Revised terms for Dawn HPAL+ project lifts nameplate capacity, lowers capex guarantee - Nickel Indus...
Revised terms for Dawn HPAL+ project lifts nameplate capacity, lowers capex guarantee - Nickel Indus...
06 Mar 2023, 12:00 PM 5344

Australia-based Nickel Industries on Monday unveiled plans for a 67 000 t/y high-pressure acid leach (HPAL) project, in Indonesia, that would cost no more than $2.3-billion to bring to nameplate capacity. The ASX-listed company announced revised terms for the Dawn HPAL+ project which forms part of an electric vehicle battery supply chain strategic framework agreement that it entered into with Shanghai Decent in January this year.The new terms include the nameplate capacity boost and a “capex guarantee” whereby the total construction and commissioning will not exceed $2.3-billion. The agreement previously committed to a maximum of $2.5-billion. In addition to producing a mixed hydroxide precipitate (MHP), the project – to be known as the Excelsior Nickel Cobalt project (ENC) – will be capable of producing both nickel sulphate and nickel cathode.This differentiates it from the current generation of HPAL plants currently being constructed across Indonesia, and provides Nickel Industries with significant operating flexibility through the cycle. Nickel Industries MD Justin Werner said the ability of the project to produce not only MHP, but also go further downstream to produce nickel sulphate and nickel cathode, would allow for greater margin capture. “[This will] make us one of the first truly diversified HPAL producers with a mix of class 1 nickel products that can be selectively sold into different sectors of the nickel market as pricing dynamics dictate,” he stated.Nickel Industries and Shanghai Decent were currently working on a feasibility study for ENC ahead of a final investment decision by Nickel Industries’ board. Construction is expected to start in December 2023, or March 2024, or anytime earlier that both parties agree. Following this, commissioning will start no later than 24 months thereafter. Nickel Industries would own a 60% to 70% equity interest in the project with Shanghai Decent owning 30% to 40%; however, both parties were open to the introduction of other strategic partners which may lead to a dilution of these interests.“Most importantly, the $2.3-billion capital expenditure guarantee we have secured represents a highly competitive capital intensity compared to several recently announced projects, particularly considering this cost guarantee goes beyond purely engineering, procurement and construction costs and is inclusive of seeing the project delivered to operational nameplate capacity,” said Werner.The capex guarantee also includes a tailings solution which is best in breed for tailings storage and management, and an integrated sulphuric acid plant which will generate significant heat that can be turned into power lowering the carbon footprint significantly. “Given the recent slew of announced capex blowouts in the nickel and battery metals industry, the value of a capex guarantee to deliver a leading HPAL solution cannot be overstated,” he said.Nickel Industries also reported that it had reached agreement with Shanghai Decent to switch two of Angel Nickel’s rotary kiln electric furnace lines to the production of nickel matte. Following the successful switch of Hengjaya Nickel’s production from nickel pig iron to nickel matte in the December quarter of 2022, two of Angel Nickel’s rotary kiln electric furnace lines will undergo minor capital modifications to the value of $2-million to enable the transition to matte production. The switch to nickel matte production, which will be subject to market conditions, is not expected to occur until early 2024, as low-grade to high-grade converter capacity is currently under construction within the Indonesia Weda Bay Industrial Park. Source: https://www.miningweekly.com/article/revised-terms-for-dawn-hpal-project-lifts-nameplate-capacity-lowers-capex-guarantee--nickel-industries-2023-03-06/rep_id:3650

Aneka Tambang (ANTM) Optimistic that the Battery Ecosystem Will Grow
Aneka Tambang (ANTM) Optimistic that the Battery Ecosystem Will Grow
05 Mar 2023, 12:00 PM 4421

