Ministry of Energy and Mineral Resources Projects Critical Mineral Demand to Surge

Ministry of Energy and Mineral Resources Projects Critical Mineral Demand to Surge

18 Jun 2026, 15:20 PM
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Freeport’s Manyar Smelter to Resume Operations in September 2026, 1.7 Million-Ton Capacity Targete...
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PT Vale Involves 27 Local Contractors and 34 Subcontractors in the Development of IGP Morowali
PT Vale Involves 27 Local Contractors and 34 Subcontractors...
21 Jun 2026, 16:03 PM
Central Omega (DKFT) Plans to Submit a Revision of Its RKAB to Increase Nickel Ore Production Quota
Central Omega (DKFT) Plans to Submit a Revision of Its RKAB...
18 Jun 2026, 16:13 PM
Pertamina Patra Niaga distributes chemical products for PSN alumina smelter
Pertamina Patra Niaga distributes chemical products for PSN alumina smelter
06 Aug 2024, 10:00 AM 4950

PT Pertamina Patra Niaga is supplying chemical products, fuel, and lubricants to support the smooth operation of the national strategic project (PSN) Smelter Grade Alumina Refinery (SGAR) at PT Borneo Alumina Indonesia."We fully support the government's efforts to enhance the value of bauxite products into alumina products by supplying supporting products, including chemicals, fuel, and lubricants," said Director of Central Marketing and Commerce of Pertamina Patra Niaga, Maya Kusmaya, in a statement received in Jakarta on Monday.This project is part of Indonesia's efforts to process bauxite into alumina domestically, thereby reducing dependence on raw material exports and increasing the added value of the country's mineral resources."Our chemical product, caustic soda, will be supplied in a quantity of 138,000 MT during 2024, and we predict that the volume of supply will continue to increase in line with the growing production needs of alumina," said Maya Kusmaya.PT Borneo Alumina Indonesia is a joint venture between PT Indonesia Asahan Aluminium (Persero) or INALUM and PT Aneka Tambang Tbk (ANTAM).Located in West Kalimantan, the company was established to develop and operate a refinery project with a production capacity of 1 million tons of alumina per year.This alumina refinery aims to process bauxite into smelter-grade alumina (SGA). The project is expected to support the government's initiative to enhance the downstream industry and improve Indonesia's competitiveness in the global market.Separately, President Director of PT Borneo Alumina Indonesia, Leonard Manurung, explained that caustic soda is one of the main raw materials for producing smelter-grade alumina."With this cooperation, we hope to ensure the availability and smooth supply and production at PT Borneo Alumina Indonesia's plant," said Leonard.He added that the success of the program is due to the collaboration and synergy within the Pertamina Group, between SH Commercial and Trading PT Pertamina Patra Niaga and SH Integrated Marine Logistics PT Pertamina International Shipping, to ensure the timely and safe delivery of products.

J Resources (PSAB) Reports USD 10 Million Profit for First Half of 2024
J Resources (PSAB) Reports USD 10 Million Profit for First Half of 2024
06 Aug 2024, 09:59 AM 7241

