Coal news and updates

Six coal companies in Bengkulu to shut down

Six coal companies in Bengkulu province are suspending their operations due to the low sales price and high transport costs.

There are six companies that will stop production because the price of coal is still low,” the head of Bengkulu Coal Companies Association, Debby Hussy, said on Tuesday as quoted by Antara news agency.

She said that aside from the low sales price, the companies had stopped production due to high transportation costs from coal barges to the large vessels at Pulau Baai port. The barge cost is US$1.5 per ton, while the loading cost is $6 per ton.

“The cost is burdening [companies] because the coal sales price is still low,” she said, adding that she expected the price to be cut to $3 per ton.

There were 2.9 million tons of coal shipped from Pulai Baai port in 2013, a decrease from 3.6 million tons in 2012.

Debby said that there were eight coal mining companies still operating, most of which were located in North and Central Bengkulu regencies.

On the other hand, the construction of a coal berthing line in the area is still problematic, as state-owned seaport operator PT Pelindo II, also known as the Indonesia Port Corporation, is still struggling to provide the optimum berth depth to allow vessels with a capacity of tens of thousands of tons to berth at the Pulau Baai port.

Operations and services manager of PT Pelindo II’s Bengkulu branch, Santoso, said that the port’s infrastructure was being improved to serve coal loading.

“Regarding the coal shipment cost, it is […] the company’s decision and we cannot comment on that,” he said.

The port operator is currently building a new pier for coal dry bulk. (meh/nvn).

Source: Jakarta Post