Coal Commodity: December Price US$64,65 per ton

Jakarta-The Ministry of Energy and Mineral Resources determine the Coal Price Reference (Harga Batubara Acuan/HBA) of December 2014 is US$64,65 per ton. This standard is lower than the HBA last month that is US$65,70 per ton.
Directorate General of Mineral and Coal of The Ministry of Energy and Mineral Resources (MEMR) R. Sukhyar said that HBA this year is continue to fall along with the decrease of the price commodity in international market spot.
As by that condition, he continue, his party will not raise the national coal production quota next year.
for the record, the coal production  is estimated at 415 million ton or more this year. ” HBA is continue to fall along with the weakening in the international market. The low price also impact the state revenue,” he said, Tuesday (9/12).
In the future, Sukhyar affirm that the coal industry will be directed to move domestic industry.
He mentions one of the action is the utilization of coal for the mine mouth power plant.
He mentions that his party  will continue to support the domestic coal absorption, although this policy will affect the Non-Tax Revenue (PNBP) from the coal mining sector.
“I believe the mining PNBP will not be affected that much, due to the private are more orderly pay the tax and some smelter will operate next year,” he said.
The Chairman of Indonesian Coal Mining Association (ICMA/APBI) Bob Kamandanu said that the low coal price this year has shocked the national companies balance sheet.

Bukit Asam to Acquire Mining Service Firm

Bukit Asam is considering acquiring a mining service company to help the state-run coal miner lower costs amid dwindling commodity prices. The acquisition will be made through its subsidiary.

Bukit Asam corporate secretary Joko Pramono told The Jakarta Post over the phone that the company was looking to establish its own mining service unit to be synergized with its coal mining, through an acquisition which will be carried out in January by one of its subsidiaries.

“By having our own mining services, we hope we can maximize our efficiency as low coal prices are expected to continue through next year. At first the unit will solely serve our own mining business, but we will not limit the opportunity to offer our services to third parties in the future,” Joko said.

“We can yet disclose how much investment will be disbursed to acquire the company, as we are currently still studying the plan, but we will announce the transaction once it has concluded early next year.”

Bukit Asam managed to boost sales by 18.96 percent year-on-year to

Rp 9.65 trillion (US$782 million) and net profits by 27.42 percent to Rp 1.58 trillion between January and September.

This stood in contrast to the company’s first nine-month financial achievement a year ago, when its revenues dropped by 6.88 percent to Rp 8.12 trillion and net profits plunged even deeper, by 43.38 percent to Rp 1.28 trillion, spurred by dwindling commodity prices.

The company attributed the increase to its efficiency strategy, namely by building power plants to supply its own concessions, and through a branding strategy, which helped the company book about 19 percent increase in its average selling price (ASP).

Next year, Joko said the company targeted to book a 15 percent increase in its annual sales.

The Coal DMO Reach 55 Million Ton

Jakarta-The uptake of coal DMO until November 2014 reach 55 million ton, or less than 40 million ton to reach the 95 million ton target this year.
Directorate General of Mineral and Coal of The Ministry of Mineral and Resources R. Sukhyar said that local coal market has not been formed yet, as the DMO target that has been set up is difficult to reach.
“The coal DMO is supported by power plant, therefore any constraints in this sector will ruin our target,” he said, Sunday (30/11).
He mentions the coal DMO will be raised upon next year to 125 million ton. He is optimistic the target will be reached upon next year.
He is reasoned, some of the government power project and the private that consume coal as their raw materials will operate

immediately next year. “Slowly but surely the domestic coal market will arise as the coal plants operate,” he said.