Recently, the Indonesian Ministry of Energy and Mineral Resources (Energy and Mineral Resources Ministry) released the Indonesian thermal coal reference price (HBA) for February 2024. The prices of various types of coal were mixed compared with the previous month.
According to the Indonesian Ministry of Energy and Mines, the specific coal grades and reference prices for all types of coal in February are as follows:
- HBA : High 6322 kcal (12.26% total water, 0.66% total sulfur, 7.94% ash) thermal coal reference price is 124.95 US dollars/ ton , down 3.9 US dollars/ton from the previous month, a decrease of 3%, as the calorific value is 6100-6500 Reference price of large caloric thermal coal.
- HBA I : High 5,300 kcal (full water 21.32%, total sulfur 0.75%, ash 6.04%) reference price of thermal coal is 87.65 US dollars/ ton , an increase of 0.29 US dollars/ton from the previous month, an increase of 0.3%, as the calorific value is 5100- Reference price of 5,500 kcal thermal coal.
- HBA II : The reference price of high-level 4100 kcal (full water 35.73%, total sulfur 0.23%, ash 3.90%) thermal coal is US$ 58.86 / ton , which is US$0.7/ton lower than the previous month, a decrease of 1.2%, as the calorific value is 3900 -4300 kcal thermal coal reference price.
- HBA III : High 3400 kcal (full water 44.3%, total sulfur 0.24%, ash 3.88%) thermal coal reference price is 37.54 US dollars / ton , an increase of 0.45 US dollars / ton from the previous month, an increase of 1.2%, as the calorific value is 3200 -3600 kcal thermal coal reference price.
Previously, the reference prices adjusted by the Indonesian Ministry of Energy and Mines from March 2023 were divided into three levels, which were used for thermal coal reference prices with calorific values of 6200-6400 kcal, 5200-6000 kcal and 4100-4300 kcal.
In the latest reference price adjustment in August of that year, the grade range of coal calorific value was further refined from the previous three levels to four levels, and the reference price of ultra-low-calorie coal grades with a calorific value of 3200-3600 kcal was included. Adjusting the thermal coal reference price classification again provides miners with more room to adapt to the increase in production costs caused by the increase in mining rights taxes.
The Indonesian Ministry of Energy and Mines stated that the latest adjusted reference price formula is determined based on prices from the fourth week two months ago to the first week of the previous month (30%) and the second and third weeks of the previous month (70%).
