Perdana Karya Perkasa (PKPK) might have to forget about a plan to become a substantial coal player with termination of agreement to acquire RITS Ventures Ltd. But, Manambang Muara Enim (MME), a joint venture between Thailand-based EGCO and Indonesia’s Manunggal Group, continues its drive into the market. Also in this report: Churchill Mining, Geo Energy, and Duta Pertiwi Nusantara.

The Wall Street Journal reported yesterday that Korea Electric Power Corp (Kepco) has retained Barclays Plc to sell 20% shares in Bayan Resources (BYAN) and a possible divestment of 1.2% stake in Adaro Energy (ADRO). Kepco acquired 20% shares of BYAN four years ago for US$500 million, that time at almost 10 times BYAN’s equity.

Indo Tambangraya (ITMG) maintains its position as the most profitable coal producer in Indonesia. It booked net profit of US$230 million last year, crashed 47% from 2012 due to 17% drop in average selling price of coal. Duta Pertiwi Nusantara (DPNS), meanwhile, has been granted a revival of coal contract of work (CCOW) for subsidiary PT Intitirta.

China Shenhua, the world’s largest thermal coal producer, lost another 1.9% to HK$20.85 in Hong Kong this morning. It is closer to its historic low in five years on gloomy outlook of coal and energy sector in China. The company reported 18.4% growth in coal sales to 31.5 million tons last month, pretty much in contrast to China Coal Energy, which reported almost 20% drop.

Newcastle Port, the largest thermal coal exporting terminal in the region, shipped out 4.02 million tons of coal in the week ended February 17, jumped by 30.4% from the previous week. This contributed to downward pressures of coal prices in seaborne market, given slowdown of China’s import.

Government officers said discussions about possible implementation of quota system in production and export of thermal coal will start in April 2014 (waiting completion of legislative election?). Central government will regulate those operating under Coal Contract of Work (CCOW), while regional governments are expected to supervise the system on those under mining business permit (IUP). Doable? How?

Asahan I, a 180-MW hydroelectric power plant, entered commercial operation in January 2011. It sells electricity to the national electricity utility PT Perusahaan Listrik Negara (PLN) under a long-term power purchase agreement (PPA) expiring December 2040. Who’s behind the power plant? What’s next?

Thermal coal players were upbeat with a plan from the government to ban export of low-rank coal. But, strong lobby from low-rank coal producers forced government to delay implementation of the program. China coal players, meanwhile, have moved faster in the development of coal-to-chemical industry as power generations are urged to use cleaner sources of energy. Is it time to seriously develop coal-to-chemical industry in Indonesia through a mandatory domestic processing of low-rank coal?

Illegal mining and small-new players might have contributed to substantial growth of coal supply in the seaborne market. But, big boys like Adaro Energy and Bumi Resources have their share in the surge of supply. Adaro Energy’s coal production grew 11%, while sales increased by 10% last year. In this report: Bumi Resources, Indo Tambangraya Megah, Berau Coal Energy, Toba Bara Sejahtera, and Bukit Asam.