Zone (DMLZ) Mill Level Zone (DMLZ) yang terletak di underground mine, located east of the sebelah timur blok Grasberg telah memulai Grasberg block, has begun production. Ore produksi. Ekstraksi bijih dari tambang extraction from the DMLZ underground bawah tanah DMLZ rata -rata mencapai mine reaches an average of 7,700 metric 7.700 metrik ton bjih per hari pada kuartal tons of ore per day in the second quarter of II 2019. 2019. Diperkirakan, ekstraksi bijih dari tambang It is estimated, ore extraction from the bawah tanah DMLZ kan meningkat hingga DMLZ underground mine will increase to 11.000 metrik ton bijih per hari pada akhir 11,000 metric tons of ore per day by the tahun 2019. "Seiring transisi dari tambang end of 2019. "As the transition from open - terbuka ke bawah tanah, produksi logam pit mining to underground , metal diharapkan m eningkat pada 2021," imbuh production is expected to increase in Chief Executive Officer Richard C. 2021," added Chief Executive Officer Adkerson. Richard C. Adkerson. Sementara itu, Freeport memproyeksikan Meanwhile, Freeport projects the presence kehadiran tambang bawah tanah baru bisa of new underground mines to boost mendongkrak kapasitas produksi hingga production capacity to 200,000 tons of ore 200.000 ton bijih per hari. per day. Tetap Garap Smelter Keep working on Smelter Di tengah upaya pengembangan tambang In the midst of efforts to develop an bawah tanah, Freeport Indonesia juga underground mine, Freeport Indonesia terus melanjutkan pengerjaan proyek also continues to work on the smelter smelter. Riza menuturkan, sejauh ini project. Riza said that so far the Front End tengah berlangsung tahapan Front End Engineering Design (FEED) was underway. Engineering Design (FEED). "The FEED stage and ground improve - "Sedang FEED dan ground improvement, " ment," said Riza. kata Riza. Furth ermore, Riza said that the investment Lebih jauh Riza bilang investasi yang telah that had been disbursed so far amounted dikucurkan sejauh ini sebesar US$ 151 to US$ 151 million. PTFI projects that juta. PTFI memproyeksikan konstruksi smelter construction can begin in mid - smelter dapat dimulai pada pertengahan 2020. 2020 nanti.

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Previously, Freeport Indonesia Managing Sebelumnya, Direktur Utama Free port Director Tony Wenas was optimistic that Indonesia Tony Wenas optimistis, fase the construction phase could begin in early konstruksi bisa dimulai pada awal 2020, 2020, and the smelter could be completed dan smelter dapat selesai sesuai target. on target. Yakni pada akhir tahun 2022 atau paling Ie at the end of 2022 or no later than five lambat lima tahun sejak terbitnya Izin years since the issuance of the Special Usaha Pertambangan Khusus (IUPK) yang Mining Business License (IUPK) received diterima bersa maan dengan transaksi together with the divestment transa ction divestasi oleh PT Indonesia Asahan by PT Indonesia Asahan Aluminum Aluminium (Inalum) pada 21 Desember (Inalum) on 21 December 2018 ago. 2018 lalu. "We will continue to complete this and it is "Ini akan terus kita selesaikan dan di - hoped that by the end of 2022 the harapkan pada akhir tahun 2022 pem - construction of the smelter will be bangunan smelter sudah selesai," kata completed," Tony said some time ago. ♦ Tony beberapa waktu lalu. ♦

Pertamina Asks for Special Price Pertamina Minta Harga Khusus of Coal for Gasification Batu Bara untuk Gasifikasi Rio Indrawan Rio Indrawan

