Coal export ban (3): What next?
Uncertainties surrounding resumption of export led to 7.22% rise of global thermal coal price to US$193 per ton on Thursday (Jan 6). As the world’s largest exporter, what happens in Indonesian coal mining industry affects global dynamics of the commodity. It’s interesting that the government launched a ‘PR campaign’ about revocation of 2,078 mining permits covering nearly 3 million hectares of area yesterday.
Nickel, Copper and EV’s point of no return
We have reached a point of no return in global adoption of electric vehicles with sales nearly doubled to 6 million units last year. Tesla, the world’s largest, delivered 936,172 units last year, surged by 87% from 2020. China’s BYD, supported by Warren Buffet, sold 603,783 units (whilst only around 50% full electric/battery EV) to represent 218% jump from 2020.
The coal export ban (2): DMO compliance of political heavyweights?
President Joko ‘Jokowi’ Widodo issued a strong statement regarding coal supply crisis at PT Perusahaan Listrik Negara (PLN). He basically demanded strong measures against those failed to comply the domestic market obligation (DMO), including revocation of mining permits. Really?
The coal export ban
Most have caught by surprise with the government’s decision to temporarily ban export of thermal coal this month due to downfall of inventory at state power utility PT Perusahaan Listrik Negara (PLN). Coal miners, on the other hand, have mainly claimed of fulfilling their domestic market obligation (DMO), i.e. minimum 25% of respective output. What’s going on?
Coal Journal
Newcastle coal futures were trading slightly above $170 per metric ton at the end of December 2021, well below a record high of $269.50 hit in October 2021, but booking a nearly 110% gain for the 2021 year on strong demand and limited supplies.
Equity to Watch: Adaro Minerals
PT Adaro Minerals Indonesia Tbk (ADMR), a subsidiary of coal miner Adaro Energy (ADRO), will list and trade its shares in Indonesia Stock Exchange (IDX) today (Jan. 3), the first listing firm for 2022, trading with a market capitalization of Rp4.09 trillion.
Palm Oil Outlook in 2022
Malaysian palm oil futures rose 0.67% to MYR4,478.00 per ton on Thursday (Dec. 23) but declined 8.91% on a monthly basis. Year to date, it rose 24.34%. Palm oil futures rebounded from a three-month low below 4,300 touched earlier in the third week of December amid concerns about supply and a lower-than-expected drop in domestic exports.
Financial Relations between Central and Regional Governments
In the first week of this month, the Government and the House of Representatives agreed to ratify the Bill on Financial Relations between the Central and Regional Governments (HKPD) into a Law with a transition period of at least five years. The new Law made many changes, one of which is imposing levies on the palm oil sector.
More nickel projects to watch (2)
PT Harum Energy Tbk (HRUM) has just acquired additional 9.8% shares in PT Infei Metal Industry for US$27.4 million, lifting its ownership in the nickel smelter company to 49%. In total, Harum Energy, controlled by Barki Family, has invested US$137.16 million in PT Infei.
More Actions in Met Coal
Demand for metallurgical coal (Met Coal) in Indonesia has increased dramatically in recent years due to expansion of mineral processing industry, especially bauxite-to-alumina and nickel-to-NPI/ferronickel/EV battery materials/stainless steel. Some domestic met coal producers enjoyed strong growth accordingly.