China, the world’s largest consumer of nickel, imported 18,159 tons of refined nickel and nickel alloy last month, dropped 39.08% year-on-year. In the first eight months of 2017, the country imported 137,061 tons, collapsed 52.79% from the corresponding period last year. This might have contributed to recent substantial correction of nickel prices even though import of nickel ores and ferronickel continued to grow.

On January 11, 2017 we published an article titled ‘Indika Group: Big Things to Watch’, suggesting everybody to closely watch dynamics between Indika Energy (INDY) and Samtan Co Ltd in PT Kideco Jaya Agung, third largest coal producer in Indonesia. This morning, Indika Energy (INDY) announced acquisition of 40% shares in Kideco from Samtan Co Ltd, while subsidiary IIC acquires 5% shares from PT Muji, minority partner in Kideco.

Thermal coal closed at US$97.5 per ton Friday (Sept 22) to represent 36% gain year-on-year as WTI and Brent crude oil advanced to US$50.6 and US$56.7 per barrel respectively. Short-term global supply-demand balance, including softening of coal production growth in US, support thermal coal.

PT Arutmin Indonesia is coal producing subsidiary of PT Bumi Resources Tbk (BUMI) with total assets of US$1.51 billion by June 30, 2017. In contrast to peers, Arutmin, one of the country’s largest coal producers, booked net profit of US$4.7 million only in the first half of 2017. Why?

Finders Resources Ltd, owner of copper mine and smelter in Wetar Island, Maluku province, booked net profit of US$33.33 million in the first half ended June 30, 2017 against loss of US$15.95 million in the corresponding period of 2016 due to full commercial operation of the copper smelters.

Merdeka Copper Gold (MDKA), controlled by Edwin Soeryadjaya and Garibaldi Boy Thohir, currently has market capitalization of Rp8.42 trillion (US$633 million). MDKA, which has just started gold production in Banyuwangi mine, East Java, is now bigger than established gold producer PT J Resources Asia Pasifik Tbk (PSAB).

Shares of coal producer Alfa Energy Investama (FIRE) ended at Rp1430 last Friday (Sept 15). They’re 27% below peak, but still represents almost 200% gain from IPO price. With market capitalization of Rp1.86 trillion, FIRE is valued more than four times its enlarged equity, among the highest in coal industry.

Little less than two years ago Marlin Enterprises Limited and its entities, owned by some funds and Indonesian conglomerates, signed acquisition agreement with G-Resources Ltd, a company listed on HKSE controlling Martabe gold mine in North Sumatra, Indonesia, for a total consideration of US$775 million. Now some groups are competing to acquire Martabe, one of the most profitable gold mines in Indonesia.

Gold producer PT J Resources Asia Pasifik Tbk (PSAB), controlled by the family of Johan Lensa, suffered nearly 43% fall in net profit to US$7.86 million in the first half of 2017, mainly due to weak performance in the first quarter. Things improved in the second quarter, where net profit declined only by 6.1% year-on-year.

Brent crude oil moved closer to US$56 per barrel, gaining 20% year-on-year. Thermal coal, on the other hand, retreated 2.76% to US$97 per ton Thursday (Sept 14), but still gaining 38.5% year-on-year. Some indicators, including softening of US production and difficulties of Chinese miners to boost production, continue to support coal in the short-medium term.