New Indonesian Mines Boost Coal Output in Q1

Coal output from Indonesia, the world’s largest exporter of the fuel for use in power stations, rose 8.9 percent in the first quarter compared with a year earlier as new mines started and existing producers boosted output.

Indonesia produced 101.06 million metric tons in January to March, up from 92.76 million tons in the same period last year, Supriatna Suhala, the executive director of the Indonesian Coal Mining Association, said in Jakarta on Friday. Coking coal accounted for 15 percent of output, Suhala said.

“It has caused prices to weaken because supply is plenty,” Suhala said in a phone interview.

The nation’s coal output may reach 400 million tons this year, more than an initial forecast of 390 million tons, he said.

Indonesia cut its thermal coal benchmark price for May sales to $102.12 a ton from $105.61 in April, the Directorate General of Coal and Minerals at the Energy Ministry said May 7. That’s the lowest price in 18 months, according to the ministry’s data.

Bloomberg