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Thursday, 10 November 11
INDONESIAN REFERENCE COAL PRICE FELL AGAIN


COALspot.com - Ministry of Energy and Mineral Resources of Indonesia has set the November 2011 Indonesian Coal Reference Price for thermal coal at US$ 116.65 per ton, which is 2.17percent lesser than October 2011 price.

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 November HBA is 22.13 percent higher compared to the same month in 2010.

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 between 1 - 30 November 2011.

Any deliver of cargo after 30 November, must be used the particular month's HPB unless the deliveries fall under term contract.

The November HBA is a marginal drop of US$ 2.59 per ton or down 2.17 percent compared with October 2011 Coal reference price. Government has taken around 10 days to release this month HBA.

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 53coal types with a quality similar to the coal price markers.

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

The coal reference price has been established to fulfill the requirement of mining law 04/2009 and the ministerial decree no.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 January 2009.(cs)



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