PT PERTAMINA (Persero) hopes that PT PERTAMINA (Persero) berharap ada there will be a special policy related to the kebijakan khusus terkait harga batu bara price of coal processed through the yang diolah melalui proses gasifikasi. gasification process. With this special Dengan adanya harga khusus tersebut, price, the economics of coal down - keekonomian hilirisasi batu bara melalui streaming through gasification can be gasifikasi bisa lebih baik, sehingga kerja better, so that cooperation with PT Buki t sama deng an PT Bukit Asam Tbk (PTBA) Asam Tbk (PTBA) can be continued. bisa dilanjutkan. "In this case we see this coal low calorie. So “Dalam hal ini kami melihat ini coal low we can count, it might be different not calorie. Jadi kami bisa berhitung, mungkin need to use the formula that has been used berbeda tidak perlu menggunakan formula when coal is a commodity. This is the raw yang selama ini digunakan ketika coal material for energy," said Nicke Widyawati, sebagai komoditas. Ini kan sebagai bahan Mana ging Director of Pertamina in Jakarta, baku en ergi,” kata Nicke Widyawati, Thursday (12/12). Direktur Utama Pertamina di Jakarta, Kamis (12/12). Pertamina is currently exploring two Pertamina saat ini menjajali dua kerja collaborations on coal downstream sama pengembangan hilirisasi batu bara development with Bukit Asam. First is dengan Bukit Asam. Pertama adalah antara between Pertamina,... Pertamina,...

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First is between Pertamina, Bukit Asam and Pertama adalah antara Pertamina, Bukit Air Products Inc. to develop coal gasification Asam dan Air Products Inc untuk mengem - into dimethyl ether (DME). As well as bangkan gasifikasi batu bara menjadi Synthetic Natural Gas (SNG) through the dimethyl ether (DME). Serta dengan Synthetic construction of a gasification plant in Natural Gas (SNG) melalui pembangunan Peranap, Riau. pabrik gasifikasi di Peranap, Riau. According to Nicke, Pertamina actually has Menurut Nicke, sebenarnya Pertamina sudah received DME prices that are rea dy to be mendapatkan harga DME yang siap dijual ke sold to the market. so that it can replace pasaran. sehingga bisa menggantikan LPG. LPG. The price of coal can follow the Harga batu bara bisa mengikuti harga ke - ekonomian harga jual DME. economic price of the DME selling price. “Kami sudah berhitung, berapa kah nanti "We have calculated, how much will the produk DME harganya? Dengan harga itu kita DME product cost? With that price we pull tarik mundur ke belakang di harga coal backwards at what coal price will be berapa yang akan feasible. Kami sudah bahas feasibl e. We already discussed with Bukit dengan Bukit Asam,” kata Nicke. Asam," said Nicke. Rencananya, usaha hilirisasi batu bara di The plan is for the coal downstream mulut tambang Peranap memiliki kapasitas business at the mouth of the Peranap mine 1,4 juta ton DME per tahun dengan to have a capacity of 1.4 million tons of DME kebutuhan batu bara sebesar 9,2 juta ton per per year with coal needs of 9.2 million tons tahun. per year. Kerja sama berikutnya yakni antara The next collaboration is between Pertamina, Bukit Asam, PT Pupuk Indonesia Pertamina, Bukit Asam, PT Pupuk Indonesia dan PT Chandra Asri Petrochemical untuk and PT Chandra Asri Petrochemical to mendirikan Coal to Chemical Plant di establish a Coal to Chemical Plant in the Kawasan Industri Ber basis Batubara Bukit Bukit Asam Coal Based Industrial Estate Asam (Bukit Asam Coal Based Industrial (BACBIE) which is at the mouth of the Estate/BACBIE) yang berada di mulut Tanjung Enim coal mine, South Sumatra, tambang batu bara Tanjung Enim, Sumatera with co al consumption reaching nine Selatan dengan konsumsi batu bara men - million tons per year. (RI) capai sembilan juta ton per tahun. (RI)

Guiding Business Financial Bimbing Pengelolaan Keuangan Management, Antam Holds UMKM Usaha, Antam Gelar Seminar Seminar in West Kalimantan UMKM di Kalbar Kahfi Kahfi

PT ANTAM Tbk (Antam) held a seminar on PT ANTAM Tbk (Antam) menggelar seminar microfinance business management for 62 tentang pengelolaan keuangan usaha mikro fostered partners who received loan funds terhadap 62 mitra binaan yang menerima dana from the Partnership Program in Tayan, pinjaman Program Kemitraan (PK) di Tayan, Sunday (11/24/2019). Minggu (24/11/2019).

