The deal is to supply 15 million tonnes of nickel ore over a period of five to eight years, beginning March 2020.
Indonesia Mining News
"The aim of this share purchase is so that the company can have full control over its subsidiaries owned indirectly by Kangaroo Resources."
Looking at its resources, Indonesia will become the main player in lithium batteries.
The smelter went into maintenance that was scheduled for about 30 days, but has been extended due to a lack of oxygen supply from a neighboring oxygen plant.
For Indonesian President Joko Widodo, seeking reelection next year, getting a majority stake in the mine for Indonesia would be a political boon.
Due to better coal economics and relatively unsupportive renewable energy policies, we expect coal to still dominate the fuel mix at more than 60% from now until 2027.
The outlook for coal depends basically on the growth of electricity and steel production in Asia.
The assets sold consist of four cement plants, 33 ready-mix plants and two aggregate quarries.
The deal came amid choppy global markets, rocked by trade concerns and slowing economic growth in Asia - including Indonesia.
Indonesia's South Sumatra province plans to ban coal transporters from using public roads from Nov. 8
The plants haven’t been running at full capacity after the court ruled last year that a change in regulations overseas couldn’t be a ground for increasing power prices.
Freeport-McMoRan CEO Richard Adkerson says reduced spending on large-scale projects will add to the impending supply gap on global copper markets.
Any strategic move would be possible -- as long as it’s in the best interests of shareholders.
With its biggest stock overhang and a deal around its flagship asset in Indonesia close to being solved, the miner has said all options are open, even potentially a sale of the entire company.
State-owned miner Inalum said the $3.85 billion deal is still subject to the issue of environmental recommendations and a special mining permit (IUPK) by the Indonesian government.
Indonesia said industry association APRALEX had applied for safeguard measures, which can be used to protect a country's producers.
Richard Adkerson says any strategic move is now possible, including acquisitions, partnerships, or even a sale of the entire company.
Several global metals producers have also set their sights on Indonesia's nickel reserves, looking to tap an expected surge in demand for the battery metal.
Agreements give a majority stake in the giant Grasberg copper and gold mine to a local state-owned firm, becoming the country’s biggest divestment by a foreign resources company.
Indonesia has increased its 2018 coal production target to around 507 million tonnes from a previous target of 485 million tonnes which may add to downward pressure on prices for the fuel.
Egypt recently bought gold for the first time since 1978, India, Indonesia, Thailand and the Philippines have re-entered the gold market after years-long absences.
Coal exports from Indonesia will be restrained this year, which could frustrate a plan by the government to ease a burgeoning trade deficit.
Indonesia has laid out new rules for commodities exporters to guarantee funding for shipments through Indonesian banks or branches of foreign banks in the country.
SMM said that it and nickel miner PT Vale Indonesia are conducting a feasibility study to build a nickel processing project in Pomalaa, Southeast Sulawesi.
Nickel, which recently hit its lowest since December, could climb as high as $16,000 a tonne by the end of 2018 and $18,000 a year later.