ICMA: coal price in 2015 will be stagnant

By Cepi Setiadi

Indonesia Mining Association (ICMA) predicts the coal price in 2015 will be the same as last year.

Executive Director Supriatna Suhala told Petromindo.com on Monday that there are two factors that will keep coal price stagnant this year.

"Firstly there is an oversupply of coal and secondly is the fuel price is keep decreasing," he said adding that fuels account for 40% of coal miners? operating costs.

"Hence, event though the the coal price will be stagnant, the profit margin of coal miners will increase as fuel cost will be falling," he said.

Supriatna added oversupply is occurring because United States of America and China are in over-production. "The market is just India and other Asian's countries," he said.

In addition, according to Supriatna, many coal miners in Indonesia are expanding their businesses by producing more coal

This makes an over-production to also happen on the domestic market. "Logically, if we want to increase coal price, we should cut production. However, it does not happen. Consequently, coal price will not better for the moment,? he said.

Editing by Johannes Simbolon