Three coal mines in Kalimantan operated by PT Tanito Harum have to suspend operations after the government revoked the firm’s extended contract that was supposed to be valid for the next 20 years after the contract extension was deemed against the law.
The Ombilin coal mine in Sawahlunto, West Sumatra, the “oldest coal mining town in Southeast Asia”, has been named a World Heritage site by UNESCO.
Indonesia’s coal price reference (HBA) dropped by 11.73 percent to US$71.92 per metric ton in July from $81.48 per metric ton in the previous month.
An official pledged on Thursday that authorities would enforce a ban on the export of raw ore exports by 2022 to make miners process minerals in the country.
Indonesia’s Energy and Mineral Resources Ministry has proposed revising regulations governing mining rights to include higher royalty payments and earlier applications for permit extensions.
After riding China’s demand train for nearly two decades, Asia’s coal industry is looking to a future of smaller markets and slimmer pickings, as buying declines in the world’s second-biggest economy and climate change concerns blunt demand.
Freeport-McMoRan Inc said on Monday it expects to report a loss in the second quarter, hit by lower gold production, weaker copper prices and higher costs, sending the U.S. miner’s shares down nearly 6%.