The Asia Miner

APR-JUN 2019

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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Page 12 of 71

the asia miner • volume 16 • issue 2 11 REGIONAL FOCUS: SE Asia & Indonesia Six foreign-controlled miners operaঞng in Indonesia, including PT Vale Indonesia and a unit of Australia's Newcrest Mining, intend to divest some of their shares to meet regulaঞons. According to Indonesian mining rules, foreign-controlled miners are required to gradually start reducing ownership a[er five years of producঞon. Within 10 years, foreign ownership should be cut to at least 49 per cent. The six companies included nickel miner Vale Indonesia and gold miner PT Nusa Hamahera Mineral, which is 75 per cent controlled by Newcrest Mining, Yunus Saefulhak, director of minerals, Energy and Mineral Resources ministry, said. The others were gold mining companies PT Kasongan Bumi Kencana and PT Ensbury Kalteng Mining, as well as diamond miner PT Galuh Kencana, he added. Saefulhak did not specify when the companies would start divesঞng their shares. Chief Execuঞve of Vale Indonesia Nico Kanter said last month that the company was in talks with the government on its divestment plan and expected to start before October this year. Brazil's Vale SA controls nearly 60per cent of Vale Indonesia, while public shareholders hold about 20 per cent of the company's stake. Gold miner PT Natarang Mining, which is 85 per ent controlled by Australia's Kingrose Mining, had also conveyed its divestment plan to the government, Saefulhak said. Reuters Six foreign-controlled miners to start divestments PT Bukit Asam Tbk (PTBA), PT Pertamina (Persero) and Air Product have announced the planned construcঞon of coal downstreaming DME plant at PTBA's mine site at Peranap, Riau. The announcement followed the signing of a Memorandum of Understanding (MoU) and Joint Venture Agreement concerning coal downstreaming between PTBA, Pertamina and Air Products on 7 November 2018 in Allentown, USA. As part of the deal, the three parঞes have agreed to cooperate in coal gasificaঞon that will convert low rank coal to an end product with higher added value. In mid-January 2019, the three companies agreed to establish a JV company that processes coal and its downstream products. The Agreement was sঞpulated in a Points of Agreement in the Establishment of PTBA's Mine Mouth Coal Downstreaming JV at Peranap, Riau. Construction of new coal downstreaming DME plant at Peranap PTBA, Pertamina and Air Products to construct coal downstreaming DME plant at Peranap, Riau Through the gasificaঞon technology, the coal will be converted to syngas, which will be processed into an end product. PTBA will supply the coal from its Peranap mine site to the JV plant which will be operated by Pertamina. Meanwhile, the design opঞmisaঞon technology will come from Air Products and Chemicals. The Minister for State Owned Enterpries, Rini Soemarno, sees the agreement as a posiঞve, saying that Indonesia should develop its coal downstreaming industry not only to reduce imports, but also to develop export. "Downstreaming is also important as an effort to reduce coal polluঞon by producing clean energy in the form of syngas, which will serve as an upstream for various products, such as DME to diesel fuel and aviaঞon fuel," Minister Rini said. The coal gasificaঞon project at Peranap Mine Mouth, is expected to help strengthen the naঞonal energy resilience and to improve welfare for the community. The next phase following the launch is the plant construcঞon, with the plant capacity slated for 1.4 million tonnes of DME annually with coal requirement of 9.2 million tonnes.

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