Stronger 2020 of Vale
Nickel miner Vale Indonesia (INCO) booked a net profit of US$82.8 million in 2020; it grew 45.6% from US$57.4 million in 2019. EBITDA reached US$273 million, mainly driven by higher production and shipments of nickel and cost-efficiency. Profit before tax reached US$104.6 million, grew 16.8% year on year (y/y).
The second Smelter Grade Alumina (SGA)
PT Bintan Alumina Indonesia (BAI), subsidiary of China’s Nanshan Aluminium, is scheduled to start commercial operation of its first smelter grade alumina (SGA) in the Galang-Batang Special Economic Zone (SEZ), Bintan Regency, Riau Islands province, next month. This is the second SGA in Indonesia after Harita Group-Hongqiao’s unit in West Kalimantan province.
Outliers of 2020: Bumitama Agri
Bumitama Agri Ltd, SGX-listed palm oil company co-owned by Harita Group (Lim Gunawan Hariyanto Family) and IOI Corp, recorded net profit of Rp1.13 trillion last year, jumped by 64.1% from 2019, thanks to substantially stronger performance in the second half of the year on higher average prices of crude palm oil (CPO).
Tuban Refinery Progress
People are talking about the Rp8 billion that landowners have received in exchange for their property on which Pertamina’s New Grass Root Refinery (NGRR) of Tuban will stand. “Around 225 people will receive Rp8 billion for their land. That’s correct,” Pertamina’s President Director Nicke Widyawati confirmed on Wednesday (Feb. 17). So hundreds of residents of Sumurgeneng village in Tuban are suddenly cash rich.
Nickel Groups of Indonesia (5)
Some nickel players reported substantial profit from investments in the smelters, but others failed for various reasons, including selection of technology. That’s probably why one of the nickel companies listed on Indonesia Stock Exchange (IDX) is valued only slightly above equity while peers are now traded three-four times equity.
Nickel Groups of Indonesia (4)
Some emerged as nickel players because of their ability to get nickel mining area previously studied or explored by Vale Indonesia (INCO). Over the years, Vale relinquished tens of thousands of hectares to the State. Some blocks have been taken, but winners of the recent auctions yet to be announced.
Electricity Supply Hampers FeNi Haltim Project
State-owned PT Aneka Tambang Tbk (ANTM) plans to finalize a Ferronickel plant construction in Halmahera Timur (FeNi Haltim). The Plant will have the capacity of producing 13.500 TNi per year, and it supposedly is 98 percent complete. The only thing in its way is electricity.
Nickel Groups of Indonesia (3)
One group with around 50,000 hectares of nickel concession in Central and Southeast Sulawesi province has been widely linked to retired military and police officers. During the presidential election campaign in 2019, Lt General (ret) Prabowo Subianto, then candidate, was said owner of the group. Prabowo’s camp, of course, strongly denied.
Nickel Groups of Indonesia (2)
Compared to state-owned mining company Aneka Tambang (ANTM), which sits over a huge nickel resources, some private-owned groups have been more aggressive in developing their reserves. These groups not only developed nickel pig iron (NPI) and ferronickel (FeNi), but nickel and cobalt sulphates, which are key precursors for electric vehicle (EV) batteries.
Nickel Groups of Indonesia (1)
Interest in electric vehicle ecosystem continues to grow. Indonesia is a hotspot in the ecosystem because of its nickel resources. Who controls the resources? We have identified some groups or business families with interest in the sector.