Coalindo Energy to launch ICI-5

Indonesian coal index (ICI) provider PT Coalindo Energy said Wednesday that it would launch new coal index called ICI-5 to track the price of 3,400 Kcal/kg (GAR) coal in Indonesia. The index will be distributed to potential clients, including coal producers, traders, consumers, etc.

Company managing director Maydin Sipayung said that other specifications covered in the ICI-5 index are among others sulphuric content up to 0.2 percent, ash content of up to 0.4 percent, total moisture (TM) of 45-50%.

The company has collected data for the new index from 16 low-rank coal producers, five coal consumers and seven coal traders, he said.

Of the 16 firms, 11 have been producing, five will start production this year. The 11 firms have targeted to produce 7.45 million tons of low-rank coal this year. Their output, combined with output from the five firms, will reach 15.52 million tons next year.

But he did not specify the names of the coal producers, consumers and traders.

He also said that the ICI-5 will be officially launched after the company has conducted three weeks of trail and about 1-2 weeks of final adjustment.

Based on Indonesia coal price reference (HBA) data, low-rank coal producers which have started production are PT Adani Global through PT Lamindo Intermultikon in Bunyu island, East Kalimantan, PT Pesona Khatulistiwa Nusantara (PKN) in Bulungan regency, East Kalimantan, PT Borneo Indobara in Tanah Bumbu regency, South Kalimantan and PT Intitirta Primasakti in Jambi.

Currently, Coalindo Energy has produced coal indices, namely ICI-1 for coal of 6,500 kcal/kg (GAR) grade, ICI-2 for coal of 5,800 kcal/kg (GAR) grade, ICI-3 for coal of 5,000 kcal/kg (GAR) grade and ICI-4 for coal of 4,200 kcal/kg (GAR) grade. (denny)