The 35,000 MW Program So Far
Six months after President Jokowi formally kicked off the 35,000 MW program, we finally see it gaining traction. Mitsubishi Hitachi Power Systems Ltd announced on Tuesday the award of a contract to supply an ultra-supercritical-pressure boiler and flue gas desulfurization (FGD) system for a 1,000 MW expansion of Cirebon coal-fired power plant in West Java province.
Coal: Finding New Balance
Arch Coal Ltd, one of the largest coal producers in US, is predicted to file bankruptcy protection in the coming months following massive losses in third quarter. The Company’s shares crashed by 19% on Monday (Nov 23) to make market cap of US$17.9 million only. Indika Energy (INDY), meanwhile, has launched cash tender offer of a maximum US$100 million out of the US$300 million Notes due 2018 at a maximum of 65 cent to one dollar.
Marlin Acquires Martabe Gold Mine US$775 Million
Marlin Enterprises Limited and its entities, owned by some funds and Indonesian conglomerates, has finally signed acquisition agreement on G-Resources Ltd, a company listed on HKSE controlling Martabe gold mine in North Sumatra, Indonesia, for a total consideration of US$775 million.
Fresh Hope from Biodiesel
Ample supply of vegetable oils and slow implementation of mandatory biodiesel program in Indonesia have contributed to short-term pressures on crude palm oil (CPO). The commodity rallied from its bottom at US$490/ton in Rotterdam (CIF) closer to US$600/ton, but then retreated to US$545 per ton last week.
Metals & Production Cut Measures
News about plan from mining giant Vale SA to close its nickel smelting and refining operations in Manitoba, Canada in 2018 failed to prevent nickel from falling to its new low at US$8885 per ton in London Metal Exchange (LME) yesterday as short-term supply glut and softer demand from China dominated market sentiments.
Palm Oil: Persistent Oversupply
Crude palm oil (CPO) left its bottom at US$490 in Rotterdam few months ago and rallied to US$600 per ton, but has retreated to US$540 per ton (CIF) in the past few weeks to tracking crude oil, which hovers around US$40 per barrel. Crude oil, however, is not the only pressuring factor.
Updates on The 35000 MW Program
President Joko ‘Jokowi’ Widodo claims that number of licenses needed to build power plant has been significantly reduced from 69 to 22, but demanded further reductions to accelerate the 35,000 MW program. The program, he said, is a must to lure investments. Where are we now when it comes to implementation of the program?
‘Gang War’ in Oil & Gas
“Take this as a soap opera, gang war. When they want peace, they will. When they need to fight, they do…This is good so that it is transparent and clear,” said Rizal Ramli, coordinating maritime and resource affairs minister, about the unverified letter from Setya Novanto (House Speaker) blackmailing state-owned oil and gas company Pertamina.
In GOLD They Trust (Updates)
Gold prices remain under pressure, closed at US$1068 per ounce on Nymex Tuesday (Nov 17). There are, however, lots of actions in gold and copper industry here. Other than the US$850 million acquisition of Martabe gold-silver mine in North Sumatra and talks surrounding Freeport Indonesia or Newmont Nusa Tenggara, state-owned mining company Aneka Tambang (ANTM) has this week entered into a broader agreement with Newcrest Mining Ltd.
Commodities: Running Out of Rationales
Oil prices finish below $43 on fresh supply jitters…Oil drops toward $40 as EIA sees 2016 slowdown in global demand…Oil ends higher as OPEC output falls, global supply risks rise…These are titles of headlines published by international media in the last five days. Which one is right? None?