Short-Term Support for Coal (2)
Thermal coal returned to above US$100 per ton Monday. Global supply-demand dynamics might continue to support the commodity in the short-term, including the proposed lower output in Indonesia next year to preserve resources for the country’s long-termm domestic consumption.
Short-Term Support for Coal
Ministry of trade has stopped export services for 2509 mining companies without clear and clean status starting today. This is part of disciplinary action initiated by the Corruption Eradication Commssion (KPK) in the mining industry. Next in line will affect those with liabilities to the State in the form of royalties and other taxes.
Weak CPO Price, More Acquisitions?
Opened higher, the benchmark March 2018 contracts of crude palm oil (CPO) slipped to red zone this morning. Higher output in Indonesia might continue to weigh the commodity in the coming months, triggering speculation about more acquisitions in plantation sector, including on those listed on Indonesia Stock Exchange (IDX).
Coal Returns to US$100, Watchout 2018 Output!
Thermal coal advanced to US$100 per ton Tuesday (Dec 12) on strong short-term demand for winter restocking. The government of Indonesia, meanwhile, sets reference price for December at US$94.04 per ton, slightly lower than last month, and 7.52% fall year-on-year.
Future of Mercator in Indonesian Coal Business
The Hindu BusinessLine reported last week that commercial operation of PT Karya Putra Borneo, where Bombay-listed Mercator Lines holds 46.25% interest, has been shut since October 15 after the mining company’s local partners dragged the Indian firm to court over a dispute on shareholding.
Acquisition of AWE Ltd & Ande-Ande Lumut Project
Shares of Australia Worldwide Exploration (AWE) Ltd jumped 10.61% to A$0.73 this morning following an acquisition offer at A$0.8 per share by fellow ASX-listed company Mineral Resources Limited (MIN). At this price, AWE has market capitalization of A$442 million. MIN itself, meanwhile, inched up 0.17% only to make market capitalization of A$3.34 billion.
Mahakam Block: Beyond Ownership
The government has decided to allow existing owners of participating interest in Mahakam Block, the largest gas producing block in Indonesia, to retain 39% interest. Whilst this is an improvement from the previous cap of 30%, there is no guarantee that both Inpex and Total, which hold 50% interest respectively, will rejoin the block’s future.
Coal Journal
Thermal coal returned to above US$96 per ton Thursday on short-term supporting factors in the region, plus relatively weak US output in the past few months. This represents 16.33% gain year-on-year. In this report: Whitehaven-Farallon, Mitrabara Adiperdana-DBU, Geo Energy-Lenny Limanto, and Sinarmas Group.
Halcyon Agri Acquires More Indonesian Rubber Processing Factories
Halcyon Agri Ltd, one of the largest natural rubber processing companies listed on SGX, has decided to proceed with acquisition of four rubber processing factories in Indonesia for a combined consideration of S$105.26 million.
An Investigation into Arutmin Indonesia
Bumi Resources (BUMI), an entity controlled by Bakrie Group and creditors, reported US$8.9 million of share of profit from its 70% investment in PT Arutmin Indonesia, one of the largest coal producers in the country. That means Arutmin Indonesia generated net profit of US$12.7 million only in the first nine months of 2017 from sales revenue of US$725 million.