Newcastle coal futures was traded at US$346.45 per ton on Thursday (November 24), more than 120% higher in the last 12 months as demand outpaces supply, tradingeconomics.com reported. La Niña phenomenon, a pattern of weather in the Pacific Ocean that brings wet weather and flooding to Australia, has hit coal production, including major miners Glencore, BHP, and Anglo American.

Nickel producer Vale Indonesia (INCO) has on Sunday (November 13) signed a definitive cooperation agreement with Zhejiang Huayou Cobalt Co., Ltd (Huayou) to process nickel ore from PT Vale’s Pomalaa Block in Kolaka, Southeast Sulawesi, into mixed hydroxide precipitate (MHP), main precursor for electric vehicle (EV) battery.

Coal miner Indo Tambangraya Megah (ITMG), controlled by Banpu Pcl (Thailand), booked net profit of US$893.5 million in the first nine months (9M) to September of 2022, surged 229% year on year (y/y), as revenues doubled to US$2.6 billion, thanks to higher average prices and improved margins.

WTI crude and Brent crude futures dropped 3.7% and 3% respectively this morning to US$85.6 and US$92.5 per barrel. According to tradingeconomics.com, WTI extending losses for a third consecutive session on persistent fears about a global recession-driven demand downturn. Thermal coal also declined 2.7% to US$330 per ton, a level last seen in May 2022.

State tin producer Timah (TINS) booked profit attributable to owners of Rp1.15 trillion in the first nine months of 2022, nearly doubled from the corresponding period last year. Pretty much as predicted though, Timah suffered substantial drop in net profit in the third quarter of 2022.

Pretty much as predicted, higher volume compensated downfall of crude palm oil (CPO) prices in the third quarter. While plantation firms reported lower net profit in the quarter, they reported strong first nine months because of great price environment in the first half.

Bumi Resources (BUMI), the largest coal group in Indonesia, booked net profit of US$365.4 million in the first nine months of 2022, skyrocketed 474% from the corresponding period last year, whilst nothing compared to second largest coal group Adaro Energy (ADRO), which posted net profit of US$1.9 billion in the same reporting period.

PT Harum Energy (HRUM) Tbk, controlled by the family of Kiki Barki, is among coal producers benefiting the high price environment. In the first nine months of 2022, HRUM, which expanded into nickel industry in the past few years, booked net profit of US$237.4 million, skyrocketed 533% from the corresponding period last year.

Some political parties have tipped Erick Thohir, minister of state-owned enterprises, as president or vice president candidate in 2024 election. His older brother Garibaldi ‘Boy’ Thohir, meanwhile, is among businessmen enjoyed the coal bonanza in the past two years. In the first nine months of 2022, Boy’s Adaro Energy (ADRO) booked net profit of US$1.9 billion, skyrocketed fro US$420.9 million in the corresponding period last year.

Dato’ Low Tuck Kwong, controlling shareholder of Bayan Resources (BYAN), should be among the cash-rich persons in the country with US$1 billion of dividend payment made in the first nine months of 2022, skyrocketed from US$300 million in the corresponding period last year. We don’t know what Dato’ Low will do with the cash, but politicians might be interested to get a ‘share’.