Below is a list with tagged columns and company profiles.

Today's Headlines Mining

  • Indonesian Government vs Contract of Work: Mineral Ore Export Rules

    A coalition of civil society groups is ready to challenge Indonesia's new mining rules at the Supreme Court next week, specifically those rules that impact negatively on the longstanding Contracts of Work (Kontrak Karya) as well as the (re-)opening of nickel ore and bauxite exports. Late last week, the Indonesian government announced to ease the controversial ban on exports of mineral ore. The government was immediately criticized for this "flip-flop policy". The move could flood global markets and put pressure on prices.

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  • Flip-Flopping the Mining Law: What are Indonesia's New Mining Rules?

    The government of Indonesia revised rules regarding the ban on unprocessed ore exports. Originally, Southeast Asia's largest economy (a key exporter of natural resources) planned to ban exports of mineral ore per 12 January 2014 in a bid to encourage the development of domestic higher value smelting facilities (part of the New Mining Law that was unveiled in 2009). However, a three-year delay was announced (through a presidential regulation) on the evening before the ban would be imposed as local processing capacity was still insufficient. Now, three years later, there have been more revisions.

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  • Miners Need Certainty about Indonesia's Mineral Ore Export Ban

    Entrepreneurs in Indonesia urge the central government to provide clarity about the ban on exports of unprocessed minerals that is set to be implemented on 12 January 2017, provided the government will not alter its policy. Initially, the full ban would be introduced on 12 January 2014 in an effort to boost the downstream mining industries (hence becoming an exporter of mining products that are positioned higher in the value chain rather than remaining dependent on raw materials that are very vulnerable to volatile price movements).

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  • Government of Indonesia Still Discussing Mineral Ore Export Ban

    Indonesia's Energy and Mineral Resources Minister Luhut Pandjaitan informed local media that the government of Indonesia may allow more time for the nation's miners to build smelting facilities. Law No. 4 of 2009 on Mineral and Coal Mining originally banned mineral ore exports from Indonesia by January 2014 (forcing miners to process the material domestically into value-added products first). However, due to the lack of adequate smelting facilities this ban was delayed by three years (January 2017).

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  • Heavy Equipment Sector Indonesia Remains under Pressure

    Production of heavy equipment in Indonesia continues to slide. In the first half of 2016 Indonesia produced a total of 1,471 heavy equipment units, down 35 percent (y/y) from 2,256 units in the same period one year earlier. Meanwhile, utilization of the nation's installed heavy equipment production capacity plunged from 40 percent to 30 percent over the same period. Overall, the heavy equipment sector of Indonesia has been plagued by weak conditions in the mining and agriculture sectors. The construction sector now forms the main source of heavy equipment sales.

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  • Foreign Miners exit Indonesia on Low Commodity Prices & Protectionism

    Again a big western mining company plans to exit Indonesia. US-based Newmont Mining Corp reportedly agreed to sell its 48.5 percent stake in copper and gold miner Newmont Nusa Tenggara (the operator of the Batu Hijau mine) for USD $1.3 billion (including contingent payment of up to USD $403 million). The stake is set to be sold to Amman Mineral Internasional. Newmont Chief Executive Gary Goldberg said the move is in line with the company's commitment to lower debt and fund its higher margin mining projects in order to create value for shareholders.

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  • Copper Export Permit Newmont Nusa Tenggara Expired, Waiting for Extension

    Business activities at Newmont Nusa Tenggara (NNT), one of Indonesia’s largest copper miners, could be disrupted as the subsidiary of US-based mining company Newmont Mining Corp is yet to obtain a recommendation letter (from Indonesia's Energy and Mineral Resources Ministry) to renew its 6-month copper concentrate export permit (which expired on 20 May 2016). The recommendation from the Energy Ministry is needed to obtain the export permit from Indonesia's Trade Ministry.

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  • Newmont Nusa Tenggara Asks for Copper Concentrate Export Permit Extension

    Copper and gold miner Newmont Nusa Tenggara, the local unit of US-based mining giant Newmont Mining Corp, requested for a new recommendation letter from Indonesia's Energy and Mineral Resources Ministry. This recommendation letter is required to extend Newmont's six-month copper concentrate export permit at the nation's Trade Ministry. This would be the fourth time Newmont's export permit is extended. Whether Indonesia's Energy and Mineral Resources Ministry issues the export recommendation letter depends on progress made with the construction of smelting facilities.

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  • Indonesia Objects to $1.7 Billion Asking Price for Freeport Indonesia Stake

    There is still no agreement between Indonesia and Freeport Indonesia regarding the sale of a 10.64 percent stake in Freeport Indonesia. Indonesia's Ministry of Energy and Mineral Resources objected to the USD $1.7 billion asking price for the stake in Freeport Indonesia, the local unit of US mining giant Freeport McMoRan. Based on Indonesian Government Regulation No. 77/2014 on the Implementation of Mineral and Coal Mining Business Activities, Freeport Indonesia is required to divest a 30 percent stake (to an Indonesian party) before 2019.

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  • Coal Mining in Indonesia: Limited Reason for Optimism

    Having been the center of negative attention for quite some years now, Indonesia's coal mining sector has given some room for speculation that conditions will improve. Indonesia's coal price (Harga Batubara Acuan, abbreviated HBA), a monthly price set by Indonesia's Energy and Mineral Resource Ministry and mostly based on the average of global coal prices, rose 1.3 percent (m/m) to USD $51.62 per ton in March 2016. Although it is much too early to start speculating about a sustained rebound, the increase is remarkable as it is the first time in exactly one year that the HBA manages to rise.