PT Aneka Tambang Tbk (ANTM) is optimistic that the development of the electric vehicle battery ecosystem business will be increasingly encouraged in the future. Previously, President Joko Widodo issued Presidential Decree No. 3 of 2023 which granted permits for mining in forest areas for two Aneka Tambang companies. Meanwhile, Presidential Decree Number 3 of 2023 concerning Amendments to Presidential Decree Number 41 of 2004 concerning Licensing or Agreements in the Mining Sector Located in Forest Areas specifically stipulates permits for two companies namely PT Sumber Daya Arindo and PT Nusa Karya Arindo.ANTM Corporate Secretary Division Head Syarif Faisal Alkadrie positively welcomed the presence of this regulation. According to him, the granting of this permit is government support for the development of electric vehicle batteries by ANTM. "We believe that the existence of this Presidential Decree will bring good benefits to our subsidiary, Antam and the government because it will increase investment in North Maluku, and support the development of the Indonesian EV Battery ecosystem," Faisal told Kontan, Friday (3/3). Faisal said that later the two subsidiaries would manage the electric vehicle battery business by collaborating with strategic partnersIn this regulation, it is also ensured that there will be no change in the size of the area. In the previous regulation, the total area of the ANTM permit area was set at 39,040 Ha. The three companies are listed as producing nickel in the form of minerals. Meanwhile, if you refer to the latest regulation attachment, the land licensing areas are now divided as follows, PT Aneka Tambang Tbk (ANTM) of 3,648 Ha, PT Sumber Daya Arindo of 14,421 Ha and PT Nusa Karya Arindo of 20,763 Ha. ANTM targets ferronickel production and sales in 2023 to reach 27,201 TNi. This target has increased by 12% from actual production and sales throughout 2022, which amounted to 24,334 TNi and 24,210 TNi respectively.Meanwhile, for nickel ore this year, it is targeted to produce 11.30 million wet metric tons (wmt). This number increased by 31% from the achievement of nickel ore production in 2022 which reached 8.62 million wmt. It is noted that currently ANTM is continuing to complete the project construction of a ferronickel plant with a capacity of 13,500 TNi per year in East Halmahera along with supporting infrastructure for the factory which has entered the project construction phase.Source: https://industri.kontan.co.id/news/aneka-tambang-antm-optimistis-pengembangan-bisnis-ekosistem-baterai-bakal-tumbuh

Mifa Bersaudara Target 15% Income Growth in 2023
Mifa Bersaudara Target 15% Income Growth in 2023
02 Mar 2023, 12:00 PM 5901

PT Mifa Bersaudara, a coal mining company located in West Aceh Regency, targets revenue to grow 15% following the growth in coal production volume throughout this year. This projected increase in financial performance also considers coal commodity prices which are not much different from 2022. General Manager Operation Mifa Bersaudara, Hadi Firmansah, explained that several experts projected that coal prices would still be in a strong position in the next two to three years. “But in the three years since, prices have started to decline again. But we went through a time when coal prices were at their lowest point in 2015-2016 and we were still able to operate," he explained when met in Bogor, Saturday (26/2). In order to deal with the decline in coal commodity prices, Mifa Bersaudara will optimize existing business processes and efficiency of some production costs.Throughout this year, the Mifa Brothers have planned a coal production volume of 8 million tons. Meanwhile, when combined with the production of its sister company, PT Bara Energi Lestari, which often uses infrastructure from Mifa, the total coal production will reach 10.6 million tons this year. "Compared to last year, there was an increase of 1.3 million tons. This increase is due to increased demand," he said. Apart from selling domestically, the Mifa Brothers export their coal to a number of countries, namely to China, India, Thailand and Vietnam.Hadi explained, currently there are around 170 million coal reserves with a mine life of up to 2035. Seeing this condition Mifa Bersaudara plans to diversify its business into mineral mining. "Mifa's holding is PT Media Djaya Bersama, we are now diversifying towards nickel. However, the holding party is still looking for targeted nickel mining areas," he explained.Source: https://industri.kontan.co.id/news/mifa-bersaudara-targetkan-pendapatan-tumbuh-15-di-2023

Petrosea Launches Digitization of Mining Operations at IBP
Petrosea Launches Digitization of Mining Operations at IBP
02 Mar 2023, 12:00 PM 6640

