MIND ID Strengthens Governance to Maintain Performance in 2022

Jakarta, 18 March 2022 - MIND ID or Mining Industry Indonesia, the Holding State-Owned Enterprise for the Mining Industry, with members PT ANTAM Tbk, PT Bukit Asam Tbk, PT Freeport Indonesia, PT Inalum (Persero) and PT Timah Tbk, is committed to maintain the momentum of optimal performance of the MIND ID Group in 2021 to accelerate performance of the Company in 2022.  The operational and financial performance achievements of MIND ID Members in 2021 are a reflection of the strategic management governance to be elevated in 2022.

MIND ID Director of Operations and Portfolio, Danny Praditya, said that “The positive operational and financial performance of the MIND ID Group is based on the efforts of all MIND ID Members in implementing good operational governance and innovations that produce more effective, efficient and sustainable business processes, enabling the Company to maintain the competitiveness of each commodity.”

In 2022, MIND ID is optimistic and shall maintain the momentum of its positive performance through transformation initiations in various specific aspects of management, human capital, finance and business development.  MIND ID shall adopt strategic and active management policies in each business process of MIND ID Members. This initiative constitutes the implementation of MIND ID’s main strategic theme, namely, Aggressively Accelerating the Growth of Exploration and Production, Raising Cost Competitiveness through Digitalization, Building Global-Scale Downstream Assets, Strategic Alliance for New Downstream Business Expansion, and Enabler (Development of capabilities and optimizing portfolio).

The policy to raise production and business process innovation in the midst of global uncertainties becomes the momentum to post optimal performance of the MIND ID Group.  Efficiencies are undertaken to reduce operational cash costs in order to maintain business competitiveness of each commodity.  For the ferronickel commodity managed by PT ANTAM Tbk, the production and sales volume posted in 2021 has been maintained at optimal levels with the respective achievements of 25,818 tons of nickel in ferronickel (TNi) and 25,992 TNi.

In 2021, the volume of nickel ore consolidated production reached 11.01 million wet metric tons (wmt), a growth of 131% year over year (YoY) from 2020 production level of 4.76 million wmt.  Sales of nickel ore in 2021 reached 7.64 million wmt, a growth of 132% YoY over 2020 sales of 3.30 million wmt.  Nickel ore production is utilized as the raw material of the ferronickel plant of the Company as well as sales to customers in the domestic market.

ANTAM’s gold metal production in 2021 reached 1.69 tons, a growth of 1% over 2020 of 1.67 tons with sales volume reaching 29.38 tons, an increase of 33% YoY over 2020 of 22.10 tons of gold metal.

In 2021, bauxite production came to 1.67 million wmt, a growth of 8% over 2020 of 1.55 million wmt.  The volume of bauxite sales in 2021 came to 1.42 million wmt, an increase of 16% YoY over 2020 of 1.23 million wmt.  Meanwhile, alumina production reached 95 thousand tons, up 3% YoY over 2020 of 93 million tons of alumina.  While alumina sales in 2021 reached 133 thousand tons, a growth of 61% YoY over 2020 of 83 thousand tons of alumina.

Production of coal by PT Bukit Asam Tbk increased by 21% or 30.04 million tons over the previous year.  The volume of coal transported also went up by about 7% to 25.42 million tons.  While the volume of coal sales reached 28.37 million tons or an increase of 9% YoY with ratio of 57% domestic sales and 43% exports.

Production of aluminium by PT Inalum (Persero) in 2021 came to 243 thousand tons with sales of about 218 thousand tons.  Aluminium commodity with diversification of Ingot, Alloy and Billet products, is one of the strategic inventories of the MIND ID Group.

PT Timah Tbk’s tin metal sales in 2021 came to 26,602 Mton and tin metal production 26,465 Mton.  While production of tin ore in 2021 came to 24,670 Mton.

Aside from focusing on operational performance, the MIND ID Group is also committed to environmental performance.  Throughout 2021, the MIND ID Group posted the obligated reclamation of 931.25 hectares.  While up to 2021, the total reclamation area came to 5,814 hectares.

The reclamation policy of the MIND ID Group is based to Law No 3 of 2020 on Amendment to Law Number 4 of 2009 on Mineral and Coal Mining.  The MIND ID Group is committed to implementing reclamation and post mining obligations at 100% success level.  The Company also adheres to the placement of reclamation and/or postmining deposit funds in accordance with the prevailing regulations.  The total reclamation and/or postmining deposit funds of the MIND ID Group came to Rp799.33 billion.