PT J Resources Asia Pasifik Tbk (PSAB) has demonstrated impressive performance in both stock price movement and financial results. In the first half of 2024, the top line and bottom line of this gold mining company have shown significant improvement.PSAB successfully turned its performance around, achieving a net profit of USD 10.08 million. This is a significant improvement compared to a net loss attributable to the owners of the parent entity of USD 18.32 million in the first half of 2023.This bottom line improvement is in line with a surge in the top line. PSAB recorded sales of USD 130.14 million by June 2024, a 125.85% increase compared to the same period last year (YoY), which was only USD 57.62 million.According to the financial report released on the Indonesia Stock Exchange on Wednesday, July 31, PSAB's revenue was derived from the sales of gold and silver, primarily to Metalor Technologies Singapore Pte. Ltd. amounting to USD 108.66 million and PT Aneka Tambang Tbk (Antam) amounting to USD 15.72 million.Sales to Metalor Technologies and Antam accounted for 83% and 12% of total sales, respectively. Additionally, PSAB's sales were also directed to Beijing Fuhaihua Import and Export Corp Ltd. amounting to USD 5.14 million and to Transamine Far East Limited amounting to USD 612,459.Along with the increase in sales, PSAB's cost of goods sold rose by 124% (YoY) to USD 62.90 million. As a result, PSAB posted a gross profit of USD 67.23 million, soaring 127.58% annually.After accounting for various other bookkeeping items, PSAB recorded a net profit of USD 16.25 million in the first half of 2024, reversing from a loss of USD 14.56 million in the first half of 2023.With this performance improvement, PSAB also posted earnings per share of USD 0.0004 as of June 30, 2024, compared to a loss per share of USD 0.0007 in the same period last year.The improvement in PSAB's performance is also reflected in its stock price, which has surged significantly. Year to date, PSAB's stock price has accumulated a gain of 147.73%. However, at the beginning of August, on Thursday, August 1, PSAB's stock price decreased by 0.91% to IDR 218 per share.For your information, PSAB is controlled by Jimmy Budiarto as the controlling shareholder, with a 92.50% ownership. PSAB controls several business entities, most of which are owned through PT J Resources Nusantara.PSAB's subsidiary, PT J Resources Nusantara (JRN), actively invests in various projects. Most recently, JRN was awarded at the Jakarta Investment Award 2024 held on Wednesday, July 31.JRN secured second place for the company with the largest investment realization contribution in the other services sector in 2023 in the Domestic Investment (PMDN) category. In addition to investment realization, two other criteria assessed were compliance with reporting requirements and social and environmental responsibility."This is an appreciation of J Resources' contribution to supporting regional economic growth through sustainable investment," said Director of J Resources Nusantara, Anang Rizkani Noor, in a release broadcast on Thursday, August 1.PT J Resources Nusantara directly owns six subsidiaries, including J&P Resources Gold OHQ (Malaysia), J Resources Netherland BV, PT J Resources Mining Services Indonesia, PT J Resources Bolaang Mongondow, PT Sago Prima Pratama, and PT Arafura Surya Alam.

Indonesia to supply EV battery components to Tesla starting January 2025
Indonesia to supply EV battery components to Tesla starting January 2025
06 Aug 2024, 09:54 AM 5436

The Indonesian government is reportedly in the process of reducing the portion of shares of Chinese companies in Indonesian nickel smelter projects, a maneuver believed to ensure the domestic downstream nickel ore industry to access the United States (US) government’s electric vehicle subsidies.“The government had discussed with several investors to build a new smelter, with Chinese companies having less than 25 percent of shares,” Bloomberg said in its report on July 26, 2024.However, Septian Hario Seto, Deputy for Investment and Mining at the Coordinating Ministry for Maritime Affairs and Investment, said that the government does not intervene in the business decision of each company to reduce the share of Chinese companies in the nickel projects in the country.“All projects are agreed through business-to-business between shareholders, including the decision on Chinese shareholder composition as a minority,” Seto said on July 26, 2024.Additionally, the government still continues negotiations to gain access to consumer tax credits that are included in the US Inflation Reduction Act (IRA) on electric vehicle incentives until now.It is known that IRA tightens metallic mineral criteria that can receive US government-allocated EV incentives after 2023. The regulation also allocates subsidies up to USS$370 billion (Rp6.025 trillion) to develop clean technology.Several of those criteria including mandatory metallic minerals to be processed in the US along with raw materials received originating from several countries must be included in the free trade agreement (FTA) with the US government.Meanwhile, China becomes a foreign entity of concern to not receive IRA facilities in mineral downstream projects.Previously, Jose W. Fernandez, US Deputy Secretary of State for Economic Growth, Energy, and the Environment said, there are big potentials in critical mineral cooperation with Indonesia, and its government continues to discuss the agreements.“But this is a positive discussion and we want to work towards a critical mineral agreement that will allow more companies from the US and elsewhere to invest in the critical mineral industry here, in Indonesia,” he said on July, 15, 2024.He also stated that his colleagues had spoken with the government about the mineral security partnership, that comprises 14 countries including the European Union (EU), which cover more that 55 percent of the world’s Gross Domestic Product (GDP). These countries include India, Australia, Japan, the US, and others.

Petrosea (PTRO) Signs Contractor Management Agreement with Bumi Barito Mineral
Petrosea (PTRO) Signs Contractor Management Agreement with Bumi Barito Mineral
06 Aug 2024, 09:53 AM 5500

PT Petrosea Tbk (PTRO) signed a contractor and vendor management term sheet with PT Bumi Barito Mineral (BBM) on July 30, 2024.Anto Broto, Corporate Secretary of PTRO, stated in a written statement on Thursday, August 1, that based on the term sheet, Petrosea will provide support to ensure smooth and sustainable production processes. This support includes monitoring, reviewing, and providing recommendations on the implementation of mining contractor services, blasting services, and fuel vendor services.Furthermore, Anto explained that under the term sheet, PTRO will also assist in the search and selection of fuel and blasting vendors for a duration of one year, ensuring compliance with applicable laws and regulations.For your information, BBM is a subsidiary of Cokal LTD (CKA), a public company listed on the Australian Stock Exchange with a focus on coking/metallurgical coal. BBM holds a Mining Operation Production Permit (IUP OP) for metallurgical coal located in Central Kapuas District, Kapuas Regency, Central Kalimantan Province.Anto added that this agreement positively impacts PTRO's operational activities, legal standing, financial condition, and business continuity.

