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Wednesday, 14 September 11
GOVT SETS SEPTEMBER COAL REFERENCE PRICE AT $116.26 PER TON


COALspot.com - Ministry of Energy and Mineral Resources of Indonesia has set the September 2011 coal reference price at US$ 116.26 per ton slightly lower than August or 0.81 percent lesser than August 2011 price.

The Indonesian coal reference price, also known as the HBA, for August has fallen for the fourth consecutive month to US$116.26 /t, from US$117.21/t in August.

The HBA has continued to fall since June. The HBA is the minimum price used for the calculation of taxes for producers pay for all future exports and domestic coal sales.  It is calculated using a basket of indices, including the price is a monthly average of the Indonesia Coal price Index (ICI-1), Platts-1, Newcastle Export Index and the globalCOAL Index 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 0.80%, Ash Content 15.00% and  delivery free on Board (FOB) Vessel supply between 1 – 30 September 2011.

Eight brands of Indonesian coal which are most commonly traded in the market.  The price marker is used to calculate other coal types with a quality similar to the coal price markers. For spot sales of 11-month or below 11-month supplies, will use coal price reference from the month of loading or B/L date.

For term contracts, the average of coal price reference for the last three months (from the month of price conclusion)  is used to set coal prices for a one-year contract. Supplies are limited to a maxium of 12 months.

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



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