PT Petrosea Tbk (PTRO) officially launched the Minerva Digital Platform for a coal mining project owned by PT Indo Bara Pratama (IBP) in Kembang Janggut, Kutai Kartanegara Regency, East Kalimantan. In the IBP project, Petrosea carries out project management work, which includes implementing operational excellence and technology solutions through the Minerva Digital Platform which is Petrosea's latest digital technology solution. This work includes mining in the pit to transporting coal to the port (pit to port activity) with the principles of good mining practices. In this regard, Petrosea also plans to implement a dozer push solution in mining activities at IBP.Petrosea is the only contractor that has conducted dozer push mining in Indonesia. Project management carried out by Petrosea is a new business model by collaborating with local contractors around the mining area. Petrosea assists local contractors to improve performance in mining productivity. This is done by implementing Petrosea's processes, procedures and standards so that operational excellence runs well and production targets can be achieved. In addition, the application of digital technology also plays an important role in maintaining mining operations, from pit operations to ports. All initiatives are controlled and monitored through the Minerva Digital Platform which is supported by a real-time and accurate Fleet Management System (FMS).This FMS system, which is applied to these smaller capacity devices, is the result of Petrosea's collaboration with local Indonesian partners. These tools will accelerate corrective actions quickly and accurately, so that the production process is not disrupted. "Petrosea has started a digital transformation of its mining operations in 2018 and thanks to its success it has received recognition from the World Economic Forum as a lighthouse company. We continue to develop digitalization at Petrosea to further increase productivity in all mining projects, including the IBP project," said Petrosea's President Director, Romi Novan Indrawan was quoted on Thursday (2/3). In running its business, Petrosea is fully supported by Haji Romo (Robert) Nitiyudo Wachjo who is the majority shareholder of one of the largest gold mines in Indonesia, PT Nusa Halmahera Minerals and PT Caraka Reksa Optima which is the main shareholder of PT Petrosea Tbk.Going forward, Petrosea's strategy under the leadership of Haji Robert is to continue to diversify its business into other mineral sectors through the provision of mining and engineering, procurement & construction (EPC) services on an ongoing basis. In addition, Petrosea's long-term strategy is to reposition from a mining contractor to a mine owner in order to strengthen the company's performance and provide added value to all stakeholders in the future. The launch event for the digitalization of the IBP project was carried out online from the Remote Operations Center (ROC) located at the Petrosea-Bintaro head office, where IBP management was represented by Russel Powell as Director. Meanwhile, Petrosea's management was represented by Romi Novan Indrawan as President Director, Rafael Nitiyudo as Vice President Director and Iman Darus Hikhman as Director of Mining & Business Development. Also present at this event were the IBP operational and technical teams to witness firsthand.Source: https://www.cnnindonesia.com/ekonomi/20230302143827-97-919901/petrosea-luncurkan-digitalisasi-operasional-tambang-di-proyek-ibp

Indo Tambangraya (ITMG) Sales Increase 75% Raised by Coal Selling Price
Indo Tambangraya (ITMG) Sales Increase 75% Raised by Coal Selling Price
01 Mar 2023, 12:00 PM 4626

Throughout 2022, PT Indo Tambangraya Megah Tbk (ITMG), recorded net sales of US$ 3.6 billion. Indo Tambangraya's sales shot up 75 percent from the previous year of around US$ 2.07 billion. Main Director of ITMG Mulianto said the increase in sales in 2022 was driven by the average selling price of coal of US$192 per ton, an increase of 86% from the previous year of around US$103 per ton. Meanwhile, the gross profit margin rose from 44% to 52% in 2022 amid rising global fuel prices, rising royalties, and various battles and challenges throughout 2022. Along with the increase in the acquisition of the average coal price, ITMG recorded a strengthening of cash flows with EBITDA reaching US$ 1.8 billion in 2022, up 101% from the previous year. Meanwhile, net profit rose 152% to US$ 1.2 billion in 2022 from US$ 475 million in 2021."By implementing prudent cash management, Indo Tambangraya has managed to maintain an increasingly solid balance sheet," said Mulianto in an official statement, Wednesday (1/3). Until the end of December 2022, ITMG's total assets were US$ 2.6 billion with a total equity of US$ 2 billion. In line with stronger cash flow and EBITDA, ITMG also has a solid cash and cash equivalent position of US$1.4 billion. The net profit per share was recorded at US$ 1.07 per share. Mulianto said that throughout 2022, ITMG produced 16.6 million tons of coal amidst high rainfall. Meanwhile, sales volume reached 18.9 million tons, of which around 5.9 million tons were marketed to China, 4.2 million tons to India, 2.9 million tons to Japan, 1.5 million tons to the Philippines, and 1.5 million tons to India. 1.1 million tons, other countries in Asia Pacific, and Europe.Source: https://investasi.kontan.co.id/news/penjualan-indo-tambangraya-itmg-naik-75-terangkat-harga-jual-batubara

Hillcon targets 45 percent revenue from nickel mining services by 2023
Hillcon targets 45 percent revenue from nickel mining services by 2023
01 Mar 2023, 12:00 PM 5314

Director of HILL Jaya Angdika in a press conference at the Main Hall of the Indonesia Stock Exchange (IDX), Jakarta, Wednesday, stated he was optimistic that the company's revenue could reach IDR 6 trillion in 2023, with a net profit of IDR 700 billion to IDR 800 billion. In addition, he is optimistic that the volume of nickel mining production can reach 15 million metric tons of nickel in 2023, from as many as 9 million in 2022. HILL also targets coal and nickel mining services to be balanced, each contributing 50 percent of the company's revenue. Hillcon officially listed its initial public offering (IPO) by raising funds worth IDR 552.8 billion, almost half of which will be used to develop the nickel industry in the country.HILL issued 442.3 million new shares or 15 percent of the company's issued and fully paid-up capital, with an offering price of IDR 1,250 per share. As the world's largest nickel producer, Indonesia is predicted to produce around 1.2 million tons of nickel in 2022, equivalent to 37.5 percent of total global production. Indonesia is also the second largest stainless steel producer in the world after China. In terms of nickel reserves, Indonesia has a share of 22 percent or the equivalent of 21 million tons of metallic nickel, and is predicted to remain the largest contributor to nickel ore and nickel ore supplies in the world, with an estimated market share of 38 percent by 2024.Source: https://www.antaranews.com/berita/3419550/hillcon-targetkan-45-persen-pendapatan-dari-jasa-tambang-nikel-di-2023

