PTBA seeks to revise contracts with PLN amid rising coal price
Monday, December 5 2016 - 02:31 AM WIB
PTBA
IDX-listed coal giant PT Bukit Asam Tbk (PTBA) is seeking to revise its coal sale contracts with state-owned electricity firm PT PLN next year in the wake of the rising trend in the price of coal, Kontan reported on Monday.
The paper quoted PTBA Corporate Secretary Adib Ubaidillah as saying that the company is currently in negotiation process with PLN for the contract revision.
?In 2017, there will be changes in the contracts, and currently it is still being discussed and negotiated,? Adib said, without providing further details.
The Indonesian government coal reference price, or HBA has been on the rise since May in line with rising trend in the price of the commodity in the global market following production cut in China and rising global demand head of winter. The HBA for December of this year was set at US$101.69 per ton FOB, higher than $84.89 per ton set in November.
Adib said in October that PTBA planned to increase coal output by 25 percent next year to around 32.18 million tons from this year?s target of 25.75 million tons in line with rising price of the commodity. (*)