On the sidelines of the 2023 World Economic Forum (WEF) Annual Meeting, two European companies Badische Anilin-und Soda-Fabrik ( BASF ) and Eramet will soon realize their nickel refining investment plan in North Maluku or the Sonic Bay project whose investment value reaches 2.4 billion euros or the equivalent of IDR 39.1 trillion (IDR 16,706 per Euro).  BASF Chief Executive Officer Martin Brudermüller said that BASF's investment process in Indonesia was able to run well, especially in terms of obtaining permits because it received support from the Ministry of Investment or the Investment Coordinating Board (BKPM). The investment plan in question is the construction of a nickel refining plant with High Pressure Acid Leach (HPAL) technology that produces Mixed Hydroxide Precipitates (MHP) in the Teluk Weda Industrial Area, North Maluku. The project, named Sonic Bay, is being worked on by BASF together with the French multinational mining and metallurgical company, Eramet. "We would like to convey that our agreement with Eramet is at the final stage, it is likely that our decision will be taken in the first half of 2023," he said in a meeting with Investment Minister/Head of BKPM Bahlil Lahadalia at the Indonesia Pavilion 2023 in Davos, Switzerland, Tuesday (17/ 1). Brudermüller added that the investment value that BASF and Eramet will make is estimated at around 2.4 billion euros. According to him, the downstream project is expected to be able to directly create as many as 1,000 jobs. Also Read: Luhut and Bahlil Inaugurate the Opening of the Indonesia Pavilion at WEF 2023 Davos "We really appreciate the support from the Ministry of Investment/BKPM so that our investment process runs smoothly. We also plan to make follow-up investments." he added. The Sonic Bay project is expected to reap an investment value of up to US$2.2 billion–US$2.6 billion with a production capacity of 67,000 tons of nickel/year and 7,500 tons of cobalt/year. BASF's follow-up investment plan aims to produce MHP as an electric battery precursor. Bahlil encouraged BASF's plan to invest in nickel refining for the development of electric vehicles in North Maluku to be realized soon. Bahlil added that BASF's investment plan in Indonesia is in line with the government's priority projects related to downstream mining. The plan. BASF will work with Eramet, which already has business legality on behalf of PT Eramet Halmahera Nickel.   "I fully support BASF's investment plan in Indonesia, especially in supporting the development of the electric vehicle battery ecosystem. This is in line with the aspirations of our country's government which wants to make Indonesia a world-class electric vehicle player," he explained. He said that BASF's nickel refining plant will be located in North Maluku, which is the source of nickel raw materials. "We at the Ministry of Investment/BKPM will oversee all BASF investment processes from start to finish so that this project can be implemented immediately," said Bahlil. BASF is a multinational company from Germany and the world's largest chemical producer with a business portfolio in six segments, namely chemicals, materials, industrial solutions, surface technologies, nutritional solutions and agriculture. In 2021, BASF generates sales of 78.6 billion euros or around IDR 12.8 trillion.In Indonesia, BASF has been investing since 1976. BASF solutions contribute to the success of Indonesian customers in almost all industries, including agriculture, food, home and personal care, automotive, paints and coatings, and basic chemicals. BASF Indonesia has production plants in Cengkareng, Cimanggis and Merak. In 2021, BASF recorded sales of around 567 million euros for customers in Indonesia. On 1 January 2023, BASF Indonesia appointed Christofer Arisandy as President Director to replace Agus Ciputra who took on a regional role. Christofer Arisandy has 20 years of experience in the chemical industry and started his career at BASF since 2003. "I believe BASF will further strengthen its strategic position in Indonesia and will continue to take advantage of domestic and international growth opportunities," said Christofer Arisandy.  Source: https://ekonomi.bisnis.com/read/20230118/9/1619274/wef-2023-davos-ceo-basf-update-investasi-smelter-nikel-senilai-rp39-triliun

