In the mining industry, the concept of the five pillars is known to be inseparable but mutually reinforcing. "There are five main pillars namely capital or financial, technology, human (HR), regulation or legal certainty, and social aspects," said Director of PT J Resources Asia Pacific, Tbk (PSAB) Edi Permadi.
The mining industry is known as one of the capital-intensive industries where each stage of activity requires substantial funds. Starting from exploration activities to obtain detailed data related to the commodity to be mined, to the activities of production, processing and refining operations.
To meet these funding needs, companies can use funds sourced from internal cash but also from third parties, including through the issuance of bonds. Related to this, on April 30, 2020, PT J Resources Asia Pacific Tbk ("PSAB") successfully conducted a Phase IV Sustainable Public Offering ("Bonds").
The bonds were issued without scrip, offered at a value of 100% (one hundred percent) of the total Principal Bond, amounting to Rp.225,000,000,000 (two hundred twenty-five billion Rupiah) with a fixed interest rate of 10.25% (ten point) two five percent) per year. The bonds have a term of 3 (three) years from the Issuance Date, which is May 6, 2020.
Bond interest is paid quarterly, where the first Bond Interest will be paid on August 6, 2020. While the last Bond Interest at the same time as the settlement of the Bond will be paid on May 6, 2023. Bond settlement will be made in full (bullet payment) at maturity.
The funds from the Bonds, after deducting Emission costs, will all be used by PT J Resources Nusantara, a subsidiary of PSAB, for working capital in order to support PSAB group operations, including among others payments to consultants appointed by PSAB and / or PSAB subsidiaries in connection with PSAB group operational activities, including but not limited to the fields of geology, geotechnology and / or metallurgy, employees and suppliers and interest payments.
In addition to the financial aspects, important pillars in the mining industry are technology, human resources, legal certainty and social aspects. After exploratory activities the activity will lead to metallurgical testing up to the stage of determining the second pillar, namely what is appropriate processing technology from the technical, economic and environmental aspects.
Then the next pillar is human resources. So far, the mining industry in Indonesia is also known as labor intensive. Mining activities still involve a lot of labor. For mining companies, labor is the most valuable asset that must be managed well.
Human Resources is very important in the current condition of Covid Pandemic 19. HR is the main asset of Production, and must be kept healthy by various Safety and Industrial Hygiene efforts, especially against Covid 19. Apart from that, the biggest challenge is to follow the PSBB protocol in the continuation of mining operations in terms of employee transportation and quarantine protocols in each region.
All of these things must be in line with all applicable rules. That is the fourth pillar. "This industry is fenced in by many rules and even from across institutions and ministries. Everything must be run by a mining company, "said Edi.
And the fifth pillar that is also important is the social aspect. During the Covid-19 Pandemic, mining companies were also demanded to be involved in joint efforts to overcome this pandemic. Among them through community empowerment programs.
"Corporate Social Responsibility or Community Development and Empowerment (PPM) activities which so far have more social and economic contexts, will be directed to build public health to get out of this pandemic. This is our work together, "concluded Edi Permadi.
Source: Muflihun Hidayat / Tambangan
5 Mei 2020