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Monday, 07 February 11
THE INDONESIAN COAL REFERENCE PRICE HAS JUMPED 13.03 PERCENT IN FEBRUARY 2011


COALspot.com -  Indonesia’s Ministry of Energy and Mineral Resources has set the February 2011 Indonesian Coal Reference Price for thermal coal at US$ 127.05 per ton, which is 13.03 percent higher than January 2011 price of US$ 112.40.

The government of Indonesia has been publishing a monthly coal reference price (HBA) since February  2010 to be used by coal producers for all future spot and term contracts. The February  HBA was 44.68 percent higher compared with a year earlier.

Coal reference price (HBA), the price has calculated based on a monthly average (previous month) of the Indonesia Coal price Index (ICI-1), Platts-1, Newcastle Export Index (NEX)  and the New Castle Global Coal Index (GC) from the previous month. Assessment basis of coal price reference was calculated considering 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 basis spot contract. (supply within 12 months).

Director General Mineral and Coal have declared today coal reference price for February  2011.  The declared HBA was at US$ 127.05 per ton FOB vessel up by US$ 14.65 per ton or 13.03 percent compared with January  2011 Coal reference price.

January 2011 coal reference price was at US$ 112.40  per ton.

The declared ICPR in this month was the highest since the government starts to declare ICPR ( HBA) since February 2010. The lowest HBA was declared in April last year at US$ 86.50.

Government also declaring reference price for eight brands of Indonesia coal which are most commonly traded in the market. The price marker is used to calculate other 52 coal types with a quality similar to the coal price markers.

For term sales of  above one year, the average of coal reference price for the last three months is used to set coal prices for a one-year contract.

For sales in barge, the reference price is reduced by barging and transshipment costs from barge to vessel.

The coal reference price, which has been established to fulfill the requirement of mining law 04/2009 and latest ministerial decree 17/2010 and also aims to increase government revenue from royalties from coal producers.

Click here for complete details of  Indonesian coal reference price.(cs)



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