Indonesian Coal Miners Boosted by Decade-High Prices

Record-high coal prices have helped Indonesian miners post strong results in the first half of the year, giving rise to market optimism as economies around the world begin to reopen following the easing of COVID-19 restrictions.

Newcastle coal futures, the benchmark for thermal coal in the Asia-Pacific, was trading on Wednesday at US$177 per ton, just below a decade high reached a few days earlier, and up 267 percent from last year’s prices, according to financial markets platform

Indonesian mining companies posted stronger financial performances in the first half of 2021, including publicly listed PT Adaro Energy and state-owned PT Bukit Asam. Adaro Energy reported 9.6 percent year-on-year (yoy) growth in net profit to nearly $170 million, while Bukit Asam saw its net profit rise a whopping 38.01 percent yoy to Rp 1.77 trillion ($124.92 million).

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