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This revolving loan assistance is a phase II Bantuan pinjaman bergulir ini merupakakan with a total of Rp2.7 billion, where tahap II dengan total Rp2,7 miliar, dimana previously in the first phase Antam had sebelumnya pada tahap pertama Antam telah distributed Rp1.59 billion to 29 fostered menyalurkan sebesar Rp1,59 Miliar untuk 29 partners in July 2019. mitra binaan pada bulan Juli 2019 lalu. "To build a successful business, the "Untuk membangun bisnis yang sukses para fostered partners must have accurate mit ra binaan ini harus memiliki rencana dan business plans and strategies. In addition, a strategi bisnis yang jitu. Selain itu rencana well-made busine ss plan will have a great bisnis yang dibuat dengan baik akan chance of increasing business success," berpeluang besar meningkatkan keberhasilan usaha," kata motivator bisnis, Muhammad said business motivator Muhammad Zamhar Auli Shubhi yang menjadi nara - Zamhar Auli Shubhi who was the guest sumber dalam seminar tersebut. speaker at the seminar. Selain harus memiliki rencana dan strategi Aside from having to have accurate plans yang jitu, para mitra binaan Antam juga and strategies, Antam's fostered partners diimbau untuk pandai dalam mengelola are also advi sed to be clever in managing keuangan, baik itu berupa modal, pengem - finances, whether in the form of capital, balian angsuran pinjaman dan keuntungan repayment of loan installments and profits dari hasil usaha. from operating results. Zhamhar mengimbau ke pada para peng- Zhamhar appealed to micro entrepreneurs usaha mikro dari mitra binaan Antam agar from Antam's fostered partners to be able mampu menyesuaikan dengan kemajuan to adjust to current technological teknologi seperti sekarang ini. Dimana salah advances. Where one of them through satunya melalui kemajuan sosial media, social media advancement, which can also yang bisa juga dimanfaatkan dalam men - be used in running a business. jalankan usaha. "The point is they must be able to innovate "Intinya mereka ini harus b isa melakukan so that their business fields have an appeal inovasi-inovasi agar bidang usahanya me - and are able to compete, such as a coffee miliki daya tarik dan mampu bersaing, seperti shop business, it can be supplemented by sebuah usaha warung kopi, bisa saja ditambah providing wifi, while maintaining the dengan menyediakan wifi, selain tetap men - quality of food and drinks sold in the stall," jaga kualitas makanan dan minuman yang di he said. jual di warungnya," katanya . Meanwhile, Antam's West Kalimantan Sementara itu, CSR and External Relation Bauxite Mining Business Unit Antam's CSR Assistant Manager Antam Unit Bisnis Pertam - and External Relations Assistant Manager, bangan Bauksit Kalimantan Barat, Wydia Wydia Fermata reveale d the purpose of the Fermata mengungkapkan tujuan diseleng - seminar to the partners who received garakan seminar tersebut kepada para mitra revolving loan capital. binaan penerima modal pinjaman bergulir. "In addition to providing loan funds, we "Selain memberikan dana pinjaman kami also continue to conduct coaching so that juga terus melalukan pembinaan -pem- later the fostered partners can advance binaan agar nantinya para mitra binaan ini their business and economy inde- dapat memajukan usaha dan pereko - pendently," he said. nomiannya secara mandiri," katanya.