Australia's Nickel Industries (NIC.AX) will raise $471 million in capital to help fund the acquisition of several nickel projects in Indonesia, the company said on Wednesday, adding that it will also develop nickel for the battery sector. To develop battery nickel, the company will also look to collaborate with Shanghai Decent Investment (Group) Co Ltd, a unit of one the world's biggest nickel producers Tsingshan Group.Nickel Industries said it aims to transform its business from a historical focus on the stainless-steel market to being a leading producer of battery grade "Class 1" nickel, through the collaboration as well as acquisitions. As part of its buyouts, the company said it will buy 10% stake in Indonesia-based PT Huayue Nickel Cobalt for $270 million from Newstride Development Ltd, an entity within China's Tsingshan Group.It will also spend $70 million for a 10% interest in the Oracle Nickel Project in Indonesia, a project where it already has a 70% shareholding. The equity raising will comprise a share placement worth $185 million at A$1.02 per share, representing a 8.9% discount to the stock's last close price of A$1.12. The company will raise $270 million from Newstride Development.Source: https://www.reuters.com/markets/deals/nickel-industries-set-raise-471-mln-buy-nickel-assets-2023-01-18/

PT Petrosea Tbk ( PTRO ) is optimistic that in 2023 its performance will grow. Petrosea closed 2022 with solid performance and managed to bag a total contract value of US$ 1.6 billion or equivalent to Rp. 24.8 trillion. In addition, in December 2022 Petrosea managed to record a market capitalization value of IDR 4.38 trillion."Year 2023 with full of optimism thanks to the implementation of the diversification strategy as a key pillar of the Company to continue to develop value propositions for all shareholders and stakeholders," said Haji Romo (Robert) Nitiyudo Wachjo who is Petrosea's main shareholder in an official statement, Tuesday (17/17). 1). President Director of Petrosea, Romi Novan Indrawan said, by the end of 2022, Petrosea had managed to pocket a total contract value of approximately US$ 1.6 billion or equivalent to Rp. 24.8 trillion."It is a concrete manifestation of business expansion and diversification strategies to maintain business continuity, including becoming more cost effective and recording higher profit margins," he said. To support its business expansion and diversification strategy, Petrosea has prepared a budget for 2023 which has increased by around 30% from the previous year. In facing future challenges, in 2023 Petrosea will accelerate various change management initiatives as a form of implementation of operational excellence and continuous improvement in all operational areas of the Company. Petrosea is fully committed to prioritizing the implementation of good governance (GCG), environmental, social & governance (ESG) aspects, as well as the principles of sustainability by utilizing the latest digital technology through the Minerva Digital Platform which is proven to increase the productivity and efficiency of Petrosea's operational activities.Source: https://investasi.kontan.co.id/news/belanja-modal-petrosea-ptro-tahun-ini-naik-30-dari-tahun-lalu

PT Aneka Tambang (Persero) Tbk (ANTM) or Antam is finalizing an investment agreement to develop the electric vehicle (EV) battery industry with PT Ningbo Contemporary Brunp Lygend Co Ltd (CBL), a CATL subsidiary, and LG Energy Solution (LGES) worth US$ 6 billion or the equivalent of Rp. 90 trillion. The project agreement is targeted to be signed this year.Antam Business Development Director (ANTM) Dolok Robert Silaban explained, the collaboration between Antam, CBL and LGES focuses on the upstream side of the EV battery industry. As of now, the conditional shares purchase agreement (CSPA) for this collaboration will soon be completed.This is because, he said, there are still several conditions in the transaction that must be assessed, especially regarding reserves or nickel reserves whose grades need to be increased. This is what Antam is negotiating with CBL and LGES.He added, all parties had agreed to cooperate, namely on the upstream side of the EV battery. On the other hand, there are complement dates or long stop dates that are constantly being pursued. This is because this investment depends on China, so it needs to get approval from Overseas Direct Investment (ODI). "The overallinvestment value for this project is around US$ 6 billion from upstream to downstream. In the midstream , Antam is also involved," Dolok replied to Investor Daily in Jakarta, Monday (16/1/2023).As an illustration of the downstream flow, Dolok detailed, Antam will play a role in mining nickel ore. Then the ore is processed into nickel sulfate which is then produced into batteries both in the form of material and in the form of PX batteries. After that, there is a recycling process or commonly known as battery recycle ."So, this is what we will finish soon. We will finish all of that after the CSPA is