Sumitomo Metal Mining Co Ltd has entered into an agreement with Freeport McMoRan for the acquisition of 13% shares in Morenci copper mine for US$1 billion cash. Following the acquisition, Sumitomo Metal Mining’s ownership grows to 28% in the mine, which generated US$2.2 billion of revenues for FCX last year.

Indonesian Mineral Business Association (Apemindo) has urged the government to relaxing mineral ore export ban, blaming the policy was behind slow progress of investments in smelters. As metals hit their new lows in 13 years, however, relaxing the policy might only make things worse and sacrificing long term benefits.

Unlike crude oil, palm oil continues its rally. The benchmark April contracts of crude palm oil (CPO) advanced RM30 to RM2626 per ton Friday (Feb 12), while May contracts jumped RM36 to RM2626, highest level in more than seven months. Interestingly, Malaysian planters continue to accummulating assets in Indonesia. Other than Kulim Berhad, Oriental Holdings Berhad has recently acquired plantation asset in Sumatera.

Malaysian company Kulim Berhad continues its spending spree. This time, the Company acquires four plantation companies in Indonesia for a cash consideration of Rp1.64 trillion. This is, by far, the largest acquisition in plantation sector this year as palm oil hovers below US$700 per ton (CIF Rotterdam).

Mandala Energy Limited, a Southeast Asia focused oil and gas exploration and production company backed by global investment company KKR, has decided to acquire two more oil and gas assets in Indonesia.

WTI crude oil regained grounds to US$28.52 per barrel Wednesday (Feb 10), but it is low enough to force downward revision of acquisition consideration of Indonesian oil and gas asset by Malaysian company Kulim Sdn Bhd.

ASEAN Food Security Information System (AFSIS) revealed its its recent report that Indonesia’s corn output could reach 20.22 million tons this year, more than twice of the Philippines. Last year, Indonesia produced 20.67 million tons of corn with productivity of around 5.07 tons per hectare.

Unlike crude oil, soybean oil advanced on the Chicago Board of Trade Friday (Feb 5). Earlier on the Bursa Malaysia Derivatives, crude palm oil (CPO) advanced to its new high, when the benchmark April 2016 contracts were briefly traded above RM2600 per ton to represent 37% gain from last year’s bottom.

Shares of coal producers end mixed worldwide Friday as crude oil retreated from its recent high, while US continues to cut significantly its coal output. Major producers in Indonesia, meanwhile, will likely maintain gross profit margin above 20% this year despite persistent weakness of coal prices.

Shares of Freeport McMoRan (FCX) and Newmont Mining, both with significant operations in Indonesia, surged by 11.5% and 11.3% respectively in New York Wednesday (Feb 3) as some investors speculated that production cuts starting to pay off. Really?