Nickel Smelters (3): Scaling Down of Weda Bay Project
PT Weda Bay Nickel, majority owned by French mining giant Eramet SA, has decided to scale down its nickel smelter project in Weda Bay, Halmahera Timur, North Maluku province to respond new regulations issued by the government last year.
Pressures toward TDM Berhad’s Indonesian Subsidiary
Last Friday (Feb 10), TDM Berhad, a plantation firm listed on KL Stock Exchange, released two important announcements related to lawsuits filed by Indonesian Suryati and Malaysian firm Modipalm Engineering Sdn Bhd. What’s going on?
In GOLD They Trust
Gold retreated by 0.28% to US$1,229 per ounce this morning in Asian trading, but the precious metal has gained 2.24% this month. Compared to silver and industrial metals, gold has performed poorly with 1.8% gain year-on-year. Still, actions from some companies suggesting strong confidence in the future of gold.
Revisiting The Bakries (5): UNSP Leaving Rubber
Shares of Bakrie Group remain target of speculations. On Friday (Feb 10), most of the shares retreated as some ‘took profit’. In this issue, we focus on Bakrie Sumatra Plantations (UNSP), which had only gained 50% from its bottom. The stock is now valued 0.3 x equity, way below its peers (mainly above equity).
Coal Journal No. 06/2017: Output to Watch
Reference price of Indonesia thermal coal for February 2017 is set at US$83.32 per ton, down slightly from US$86.23 in January, but jumped almost 64% year-on-year. Output from major coal producing countries, including Indonesia, remains key factor to watch in the short-medium term.
Commodities & Indonesian Economy
The benchmark April 2017 contracts of crude palm oil (CPO) opened higher by RM24 to RM3106 per ton this morning, while in Rotterdam the commodity was traded at US$790/ton CIF early this week. Higher soybean oil prices supported palm oil amidst reports of higher production year-on-year last month.
Jokowi, Papua & Freeport
President Joko ‘Jokowi’ Widodo is scheduled to visit Papua this week to inaugurate the Cross-Border Post (PLBN) Indonesia-Papua New Guinea (PNG) in Skouw, Muara Tami district, and tradtional market ‘Pasar Mama Mama’. This will be the eight visit to the eastern most provinces since becoming President of Republic of Indonesia in October 2014.
Revisiting Nickel Projects (2): Tsingshan-Bintang8
Unlike China Hanking, BintangDelapan Group decided to postpone the development of smelter to process low-grade nickel in the Morowali Industrial Park, Central Sulawesi province. The group prefers to export low-grade nickel ores to feed the dormant smelters operated by its partners, Tsingshan Group, in China.
Plantation Journal No. 05/2017
Natural rubber opened lower by 0.92% to 301 yen per Kg in Tokyo this morning, but the commodity is still 103.5% above the same period last year. Crude palm oil (CPO), meanwhile, retreated to below US$800 per ton in Rotterdam late last week on perception about higher January output in Indonesia and Malaysia.
Revisiting Nickel Projects (1): China Hanking
Nickel fell significantly since Indonesian government issued new mining regulations, which, among others, allowing export of low-grade nickel ores. The commodity, key component in the production of stainless steel, however, regained grounds following wider environmental crackdown in the Philippines. Nickel retreated to US$10,160 per ton last Friday in London Metal Exchange (LME), but still substantially higher than the corresponding period last year.