Sakari Resources (formerly "Straits Asia Resources")

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#11
The world's biggest coal reserves is in US but there are a lot of green lobbies as you say, also obama has a new war on coal. They trying to move away from coal to gas which will affect coal industry and mining.

All this I see is part of the global warming campaign that each country have targets to meet to reduce their release of carbon dioxide or greenhouse emissions. The biggest polluter is obviously China as they are the worlds biggest coal user. The second biggest polluter is yours truly america Big Grin so obviously they are pointing the finger at coal so if obama policy it comes to pass I don't really see will have very much development in their coal industry in the future.

Video: the plan to destroy coal industry in america

It's just like biodiesel in europe, if they produce their own rape and soyabeans they have to subsidise farmers so what they do is outsource the whole thing to south east asia, cheap good and no need to handle any environment green groups.

The same thing happened to rare earths, califonia mountain pass was the biggest rare earths mine in the world but from the 80's more environment regulation started hampering and making mining difficult and expensive so they started going downhill and finally shut the mine. Then to avoid all these problems they outsourced the whole thing to china which at that time had very low regulation and no green lobby groups ever dare to operate in china. Big Grin

Back to coal the largest coal users in the world is China and India.
India is heavily dependant on Indonesia coal. They are sending people out to the whole world look for energy supplies to feed their booming economy.

Indonesia's has coal reserves of around 21 billion tonnes that's only 3 pct of the worlds current total but they are the biggest exporter of coal in the world so this a very important export and currency earner. An export tax will hurt exports and hurt themselves.

Vested in coal related companies Big Grin
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#11
The world's biggest coal reserves is in US but there are a lot of green lobbies as you say, also obama has a new war on coal. They trying to move away from coal to gas which will affect coal industry and mining.

All this I see is part of the global warming campaign that each country have targets to meet to reduce their release of carbon dioxide or greenhouse emissions. The biggest polluter is obviously China as they are the worlds biggest coal user. The second biggest polluter is yours truly america Big Grin so obviously they are pointing the finger at coal so if obama policy it comes to pass I don't really see will have very much development in their coal industry in the future.

Video: the plan to destroy coal industry in america

It's just like biodiesel in europe, if they produce their own rape and soyabeans they have to subsidise farmers so what they do is outsource the whole thing to south east asia, cheap good and no need to handle any environment green groups.

The same thing happened to rare earths, califonia mountain pass was the biggest rare earths mine in the world but from the 80's more environment regulation started hampering and making mining difficult and expensive so they started going downhill and finally shut the mine. Then to avoid all these problems they outsourced the whole thing to china which at that time had very low regulation and no green lobby groups ever dare to operate in china. Big Grin

Back to coal the largest coal users in the world is China and India.
India is heavily dependant on Indonesia coal. They are sending people out to the whole world look for energy supplies to feed their booming economy.

Indonesia's has coal reserves of around 21 billion tonnes that's only 3 pct of the worlds current total but they are the biggest exporter of coal in the world so this a very important export and currency earner. An export tax will hurt exports and hurt themselves.

Vested in coal related companies Big Grin
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#12
Indonesia has a huge population as well. If it remains the biggest exporter of coal in the world, there won't be much left when it tries to develop itself. The same can be said for other resources export in Indonesia, such as copper, gas & oil.
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#12
Indonesia has a huge population as well. If it remains the biggest exporter of coal in the world, there won't be much left when it tries to develop itself. The same can be said for other resources export in Indonesia, such as copper, gas & oil.
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#13
You are right coal and other energy is important to Indonesia.

To reduce it's energy bill there is some news that Indonesia trying to tap into it's own geothermal potential. With 127 active volcanoes in their country there is an estimated 28000 megawatts of geothermal energy waiting to be tapped to be converted into electricity. One 1megawatt can support up to 1000 homes per hour. So 28000 megawatts or 28GW of renewable energy can support many millions of people in Indonesia. Al Gore has said Indonesia has potential to be "geothermal superpower" of the world.

There are only 6 other geothermal stations in whole of the country so it's really very untapped potential and they are trying to bring in private companies with know how to develop this area there is a project currently with Sumitomo Corporation tie up with some of it's local companies.

The problem and hurdle at the moment is that 80% of that potential lies beneath virgin forested areas that are conserved by law. Getting around it without creating a loophole that can be exploited later to plunder the forests timber is what the government is trying to figure out how to do.

So for considerable time still they need to rely on coal, with oil prices still so high and they still unable to break the 5 billion a year fuel subsidy coal is very important. Very valuable as an export and also very important for domestic needs too.

However I look at it coal is in demand. Whether from China India or for domestic Indonesia use. There is talk that instead of coal tax they may give a higher quota for domestic supply that to me this will just create even more demand that will lead to higher global prices Big Grin

Vested in coal related companies Big Grin
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#13
You are right coal and other energy is important to Indonesia.

