Downfall of Commodities: So?
WTI crude oil regained 1.1% in European trading Tuesday after falling nearly 8% in New York Monday (Jul 6) on concerns about supply and demand. The benchmark CPO contracts for September 2015, however, lost further by 1% to RM2210 per ton on Bursa Malaysia Derivatives Tuesday.
The Default of CNR Holdings & Indonesian Projects
China Nickel Resources Holdings Co Ltd revealed on Monday (July 6) that it has failed to repay US$12.5 million of principal facility to CITIC Bank. The bank, accordingly, has lodged its claims against the covering stand-by letter of credit issued by China CITIC Bank Corporation Ltd, as a security of the loan fully backed up by the pledged deposit of the group.
China Hanking Bets More on Indonesian Nickel
China Hanking Limited, a company listed on HKSE, has on July 3rd, 2015 entered into the memorandum of understanding related to possible acquisition of Indonesian nickel smelter project. The acquisition would give the Chinese company full control over the RKEF smelter located in Sulawesi Island.
Coal Industry: Survival of the Fittest
Agritrade Resources Ltd, a company listed on HKSE with coal operations in Indonesia, is currently among the most valuable coal producers. It has market value of around US$403 million, lot bigger than IDX-listed KKGI, even though it produces significantly smaller volume of coal.
The Collapse of US Coal Giants
Shares of Peabody Energy Ltd, the world’s largest coal producer in the private sector, collapsed 22.6% to its all time low in New York Wednesday (July 1st). At the current price, Peabody Energy has market capitalisation of US$472 million, significantly smaller than Indonesia’s Bukit Asam (PTBA). At its peak seven years ago, Peabody had market capitalisation of US$24 billion.
Jangkrik Gas Project Marches On, IDD & Ande-Ande Lumut to Watch
Energy and mineral resources ministry and special task force for oil and gas (SKKMigas) have scored some important points in the past few weeks. After making tough decision on the future of Mahakam Block, they moved on with contracts for the US$4 billion Jangkrik gas project at Muara Bakau production sharing contract (PSC).
Q&A with Central Omega on Nickel Smelter
PT Central Omega Resources (DKFT) Tbk was among major exporters of nickel ores before the government implementing export ban in mid January 2014. The Company has since prepared the development of a nickel smelter in Morowali, Central Sulawesi province. Progress? Expectations?
Bumi Resources’ Financials: Soaring Tax Penalties & Claims
Bumi Resources (BUMI), Indonesia’s largest coal producer, has finally released financials of its full year 2014 this morning. The Company reported net loss of US$388 million last year, down 36% from the previous year, but operating profit crashed 72.6% to US$63 million. Cash in hands was only US$32 million, while current liabilities jumped 44% to US$6.8 billion.
Coal Journal No. 35/2015: Move On…
China’s import of thermal coal from Indonesia reportedly dropped 40% in May from both April 2015 and May 2014. Overall, import from Indonesia in the first five months of 2015 dropped 32% to 19.48 million tons from the corresponding period of 2014. Some coal players, however, decided to move on with their plans.
Q&A: Resource Alam (KKGI) & 35,000 MW Program
PT Resource Alam Indonesia (KKGI) Tbk is one of coal producers trying to survive from long period of weakness in coal prices. The Company, which is now valued smaller than its equity, is also seeing opportunities in domestic power generation business.