The Magazine for Asian Investors
The first breath of relief in Asia as Indonesia allows first coal exports after the export ban. Apparently, over 36 vessels were allowed to leave the country. Previously, the country had imposed a ban on coal exports after coal producers violated the country’s regulations. In Indonesia, coal producers are required to sell 25% of their production to local power producers at a maximum price of $70 per ton.
Miners who have complied with the regulation can now continue their exports, all others are not allowed to export until at least the end of this month. The first ships now exporting coal are carrying about 1 million tons of coal. This is only a fraction of the normal monthly export volume of 40-50 million tons.
In addition, miners who still do not comply with the regulation are now threatened with fines.
For many countries, energy continues to be an important issue, in particular securing it. In the case of Indonesia, it is of course more attractive for mining companies to export their coal, as coal prices have risen over the past year.
Earlier this year, Indonesia imposed a ban on coal exports after its own stocks shrank to a minimum, threatening a nationwide blackout.