Singapore (Platts)–2 Aug 2016 253 am EDT/653 GMT
Indonesian miner Adaro Energy said thermal coal production was nearly flat year on year at 25.86 million mt in the first half of 2016, even as its sales volume rose 2% in the same period.
The miner produced 13.23 million mt in the second quarter, a 4% increase from 12.72 million mt in the same period last year.
Its sales volume rose 4% to 13.66 million mt in the second quarter and 2% to 26.59 million mt in the first half of the year.
“Coal market dynamics have improved mainly supported by supply cuts in China,” the company said. “Indonesia continues its supply discipline while other coal exporting countries maintain flat or slightly higher exports.”
Indonesia is expected to reduce its total production by about 11% this year to 419 million mt, the company said.
Demand from India was strong in the first half of the year, the company said, but expects exports to the country to slow until the end of the year.
Adaro said that domestic Indonesian consumption, which accounted for 24% of its total sales volume, was expected to continue to grow.
India accounted for 16% while China accounted for 14% of its total sales volume, it added.
Adaro is planning to build two 1,000 MW coal-fired power plants in Central Java at an estimated cost of about $4.2 billion, in a joint venture with Japan’s Electric Power Development Co., or J-Power, and Itochu Corp.
Construction of the power plants have already begun after the financial closure, the company said.
It is also planning to build two 100 MW units in South Kalimantan.
The company has mines in South Kalimantan province and produces coal with a heating value of 4,000-5,000 kcal/kg GAR.
The average price of FOB Kalimantan 4,200 kcal/kg GAR for the second quarter was $27.13/mt, up 3.5% from the first-quarter average, S&P Global Platts data showed.