Indonesia coal miners in talks with buyers seeking Russian alternatives
JAKARTA – Indonesian coal miners are holding exploratory talks with buyers seeking alternatives to Russian coal, although some other countries may be better placed to supply the European market, a senior official of an industry association said on Wednesday.
Russia's invasion of Ukraine has prompted buyers of Russian coal and gas to seek alternative power sources and has boosted the Indonesian coal benchmark price for March to $203.69 per tonne, the second-highest monthly price on record.
While the opportunity is "very interesting", Indonesian Coal Miners Association executive director, Hendra Sinadia, said miners were currently focused on recovering production and meeting existing contracts after an unexpected export ban brought in by Jakarta in January. Read full story
Indonesia has since resumed exports, but the government has tightened mandatory domestic sales rules and will only allow exports for miners meeting requirements. Read full story
Indonesia has set a target of 663-million tonnes of coal production this year and potential exports of 497 million tonnes, director of mineral and coal programmes at Indonesia's energy ministry, Sunindyo Suryo Herdadi, said during an online panel discussion with foreign correspondents.
Meanwhile, Hendra told the discussion Indonesia may not be in the leading position to meet any additional demand in Europe.
"Another challenge is also the weather and competitiveness of our freight in order to serve the Atlantic market. Because we believe Colombia and South Africa are in the better position to serve the market in Europe should they look for substitutes from Russia," Hendra said.
Indonesia, the world's biggest thermal coal exporter, mainly ships to buyers in China, India, South Korea, Japan, Taiwan and other countries in Southeast Asia.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation