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Tuesday, 07 September 10
GOVERNMENT DECLARED INDONESIAN COAL PRICE REFERENCE DECLINE FOR THIRD-STRAIGHT MONTH


COALspot.com: Indonesian  thermal coal price reference, a monthly benchmark price declared by Ministry of Energy and mineral resources of Republic of Indonesia for Indonesian coals, fell 5.07 percent to US$ 90.05 per ton this month. ESDM has declared US$ 90.05 per ton for September 2010 supplies. Indonesian coal prices posted its third consecutive month of decline and lost 7.37 percent this month compare to June 2010. June 2010, HBA was at US$ 97.22 per ton.

The Directorate General of Mineral, Coal and Geothermal of Indonesia has been publishing a monthly coal price reference (HBA) since February  2010 to be used by coal producers for all future spot and term coal sales. Coal price reference (HBA) was calculated from the monthly average of four international coal indices such as  Indonesian coal Index / ICI 1,  Platts-1,New Castle Export Index and Newcastle globalCoal Index. Coal price reference is based on coal with GCV (GAR)  6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur 0.8%, Ash Content 15.00% and  delivery free on Board (FOB) Vessel.

The coal price reference, which has been established to fulfill the requirement of mining law 04/2009 and aims to increase government revenue from royalties from coal producers.

The declared coal price reference for September 2010 is US$ 90.05 per Ton FOB vessel down by 5.07 percent from August 2010 Coal price reference. August  2010 coal price reference was US$ 94.86 per ton.  Indonesian coal used to be offered higher than government declared coal price reference, especially when buyers were dealing with higher calorific value coal and big scale branded coal supplier, industry sources said.

Click here for complete details of Indonesian coal price reference
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