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With active loan repayments, the loans Dengan aktifnya pengembalian pinjaman provided through this CSR program can b e maka pinjaman yang disediakan melalui used by people who have not yet received program CSR ini dapat digunakan oleh a loan. masyarakat yang belum mendapatkan pinjaman. "We will give attractive rewards to those who are active and never in arrears in "Kami akan memberi reward yang menarik kepada mereka yang aktif dan tidak pernah paying loan installments. We hope that the menunggak dalam membayar angsuran efforts of the fostered partners will be pinjaman. Kami berharap usaha para mitra more advanced so that economic progress binaan dapat semakin maju sehingga can also spread to other communities in kemajuan ekonomi ini juga dapat menular - the vicinity," he concluded. Editor: Digital kan kepada masyarakat lai n di sekitarnya," Media pungkasnya. Editor : Media Digital

Still Depressed, Coal Prices Are Masih Tertekan, Harga Batu Not Moving Bara Tak Beranjak Tirta Citradi, CNBC Indonesia Tirta Citradi, CNBC Indonesia

COAL prices closed lower in trading last HARGA batu bara ditutup melemah pada week. On Friday (12/13/2019) Newcastle perdagangan minggu lalu. Pada Jumat coal ICE futures contract prices fell 1.33% (13/12/2019) harga batu bara kontrak to as low as US$ 67/ton. berjangka ICE Newcastle turun 1,33% ke level US$ 67/ton. For today's trading, there is a sentiment that has the potential to burden coal price Untuk perdagangan hari ini, terdapat movements. When the Chine se govern- sentimen yang berpotensi memberatkan ment began to limit coal imports in the last pergerakan harga batu bara. Di saat two months of this year, Chinese coal pemerintah China mulai membatasi impor production actually increased. batu bara di dua bulan terakhir tahun ini, produksi batu bara China malah meningkat. The Chinese Bureau of Statistics noted that Biro Statistik China mencatat output batu the State of Panda's coal output in bara Negeri Panda bulan November 2019 November 2019 rose 4.5 on an annual naik 4,5 secara tahunan (yoy) menjadi 334 basis (yoy) to 3 34 million tons. While for juta ton. Sementara untuk periode Januari - the January-November period China's coal November output bat u bara China naik 4,5% output rose 4.5% (yoy) to 3.41 billion tons. (yoy) menjadi 3,41 miliar ton. Based on Refinitiv data, coal inventories in Berdasarkan data Refinitiv, persediaan batu the main ports of northern China namely bara di pelabuhan utama China bagian utara Caofeidian, Qinhuagndao and Jingtang yaitu Caofeidian, Qinhuagndao dan Jingtang were in the position of 16.58 million tons berada di posisi 16,58 juta ton per 6 as of December 6. This amount is ... Desember lalu. Jumlah tersebut...