Australian nickel company BHP eyes investment opportunities in Indonesia
Australian nickel company BHP eyes investment opportunities in Indonesia
06 Aug 2024, 09:09 AM 6267

The Indonesian Nickel Miners Association (APNI) has announced potential investment interest from Australian mining giant BHP in Indonesia’s nickel industry in anticipation of new regulations under the incoming Prabowo Subianto-Gibran Rakabuming Raka administration.Meidy Katrin Lengkey, Secretary-General of APNI, revealed that discussions have taken place, though no formal confirmation has been made.“There is potential for this to happen. We hope companies outside China will also consider investing in Indonesia,” Meidy said during an interview in Jakarta on Monday, July 29, 2024.The possibility of BHP entering the Indonesian market could materialize as early as next year, contingent on the political climate and forthcoming regulations.APNI is currently awaiting policy decisions from the new government, led by President Prabowo Subianto and Vice President Gibran Rakabuming Raka, particularly those that could invigorate investor interest.BHP’s investment interest is driven by the company’s need for raw materials to produce nickel matte derivatives.“Essentially, any investment will require them to secure an upstream partner first,” Meidy said.The presence of numerous nickel smelters in Indonesia further enhances the appeal for potential investors like BHP.Indonesia, the world’s largest nickel producer, has recently imported 380,000 tons of nickel ore from the Philippines as of July 2024.This importation is partly due to insufficient domestic supply, with local miners facing delays in receiving production approvals.Meidy emphasized that there are no regulations preventing companies from importing nickel, provided it is processed within Indonesia.This situation was echoed by PT Kalimantan Ferro Industry, which continues to import nickel ore from the Philippines for its smelter operations in East Kalimantan. The company’s representative, Ardhi Soemargo, cited delays in obtaining local supply approvals as the reason for importing nickel.As the industry awaits new government policies, the potential entry of BHP into Indonesia’s nickel sector could signal a significant boost to the country’s mining industry, diversifying investment sources beyond the dominant Chinese presence.

Indonesia aims to cut Chinese stakes in nickel projects for US subsidies
Indonesia aims to cut Chinese stakes in nickel projects for US subsidies
31 Jul 2024, 11:02 AM 5290

Indonesia’s government is trying to reduce Chinese involvement in new nickel projects to qualify for US government subsidies, according to a report by the Financial Times.Indonesian officials have been discussing with investors the construction of new smelters where Chinese companies hold less than a 25 per cent stake, said Septian Hario Seto, the deputy coordinating minister for investment and mining,Chinese companies are approaching Indonesian and South Korean firms for potential partnerships in high-pressure acid leaching (HPAL) plants under construction and those in the planning stage, Septian Hario Seto, a Deputy Coordinating Minister for Maritime and Investment Affairs told Reuters on Friday.Under the US Inflation Reduction Act, to be eligible for an electric vehicle (EV) tax cut, materials for an EV or batteries must be supplied by firms with not more than 25% ownership by a ”foreign entity of concern”, which applies to companies from China, Russia, North Korea and Iran.HPAL is a method for producing nickel material used in EV batteries from nickel ore.The intention is to reduce the Chinese companies’ stakes and be eligible for the tax credits in the U.S. market, said Seto, who oversees the mining sector at the coordinating ministry, adding Indonesian companies are also seeking majority shares in such projects.”The Chinese company will act as the technology provider, the Indonesian investors as the ones to provide the nickel ore and the Korean investors would be the off-takers,” he said.Indonesia, the world’s biggest producer of nickel, has been negotiating a critical mineral deal with Washington so that its nickel can be included in the supply chain recognised by the IRA. But the Southeast Asian nation’s nickel industry is dominated by Chinese companies such as Tshingshan Holding Group, Zhejiang Huayou Cobalt and Lygend Resources and Technology.The Financial Times reported on Thursday Indonesia’s government and industry are structuring new investment deals with Chinese companies as minority shareholders.Seto said the efforts are business-to-business, with no government intervention.During a visit to Jakarta last week, U.S. official Jose Fernandez said both countries’ negotiations on the critical mineral agreement were progressing positively but did not share details on timeline.

