Upcoming Gubernatorial Election in Central Sulawesi

Central Sulawesi is home to Vale Indonesia (current name of INCO), the largest nickel producer in Indonesia. The province will take part in the 2015 simultaneous regional elections on Dec. 9, 2015. And incumbent Governor Longki Djanggola, a politician from Prabowo Subianto’s Gerindra Party, will likely run in the election seeking his second term. Let’s look into the dynamics in the province ahead of gubernatorial election.

Q&A with ITMG CFO on 35,000MW Program

Like other coal producers, Indo Tambangraya Megah (ITMG)—controlled by Thailand-based energy company Banpu Plc—suffered from falling sales revenue and net profit in the first quarter of 2015 due to persistent weakness of coal prices in the seaborne market. What the Company will do next to deal with the situation?

Financing of Indonesian Resource Projects

Downfall of commodities forced many to cut investments in resource sector. But, ASX-listed Energy World Corporation (EWC) Ltd seems optimistic about the sector’s attractiveness with its plan to raise up to $75 million from the issuance of new shares, proceeds of which will fund its LNG project in South Sulawesi.

Ugly Fights at Berau Coal

Amir Sambodo, who signed a resignation letter on March 25, 2015 in London from being CEO of PT Berau Coal Energy (BRAU) Tbk and PT Berau Coal (producing asset), informed market authorities yesterday that he has withdrawn the resignation letter, and accordingly reassumed position as CEO of the troubled companies.

Commodities to Watch

WTI crude oil collapsed 3.33% to US$57.45 per barrel on Nymex Tuesday (May 19) due to the rally of USD. Other commodities also lost ground, including Dr Copper, gold, soybean, and soybean oil. Earlier on Bursa Malaysia Derivatives, the benchmark August 2015 contracts of crude palm oil (CPO) lost 1.1% to RM2157 per ton.

West Jambi Block: Bet of Rich (Politically-Connected) People

West Jambi block, currently 100% controlled by SGX-listed Ramba Energy Ltd—Soeryadjaya family, has attracted more investors to finance its exploration activities. This morning, GSS Energy, another SGX-listed company with oil and gas operations in Indonesia, informed shareholders about its US$5 million investment in West Jambi block.

Coal Journal No. 29/2015: China Data

No love yet for coal. Data from China producers for April confirmed weaknesses in the world’s largest consumer of thermal coal. China Shenhua Energy Co Ltd, one of the world’s largest producers, for example, reported 20.6% fall in sales for April 2015.

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