Coal Journal No 7/2014: More New Players
Energy and mineral resources ministry has just issued clear and clean status of 38 mining licenses, including three coal exploration licenses in Mamberamo Raya, Papua province and two exploration licenses in Kutai Kartanegara and Kutai Timur, East Kalimantan province. Hanson Coal Energy has also been granted clear and clean status for its coal exploration in Central Kalimantan.
Coal Journal No 6/2014: Small Players
Orpheus Energy Ltd, a company listed on Australia Stock Exchange (ASX), produced only 29,767 tons of coal from its Kalimantan operation last year. This year, however, the company sets a more ambitious production and sales target. Realm Resources Ltd, another ASX-listed company, meanwhile, might focus development of its Central Kalimantan coal asset for domestic market.
Coal Journal No 5/2014: King Coal’s Demise?
Try google ‘coal’s demise’, you will find the following articles since September 2013: “Talk of coal’s demise ignores world market”, “Reports of Coal’s Death Have Been Greatly Eaxggerated”, “No sign of King Coal’s Demise as Asian Demand Rises” and “Wesfarmers Bargain Buy Highlights Coal’s Demise”. Indonesian business groups clearly love reading the first three.
Borneo Lumbung: Market & Operational Pressures
Samin Tan’s Borneo Lumbung Energi & Metal (BORN) is bracing both market and operational pressures. Coking coal market continues to provide negative sentiment, which raises question surrounding BORN’s mounts of debts, especially the US$1 billion facility provided by Standard Chartered Bank to finance acquisition of shares in Bumi Plc (now Asia Resource Minerals Plc).
Coal Journal No. 03/2014: Thai-Based Coal Players
China Coal Energy Co Ltd, one of the largest coal producers in the world, sold 160.96 million tons of coal last year, grew 7.6% from 2012. The company’s import, meanwhile, dropped substantially by 64.1% to 2.4 million tons only. In this report, we take a look at expansion of Thailand-based coal players in Indonesia.
Illegal Miners: Eternal Enemy of Coal Producers?
The benchmark price of Indonesian coal inched up 2% in January 2014, but still 6.5% below January 2013. Coal producers with huge loans in their book are increasingly nervous about debt service if the commodity stays there for another year. They have repeatedly asked the government to curb illegal coal mining operations, blamed for excessive supply in the seaborne market.
Junior Coal Player to Watch: Pacific Fiber
Despite weak price, more players actually enter Indonesian coal industry. Other than independent coal producers, major business groups, whose energy consumption grows alongside expansion of their core business, continued to enter the sector to secure their own coal supply. It is in this context, one should monitor closely PT Pacific Fiber Indonesia.
ATPK Resources & Its Endless Maneuvers
Six years ago, then SGX-listed Dayen Environmental agreed to acquire ATPK Resources from Hopaco Properties Ltd. Goi Seng Hui, then director of Dayen, controlled 9.62% shares of ATPK Resources before the proposed acquisition. Dayen was also granted rights to mine up to 5 million tons of coal. The deals, however, collapsed few months later.
Coal Journal No 02/2014: Tougher Year
Shares of coal producers started the year mostly in red. Adaro Energy, the second largest coal producer, already lost 18.3% in the first four trading days of 2014, while Indo Tambangraya Megah and Resources Alam down 10% each. They start the year with significantly lower benchmark price of Indonesian coal for January 2014.
Smelter Projects: Where are We? (4)
The government of Indonesia insisted to implement export ban on mineral ores by January 12, 2014 pursuant to Law No 4/2009. Companies (miners), which have yet to do processing and refining, will not be allowed to export mineral ores, while those having processing and refining facilities, will be regulated by a new government regulation (PP). The PP will be issued before January 12, 2014.