AIPF 2023: MIND ID Invites Collaboration to Secure Mining Industry Supply Chain

Jakarta, 6 September 2023 – MIND ID, the Holding State-Owned Enterprise for the Mining Sector, plays an important role in the global mining commodity supply chain, specifically in the ASEAN region. As a Holding State-Owned Enterprise for the Mining Sector, MIND ID has the mandate from the Indonesian Government to maximize the potential of the country’s mineral resources.

MIND ID Chief Financial Officer (CFO) Akhmad Fazri said that the company continues to carry out the trust given by the Indonesian Government in maximizing the utilization of mineral resources. There are three mandates given by the government to MIND ID, the management of mineral resources; the downstreaming of minerals; and the leadership in the global market by optimizing the commodity and expanding the mining business.

“The MIND ID Group is currently managing several important minerals and materials to be processed into domestic products such as gold, nickel, bauxite, aluminium, copper, tin, and coal,” said Akhmad Fauzi at the ASEAN-Indo-Pacific Forum (AIPF) 2023 at Hotel Mulia Jakarta, Wednesday (6/9/2023).

The forum called “Implementation of The ASEAN Outlook on The Indo-Pacific” covers panel discussions, business meetings, and project exhibitions to strengthen business collaboration in the ASEAN and Indo-Pacific region.

MIND ID is now operating in 17 provinces in Indonesia, and is in fourth place as the biggest nickel ore producer in the world, in first place as owner of the biggest gold mine in the world, the third biggest copper mine player in the world, and the second biggest tin producer in the world.

Akhmad said that MIND ID intends to safeguard another important mineral, namely lithium. He does not deny that the lack of important mineral supply has the potential to raise commodity prices, which ends in delays in developing environmentally friendly energy products.

Therefore, MIND ID focuses on the development of environmental friendly technology in the energy sector, with the aim of achieving zero carbon emissions in 2030.

“MIND ID is currently undertaking aggressive exploration to pay attention to the reserve replacement ratio. We can see the rapid appearance of solar panels based on photovoltaics, hydrogen energy, thorium-based power generators, electric vehicle batteries, and supporting devices,” he said.

He added that the downstreaming efforts by the MIND ID Group consist of, among others, the construction of various metal smelters to support the availability of raw materials for devices such as semiconductors, magnets, and other environmentally friendly commodities.

“Remember that the ideal net-zero initiative can occur if the initiative involves low carbon raw materials, therefore raising demand for raw materials such as low carbon aluminium, copper, and other environmentally friendly commodities produced with low carbon footprint,” he said.

Akhmad explained that the International Energy Agency (IEA) predicts that copper commodities will contribute about 50 percent of the materials needed for environmentally friendly energy technology in 2030. Aside from copper, several mining commodities that constitute the raw materials for the development of renewable energy technology are nickel, graphite, manganese, and lithium – the main raw material for electric vehicles.

“Hydrogen is estimated to be the second biggest energy supply for the net zero emission scenario in 2030, after other renewable energies. This technology requires specific metals which we call “platinum group metals”. While thorium for power generators is the by-product of tin mining,” said Akhmad.

The presence of MIND ID, as a Holding State-Owned Enterprise for the Mining Sector, plays an important role in supporting the development of clean energy technology through the provision of raw materials.

Nevertheless, he added, the challenge faced by the MIND ID Group in providing raw materials for environmentally friendly technology is the status of raw materials currently still categorized as a secondary reserve or by-product of the main processing phase.

“The extraction of important raw materials from the secondary reserve is still a challenge, especially in the availability of the technology suitable to the geographic characteristic of the reserve,” he said.

Seeing the challenge, Akhmad admitted that he is optimistic this problem can be overcome in the immediate future, with the cooperation between stakeholders through the formation of a regional alliance between ASEAN countries.

“We see the importance of regional alliance between ASEAN countries in technology development and ownership, as well as conservation of important raw materials. We are pushing for this cooperation,” he said.

MIND ID is also competing in the decarbonization of the transportation sector through the EV battery development initiative. MIND ID, through its subsidiary, PT Aneka Tambang Tbk (ANTM) is the majority shareholder of the Indonesia Battery Corporation (IBS) which is involved in the electric vehicle battery industry.

“MIND ID pushes us to build a joint development initiative to deal with the technology challenge, to create economically worthy decarbonization in the long term. Of course, the regional policy on carbon trading and taxes should be empowered to support the technical aspect,” he went on to say.

MIND ID’s priority to establish itself as a sustainable mining company is, among others, through the maximization of the downstreaming efforts to fulfill the sustainable supply chain. MIND ID also adopted the 10 Mining Principles from the International Council on Mining and Metals (ICMM) as a means of strengthening its circular business commitment from upstream to downstream.

“We conduct our ESG (Environmental  Social Governance) performance evaluation based on the 10 Mining Principles of ICMM as part of our sustainable improvement towards ESG. The 10 Mining Principles of ICMM covers the SDG (Sustainable Development Goals) and Paris Agreement relevant to the mining industry,” he explained.

Meanwhile, at the opening of AIPF 2023, Minister of State Enterprises Erick Thohir said that this AIPF is a moment for the ASEAN and the Indo-Pacific region to strengthen cooperation for joint prosperity and sustainability.

According to Erick, the views of ASEAN and Indo-Pacific become part of Indonesia’s efforts to strengthen regional cooperation and drive sustainable development to make ASEAN the center of safe, peaceful, and prosperous growth in the Indo-Pacific.

“We hope very much that the discussion and involvement in this forum will inspire a new partnership, strengthen existing relations, and provide innovative solutions to the challenges we are currently facing,” he said in his speech at the opening of AIPF 2023.

Erick also said that the AIPF 2023 with the theme “Implementation of the ASEAN Outlook on the Indo-Pacific” has three focus discussions, namely the green infrastructure and supply chain; digital transformation and creative economy; and sustainable and creative financing.

“AIPF will become an important momentum to display, strengthen, and expand collaboration of the public-private sector in the ASEAN and Indo-Pacific region, which subsequently will make ASEAN the epicentrum of growth,” said Erick.