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This amount is far less than the same Jumlah tersebut jauh lebih sedikit di - period last year of 17.5 million tons. banding periode yang sama tahun lalu sebesar 17,5 juta ton. Although coal reserves in various ports in China are running low, China's coal Walaupun persediaan batu bara di imports are also reduced along with the berbagai pelabu han di China menipis, Chinese government's policy to tighten impor batu bara China juga berkurang seiring dengan kebijakan pemerintah coal imports by the end of the year. Since China memperketat impor batu bara akhir the beginning of the month, it has reached tahun. Sejak awal bulan tercatat mencapai 4.4 million tons, down from last year's 4,4 juta ton turun dari posisi tahun lalu position of 4.8 million tons. However, this yang mencapai 4,8 juta ton. Bagaimana pun reduction has not been significant. juga penurunan ini belum terlihat Meanwhile, coal imports from Japan and signifikan. South Korea since the beginning of the Sementara itu impor batu bara Jepang dan month were recorded at 3.3 million tons Korea Selatan sejak awal bulan tercatat and 2.1 million tons, respectively. If masing-masing 3,3 juta ton dan 2,1 juta compared to the same period last year, that ton. Jika dibanding periode yang sama number is lower. tahun lalu maka jumlah tersebut lebih rendah. Last year Japan's coal imports in the first 10 days of December reached 4.5 million Tahun lalu impor batu bara Jepang pada tons. While in the same period, South periode 10 hari pertama bulan Desember mencapai 4,5 juta ton. Sementara pada Korea imported 3.1 million tons of coal. periode yang sama, Korea Selatan meng - Coal imports in the first 10 days of impor batu bara sebanyak 3,1 juta ton. December this year reached 3.4 million Impor batu bara pada 10 hari pertama tons, down from last year's 5.2 million bulan Desember tahun ini m encapai 3,4 tons. juta ton, menurun dibanding tahun lalu The total coal inventory in various power yang mencapai 5,2 juta ton. plants in India rose to 28.3 million tons, Total persediaan batu bara di berbagai equivalent to 17 days of use. The total pembangkit listrik di India naik menjadi inventory is equivalent to two times last 28,3 juta ton atau setara dengan 17 hari year's total inventory of only 14.4 million penggunaan. Total persediaan tersebut tons. setara dengan dua kali total persediaan tahun lalu yang hanya 14,4 juta ton saja. Coal commodity is indeed sluggish this year. Since the beginning of the year the Komoditas batu bara memang lesu tahun price has dropped more than 30%. Even ini. Sejak awal tahun harga telah anjlok lebih dari 30%. Bahkan tren pelemahan the weakening trend in coal prices may harga batu bara masih mungkin berlanjut still continue into next year. CNBC hingga tahun depan. TIM RISET CNBC INDONESIA RESEARCH TEAM (twg/twg) INDONESIA (twg/twg)

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SRK, Coffey and Royal IHC to work on Giyani’s K.Hill manganese feasibility study Posted by Daniel Gleeson

GIYANI Metals has completed the feasibility study tendering process for its K.Hill manganese project, in Botswana, selecting SRK Consulting and a joint bid by Coffey, a Tetra Tech Company, and Royal IHC to conduct the study. The tendering process began in early November with six service providers invited to bid. The scope of work in the request fo r proposal (RFP) was divided into two work packages to run in parallel. Work Package 1 (WP1) encompasses all the technical mining disciplines but will exclude processing, infrastructure and environmental/social. Work Package 2 (WP2) mainly encompasses the processing, infrastructure, and project execution disciplines. Bidders were given the option to bid for both work packages, but the RFP stated that work packages may be awarded individually.

SRK, who completed the preliminary economic assessment for K.Hi ll earlier this year, was awarded WP1 while WP2 was awarded to the joint Coffey and Royal IHC bid. On the latter, the company said: “The joint bid provides Giyani with specialised experience from Tetra Tech in the process of making electrolytic manganese m etal (EMM–pictured) in a solvent extraction/ electrowinning plant and mining engineering and construction experience from Royal IHC.” The environmental and social impact assessment (ESIA) was tendered separately and bids are currently being assessed by the company, Giyani said.

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Giyani will now move to the contracting phase which commences with a site visit with SRK, Coffey, and Royal IHC during the week of December 16. Robin Birchall, CEO of Giyani, said: “Commencing the FS for K.Hill, along with the ESIA w hich we will kick off shortly thereafter, is a very important step forward, one that will prepare the company for the next and most important phase of its development, becoming one of the leading independent producers of high purity manganese for the batte ry electric vehicle market.” Mike Beare, Project Manager for SRK, said: “SRK is very much looking forward to building on the work of the PEA and applying its skills to further development of the K.Hill project. This will assist Giyani with their continued growth into the burgeoning battery metals sector which we see as an area of considerable investment in years to come.” Jacques du Toit, Project Director for Coffey & Derk Hartman, Director EPC & Project Delivery for IHC Mining, part of the Royal IHC Group, said: “We recognise that Giyani’s K.Hill manganese project offers outstanding potential for investors and look forward to providing our combined services and solutions to Giyani for the development of the K.Hill manganese project.” The PEA on K.Hill was b ased on the 1.1 Mt inferred resource and showed a nine -year potential life of mine producing 245,000 t of what the company called “high -purity electrolytic manganese metal” (HPEMM). Pre -production capital was estimated at $108.5 million and the post-tax ne t present value (10% discount) was estimated at $285 million based on a projected average price of $4,700/t for HPEMM of 99.9% Mn over the life. ♦