RMK Energy (RMKE) Transported 623,99 Thousand Tons of Coal in January 2023
RMK Energy (RMKE) Transported 623,99 Thousand Tons of Coal in January 2023
01 Mar 2023, 12:00 PM 3940

PT RMK Energy Tbk (RMKE) transported 623.99 thousand tons of coal in January 2023 or an increase of 99.67% year on year (YoY). This transport volume is the highest low season achievement for the last five years. From the coal sales segment, RMKE managed to sell 135.10 thousand tons of coal in January 2023, also the highest low season coal sales volume for the last 5 years, or a sharp increase from the lowest point due to the coal export ban policy early last year. The coal sales volume reached 4.85% this year's target. Based on the operational segment, coal sales and services contributed 17.80% and 82.20% respectively.RMKE Director of Finance Vincent Saputra said that this year his party will focus on completing the hauling road project which will be integrated with several mines in Muara Enim, including the mine owned by PTBA. This hauling road will be integrated with RMKE's Mount Megang loading station so that it can support the Company's operations to provide seamless coal logistics solutions in South Sumatra. In addition, Vincent ensured that the company also continuously sees opportunities for collaboration in the energy sector to increase the volume of services and sales of coal in the future."Based on the mid-term prospects that have been released, this year RMKE targets to be able to transport 10.8 million tons of coal and sell 2.78 million tons of coal. Of the total coal sales volume, PT Truba Bara Banyu Enim (TBBE), RMKE's in-house mine, will contribute 2.1 million tons of coal," Vincent said in a press release, Wednesday (1/3). Vincent continued, his party is optimistic that it can achieve better operating performance this year in line with the latest collaboration with PTBA in South Sumatra which is now in the finalization stage.Source: https://industri.kontan.co.id/news/rmk-energy-rmke-angkut-62399-ribu-ton-batubara-pada-januari-2023

Tin (TINS) Ausmelt Project Optimisation in Three Years
Tin (TINS) Ausmelt Project Optimisation in Three Years
28 Feb 2023, 12:00 PM 5284

PT Timah Tbk (TINS) targets to optimize the Ausmelt Furnace Muntok Smelter Top Submerge Lance (TSL) Project within the next three years. TINS Director of Business Development Alwin Albar revealed, the ausmelt project owned by TINS is the fifth project in the world to use ausmelt technology. Alwin revealed, the existence of this project was needed to overcome the exploration challenges currently being faced by TINS. According to him, so far the mining process that has been carried out is still an alluvial mine where the processing process can be carried out with the company's smelting furnace.However, since the end of 2022, TINS has begun to find many primary mines in the form of rocks that require a different smelting process. "Today, 23% of our resources are in the form of rock at 900 thousand tons, almost 1 million tons," said Alwin at TINS Gallery, Monday (27/2). Alwin revealed, with the need for exploration in this primary mine, the presence of the Ausmelt project was urgently needed. Just so you know, the project with an investment value equivalent to IDR 1.2 trillion has a capacity of 40 thousand tons. The presence of this project is even claimed to create processing cost efficiencies of up to 25%. Director of Operations TINS Purwoko explained, the presence of the Ausmel project encouraged the company to increase production in stages to meet existing capacity requirements."In the Company's Long Term Plan (RJPP) approximately in the next three years it should reach 40 thousand tonnes," explained Purwoko on the same occasion. Purwoko continued, this year's tin ore production is targeted to increase by 35% or around 26 thousand tons. Later, for the first year stages, the utilization of the Ausmelt project is targeted at 55% then in the second year it reaches 65% and increases again in the third year. "We still have three years to pursue it," said Purwoko. Kontan noted, the construction of the TSL Ausmelt Furnace is Timah's strategy to respond to the challenges currently faced by the tin mining industry, particularly in maximizing low tin grade concentrates. With the TSL Ausmelt Furnace, it is expected to be able to process low grade tin ore concentrate starting from 40% Sn, with a production capacity of 40,000 tons of crude tin per year or 35,000 metric tons of ingots per year. Not only that, the TSL Ausmelt Furnace is claimed to be more environmentally friendly because it is equipped with a Hygienist System and Waste Water Treatment.Source: https://industri.kontan.co.id/news/timah-tins-optimalisasi-proyek-ausmelt-dalam-tiga-tahun

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