finished," added Dolok.According to Dolok, the battery industry continues to grow from year to year, as has happened in Japan, China, Korea, to Europe or the United States (US). Antam views these countries as countries that are quite successful in developing the battery industry.Separately, Bisman Bakhtiar, Executive Director of the Center for Energy and Mining Law Studies (Pushep), said that the EV battery industry is the industry of the future. This is because this is related to the energy transition, especially in the transportation sector."So, the future of EV will be a bright industry," said Bisman to Investor Daily . Moreover, according to him, Indonesia has an advantage on the upstream side, namely nickel mineral resources that can be used as raw material for EV batteries. It's just that, at this time, the EV ecosystem has not been built ideally because it is still not optimal in the downstream and follow-up industries. It is this part that the government should pay attention to in order to encourage its follow-up industries.At least, he projects, the EV battery industry will need 10 years to really run ideally and sustainably. Even so, the effervescence of the EV battery industry has been sufficient to provide positive sentiment for Antam's performance going forward."Antam has an upstream to downstream industry. Even though as an upstream player, Antam is not that big," said Bisman.Source: https://investor.id/market-and-corporate/319239/antam-antm-finalisasi-proyek-baterai-ev-us-6-miliar

Acting Executive Director of the Indonesia Mining Association (IMA), Djoko Widajatno suggested that the Government continue to implement a moratorium on copper concentrate exports in the middle of the year because this is a mandate of the law."In Law (UU) No. 3 of 2020, in addition to mandating there is added value as well as conservation and exploration to increase reserves to be processed so that there is sustainability. The principle is to meet the Sustainable Development Goals (SDGs)," he explained to Kontan.co.id, Wednesday (11/1).Djoko did not deny that at the beginning of the implementation of the ban on concentrate exports, there would be an impact on the country's balance sheet. However, he said the government has certainly thought about balancing between the interests of industry and the state.He stated that the reason why the government encouraged a moratorium on copper concentrate exports was because according to data from the Ministry of Industry (Kemenperin), the development of basic industries was going very slowly."According to the Ministry of Industry, it has been the last 10 years that the growth has only been 10% so that the basic industry needs to be encouraged and thought about with relevant agencies," he said.Djoko emphasized that basically investment in mining wants to build basic industrial needs based on commodities owned by Indonesia.This means that all downstream mining products will be absorbed by downstream industries made in the country so as to provide added value and have an impact on increasing state revenue. Automatically this will create jobs for the Indonesian people.Mineral downstreaming has actually been stated in the National Medium-Term Development Plan.In the National Industrial Development Master Plan (RIPIN) of the Ministry of Industry, the copper industrial tree that will produce copper cathodes will be utilized to meet the needs of electric vehicles and new and renewable energy (EBT) power cable networks. However, meanwhile, the downstream offtaker industry of copper cathodes is still limited.However, according to Djoko, for copper cathode products that have not been absorbed into the country, entrepreneurs can still sell them abroad because the products are already in the form of processed mineral materials.Just so you know, Indonesia will experience an oversupply of copper cathodes in 2025. The domestic smelter will produce up to 1.1 million tons of copper cathodes from the PTS-Gresik smelter, the Amman Mineral smelter which will be effective in 2024 and the PT Freeport Indonesia (PTFI) smelter.Although copper cathode production is already moncer, domestic demand for copper cathodes will only reach 300,000 tons in 2025, so there is an excess of 70% copper cathodes.Although this demand is projected to continue to increase until 2040 to around 1 million tons, there will still be an excess of cathodes from within the country.Rachmat Makkasau, President Director of Amman Mineral Nusa Tenggara, explained that the projected demand for copper cathodes in Indonesia until 2039 is still below the total available production capacity. Therefore, said Rachmat, there is no problem in terms of supply to the country."This is an opportunity for us, especially the downstream industry, to see and develop the derivative industry," he said, on Tuesday (12/13/2022).AMNT is currently building a copper cathode smelter in Benete, West Sumbawa Regency, West Nusa Tenggara (NTB). As of October 2022, the realization of development has reached 47% and is projected to be operational by the end of 2024. The smelter will produce 222,000 copper cathodes.Rachmat admitted that standby buyers from his smelter production from within the country are easy to find and there are no problems. As for the copper cathode, which cannot be absorbed domestically, it will certainly be exported."