Approaching the End of the Year,Coal Prices Dropped to 117 US dollars per Ton

Illustration (Photo: Doc. Antara)

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

In December 2023, the Ministry of Energy and Mineral Resources recorded a significant decrease from the previous month's HBA.

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 139.8 US dollars per ton or a decrease from November which was priced at 123 .96 US dollars per ton to 117.38 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 also decreased to 85.92 US dollars per ton from the previous 103.2 dollars US per ton.

Next, for HBA II with an equivalent calorific value of 4,100 kcal/kg GAR, total moisture of 35.73 percent, sulfur of 0.23 percent, and Ash of 3.90 percent was observed to have increased to 57.70 US dollars per ton or from the previous month which was priced at 52.86 US dollars per ton.

Finally, for HBA III with an equivalent calorific value of 3,400 kcal/kg GAR, total moisture 44.30 percent, sulfur 0.24 percent, and Ash 3.88 percent is priced at 34.18 US dollars or a significant increase from the previous month which was charged at 28.49 US dollars 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.