Nickel Industries Limited Takes Home IDX Channel Anugerah ESG 2024 Award
Nickel Industries Limited Takes Home IDX Channel Anugerah ESG 2024 Award
31 Jul 2024, 11:00 AM 4561

Nickel Industries Limited has won the 2024 IDX Channel ESG Award.The award was given because the company has implemented an integrated ESG program, Surya PLTS, which contributes to the sustainable nickel industry.Head of Sustainability at Nickel Industries Limited, Muchtazar, revealed that the company has successfully proven that producing green, sustainable, and responsible nickel is very possible.Contrary to much foreign media coverage that suggests Indonesian nickel is of low quality, Nickel Industries Limited, through its integrated upstream to downstream program and its three pillars of environment, economy, and social responsibility, can produce nickel with very low carbon emissions.Muchtazar mentioned that the company is currently building a 200 MWp solar power plant (PLTS) which, once completed, will be the largest PLTS, while remaining community and environmentally friendly. This PLTS is designed to minimize the use of diesel fuel."Here, solar refers to diesel fuel, meaning 31 million liters of diesel fuel. So, you can imagine the savings in terms of both costs and carbon footprint, which will be significantly reduced," said Muchtazar, when met at the Indonesia Stock Exchange Building on Friday, July 25, 2024.Furthermore, Muchtazar stated that the ESG program will not stop here. According to Muchtazar, the company is determined to become the world's largest and most responsible nickel producer by transforming nickel processing technology from thermal power to chemical processes."We are developing what is called HPAL, high pressure acid leaching, which uses chemical technology and results in a reduction in carbon emission intensity. It is very efficient and ultimately helps us achieve net zero by 2050," said Muchtazar.

Luhut: Government to Build Electric Vehicle Battery Research Center in Morowali
Luhut: Government to Build Electric Vehicle Battery Research Center in Morowali
31 Jul 2024, 10:59 AM 5632

The government plans to establish an electric vehicle (EV) battery research center in Morowali, Central Sulawesi. This was announced by the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, during his speech at the International Battery Summit in Jakarta on Monday, July 29, 2024."We will have our own research center. Currently, it seems that Prof. Kartini (founder of the National Battery Research Institute) already has such research, but we (the government) want to create a larger research center in Morowali," said Luhut.The construction of this EV battery research center aims to position Indonesia as an active player in the development of electric vehicles, which have recently gained popularity. Luhut hopes that this research center will be a stepping stone for the electric vehicle industry in the country.Therefore, Luhut invites all relevant institutions to collaborate and become part of the development of this research center in Morowali. These institutions include various prominent universities in Indonesia.To achieve this goal, Luhut mentioned that the government is also sending dozens of young people abroad to study electric vehicle batteries. A total of 42 youths have been sent to China for this purpose.Additionally, the government is inviting several researchers from China to come to Morowali to help develop the EV battery research center.Indonesia has also established a recycling industry for electric motorcycle and car batteries in Morowali. According to him, EV battery recycling is an important part of building a green industry, one that respects environmental sustainability.

Vale (INCO) Believes Nickel Prospects Remain Solid Despite Difficult EV Adoption
Vale (INCO) Believes Nickel Prospects Remain Solid Despite Difficult EV Adoption
31 Jul 2024, 10:59 AM 5185