(The excess) is all exports, probably yes. What is certain is that if it is not absorbed in the country, it will be exported," he said.Rachmat revealed that the demand for copper cathodes in the world will continue to increase in line with the energy transition agenda. He pointed out that for the development of electric vehicles, copper cathodes are needed 3 times to 5 times more than copper for oil-fueled vehicles (BBM).Image source: REUTERS/Roddrigo GarridoSource: https://industri.kontan.co.id/news/indonesia-mining-association-ima-dukung-larang-ekspor-konsentrat-tembaga-tahun-ini

State-Owned Enterprises ( BUMN ) Holding the Indonesian Mining Industry ( MIND ID ) are committed to focusing on building an electric vehicle ecosystem in Indonesia. MIND ID oversees PT Antam Tbk in accelerating the development of the electric vehicle (EV) battery ecosystem by signing a conditional share purchase agreement (CSPA). The agreement was made between Antam and Hongkong Ningbo Contemporary Brunp Lygend Co. Ltd (CBL) Limited (HKCBL), a subsidiary controlled by CBL for Antam's partial shareholding in PT Sumberdaya Arindo (SDA), on Monday (16/1/2023).  The signing of this CSPA is the first step in realizing the implementation of the EV battery ecosystem development project in Indonesia and in line with Antam's commitment to support the development of the project. MIND ID Focuses on Developing the Downstream of the National Mining Industry In addition, this collaboration with CBL can directly contribute to aspects of technology and business experience owned through collaboration with Antam on Natural Resources and at the same time become Antam's strategic partner in implementing an integrated EV battery ecosystem development project in Indonesia. MIND ID Director of Institutional Relations Dany Amrul Ichdan said, this collaboration was a very good milestone for building other follow-up collaborations in Indonesia. Therefore, Dany invites global corporations to be able to collaborate with MIND ID so that the development of the EV battery ecosystem in all aspects can be more advanced. “Don't hesitate to invest in Indonesia. Therefore, let's make the development of the EV battery ecosystem successful for integration, because we need a lot of strategic investment , strategic partners , knowledge transfer , and technology , product development , and market penetration . In this case, we are very open to continuing to collaborate," said Dany in a press statement received by Kompas.com , Tuesday (17/1/2023). For information, this signing is a follow-up to the signing of the framework agreement for the integrated  EV battery ecosystem development project in Indonesia. The framework agreement  covers nickel ore mining activities to the battery recycling industry which was carried out by Antam together with PT Indonesia Battery Industry (IBC) and CBL on Thursday (14/4/2022). Not only that, the memorandum of understanding (MoU) also provides opportunities for greater development in nickel ore mining activities. The MoU was carried out within the framework of the EV battery ecosystem development project which will then be implemented by SDA, Antam's subsidiary which has a mining business permit area in East Halmahera, North Maluku. After signing the CSPA, both Antam and HKCBL will immediately fulfill the conditions precedent . The signing of the CSPA will be followed by the signing of a conditional shareholder agreement ( conditional SHA), Thursday (14/4/2022). In particular, the conditional SHA will become effective after the transfer of part of the company's share ownership in SDA, namely on the date of completion of the CSPA transaction. Upon completion of the transaction, Antam and HKCBL will sign a share sale and purchase deed. Then, thereafter, Antam will remain the controlling shareholder of SDA in accordance with the provisions of the Statement of Financial Accounting Standards (PSAK) 65, so that it will not change the status of SDA as a consolidated subsidiary in Antam's financial statements.Source: https://nasional.kompas.com/read/2023/01/17/10510521/investasi-cbl-buktikan-mind-id-jadi-pilar-penting-terwujudnya-percepatan

