Ministry Of Energy And Mineral Resources Sets April HBA Based On Kalori Calculations

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) officially set the Reference Coal Price (HBA) for April. This price is contained in the Decree of the Minister of Energy and Mineral Resources Number 71.K/MB.01/MEM.B/2023 concerning Reference Metal Mineral Prices and Reference Coal Prices for April 2023.

In the regulation, HBA in equity has a value of 6,322 kcal/kg GAR, a Total Moisture of 12.58 percent, a total of 0.71 percent sulphur, and a Ash of 7.58 percent is set at 265.26 US dollars per ton.

"This price is used as a reference HBA during April in determining royalty rates and at the calculation of HPB calories >6000," said Head of the Communications, Public Information Service, and Personal Agung Cooperation Bureau quoted Thursday, April 20.

Furthermore, HBA in equity has a value of 5,200 kcal/kg GAR, a Total Moisture of 23.12 percent, a Total of Sulphur 0.69 percent, and Ash 6 percent. The determination categorized by HBA I is used as a reference HBA on calculations of HPB calories > 5,200 - 6,000. "This HBA I is set at the level of 102.53 US dollars per ton," added Agung.

Finally, HBA in equity has a value of 4,200 kcal/kg GAR, a Total Moisture of 35.29 percent, a Total of Sulphur 0.2 percent and Ash 4.21 percent, obtained a figure of 87.81 US dollars per ton. "HBA II is used as a reference HBA in the calculation of HPB calories <=5,200," he said.

Previously Agung revealed that the formula for determining HBA was in principle aimed at obtaining reference coal prices that could be accepted by the market by taking into account state revenues.

"This consideration is the basis for issuing regulations related to prices based on market mechanisms," Agung explained, last Saturday, March 17.

Agung added that the HBA was formed from the average realization of the coal selling price two months earlier, with a proportion of 70 percent of the price realization one month earlier.

In addition, the formation of HBA was taken from 30 percent of the price realization two months earlier based on data on the realization of coal sales submitted by the Mining Business Entity at the time of fulfilling the obligation to pay coal royalties.