Coal price has yet to reach floor level: Miners

By Tri Subhki R

Some coal mining companies said coal price has yet to reach its floor level although the Indonesia Benchmark Price has now reached its record low of US$60 per ton.

They suggested that coal price, which has tumbled from its peak in 2011 due to oversupply situation and weaker demand particularly in China, may further go down.

"The coal price will continue to fall and will not recover anytime soon," Ramli Ahmad, Director of PT Asia Pasific Mining Resources, said at the 21st CoalTrans Asia in Bali on Tuesday.

Michael Soerijadji, Marketing Director of PT Adimitra Baratama Nusantara, also voiced the same tone. "The price may (further) go down to $50," he said.

This situation has prompted coal firms to apply cost reduction initiatives, among others by altering the mine plan and renegotiating contracts with mining services companies, to help ensure margins.

Editing by Reiner Simanjuntak