Singapore — Indonesia's Ministry of Energy and Mineral Resources set its August thermal coal reference price, also known as Harga Batubara Acuan or HBA, at a seven-month high of $83.97/mt, up 44% year on year and 6.4% higher from June.
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The ministry had set the price for July at $78.95/mt, and for August 2016 at $58.37/mt.
The HBA is a monthly average price based 25% on the Platts Kalimantan 5,900 kcal/kg GAR assessment; 25% on the Argus-Indonesia Coal Index 1 (6,500 kcal/kg GAR); 25% on the Newcastle Export Index -- formerly the Barlow-Jonker index (6,322 kcal/kg GAR) of Energy Publishing -- and 25% on the globalCOAL Newcastle (6,000 kcal/kg NAR) index.
In July, the daily Platts FOB Kalimantan 5,900 kcal/kg GAR coal assessment averaged $72.44/mt, up from $70.23/mt in June, while the daily 90-day Platts Newcastle FOB price for coal with a calorific value of 6,300 kcal/kg GAR averaged $87.53/mt, up from $80.95/mt in June.
The HBA price for thermal coal is the basis for determining the prices of 77 Indonesian coal products and calculating the royalty producers have to pay for each metric ton of coal sold.
It is based on 6,322 kcal/kg GAR coal, with 8% total moisture content, 15% ash as received and 0.8% sulfur as received.
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--Edited by E Shailaja Nair, email@example.com