PT Vale Indonesia Tbk (INCO) is optimistic that nickel demand for electric vehicles (EVs) will remain strong, despite the sentiment of McKinsey & Company's research which states that 29% of electric car owners globally are considering switching to fossil-based fuel cars.Chief of Sustainability and Corporate Affairs Officer of Vale Indonesia, Bernardus Irmanto, said nickel is the main material in the production of more efficient and durable batteries. On the other hand, improvements in battery technology will continue to require a stable supply of nickel.Bernardus underlined that nickel for electric car batteries has a high energy density, which provides a solution for a more durable range compared to other types of batteries."The production cost of nickel-based batteries, with continuous innovation, is also expected to gradually decrease and reduce the price of electric cars," Bernardus told Bloomberg Technoz, quoted Saturday (27/7/2024).The nickel processing complex operated by PT Vale Indonesia in Sorowako, South Sulawesi, Saturday (11/6/2022). (Dimas Ardian/Bloomberg)In addition, Bernardus said that the policies of countries in the world to encourage the production, sales and use of electric cars are also still very strong.Vale did not deny that there are currently challenges in the adoption of electric vehicles – one of which is in the form of infrastructure – conveyed in the research. However, that does not mean that EV adoption will not occur."It may only take longer than previously projected. After all, EVs are part of the solution to tackle climate change. Without EV adoption, it will be difficult for us to achieve the targets that have been agreed," he said.HPAL ProjectFurthermore, Bernardus said Vale's high pressure acid leaching (HPAL)-based refinery or smelter projects in Pomalaa and Sorowako are designed to meet the need for high-quality nickel required for EV batteries.Despite the challenges identified in the McKinsey & Company study, Bernardus said, Vale believes global demand for high-quality nickel will continue to increase as the world works to reduce carbon emissions and switch to cleaner energy sources."We will continue to work with various stakeholders to ensure that the infrastructure and technology that supports EVs can evolve in accordance with market needs," he said.Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif in a working meeting with Commission VII of the House of Representatives of the Republic of Indonesia said that the nickel mine in Sorowako will be operational in 2027, while the HPAL smelter is in the process of drafting a definitive cooperation agreement with Huayou. The investment value reaches USD 2 billion.The factory will produce MHP which is a raw material for electric vehicle batteries. In addition, the processing facility is targeted to be able to produce 60,000 tons of nickel and 5,000 tons of cobalt per year in the form of MHP.Meanwhile, the nickel mine in Pomalaa will operate in 2026, where related to the HPAL smelter has signed a definitive agreement. The investment value reached USD 4.6 billion.The HPAL-based smelter project with a capacity of 120,000 tons of nickel in MHP format is located in the Pomalaa Block. This project is the result of INCO's joint venture with Huayou and Ford Motor Co which was signed in March last year, which formed a joint venture company called PT Kolaka Nickel Indonesia (KNI).For information, the McKinsey survey involved more than 3,000 respondents in 15 countries. The survey covers more than 80% of world car sales.The country with the most respondents who answered that they want to return to fuel cars is Australia with 49%, followed by the United States (46%), and Brazil (38%).The highest reason for those who want to return to fuel cars is inadequate electric charging facilities (35%). Others are expensive maintenance costs (34%) and difficulty driving long distances (32%).

Antam – CATL develop midstream nickel industry
Antam – CATL develop midstream nickel industry
31 Jul 2024, 10:57 AM 6027

State-owned mining company PT Aneka Tambang (Antam) and China’s battery giant, Contemporary Emperex Technology Co. (CATL), are developing midstream nickel industry.Chief Executive Officer of Antam, Nico Kanter, said both companies are preparing land for the industrial park, arranging the permits and carrying out feasibility study to finalize the midstream sector including Rotary Kiln-Electric Furnace (RKAF) and High Pressure Acid Leaching (HPAL).“All are still on going” Nico Kanter said in Jakarta on Monday, July 22, 2024.Earlier reports reveal that the entire investment plan of CATL, amounting to USD 5.8 billion (IDR 90.50 trillion) has been finalized from upstream to downstream. Antam has completed the sale and purchase agreement (SPA) transactions for the shares of its subsidiaries − PT Sumberdaya Arindo (SDA) and PT Feni Haltim (FHT) − with CATL’s affiliate HongKong CBL Limited (HKCBL) at the Ministry of Investment in Jakarta on December 28, 2023.This share transaction marks the beginning of collaboration between Antam and CATL in the upstream mining, refining, and further processing of nickel derivatives into battery cells in the Dragon project undertaken by the global electric battery producer in Indonesia.Deputy Minister for Investment and Mining at the Coordinating Ministry for Maritime Affairs and Investment, Septian Hario Seto, said that Antam, along with Indonesia Battery Corporation (IBC), has signed a Joint Venture Agreement with CATL for downstream projects related to their electric battery development cooperation in the country.The consortium is planning to realize investments in downstream facilities for cathode, precursor, and battery cell factories after completing the SPA signing on the upstream side.“The next stage of development downstream already has its timetable,” Seto said.The investment allocation will be absorbed gradually over a period of three to four years in line with the timeline of the electric battery industry’s construction phases.Antam and CBL made two transactions on December 28, 2023, including a share transaction for Antam’s subsidiary SDA and another for FHT. The SDA-HKCBL divestment transaction value, to be paid in cash by HKCBL to Antam, is USD 416.5 million or equivalent to IDR 6.5 trillion. Antam also holds a contingent right to receive payment if additional reserves are discovered in the SDA mining area within 36 months from the transaction date, i.e., December 28, 2023.

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