Commodities

Shares of ASX listed copper/gold exploration company, Far East Gold Limited (ASX: FEG) opened lower by 2.63% to A$0.18 this morning despite announcement related to the signing of a Conditional Share Purchase Agreement to acquire a potential 100% ownership of the Idenburg Gold Project in Papua province.

China’s CNGR Advanced Material Co. Ltd is a company to watch given its ambitious metal processing projects and relationship with political heavyweights in the country.

Self sufficiency in food, including sugar, might be among the main programs of Prabowo presidency. Outgoing president Jokowi has recently revisited the old plan to build integrated food estates in Merauke, Papua. On July 23, 2024, he kicked off sugar plantation of PT Global Papua Abadi in Sermayam Indah village, Tanah Miring district. 

Nearly all major business groups in the country have entered renewable energy, including solar photovoltaic (PV). Those currently generating hefty profits from ‘dirty energy’ like coal are also key players in the ‘renewable energy’. Adaro, Sinarmas Group, Astra Group/United Tractors just some of few examples. More players, including foreign companies, have just ventured into the business.

Forget about renewable energy company Barito Renewables (BREN). It is not real. BREN ended at Rp11,025 on Thursday (Sept 19) to make market capitalization of Rp1,474 trillion (US$96 billion), 31 times the value of Pertamina Geothermal (PGEO), a bigger and more profitable geothermal player.

Nickel advanced 2.54% to US$16,325 per ton on Monday (Sep 16) in London Metal Exchange (LME) but still way below its peak this year due to ample supply from new smelters entering commercial operation in Indonesia, which produces more than half of the world’s nickel.

Indonesia has signed 12 agreements on renewable energy at the International Sustainability Forum (ISF) 2024 in Jakarta on 5-6 September 2024, cooperating with various partners. While interest in the sector is high, implementing the projects is the biggest challenge.

Thermal coal was last traded at US$139.5 per ton. Weaker demand due to more aggressive energy transition in China might have contributed to the correction from peak, but the latest price remains very profitable for most coal miners in Indonesia, including the small players.

Concerns over slowing demand in two of the world’s largest markets, USA and China, and potential higher supply from Libya have weighed on recovery of crude oil from its 14-month low. Brent crude oil was traded at US$72.8 per barrel Thursday (Sep 6), while natural gas hovers around US$2.2 per MMBTU, way below the year’s peak.