Coal Demand Increases, November HBA Picks Up to USD66.27 per Ton

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 644.Pers/04/SJI/2019

Dated: 6th November 2019

Coal Demand Increases, November HBA Picks Up to USD66.27 per Ton

Coal sales price for November 2019 is set at USD66.27 per ton or picking up by 2.27% from October HBA of USD64.8 per ton. The price setting is based on Decision of Minister of EMR Number 224 K/30/MEM/ 2019, signed by Minister of EMR Arifin Tasrif, on Metallic Minerals Reference Price and Coal Reference Price for November 2019.

Head of Bureau of Communication, Public Information Services, and Cooperation of Ministry of EMR Agung Pribadi said the November HBA increase has been triggered by a growing market demand as winter approaches. "There is a slight increase from the previous month due to an increased demand," he said in Jakarta, Tuesday (5/11).

The coal price reference, added Agung, is to be used for direct (spot) sales for the whole month at the point of sale handover Free on Board (FOB) the vessel.

The HBA is averaged out from four coal price indexes commonly used in the world's coal trade, namely Indonesia Coal Index (ICI), Newcastle Export Index (NEX), Globalcoal Newcastle Index (GCNC), and Platt's 5900 of the previous month.

In addition, the majority of reference price for 20 metallic minerals (Mineral Reference Price/HMA) also rises in November 2019. For example, Nickel price grows to USD 17,456.43/dry metric ton (dmt) from the previous month price of USD17,176.82/dmt.

1. Cobalt: USD36,035.71/dmt, growing from USD34,363.64/dmt

2. Lead: USD2,126.24/dmt, growing from USD2,066.93/dmt

3. Zinc: USD2,365.19/dmt, growing from USD2,295.45/dmt

4. Aluminium: USD1,721.38/dmt, dropping from USD1,749.0/dmt

5. Copper: USD5,697.05/dmt, dropping from USD5,725.30/dmt

6. Gold as associated mineral: USD1,498.5/ounce, dropping from USD1,515.23/ounce

7. Silver as associated mineral: USD17.68/ounce, dropping from USD18.02/ounce

8. Tin ingot Pb 300: according to the tin ingot price published by the ICDX on the sale day

9. Tin ingot Pb 200: according to the tin ingot price published by the ICDX on the sale day

10. Tin ingot Pb 100: according to the tin ingot price published by the ICDX on the sale day

11. Tin ingot Pb 050: according to the tin ingot price published by the ICDX on the sale day

12 Tin ingot 4NINE: according to the tin ingot price published by the ICDX on the sale day

13. Gold metal: according to the gold metal price published by the London Bullion Market Association (LBMA) on the sale day

14. Silver metal: according to the silver metal price published by the London Bullion Market Association (LBMA) on the sale day

15. Manganese: USD4.18/dmt, dropping from USD4.59/dmt

16. Laterite/Hematite/Magnetite Iron Ore: USD1.31/dmt, growing from USD1.28/dmt

17. Chromite ore: USD2.86/dmt, growing from USD2.83/dmt

18. Ilmenite concentrate: USD4.24/dmt, growing from USD4.09/dmt

19. Titanium concentrate: USD10.17/dmt, growing from USD9.76/dmt

The HMA is one of the variables used to set the metallic Mineral Benchmark Price (HPM) according to the formula set out by Minister of EMR Regulation Number 2946 K/30/MEM/2017 on Formula to Set Metallic Minerals Benchmark Price. Other variables to set the HPM include metallic mineral amount/content, constant, corrective factor, treatment cost, refining charges, and payable metal.

The amount of HMA is set by the Minister of EMR monthly and refers to the publications of metallic mineral prices at the world's indexes such as London Metal Exchange, London Bullion Market Association, Asian Metal, and Indonesia Commodity and Derivatives Exchange (ICDX). (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (081122135)