Coal Journal
Lack of details, President Joko ‘Jokowi’ Widodo’s statement about moratorium of licenses for coal and palm oil leads to various interpretations. One thing might be clear, that no new mining business license (IUP) for coal shall be issued. But, because the President also talked about moratorium of the use of forest area for mining, implications could be significant.
Renewed Interest in Metals?
Shares of global metal producers continued their rally Wednesday to respond positive export data from China and upbeat short-range outlook of global steel demand. Vale SA advanced 6% in New York, while Eramet jumped 7.3% in Paris.
Revisiting Samin Tan’s Borneo
Borneo Lumung Energi & Metal (BORN), a coking coal company controlled by Samin Tan, is required to pay the consideration shortfall plus related penalty of a combined US$14.2 million by April 20, 2016 pursuant to SIAC tribunal award won by TransAsia Minerals Limited and Bondline Limited.
Bankruptcy of US Coal’s ‘Last Man Standing’
After months of speculations, Peabody Energy Corp, the world’s largest coal producer in private sector, has on Wednesday (Apr 13) filed for bankruptcy protection due to falling coal prices and US$6.3 billion debts. Sitting over 6.3 billion tons of coal reserves and produced 250 million tons of coal in 2014, the company’s future might affect the industry.
Rally of Commodities & Indonesian Economy
The benchmark June contracts of crude palm oil (CPO) regained grounds by RM21 to RM2659 per ton on the Bursa Malaysia Derivatives Wednesday morning to tracking soybean oil and crude oil. Nickel, meanwhile, advanced 1.17% to US$8,655 per ton in London Metal Exchange (LME).
Medco’s Partners in Acquiring Newmont
Medco Energy (MEDC) yet to formally announce completion of the acquisition of PT Newmont Nusa Tenggara (NNT), the second largest gold and copper producer in Indonesia. Rumours, however, have been swirling around about the company’s partners in the acquisition, set to be the largest since the downfall of commodities. Who are they?
Coal: Bottoming Out?
Reference price of Indonesian thermal coal (6322 Kcal/Kg) for April 2016 is set at US$52.32 per ton (FOB Vessel). This is 18.86% below reference price in the same month last year, but represented 1.36% gain from March 2016. Has the commodity been bottoming out?
Rally of Commodities
WTI crude oil jumped 6.44% to US$39.66 per barrel on Nymex Friday (Apr 8) to make an 8% weekly gain. Brent crude also advanced 6.14% to US$41.85 per barrel as investors saw signs of fading US output. The rally lifted shares of oil and gas producers led by Shell, which gained 3.95%.
Shenhua’s Grip in Indonesia
China Shenhua Energy Co Ltd is one of the most profitable energy companies in the world. Last year the Company generated net profit of RMB17.65 billion, dropped 55.1% from 2014 due to falling prices of coal. This is a Company to watch when it comes to Indonesian coal and energy market.
Bakrie, Newmont, and Panigoro
In the first week of November 2015, we speculated about Newmont’s exit from Indonesia. Three weeks later, Medco Group founder Arifin Panigoro announced a plan to acquire PT Newmont Nusa Tenggara (NNT) for US$2.2 billion. On Tuesday, April 5th, minister of finance Bambang Brodjonegoro confirmed the government’s decision to not acquiring the shares (7%) offered.