Global primary nickel production increased slightly to 1.1 million tons in the first half of 2020, bolstered by continued growth in nickel ferroalloys production in Indonesia (+57.8%), which more than offset the decline in traditional production, France-based mining giant Eramet said late last month. Despite the pandemic, most nickel processing projects, including Eramet’s partnership with Tsingshan Group in North Maluku province, continued their physical construction at normal rates.

Subsidiary of PT Bumi Resources, PT Arutmin Indonesia, will see the end of its Perjanjian Karya Pengusahaan Pertambangan Batubara (PKP2B) this coming November 2020. Arutmin is one of seven giant coal mining companies, whose PKP2B was issued in the New Order regime.

Indonesia is home to the largest nickel reserves in the world. After years of massive investments, mainly by Chinese companies, Indonesia emerged as the largest exporter of nickel in the form of nickel pig iron (NPI), ferronickel (FeNi), and nickel in matte. Very soon, Indonesia will also become main supplier of nickel sulphate (NiS), key material for electric vehicle battery.

Nickel advanced to US$14,381 per ton on LME Thursday (Aug 6), the highest level seen since the second week of January 2020. This is clearly a very good news for Indonesia, the largest nickel exporter—-nickel pig iron (NPI), ferro-nickel, and nickel in matte—-in the world despite missing revenues from nickel ores, whose export has been stopped since January 1st.

Nickel advanced to US$14,250 per ton in LME Wednesday (Aug 5), the highest level since mid January 2020. As the largest exporter of nickel, Indonesian economy shall be benefited from the spike. Growing Coronavirus infections in Vietnam, meanwhile, lifted coffee to its new high in four months, which should also help Indonesian economy. 

Shares of PT Timah Tbk (TINS), one of the world’s largest producers of tin, retreated 3.3% to Rp735 Monday (Aug 3). Still, Timah gained 124% from its low (Rp328) as investors anticipating improvement in the company’s financials in the second half. First half was disappointing with net loss of Rp390 billion against Rp205.3 billion in the corresponding period last year.

Not all bad! Thermal coal producers were mostly under pressure due to weak prices and volume, but other minerals performed relatively better. Nickel, in particular, was strong, and the current prices suggest stronger performance in the third quarter onwards. Gold, in the meantime, has just reached its historic high due to uncertainties of the global economic recovery and diplomatic tension between USA and China.

Crude palm oil (CPO) softened to US$690 per ton late last week, but compared to its low in May (US$510/ton CIF in Rotterdam), the commodity has gained 35.3%. Natural rubber, meanwhile, has gained 26.2% from its recent bottom, thanks to improvement in the automotive industry worldwide.

Nickel miner Vale Indonesia (INCO) booked revenue of US$185.7 million in the second quarter (Q2) of 2020, grew 6.3% from US$174.7 million in Q1 of 2020. Ebitda also rose 7.3% to US$59.4 million from the previous quarter of US$54.9 million, mainly driven by higher sales. 

INPEX Corporation is facing yet another hurdle in the development of its Abadi LNG project of the Masela Block. Per June 2020, the Special Task Force For Upstream Oil and Gas (SKK Migas) noted that the required land area prepared for the project has only reached 50 percent. The latest development is that the Sinar Mas Group has bought a parcel of land in the Lermatan Village of the District of Tanimbar in the Island of Tanimbar, Maluku to offer to the Abadi LNG project.