PT Intraco Penta Tbk (INTA) allocates capital expenditure of IDR 84 billion for 2023.INTA Corporate Secretary Astri Duhita Sari revealed that most of the capital expenditure funds were used for the purchase of heavy equipment."(This) is for the rejuvenation of the rental fleet," Astri explained to Kontan, Wednesday (11/1).Astri added, until the end of 2022, the company estimates sales to reach IDR 643 billion. The mining sector, especially coal and nickel, is the main support for heavy equipment sales by INTA for 2022.As an illustration, until the third quarter of 2022 INTA posted sales of IDR 497.16 billion. This achievement was reduced by 12.01% year on year (YoY) from the same period in the previous year which amounted to Rp 443.78 billion.In addition, INTA recorded total assets of IDR 2.38 trillion, or a decrease of 2.4% compared to total assets in 2021 of IDR 2.44 trillion. On the other hand, INTA also still recorded a comprehensive net loss until the third quarter of 2022 of IDR 99.56 billion.Astri confirmed, for this year the company is targeting an increase in sales."For 2023, it is projected that total sales will reach IDR 1.2 trillion," said Astri.The coal and nickel mining sector will still be one of the main pillars for heavy equipment sales this year.Image source: DOK/INTASource: https://industri.kontan.co.id/news/intraco-penta-inta-siapkan-belanja-modal-rp-84-miliar-pada-tahun-ini

PT Apexindo Pratama Duta Tbk (APEX) targets to increase rig utilization for this year.APEX Corporate Secretary Frieda Salvantina explained that currently several drilling rigs owned by the company are still under contract."This year, the company's three offshore rigs, namely Raisis Rig, Yani Rig and Tasha Rig, will still continue the drilling contracts obtained and have started in 2021," Frieda said to Kontan, Wednesday (11/1).Frieda continued, one APEX land rig, namely Rig 9, is now in preparation for a geothermal drilling project from Pertamina Geothermal Energy (PGE) Ulubelu. Drilling is scheduled to begin in the first quarter of this year.With this condition, APEX targets revenue performance this year is projected to be not much different from 2022. However, Frieda ensures that efforts to increase rig utilization will continue."The company is also continuing to try to get contracts for rigs that are still idle both offshore and onshore rig segments," Frieda said.In addition to increasing rig utilization, APEX also implemented a cost control strategy to maintain performance this year. Although he did not specify the amount of capital expenditure disbursed for this year, Frieda explained that the funds prepared will be focused on the maintenance of offshore rigs."It is also allocated for the re-activation of ground rigs if there is a suitable contract or work," explained Frieda.It was noted that APEX's revenue soared 55.54% on an annual basis from the original US$ 41.66 million in January-September 2021 to US$ 64.80 million in January-September 2022.Meanwhile, APEX posted a net loss for the current period attributable to owners of the parent entity of US$ 63.40 million in January-September 2022 according to an increase in expenses on a number of expense posts.Image source: PT Apexindo Pratama DutaSource: https://industri.kontan.co.id/news/apexindo-pratama-duta-apex-targetkan-peningkatan-utilisasi-rig-pengeboran

Optimism for the future of the nickel market will grow positively in line with increased market demand, giving confidence to PT Hillcon Tbk (HILL) that this year's performance will be better than the previous year. Where the company is targeting revenue of IDR 6 trillion in 2023, an increase of 87.5% compared to the 2022 revenue target which was recorded at IDR 3.2 trillion. "Net profit is targeted at IDR 1 trillion compared to the projected net profit of IDR 300 billion which is supported by revenue of IDR 3.2 trillion," said HILL Director Jaya Angdika in Jakarta yesterday.Meanwhile, capital expenditure or capex for 2023 is targeted at IDR 1 trillion. Later, the capex will be mixed with institutional loans, around IDR 800 billion-IDR 1 trillion. Until September 2022, Hillcon posted revenue of IDR 2.17 trillion as of September 2022, or an increase of 68.22% compared to the same period in 2021 which was recorded at IDR 1.29 trillion. Hillcon's gross profit shot up 10.39% from IDR 524.6 billion as of September 2021 to IDR 579.1 billion as of September 2022.Meanwhile, Hillcon's total assets increased by 28.75% from IDR 