Q&A with Aneka Tambang CFO on Alumina and Ferronickel Projects
Price of minerals are still way below last year’s average, despite recent rallies. Shares of mining companies, including Aneka Tambang, however, have gained significantly from their respective lows. We attended public expose of Aneka Tambang (ANTM) on Monday where we and other participants asked Aneka Tambang chief financial officer Dimas Wikan Pramudhito about chemical grade alumina (CGA) Tayan, FeNi Haltim project, partnership with Ferrostaal and the smelter grade alumina (SGA) project with INALUM.
United Malacca Acquires More Indonesian Assets
Malaysian company United Malacca Berhad has decided to expand operations in Indonesia. The Company has just signed memorandum of understanding (MoU) with Indonesian businessmen to acquire a company holding concession right to develop about 59,920 hectares of land within an industrial plantation area located in Central Sulawesi.
First Half Results: Plantation
Weak price of palm oil hit most plantation companies in the region. Astra Agro Lestari (AALI) did report 78% jump in net profit to Rp792 billion, but mostly due to non-operating benefits. Its sales revenue and operating profit dropped 12% and 18.6% respectively in the first half.
Nickel Market: Output Weighs Further Rally?
Nickel price ended at US$10,655 per ton in London Metal Exchange (LME) Friday, July 22, the highest level since late October 2015 due to broad sentiment on metals and relatively lower stockpile. Nickel has gained nearly 40% from its bottom early this year.
Coal Market Review: First Half
Ministry of energy and mineral resources provided interesting data about coal market in the first half of 2016, even though comprehensive data, especially production from companies operating under the mining business permit (IUP), has yet to be collected in full.
Mining Player to Watch: Blackspace Resources
Weak price of metals, coking coal, and thermal coal created opportunities for some to acquire assets in Indonesia. We have seen HKSE-listed Agritrade Resources Ltd and SGX-listed Geo Energy Resources in acquiring coal assets in Kalimantan, betting on future recovery and relatively low production costs even if others see bleak outlook.
Coal Journal
Shares of coal producers listed on Indonesia Stock Exchange (IDX) have gained significantly in the past few months. Adaro Energy and Indika Energy, for example, have gained more than 100% each. Looks like that investors anticipated recovery in coal prices, which have been delayed for more than two years now.
Revisiting Natuna East Block
A third stand-off between Indonesian authorities and Chinese fishermen in the Natuna Sea recently might be a blessing in diguise for the long-delayed development of Natuna East oil and gas block. President Joko ‘Jokowi’ Widodo has ordered cabinet members to speed up development of one of the world’s largest gas reserves.
Revisiting Holding Co for State Plantations
PT Perkebunan Nusantara III, operating holding for state plantation companies, is currently one of the largest producers of crude palm oil (CPO), natural rubber, and tea in the world, generating sales revenue of Rp36.2 trillion or around US$2.8 billion last year.
Geo Energy: More Coal Acquisition
SGX-listed Geo Energy Resources Ltd acquires a 98.73% shares in PT Tanah Bumbu Resources, which holds coal concession with 44.4 million tons of mineable coal in South Kalimantan, for US$90 million. The acquisition basically doubles the Company’s mineable coal reserves.