The FeNiHaltim Construction Standstill
State-owned (BUMN) mining company PT Aneka Tambang Tbk (ANTM) has been constructing a ferronickel smelter with an annual production capacity of 13,500 tons of nickel in ferronickel (TNi) in Halmahera Timur, Maluku Utara, since 2012. The so-called FeNiHaltim project has made ANTM shell out at least 3.5 trillion rupiah from its own coffers and additional state capital placement. The project is supposedly over 90 percent completed, but it still can’t be completely wrapped up—the reason: electricity supply.
A Faster EV-olution
France, the second largest auto market in Europe, recorded market share of 16.1% from plug-in cars last month. In the first quarter of 2021, the country recorded market share of 13.95% from all plug-in cars, jumped from 9.69% only in the corresponding period of 2020. Germany, the largest auto market, meanwhile, reported an even more impressive market share at 22.5% against 9.2% only in March 2020.
An outlier of 2020: Cita Mineral
Cita Mineral Investindo (CITA), bauxite miner and co-owner of Indonesia's first smelter grade alumina (SGA), reported a 10.2% growth in sales in 2020. Bauxite and SGA prices declined amid the COVID-19 pandemic. The Company managed to grow because it boosted its sales...
EV Battery Race
Minister of state-owned enterprises Erick Thohir, minister of foreign affairs Retno Marsudi, and minister of trade M Lutfi were in China late last week to meet various companies in the country related to the ambitious US$5 billion partnership with Indonesian Battery Company (IBC)—-a consortium of state companies Aneka Tambang (ANTM), Pertamina, PLN, and MIND ID.
Who Benefits from the Latest Mineral Export Rule?
Inconsistency is a characteristic of the Indonesian Government. Law No.3/2020 on Minerals and Coal Mining (UU Minerba) stipulates the restriction for minerals export. It emphasized the need to develop the downstream sector, which should have become the Government’s focus since 2014, but it allowed exports in 2017 and again now.
The EV Disruption & Tsingshan
Tsingshan’s announcement of a disruptive technology converting nickel ore into nickel sulphate—-precursor for electric vehicle battery—-via matte has largely been considered responsible for recent correction of nickel price from as high as US$19,689 on February 22 to as low as US$15,907 per ton on March 9. While the technology will likely change the supply side of nickel sulphate, question remains as to whether it will be fast enough to cope with the growing demand side.
FY20 Results of Adaro
Coal miner Adaro Energy (ADRO) booked a net profit of US$146.93 million in 2020, dropped 63.6% from US$404.19 million in 2019, as revenue declined 27% year on year (y/y) to US$2.53 billion and gross profit dropped 40% y/y to US$577 million. Operating profit also fell 54% y/y to US$285 million. Operating EBITDA declined 27% y/y to US$883 billion.
Turnaround of Chandra Asri
Petrochemical firm Chandra Asri Petrochemical (TPIA) booked a net profit of US$51.5 million in 2020, surged 121% from US$23.6 million in 2019, thanks to an income tax benefit. Its revenue was maintained at US$1.8 billion, equal to US$1.88 million in 2019. TPIA reported lower average selling prices across all products last year, and then it increased sales volume both scale and capacity.
Outliers of 2020: Geo Energy Resources
Unlike other coal producers, SGX-listed Geo Energy Resources Ltd, which operates some coal mines in Kalimantan Island, recorded net profit of US$95.1 million last year against loss of US$47.7 million in 2019. The Company generated sales revenue of US$306.8 million last year, an increase of 23% from 2019, thanks to significantly higher production and sales volume.
FY20 Results: Plantation
Plantations firms reported a jump in profits last year on the back of higher Crude Palm Oil (CPO) prices and lower costs and expenses. Astra Agro Lestari (AALI) earlier reported its net profit skyrocketed 268% year on year (y/y) to Rp894 billion in 2020, supported by an 11.7% rise in revenue and a 27.8% rise in its averaged CPO prices (Rp8,548 per kilogram).