Margins continue to fall, but Harum commits more in nickel
Against all odds, amidst downfall of profit margins, coal miner Harum Energy (HRUM), which has invested more in nickel industry in the past few years, has acquired more shares in PT Westrong Metal Industry (WMI), a company engaged in the nickel processing.
Nickel Journal
Shares of nickel producers listed on the Indonesia Stock Exchange (IDX) mostly closed in red on Monday (Jan 29) as nickel moved in narrow range on the London Metal Exchange (LME). Nickel was settled at US$16,538 per ton on LME Monday, representing 42.32% fall year-on-year due to significant increase in supply from Indonesia. In the short-medium term, the commodity might not be able to gain much because more new capacities will enter commercial operation this year.
The 35,000 MW Program so far
The signature 35,000 MW program initiated by President Joko ‘Jokowi’ Widodo has not yet been completed towards the end of his term of office. The completion of the ambitious project launched in 2015 is far behind the planned target. This is seen a blessing in disguise...
Freeport & regulatory uncertainties
Freeport McMoRan (FCX) has just released fourth quarter 2023 results, including performance and various issues at PT Freeport Indonesia, one of the world’s largest copper and gold producers. One outstanding issue in the report is financial impact of the government’s policy on export duty.
LG controls nickel miner Adhi Kartiko
Nickel miner Adhi Kartiko Pratama (NICE) has been officially acquired by LX International Corp, previously LG International Corp (South Korea), a trading arm of LG, at price of Rp435 per share or Rp1.59 trillion in total, representing 60% of NICE’s enlarged capital.
A renewed interest in Indonesian oil & gas
In the past few weeks, we’re surprised by renewed interest from global investment community in Indonesia’s oil and gas industry, including those involved in offshore supporting services.
Nickel Journal
Nickel gained 2.11% to US$16,900 on the London Metal Exchange Wednesday (Dec 27), but still way below peak last year as investors are worried about oversupply in the short-medium term. Aggressive expansion of nickel processing facilities in Indonesia will continue to weigh on recovery of the commodity, which is key in the production of stainless steel and electric vehicle battery.
Freeport Smelters & Contract Extension
PT Smelting, a company co-owned by Freeport Indonesia and Mitsubishi Materials, has finally inaugurated expansion of its copper smelter in Gresik, East Java, lifting copper concentrate processing capacity by 30% to 1.3 million tons per annum.
Short-term pressures on nickel smelters
Lygend Resources & Technology Co Ltd, which is listed on the Hong Kong Stock Exchange (HKSE), informed shareholders late last week that production lines under Phase I and II of the HPAL nickel smelter in Obi Island, Halmahera Island, North Maluku province have reached the annual design capacity.
UNTR/Astra Bets More on Nickel
Shares of United Tractors (UNTR)—a subsidiary of Astra International engaged in construction machinery supply, coal mining contracting, own coal business, power generation, and civil construction—ended higher by 1.24% as investors responded positively completion of yet another nickel asset acquisition.