Newcrest to purchase Chevron gas for WA mine Vanessa Zhou

NEWCREST Mining has struck a domestic gas sale agreement with Chevron through to July 2023. The gold miner will gain access to 16 petajoules of equity domestic gas sourced from the Wheatstone, Gorgon and North West Shelf facilities in Western Australia. This agreement is the latest to deliver cleaner energy to Western Australia, according to Chevron Australia managing director Al Williams. Newcrest owns the Telfer gold -copper mine in the Pilbara region, Western Australia. The company produced 452,000 ounces of gold and 15,000 tonnes of copper at Telfer during the 2019 financial year. The gold -copper concentrates produced from Telfer goes to Port Hedland f or export to international smelters. “Chevron is a leading and growing domestic gas supplier to Australia and we’re proud to deliver new natural gas supply to Western Australian industries, businesses and households,” Williams said.

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“As a reliable and cost-effective way to generate electricity, natural gas is a vital energy source for current and future energy needs, powering local jobs, industry and communities.” The Chevron-operated Gorgon and Wheatstone natural gas facilities will produce 500 terajoules of domestic gas a day for the Western Australian market at full capacity. This amounts to electricity generation for 4.3 million households. Chevron manages its one-sixth (16.67 per cent) interest in the North West Shelf joint venture (JV), with partners W oodside Energy, BHP, BP, Japan Australia LNG and Shell Australia holding the remaining in equal proportions. ♦

Rio Tinto offering responsibly manufactured aluminium By Daniel Brightmore

RIO Tinto is now offering independently certified, responsibly produced aluminium from its smelters in Australia and New Zealand that predominantly use hydro -powered electricity.

Aluminium Stewardship Initiative (ASI) has granted its Performance Standard and Chain of Custody certifications to Rio Tinto’s Amrun and Weipa bauxite mines, Yarwun alumina refinery, and the Bell Bay and NZAS aluminium smelters.

This strengthens Rio Tinto’s ability to offer ASI Aluminium throughout its global supply chain, building on the certifications in place for its Canadian operations.

AS I certification means customers can be assured that the aluminium they purchase has been produced to the highest environmental, social and governance standards, ranging from greenhouse gas emissions to human rights.

Rio Tinto Aluminium chief executive Alf Barrios commented: “This certification expands Rio Tinto’s offering of independently certified, responsibly produced aluminium to customers around the world. It continues our leadership on responsible aluminium production from mine to metal, so that our cu stomers can meet the growing demand from consumers for sustainably sourced materials.”

ASI chief executive officer Fiona Solomon added: “Having a responsible supply chain means not just low carbon emissions in production, but also meeting the highest stand ards from material stewardship to human rights. We applaud Rio Tinto’s ongoing commitment to encouraging the uptake of ASI’s standards across the aluminium and manufacturing supply chain.” ♦

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Eramet lowers H2 profit guidance after metal prices tumble

FRANCE's Eramet on Friday lowered its guidance for second -half profit blaming a sharp fall in prices for nickel and manganese, the miner's two main products. Eramet now expected earnings before interest, tax, depreciation and amortisation (EBITDA) for sec ond half of year in line with its first -half performance, having previously forecast significantly higher EBITDA. Benchmark manganese prices in November were down 33% compared with September while nickel prices showed a 14% decline over the same period, E ramet said, adding that it saw no change in the trend at the start of December. Eramet shares were down 2.73% after falling 8.8% in opening trade. Eramet confirmed its 2019 targets for production and nickel ore exports. Nickel and manganese are mainly use d in steelmaking. Nickel prices hit a five-month low this month, weighed down by signs of larger -than-expected inventories. Eramet is reorganising its nickel operations in New Caledonia after years of losses, notably by increasing exports of lower-grade ore and by reducing production costs. (Reporting by Gus Trompiz; editing by GV De Clercq and Jason Neely)

