Mixed Figures from United Tractors
United Tractors (UNTR) sold only 71 construction machineries (Komatsu) last month, the lowest in many years, due to across the board weaknesses. Coal mining contracting subsidiary Pamapersada, meanwhile, produced 8.5 million tons of coal, down significantly from 9.1 million tons in the previous month.
Luhut-Rizal vs Sudirman-SKKMigas on Abadi LNG
Coordinating minister for politics, law, and security affairs Luhut Pandjaitan has openly supported Rizal Ramli, coordinating minister for maritime and resources affairs, regarding the development of Abadi LNG in Masela Block, offshore Maluku province. What’s up?
Speculation on Panigoro-Newmont Deal
Shares of Medco Energi Internasional (MEDC) jumped 16.81% this morning with significant trading volume as some speculated on reports about Arifin Panigoro’s plan to acquire majority shares in gold-copper producer PT Newmont Nusa Tenggara (NNT). Newmont, however, poured cold water on the issue saying ‘no discussion related to our assets in Indonesia have met all of our sales criteria’.
Commodities & Shares
The benchmark February 2016 contracts of crude palm oil (CPO) ended higher by more than 1% to RM2300 per ton on the Bursa Malaysia Derivatives Wednesday (Nov 25) to tracking crude oil, which regained grounds and closed above US$43 per barrel yesterday.
Panigoro Acquires Newmont, Medco?
Some are still caught by surprises, while others shared doubts on Arifin Panigoro’s claim of acquiring 76% shares in PT Newmont Nusa Tenggara (NNT) for US$2.2 billion. How would he finance the acquisition? Has the government allowed him to acquire the remaining 7% shares to be divested by Newmont to Indonesian entities?
Panigoro Acquires Newmont, Bakrie?
Businessman Arifin Panigoro, founder of Medco Group, has reported to coordinating minister for maritime and resources affairs Rizal Ramli on Wednesday about his plan to acquire 76% shares of PT Newmont Nusa Tenggara (NNT) for US$2.2 billion. This is a confirmation of our earlier speculation about NNT.
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.