Check out the Reference Coal Prices for October 2023

Coal illustration (Photo: Antara)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) has issued the latest decree regarding the reference coal price (HBA) for October 2023.

These provisions are contained in the Decree of the Minister of Energy and Mineral Resources (Kepmen) Number 335.K/MB.01/MEM.B/2023 concerning Reference Metal Mineral Prices and Reference Coal Prices for the Month of August 2023 dated October 11, 2023.

In these provisions, the Ministry of Energy and Mineral Resources divides coal into 4 categories, including:

First, HBA in the equivalent calorific value of 6,322 kcal/kg GAR, total moisture 12.26 percent, total sulfur 0.66 percent, and ash 7.94 percent is priced at 123.96 US dollars per ton or down from the price in September which was priced at 133.13 US dollars per ton.

Second, for HBA I with an equivalent calorific value of 5,300 kcal/kg GAR, total moisture 21.32 percent, sulfur 0.75 percent, and Ash 6.04 percent is at a price of 81.38 or down from the previous month's price of 89.11 US dollars per ton.

Next, for HBA II with an equivalent calorific value of 4,100 kcal/kg GAR, total moisture 35.73 percent, sulfur 0.23 percent, and Ash 3.90 percent is at a price of 50.41 US dollars per ton, down from the previous month's price which is priced at 53.83 US dollars per ton.

Lastly, for HBA III with an equivalent calorific value of 3,400 kcal/kg GAR, total moisture of 44.30 percent, sulfur of 0.24 percent, and Ash of 3.88 percent is priced at 25.50 dollars, down sharply from the previous month which was priced at 31.82 dollars US per ton.

In principle, the HBA formula is determined to obtain an HBA that is accepted by the market by taking into account state revenues.

This consideration is the basis for the need to issue regulations regarding prices based on market mechanisms.

The HBA is formed from the average realized selling price of coal in the previous two months, with a proportion of 70 percent of the realized price one month earlier.

In addition, the formation of the HBA is taken from 30 percent of the price realization in the previous two months based on coal sales realization data submitted by the Mining Business Entity at the time of fulfilling coal royalty payment obligations.