Coal Journal: Move On…
Shares of mining companies, including coal producers, regained grounds worldwide. BHP Billiton gained almost 3% in Sydney this morning, while Arch Coal and Peabody Energy jumped 25% and 6% respectively in New York last night. Consol Energy also advanced 5.6% as crude oil improved in the futures market on optimistic data and outlook from US energy agency.
Palm Oil: How Low? Who’s Leaving?
Devaluation of yuan hits most of commodities, including crude palm oil (CPO). The benchmark October 2015 contracts of CPO dropped RM49 to RM1991 per ton on Bursa Malaysia Derivatives Wednesday (Aug 11). Yuan, however, is only one of the factors dragging down the commodity.
Power Plant Projects Update
Global Energy Bali has finally commenced the operation of 426 MW coal-fired power plant called Celukan Bawang in Buleleng Regency, Bali Island this week. The power plant supplies almost 40% of power demand in the resort island. In this report: (1) Kupang gas-fired, (2) Cirebon CFPP expansion, (3) Kendal CFPP.
New Growth Centers (2): Morowali Industrial Park
Out of so many nickel producing centres planned in the country, Morowali Industrial Park is probably the most successful one. Developed six years ago by China’s Decent Group and Indonesian Bintang8 Group, the industrial park has grown faster recently after the inauguration of the first major smelter built by PT Sulawesi Mining Investments.
Oil & Gas Projects Update
The government of Indonesia has approved the first plan of development (PoD) for the Alkatara Field in the Lemang block, Sumatra. This might pave the way for farming out of Lemang block to other investors. How about Ande Ande Lumut, Lengo Gas, etc? Development of the...
Where Are Millions of Workers Kicked Out from Mining?
Mineral export ban imposed by SBY-Boediono administration in January 2014 has reportedly kicked out millions of workers, directly and indirectly, out of mining and related industries. Imagine that they were involved in the production of 100 million tons per annum of bauxite ore, nickel ore, and iron ore in Kalimantan, Sulawesi, Maluku, and Papua.
More Indonesian Coal Producers Cut Output
PT Borneo Bintang Selatan (BSI) is one of small coal producers in Kotabaru, South Kalimantan province hit hard by downfall of prices. The Company cut its monthly production from 30,000 tons to 10-15,000 tons only. Of course BSI is very small in the universe of Indonesian coal producers with total output above 500 million tons prior to the crisis.
Crude Oil, Coal & The New Normal
October contracts of WTI crude ended lower by 1.73% to US$44.31 per barrel on Nymex last night, while the reference price of Indonesian thermal coal for August 2015 declined further to its new low at US$59.14. Is coal already in the ‘new normal’ after almost five months of limited corrections?
Adaro in H1: Volume Cut, Cost Relief
Pretty much as predicted, Indonesian coal producers are the ones do the heavy lifting in thermal coal. Adaro Energy (ADRO), the second largest coal producing group in Indonesia, cuts its coal production and sales by 8% and 9% respectively in the second quarter of 2015.
PGAS: Oversold?
Shares of oil and gas company PT Perusahaan Gas Negara (PGAS) Tbk dropped further by 6% to its three-year low this morning. This is one of major companies yet to release first half 2015 financial results. Has the stock been oversold?