Coal prices drop in Indonesia

PTBA to divert 4 percent of 11 percent coal export to China.

{reg}[PAID={"id":"20,21,22,23,24","title":"The content you tried to access is only available to paid subscribers.","link":"1"}]Coal prices have reportedly declined in Indonesia, a report from Kontan said.

According to the report, prices have dropped from $120 per ton last year to $90 per ton last month. The decline has reportedly been received negatively by a number of industry players. Employers are also considering the possibility of focusing on the local market in order to counteract the expected decline of revenue.

Recently, Hananto Budi Laksono, the Corporate Secretary of PT Bukit Asam Tbk stated that the drop in coal prices is expected to erode earnings of mining groups, the report said. Hanato stated however that officials remain unsure as to how much decline in income may be seen. Hanato declared that while revenues are expected to decline, they might not get reduced significantly.

The decline in coal prices is also expected to hit export sales. Meanwhile, the PTBA is expected to reduce coal exports, while gunning for more sales in the local market. Of the planned 11 percent coal exports to China, the group is expected to divert 4 percent into the local market.