JAKARTA (TheInsiderStories) – The government has set the country’s coal price reference for August at US$72.67 a ton, a slight increase from $71.92 a ton the previous month, Energy and Mineral Resources Ministry announced on Monday (08/11).
It said the increase in August was influenced by the global energy market which was relatively improving. In addition, coal and demand from China and Korea also increased. Also, the disruption of coal supply from mines in Australia caused the Global Coal and Newcastle indices to strengthen in July.
The ministry said coal reference is the price obtained from the average Indonesian Coal Index (ICI), Newcastle Export Index (NEX), Global Coal Newcastle Index (GCNC), and Platss 5900 in the previous month. The quality is equal to 6322 kcal calories per kg GAR, 8 percent Total Moisture, 0.8 percent Total Sulfur and 15 percent Ash.
Based on the decree, the mineral reference price for nickel, cobalt, and lead decreased. The price of nickel is set at $11,874.77 per dry metric ton (DMT), up from $15,067.86 per DMT from July, cobalt is $28,527.27 per DMT (down from July’ $31,386.36 per DMT), and lead has experienced a decrease from $1,847.68 per DMT to $1,929.11 per DMT.
Zinc and aluminum commodities also experienced a downward trend. The price of zinc dropped from $2,649.66 per DMT in July to $2,487.86 per DMT, the aluminum decreased from $1,752.00 per DMT to $1,787.93 per DMT, while for copper was set at $5,937, 45 per DMT, up from $5,852 per DMT from the previous month.
Others mineral commodities experience price fluctuations. Gold as a follow-up mineral was $1,406.29 per ounce, up from $1,312.55 per ounce from July. Silver was $15.35 per ounce, rise from $14.67 per ounce in the previous month.
Furthermore, Pb300 tin ingots, Pb200 lead ingots, Pb100 lead ingots, Pb050 tin ingots, and 4NINE tin ingots according to the price of tin ingots published by ICDX on the day of sale.
Then, gold metal and silver metal according to the price of gold and silver metal published by the London Bullion Market Association (LBMA) on the day of sale. Manganese was $5,13per DMT, unchanged from July. Laterite/Hematite/Magnetite Iron Ore was 1.75 per DMT, up from $1.49 per DMT month earlier. Chrome Ore: $3,87 per DMT, up from $3.83 per DMT in the previous month. Ilmenite Concentrate was 3.77 per DMT, unchanged from July. Titanium Concentrate was 9.78 per DMT, up from $9,54 per DMT in July.
Based on energy ministry data, coal production is prioritized to guarantee the fulfillment of domestic primary energy needs. But the realization of domestic coal utilization in 2018 is only 115 million tons or 21 percent. This is below the domestic market obligation (DMO) target which is pegged at 25 percent, even though the number of utilization is up compared to 2017 which was only 97 million tons.
Meanwhile, the government has also set a price for a DMO of $70 valid until the end of 2019 and still continues to look at developments in global coal prices.
This year, the government targets coal production of 489.12 million tons. Until the first quarter of 2019, national coal production has almost reached a quarter of the target set in the 2019 Work Plan and Budget of 116, 23 million tons, equivalent to 23.76 percent of the target production volume.
Written by Lexy Nantu, Email: firstname.lastname@example.org