Indonesian Coal Miners To Scale Back Production As Margins Start To Pinch

Posted in the Mining Forum

Since: Sep 12

Location hidden

#1 Sep 5, 2012
Rising costs and falling thermal coal prices are expected to see Indonesian steam coal producers scale back production in 2013. John O’Neil from Energy Publishing’s Indonesian Coal Report looks at the half yearly results of industry heavyweights.

While most coal producing regions are starting to feel the pinch of the rapid decline in coal prices in recent months, Indonesia has been hard hit because of the low margins between the cost of production and sale price. Indonesia’s mining majors have reported falling profits for the first half of 2013 and many analysts are now tipping the scenario is unlikely to improve before 2H 2013.

Not all of Indonesia’s largest coal producers are scaling back production yet, but rising costs and falling prices are squeezing their margins. With major producers having most of their 2012 production contracted and often at fixed prices negotiated earlier in the year, the impact of the current low spot prices won’t be fully felt until next year.

To compensate, some producers are expanding production to increase revenue while others have a greater focus on efficiency and watching production costs to protect margins.

Tell me when this thread is updated:

Subscribe Now Add to my Tracker

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Mining Discussions

Title Updated Last By Comments
News Matawa First Nation chiefs voice objection to N... Mar 27 Medewiwin 1
Ball Press Machine Gets into International Market Mar 25 olivia123 1
Mobile Sand Maker Promotes the Boom of Sand Ind... Mar 24 lovestory 1
Price of gold in Ghana (Nov '09) Mar 23 martin1000 479
News Politics of Stupid as Far as the Eye Can See Mar 11 lotsa stupid out ... 1
News 'Green News Report' - March 10, 2015 Mar 11 lotsa stupid out ... 1
News Politics of Stupid: Don't Cotton to It Mar 11 lotsa stupid out ... 1
More from around the web