2.40 trillion in 2021 to IDR 3.09 trillion as of September 2022. On the same occasion, HILL Main Director, Hersan Qiu said, Hillcon was the first nickel commodity contractor to conduct an IPO. "The nickel industry is currently developing, so Hillcon's IPO is the right momentum for us," he said.He emphasized that Hillcon's geographic reach allows the company to meet the needs of its customers in diverse locations, and gives Hillcon an advantage in winning projects across the country. Currently, Hillcon operates in a number of locations, namely in Kalimantan, Sulawesi and North Maluku.This enables the company to meet customer needs in diverse locations across Indonesia. ,” he said.To note, world nickel consumption will increase by 17.2% in 2021 to 2.8 million tons compared to 2020 which grew only 0.6%. A total of 1.96 million tonnes of nickel metal (69%) is consumed by the stainless steel industry. Indonesia as the world's largest nickel producer will have 950 thousand tonnes of nickel metal in 2021 or 35% of the world's total nickel production.Indonesia also has the world's largest proven nickel reserves or 22% of proven nickel reserves (21 million tonnes of nickel metal). According to ESDM, estimated reserves are 41 million tons of nickel metal. For information, Hillcon itself is currently preparing for an IPO by offering 442.3 million common shares with a nominal value of IDR 100. The price offered for this IPO is in the range of IDR 1,250 – IDR 2,000 per share and the hope is to reap as much fresh funds as possible IDR 884.6 billion.About 55% of all proceeds from the IPO will be used by the company for working capital of its subsidiary PT Hillconjaya Sakti (HS) for mining production costs, including fuel costs, overhead and maintenance of all equipment. Meanwhile, the remaining 45% will be used for capital expenditure or capex to purchase heavy equipment such as main fleets and supporting fleets that will support HS' operational activities in the nickel sector.Source: https://www.neraca.co.id/article/174404/permintaan-pasar-nikel-menjanjikan-hillcon-targetkan-pendapatan-rp-6-triliun

The Central Statistics Agency (BPS) recorded exports of nickel commodities and goods thereof quadrupled in 2022. The increase is not only in terms of volume but also in terms of export value. Exports of ferro-nickel products also rose rapidly, while exports of nickel ore were almost non-existent following the export ban policy that began in 2020. Furthermore, BPS noted that the export volume of nickel and goods thereof, code HS75, rose 367% throughout 2022 or reached 778.4 thousand tons. This achievement is the highest record in at least the last 13 years. Meanwhile, a significant increase has occurred since the government imposed a ban on nickel ore exports.BPS data also shows that an increase in export volume is followed by an increase in export value. Throughout 2022, BPS recorded the export value of nickel and goods thereof amounting to US$ 5.97 billion, an increase of more than four times compared to the previous year. The surge also occurred in exports of ferro nickel commodities. Export volume in 2022 will reach 5.78 million tons, or a 65% increase compared to the previous year. Meanwhile, in terms of export value, the value almost doubled to US$ 13.62 billion.This is in line with the ban on nickel ore exports since 2020. The export volume of nickel ore in 2019 reached 32.4 million tons, then dropped to 1.4 tons in the first year the export ban was implemented. The volume then continued to shrink, remaining 492 kilograms last year, although it increased from the previous year's only 65 kilograms.On the other hand, the issue of nickel exports has been the talk of the town in recent months. This is because the banning of nickel ore exports three years ago drew a lawsuit by the European Union at the World Trade Organization (WTO). In the lawsuit, the WTO rejected Indonesia's defense because the policy violated a number of articles in the 1994 General Agreement on Trade and Tariff (GATT), meaning that Indonesia was declared defeated.After the decision was issued, a number of unanimous state officials said they would submit an appeal via appeal. Minister of Industry Agus Gumiwang Kartasasmita said he was waiting for time to submit an appeal. But at this time, there is no definite information about this. "We are waiting for the WTO Appellate Body to convene again, we don't know when to appeal. Meanwhile, we are continuing with the nickel ore downstream program," Agus said in Jakarta, Tuesday (12/20).Source: https://www.msn.com/id-id/ekonomi/ekonomi/cetak-rekor-volume-ekspor-nikel-indonesia-tembus-7784-ribu-ton/ar-AA16oR9r