Indonesia exploits industrial past to expand tourism market Jokowi government wants to grow industry to 10% of GDP JUN SUZUKI, Nikkei staff writer

TOURS of closed coal mines and other industrial heritage sites from Indonesia's colonial past are increasingly attracting visitors, helping President Joko "Jokowi" Widodo toward his goal of significantly growing the country's tourism industry. The sector received a major boost in July when the UNESCO World Heritage Committee registered the Ombilin Coal Mine, in the small mountain town of Sawahlunto, as a World Heritage Site at its meeting in Azerbaijan. The Ombilin mine is Indonesia's fifth World He ritage Site. Its four predecessors are world - famous places mentioned in school textbooks internationally, such as Borobudur, a huge Buddhist temple, and the Sangiran Early Man Site where fossil remains of the "Java man" were recovered. But UNESCO's recogni tion of the hitherto little -known Ombilin mine came as a surprise to many.

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The mine opened in 1892 when Indonesia was a colony of the Netherlands. As one of the world's leading coal mines, it produced coal equivalent to 90% of the total annual energy consu mption of Indonesia, which was then called the Dutch East India Co. The construction of coal-fired power generation plants and railways was promoted from the late 19th century till the early 20th century. But when coal went into decline as a major energy s ource after the 1950s, Ombilin began to lose importance. In 1999, Bukit Asam, the major state-owned Indonesian coal company which was managing the mine, closed down operations there. Sawahlunto, located 90 kilometers from West Sumatra's provincial capital of Padang, declared in 2001 that the closed mine would turn the city into a tourist destination, but it failed to attract many visitors. Then, in 2012, the city decided to pursue UNESCO World Heritage Site status for the mine. With the prestigious accolade secured, and an associated uptick in visitors going to view the mine's the shiny black bed of coal, a plan is underway to convert an old colonial building nearby into a hotel. "We hope that tourists will visit here from all over the world," said Rahmat Gi no, 40, head of the Sawahlunto Culture and Historical Preservation Agency. Tourists visiting the city from abroad have also been increasing since the old mine was inscribed as a UNESCO heritage site. Although there remain many industrial heritage sites whi ch have yet to become widely known, some are already being utilized in the promotion of local tourism. For example, Belitung, an island in the province of Bangka Belitung off the east cost of Sumatra, has become a popular destination for tourists. BHP Bill iton, a world-leading British resources company formerly called Billiton, and Indonesian state -run company Timah mined tin on a large scale in Belitung. The island has been attracting much attention since the huge success of "Laskar Pelangi" (The Rainbow T roops), a novel by Andrea Hirata about local mine workers' children -- which was also adapted in a hit movie -- and its old tin mines have become popular as sightseeing spots. As many global companies originated there, Indonesia is rich in industrial herit age sites with tourist appeal. Dutch Shell, the major oil company now known as Royal Dutch Shell, started its business in Pangkalan Brandan, North Sumatra, and ArcelorMittal, formerly Mittal Steel, began to expand its steel business from a Surabaya suburb. Dutch East India Co., regarded as the world's first global company, was based in Batavia, Jakarta's colonial era name. The Widodo administration is promoting the development of tourism resources across the country to make Indonesia into a "tourism -oriente d nation." It plans to increase the number of inbound tourists to 20 million while also promoting domestic tourism. Tourism now accounts for a little over 6% of Indonesia's GDP, but the government hopes to quickly raise the ratio to the global average of a round 10%.

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Indonesian tourism is already well -known for Bali, the world-leading resort island. But the Widodo administration is developing other tourist draws such as ecotourism involving tropical rainforests and the sea, and religion -themed tours based on the coexistence of Islam, Christianity, Buddhism and other religions in the country. Various other themes are also under consideration to promote tourism. ♦

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