To reduce it's energy bill there is some news that Indonesia trying to tap into it's own geothermal potential. With 127 active volcanoes in their country there is an estimated 28000 megawatts of geothermal energy waiting to be tapped to be converted into electricity. One 1megawatt can support up to 1000 homes per hour. So 28000 megawatts or 28GW of renewable energy can support many millions of people in Indonesia. Al Gore has said Indonesia has potential to be "geothermal superpower" of the world.

There are only 6 other geothermal stations in whole of the country so it's really very untapped potential and they are trying to bring in private companies with know how to develop this area there is a project currently with Sumitomo Corporation tie up with some of it's local companies.

The problem and hurdle at the moment is that 80% of that potential lies beneath virgin forested areas that are conserved by law. Getting around it without creating a loophole that can be exploited later to plunder the forests timber is what the government is trying to figure out how to do.

So for considerable time still they need to rely on coal, with oil prices still so high and they still unable to break the 5 billion a year fuel subsidy coal is very important. Very valuable as an export and also very important for domestic needs too.

However I look at it coal is in demand. Whether from China India or for domestic Indonesia use. There is talk that instead of coal tax they may give a higher quota for domestic supply that to me this will just create even more demand that will lead to higher global prices Big Grin

Vested in coal related companies Big Grin
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#14
recent news
Temasek investment in Coal India Limited

Goldman Sachs buys Brazillian coal assets

long term investments Big Grin
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#14
recent news
Temasek investment in Coal India Limited

Goldman Sachs buys Brazillian coal assets

long term investments Big Grin
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#15
Nice macroeconomic perspectives. Thanks. I am constantly worried abt the stockpile issues in China and how it is going to affect Indonesia coal prices in the short to middle term. As the supply bottleneck in china eases off combined with the reduction of investments to enhance the industrial production output due to higher wages. India is a different animal as they have lower cv coal compared to the coal from Indonesia and would always rely coal exports but problem with India is still the land locked nature plus corruption. So main price determinate is still China imports.
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#15
Nice macroeconomic perspectives. Thanks. I am constantly worried abt the stockpile issues in China and how it is going to affect Indonesia coal prices in the short to middle term. As the supply bottleneck in china eases off combined with the reduction of investments to enhance the industrial production output due to higher wages. India is a different animal as they have lower cv coal compared to the coal from Indonesia and would always rely coal exports but problem with India is still the land locked nature plus corruption. So main price determinate is still China imports.
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#16
China coal price index drop 2.08% compared with previous week:
http://www.osc.org.cn/CoalIndex/chs/new/
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#16
China coal price index drop 2.08% compared with previous week:
http://www.osc.org.cn/CoalIndex/chs/new/
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#17
AmFraser upgraded Sakari Resource to 'Buy' after the recent plunge in its share price.

http://www.remisiers.org/cms_images/rese...120612.pdf [Report]

Newcastle Coal Index remains weak and I doubt the Management will achieve their target ASP unless a sharp recovery occurs in 2H 2012.

(Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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#17
AmFraser upgraded Sakari Resource to 'Buy' after the recent plunge in its share price.

http://www.remisiers.org/cms_images/rese...120612.pdf [Report]

Newcastle Coal Index remains weak and I doubt the Management will achieve their target ASP unless a sharp recovery occurs in 2H 2012.

(Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
Reply
#18
There is a possibility they may halt production from their larger mine if market prices ($80+) fall and costs ($60+) climb; thereby putting a squeeze on margins. If so, the smaller mine which enjoys lower costs won't be able to replace the loss in production.
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#18
There is a possibility they may halt production from their larger mine if market prices ($80+) fall and costs ($60+) climb; thereby putting a squeeze on margins. If so, the smaller mine which enjoys lower costs won't be able to replace the loss in production.
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#19
Which website can I find coal spot prices? Is Newcastle Coal Index the equivalent of LME indices?
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#19
Which website can I find coal spot prices? Is Newcastle Coal Index the equivalent of LME indices?
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#20
(16-06-2012, 09:21 PM)BeDisciplined Wrote: Which website can I find coal spot prices? Is Newcastle Coal Index the equivalent of LME indices?

The Bloomberg website tracks Newcastle coal prices. Newcastle prices are the closest thing there is to a coal price index. However most coal is not exactly the same specification as Newcastle, especially Indonesian coal which is sold at a discount depending on the amount of ash, water, sulfur, volatile organic compounds, calorific value etc.
---
I do not give stock tips. So please do not ask, because you shall not receive.
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#20
(16-06-2012, 09:21 PM)BeDisciplined Wrote: Which website can I find coal spot prices? Is Newcastle Coal Index the equivalent of LME indices?

The Bloomberg website tracks Newcastle coal prices. Newcastle prices are the closest thing there is to a coal price index. However most coal is not exactly the same specification as Newcastle, especially Indonesian coal which is sold at a discount depending on the amount of ash, water, sulfur, volatile organic compounds, calorific value etc.
---
I do not give stock tips. So please do not ask, because you shall not receive.
Reply


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