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Latest Columns Mining

  • Copper Production at Freeport Indonesia Still Not Back on Track

    Production is still not back on track at Freeport Indonesia’s Grasberg mine in Papua as around 1,000 workers have not showed up for work since the second week of October. These workers refuse to work after a series of (fatal) incidents that led to concern about safety policies. In May 2013, 28 Freeport Indonesia workers died after a tunnel collapsed. More recently, in late September 2014, four workers died after a giant haulage truck collided with another vehicle (carrying nine passengers) at the Grasberg mine.

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  • Bank Indonesia: Current Account Deficit Improved in 3rd Quarter 2014

    The wide current account deficit of Indonesia is expected to have eased in the third quarter of 2014. According to information from the country’s central bank, the current account deficit narrowed to 3.1 percent of gross domestic product (GDP) in Q3-2014 from 4.27 percent of GDP in the previous quarter. A deficit below the level of 3 percent of GDP is generally regarded as a sustainable level. The improvement in Q3-2014 is mainly due to resumed mineral exports after the government and several miners managed to finalize renegotiations.

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  • Newmont Nusa Tenggara Resumes Copper Concentrate Exports

    Newmont Nusa Tenggara (NNT), subsidiary of US-based mining company Newmont Mining Corp, has received a permit from the Indonesian government to export 350,000 metric tons of copper concentrate in the next three years. Three weeks ago it became known that both parties agreed on the content of a renegotiation package after an eight-month dispute over Indonesia’s mineral ore export ban, implemented on 12 January 2014 (part of the New Mining Law). In the remainder of 2014, the company is expected to export 160,000 tons.

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  • Corporate Earnings Reports Indonesian Companies in the First Half of 2014

    Indonesia Investments presents a selection of corporate earnings reports (covering the first half of 2014) of Indonesian companies that are listed on the Indonesia Stock Exchange (IDX), categorized by sector: (1) agriculture and mining, (2) basic industry and chemicals, (3) miscellaneous industry, (4) consumer goods, (5) property and real estate, (6) infrastructure, utilities and transportation, (7) finance, and (8) trade, services and investment. The tables display both net profit (loss) and revenues, together with year-on-year (yoy) growth.

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  • Stock Market Indonesia Update: Up on Positive SBY-Jokowi Transition

    The benchmark stock index of Indonesia (Jakarta Composite Index, abbreviated IHSG) rose 0.37 percent to 5,184.48 on Thursday’s trading day (28/08) on increased expectation that the transition from the Susilo Bambang Yudhoyono (SBY) government to the Joko “Jokowi” Widodo government will be smooth and efficient evidenced by the pair's meeting in Bali to discuss various matters regarding the transfer of power. For investors, this meeting led to increased optimism. Stocks in the property and miscellaneous sectors led the gain.

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  • Mining in Indonesia: Newmont Nusa Tenggara Drops Arbitration Case

    Reportedly, Newmont Nusa Tenggara (NNT) will not seek international arbitration at the Centre for Settlement of Investment Disputes (ICSID) in Washington (USA). Previously, the miner threatened to file for arbitration in an attempt to force the Indonesian government to cancel the recently introduced ban on exports of unprocessed minerals as well as to abort higher export duties. NNT is a subsidiary of Newmont Mining Corporation that operates the Batu Hijau mine, an open pit copper and gold mine in Sumbawa.

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  • Mining Renegotiations: Freeport Indonesia Builds Copper Smelter

    Subsidiary of US-based natural resources company Freeport McMoRan Copper & Gold Inc, Freeport Indonesia, decided to build its copper smelter in Gresik (East Java) as infrastructure around this regency makes it easier to transport its mining products for export purposes. The other location that Freeport was considering was in Papua, near its mining site the Grasberg mine, the world’s largest gold mine and third-largest copper mine. However, infrastructure in Papua (one of the poorest regions in Indonesia) is still underdeveloped.

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  • Freeport Indonesia about Extension Grasberg Contract and New Mining Law

    Freeport Indonesia, subsidiary of US-based natural resources company Freeport McMoRan Copper & Gold Inc, is optimistic that the Indonesian government will extend the company’s contract to operate the Grasberg mine in Papua (eastern Indonesia). This mine is the world’s largest gold mine and third-largest copper mine. The current contract between the Indonesian government and Freeport Indonesia expires in 2021. However, Freeport is currently in need of some certainty before investing a large amount on mining operations and smelting facilities.

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  • Export Ban Dispute: Newmont Nusa Tenggara vs Indonesian Government

    The dispute between the Indonesian government and mining giant Newmont Nusa Tenggara (NNT) over the recently implemented ban on the export of unprocessed copper, gold, nickel, bauxite and iron is heading for a climax. In Indonesian media, President Susilo Bambang Yudhoyono was quoted saying “NNT has undermined the sense of justice of the Indonesian people” and pronounced his disappointment of NNT’s reluctance to respect the sovereignty of the state. Previously, the government said it may revoke mining permits of NNT.

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  • Joko Widodo’s Political & Economic Agenda: Future of Jokowi’s Indonesia?

    When campaigning, presidential candidates will always promise a bright future in order to gain votes. It is particularly easy for a new presidential candidate to promise golden mountains as opposed to the incumbent president who needs to be more cautious making promises as people can point to the (failed) results of his promises during the presidential term. The 2014 Indonesian presidential election was particularly interesting as we saw two new presidential candidates and, thus, the ‘inflation of promises’.

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