Thermal coal slipped to US$128.35 per ton this week, the lowest since late June 2021 due to a combination of supply-demand balance and shifting from coal to natural gas in Europe related to correction of the cleaner energy prices.

Indonesian nickel industry continues to make headlines. Today, the biggest news is United Tractors’s proposed acquisition of 19.99% shares in Nickel Industries Ltd (NIC), which could transform NIC into Top 5 world nickel producer behind Tsingshan, Delong, Nornickel, and Jinchuan.

Astra International (ASII), the largest automotive player in the country, has decided to invest more in nickel, a step to create its own EV ecosystem. This morning, Nickel Industries Ltd (NIC), a company listed on the Australia Stock Exchange (ASX) with nickel operations in Sulawesi and Maluku, announced a major corporate actions involving Astra Group.

Media reported in the past few days about plans from Quantum Power Asia to develop up to 5,000 MW solar power plants to support the new capital city Nusantara in East Kalimantan province with estimated investment of US$7 billion. That’s not new.

Minister of Energy and Mineral Resources (ESDM) Arifin Tasfrif is reported to have signed a mining contract extension for Vale Indonesia (INCO), which will expire in December 2025. If true, this will pave the way for development of three nickel smelter projects worth US$8.5 billion, including nickel for EV batteries.

Thermal coal fell by 12% on Monday to US$140 per ton to tracking further correction of natural gas and oil plus, higher output in some producing countries, and softened demand. Thermal coal, accordingly, has collapsed 65% year-on-year, pretty much in line with downfall of natural gas (-71%).

By law, the government should ban export of mineral ores (including copper concentrates and bauxite) by June 2023, next month. A public hearing between minister of energy & mineral resources Arifin Tasrif and Commission VII of the House of Representatives (DPR) on Wednesday (May 24), however, agreed on some adjustments.

Coal miners operating under the mining business permit (IUP) regime reported squeezed margins in the first quarter of 2023 due to implementation of President Joko ‘Jokowi’ Widodo’s new regulation about royalty since the fourth quarter of 2022. PT TBS Energy Tbk (TOBA), which is linked to powerful cabinet member Luhut Binsar Pandjaitan, has also been seriously affected.

Pretty much as predicted, coal miners operating in both IUP and IUPK regime have been forced to give more to the State. Those operating under the mining business permit (IUP) have finally paid more after decades of indecisiveness from the government. Financial reports of coal miners listed on the Indonesia Stock Exchange (IDX) suggested ‘successful’ implementation of Jokowi’s decree last year.

Shares of nickel player PT Trimegah Bangun Persada Tbk (NCKL), popular as Harita Nickel, ended substantially lower by 6.92% to Rp1,345 on Wednesday (Apr 26) as some realized gains from the recent IPO at Rp1,250. Some hope NCKL won’t end up like Lygend Resources, partner of Harita, which already lost 31% from its IPO late last year.