Japanese trading house Sojitz Corp said on Monday in a statement it would sell its 30 percent stake in the Bara Alam Utama (BAU) thermal coal mine in South Sumatra, Indonesia, to an existing partner for an undisclosed sum.
Indonesian thermal coal prices were largely steady in a thinly traded market today, with most participants holding back as they waited for more details of a large Chinese utility tender. Chinese state-controlled power utility Huaneng closed a tender at 10:00 Beijing time (02:00 GMT) today seeking to buy 678,000t of imported coal for delivery to its coastal power plants between late March and the end of April. Price details only started to filter through to the market this afternoon.
Indonesian state miner PT Aneka Tambang (Antam) targets to start operation of its ferronickel smelter in East Halmahera in the second half of this year, with initial production target of around 5,000 tonnes of nickel in ferronickel (TNi), Finance Director Dimas Wikan Pramudhito said.
Indonesia's Trade Ministry has postponed its regulations requiring coal and palm oil exporters to use local insurers to May 31, the ministry said in an official notice.
The collapse of an unlicensed gold mine in Indonesia this month is renewing attention on illegal mining in the country, which authorities say often overlooks safety, health and security requirements.
The government has told the administrations of Papua province and Mimika regency to establish a region-owned enterprise (BUMD) to hold the 10 percent combined shares they were allotted through the divestment of copper and gold miner PT Freeport Indonesia (PTFI).
Heavy rain and rough seas in several parts of Indonesia, including the main Kalimantan coal-producing region, have resulted in a large build-up of vessels waiting to load coal cargoes. This is curbing supplies and offering support to prices.
As the nation prepares for the upcoming elections, issues relating to energy nationalism will spark debate among its supporters and detractors, especially after the government’s move to take control of copper miner Freeport Indonesia and the Rokan oil and gas block.
There is still no certainty about the location of Freeport Indonesia’s smelter and funding sources for its construction.
Bulkers are facing “significant” delays in moving coal shipments out of a number of ports in Indonesia, according to Alphabulk, on the back of newly enforced insurance laws in the archipelago. The latest weekly report from Alphabulk, part of France’s AXS Marine, states that a “raft of ships” are being help up as Jakarta has forced coal exporters to use local insurers. Port authorities are checking exporters and vessels to see if the right insurance is in place leading to the delays.