Recently, Indonesia’s Energy and Mineral Resources Ministry released the Indonesian Thermal Coal Reference Price (HBA) for November 2023. The prices of all types of coal have increased overall compared with the previous month, with high-calorie coal increasing significantly.
According to the Indonesian Ministry of Energy and Mines, the specific coal grades and reference prices for all types of coal in November are as follows:
- HBA: The reference price of thermal coal at the high level of 6322 kcal (12.26% total water, 0.66% total sulfur, 7.94% ash) is US$139.8/ton, an increase of US$15.84/ton from the previous month, as thermal coal with a calorific value of 6100-6500 kcal Reference Price.
- HBA I: High 5300 kcal (full water 21.32%, total sulfur 0.75%, ash 6.04%) reference price of thermal coal is 103.2 US dollars/ton, increased by 21.82 US dollars/ton from the previous month, as power with a calorific value of 5100-5500 kcal Coal reference price.
- HBA II: High 4100 kcal (full water 35.73%, total sulfur 0.23%, ash 3.90%) thermal coal reference price is 52.86 US dollars / ton, increased by 2.45 US dollars / ton from the previous month, as the calorific value is 3900-4300 kcal Thermal coal reference price.
- HBA III: High level 3400 kcal (full water 44.3%, total sulfur 0.24%, ash 3.88%) thermal coal reference price is 28.49 US dollars / ton, increased by 2.99 US dollars / ton from the previous month, as the calorific value is 3200-3600 kcal Thermal coal reference price.
Previously, the reference prices adjusted by the Indonesian Ministry of Energy and Mines from March 2023 were divided into three levels, which were used for thermal coal reference prices with calorific values of 6200-6400 kcal, 5200-6000 kcal and 4100-4300 kcal.
In the latest reference price adjustment in August, the grade range of coal calorific value was further refined from the previous three levels to four levels, and the reference price of ultra-low calorie coal grade with calorific value of 3200-3600 kcal was included. Adjusting the thermal coal reference price classification again provides miners with more room to adapt to rising production costs caused by the increase in mining rights taxes.
The Indonesian Ministry of Energy and Mines stated that the latest adjusted reference price formula is determined based on prices from the fourth week two months ago to the first week of the previous month (30%) and the second and third weeks of the previous month (70%).
