Indonesian thermal coal miner Indo Tambangraya Megah said late Monday that its production in 2016 fell 10.2% year on year to 25.6 million mt. The company is targeting a similar output level, 25.5 million mt, this year.
The average selling price for 2016 stood at $50.60/mt, down 10% from $56.40/mt in 2015. However, ASP rose 20% in the fourth quarter to $59.80/mt compared with $49.90/mt in Q3.
Coal prices surged during the second half of 2016, driven mainly by Chinese demand for seaborne cargoes and supply tightness in various producing regions.
"Supply constraints pushed the price in Q4 to the highest since 2013," the company said in its annual report, adding that it expected coal prices to be stable in 2017.
ITM said that output in Q4 was affected by heavy rainfall and bad weather at a few of its mines.
Coal sales in 2016 stood at 26.7 million mt, down 5% year on year, ITM said. ITM's major customers include China, Japan, Indonesia and India.
The company said it was targeting sales of 27 million mt in 2017, with 61% of its expected output already sold via contracts.
Total costs -- including that of goods sold, royalty and selling and general expenses -- averaged $43.80/mt in 2016, down from $49.50/mt in the previous year.
ITM operates six mining concessions in East, South and Central Kalimantan, producing coal with heating value in the range of 4,400-6,300 kcal/kg gross as received, according to the company's website.
The 90-day price of FOB Kalimantan 5,900 GAR has surged 58% since January 2016 and was assessed Monday at $74.50/mt, S&P Global Platts data showed.
