Coal news and updates

Rain and equipment woes to cap Indonesia coal output

Expected wet weather, shortages of new heavy equipment and red tape may drag Indonesian miners’ effort to churn more coal output in the fourth quarter, keeping coal prices in Asia at a multi-year high.

A prolonged wet weather and health restrictions to prevent the spread of COVID-19 in mines had slowed deliveries from the world’s largest power station coal exporter for most parts of this year. This has contributed to sending thermal coal prices above $170 a tonne amid robust China demand and high natural gas prices.

“Everyone is looking to produce more because of the healthy price level. It depends on the last few months from September to December how the producers will boost the production and hopefully exports. Still, there are these several issues,” said Hendri Tan, marketing director at Adaro Indonesia, Indonesia’s second-biggest producer, on the second day of the Coaltrans Asia Conference held virtually today.