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Monday, 18 April 11
INDONESIA HAS SET THE APRIL 2011 COAL REFERENCE PRICE FOR THERMAL COAL AT US$ 122.02 PER TON


COALspot.com - Ministry of Energy and Mineral Resources of Indonesia has set the April 2011 Indonesian Coal Reference Price for thermal coal at US$ 122.02 per ton, which was 0.33 percent lesser than March 2011 price of US$ 122.43.

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 April HBA was 41.06  percent higher Y-o-Y.

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  and applicable for spot contract, delivery within 1 - 30 April 2011. Any deliver of cargo after 30 April, must be used May 2011 HPB unless the deliveries fall under term contract.

Director General Mineral and Coal have declared today coal reference price for April  2011. The declared HBA was at US$ 122.02 per ton FOB vessel a marginal drop of US$ 0.41 per ton or down 0.33 percent compared with March 2011 Coal reference price. Government has taken around eighteen days to release April HBA and also done some significant changes in formulas to determine coal prices for Indonesian coals.

March 2011 coal reference price was at US$ 122.43  per ton.

The declared ICRP for this month was dropped by US$ 0.41 per mt and it was the second continues drop since March 2011.

Government also declared reference price for eight brands of Indonesia's coal, which are most commonly traded in the market. Those eight brands are act as benchmark and used to calculate other 53 coal types with a quality similar to the coal price markers.

For sales in the barge, the reference price is reduced by barging and transshipment costs from the barge to the 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 prices since Feb 2010.(cs)



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