It seems coal miners are adopting one of two disparate strategies, either exit the business in a highly visible way to buff up your climate credentials, or sit tight, keep as quiet as possible and rake in the cash.
Energy and Mineral Resources Minister Ignasius Jonan has signed a decree on a domestic coal price fixed under the domestic market obligation (DMO), a move that is expected to ease the financial burden of state-owned electricity company PLN.
Indonesia's benchmark thermal coal price (Harga Batubara Acuan, or HBA) touched a multi-year high in March 2018. The HBA, which is determined by Indonesia's Energy and Mineral Resources Ministry on a monthly basis (and which is based on several global and domestic indexes), rose 1.2 percent month-on-month (m/m) to USD $101.86 per metric ton in March 2018, its highest position since May 2012.
Local banks in Indonesia remain hesitant to disburse loans to companies that are engaged in Indonesia's mining sector due to the high degree of bad debt in this sector. Hence, credit disbursement to the country's mining sector continues to shrink. On the one hand, it is positive that Indonesia's banking sector becomes less dependent on the volatile movement of mining commodity prices.
The Energy and Mineral Resources Ministry amended six contracts of work (CoWs) on minerals on Wednesday, bringing the total number of amended contracts to 28 since negotiations with miners began in 2009.
Sumatra Copper & Gold plc (“the Company”) is pleased to announce another monthly production record at its Tembang gold-silver operation located in southern Sumatra, Indonesia.
PT Freeport Indonesia’s contract at Grasberg Mine, Papua, will end in 2021. The government promises to extend the operation permit up to 2031 and can be extended until 2041 if Freeport Indonesia meets the requirements of the government.
Indonesian thermal coal suppliers are struggling with long vessel queues at South Kalimantan due to delays in loading amid bad weather -- disrupting the supply flow, sources said.
The government previously calculated the remaining 41.64 percent of shares to be taken over from PTFI to be worth US$2.46 billion. Meanwhile, FCX’s estimation is $6.6 billion because it takes into account the reserves and operation of Grasberg mine in Papua, which is being operated by PTFI until 2041.