Freeport & New Realities
Endless disputes between the government and Freeport Indonesia are, among others, rooted in difficulties of Freeport to deal with new realities. Key executives of the US-based mining giant are still living in the Cold War era. New generation of leaders in Indonesia, on the other hand, have explored and tried to benefit from new realities.
Coal Journal No. 8/2017: Domestic Consumption
Domestic consumption of thermal coal is set to grow faster with commercial operation of some mineral processing plants all over the country. One new ferronickel smelter in Obi Island, North Maluku province, for example, has recently entered commercial production with support from 114 MW coal-fired power plant.
Nickel Smelters (4): Tsingshan & Xinxing
Nickel ended at US$10,900 per ton on London Metal Exchange (LME) Friday (Feb 17), the highest level since Indonesia resumed export of low-grade nickel ore, even though opening stocks grew further to 379,494 tons. As explained before, with or without export of low-grade nickel ores, supply of nickel from Indonesia would continue to grow in the coming years from commercial operation of new smelters—-nickel pig iron (NPI) and ferronickel.
Softening of Palm Oil
The benchmark May 2017 contracts of crude palm oil (CPO) lost RM42 to RM2926 per ton on the Bursa Malaysia Derivatives Thursday due to fading impact of El Nino and positive outlook for soybean crop in South America. January output of Malaysian companies was lower than December, but grew significantly year-on-year.
Coal Journal No. 07/2017
Thermal coal prices ended flat at US$79.9 per ton Wednesday. The commodity has lost 3.62% this month, but still gaining 52.48% year-on-year. Strong import data from China in January and weak output from Chinese miners failed to boost the commodity because falling output in China last month was attributable to Lunar New Year holidays.
Freeport Pushes Government over The Edge, Next?
Shares of Freeport McMoRan ended higher by 1.01% in New York Monday (Feb 13), significantly smaller than peers like Vale SA (+8.41%), Rio Tinto (+3%), or Eramet (+4.7%) as reports from Indonesia suggested temporary halt of its Grasberg gold-copper mine operation. Some senior staffs have reportedly been dismissed, while others might follow if Freeport Indonesia can’t secure copper concentrate export permit soon.
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).