Katingan Ria thermal coal price revision underway
Friday, July 29 2016 - 12:59 PM WIB
ASX-listed Realm Resources said on Friday that the thermal coal price for expected Katingan Ria coal (i.e. 4,200 kcal/kg GAR) has risen to about US$29.00/t (vs $26.00/t last quarter) or around 50 percent of the FOB Newcastle price.
The firm said it continues to engage with state owned electricity firm PT Perusahaan Listrik Negara (Persero) (PLN) and other potential partners/buyers in order to progress its power station strategy. The depressed coal market and government inertia with respect to the power station development process continues to slow progress in this area. The Katingan Ria thermal coal project in Central Kalimantan province (Realm 51 percent) is ideally suited to supply proposed power stations in the region ? i.e. Kalselteng 1 (2x100MW) Kalselteng 3 (2x100MW). These developments have unfortunately been further delayed.
Supply cuts and continued robust demand for thermal could see the market supported in the medium term.
Realm has a 51 percent interest in Katingan Ria thermal coal project.
Editing by Johannes Simbolon