More Nickel Projects to Watch
After years of talks, Vale Indonesia (INCO) has signed framework agreement with two Chinese companies Taiyuan Iron & Steel (Group) Co (TISCO) and Shandong Xinhai Technology Co for the development of nickel pig iron (NPI) project in the Bahodopi block, Morowali Regency, Central Sulawesi province.
Commodities windfall
Pretty much as predicted, commodities-related companies reported strong financial performance in the first nine months of 2021, thanks to higher average price in international market. Their strong performance means good news for the State Budget 2021 and the whole economy going forward.
IDX-listed nickel companies (3)
Shares of PAM Mineral (NICL) ended lower by 1.37% to Rp72 on Wednesday (Oct 27), way below its IPO price (Rp100) to represent nearly 80% collapse from its peak (Rp342). At the last quoted price, PAM Mineral was worth Rp696 billion, more than five times equity as at June 30, 2021, but only twice the enlarged share capital (after the IPO).
IDX-listed nickel companies (2)
It is unfortunate that IDX-listed nickel miners failed to develop processing facilities like Chinese companies. Aneka Tambang (ANTM) did build new ferronickel smelter in Halmahera, North Maluku. Physical construction of main production line completed almost two years ago, but yet to commence production due to unavailability of power supply.
IDX-listed nickel companies (1)
Nickel companies listed on Indonesia Stock Exchange (IDX) reported strong sales growth in the first half of 2021 thanks to higher average price and volume. Nickel ore producers have mainly been supported by fast growing domestic production of nickel pig iron (NPI), particularly in Central Sulawesi, South Sulawesi, and North Maluku provinces.
Copper & Gold Journal
PT Pani Bersama Tambang (PBT), subsidiary of PT Merdeka Copper Gold Tbk (MDKA), as the claimant, and PT J Resources Nusantara Tbk (PSAB) as the respondent have submitted to Singapore International Arbitration Center (SIAC) a request for suspension of arbitration case. PBT has demanded US$500 million to US$600 million of loss compensation from PSAB.
Valuation gap of coal and palm oil-related shares
Thermal coal has left its recent peak to US$235 per ton, but still a very high price to ensure high profitability of Indonesian coal miners. In the first half, coal miners reported a more than 100% jump in net profit. Yet shares of coal miners listed on the Indonesia Stock Exchange have retreated from their peak, excluding Bukit Asam (PTBA).
Commodities boom to lift Indonesian economy
Thermal coal advanced further to a record high of US$240 per ton in the global market Monday (Oct 4), lifted mainly by news about desperation of Chinese coal-fired power plants to get supply from other countries. A renewed demand from Indian buyers, meanwhile, continues to support crude palm oil (CPO), which reached US$1,310 per ton (CIF Rotterdam) late last week.
Nickel Journal
Shares of Aneka Tambang (ANTM) improved 0.87% in the morning session Tuesday (Sept 28) as the company reported net profit of Rp1.16 trillion in the first half ended June 30, 2021 against net loss of Rp159 billion in the corresponding period last year.
Interview with the Director General of Mineral and Coal Ridwal Djamaludin regarding the Wabu Block Gold Mine
The Wabu Block gold mine in the Intan Jaya district, Papua is a hot topic after the Lokataru Institute Director Haris Azhar and the Kontras Coordinator Fatia Maulidiyanti accused the Coordinating Minister for Maritime Affairs and Investment Luhut B. Pandjaitan of playing role in said mine.