Major Indonesian thermal coal miner Kideco Jaya Agung produced 32.1 million mt of coal in 2016, a drop of 17.6% from 39 million mt a year ago, while its average selling price dropped 10.5% in the same period.
Its sales volume fell 15.8% to 32.5 million mt in 2016, compared with 38.6 million mt in 2015, Kideco's stakeholder Indika Energy said in its annual report late Thursday.
Kideco's average selling price fell to $38.40/mt in the year, down from $42.90/mt in 2015.
Cash cost, excluding royalty paid to the Indonesian government, stood at $27.90/mt, down from $29.60/mt in 2015.
The company said China accounted for 26.7% of the total sales in 2016, followed by Indonesia at 26.4% and India at 10%. It also counts South Korea, the Philippines, Malaysia and Japan among its other customers.
Kideco produces low ash, low sulfur 4,200 kcal/kg GAR and 4,900 kcal/kg GAR coal in Indonesia's East Kalimantan province.
The price of FOB Kalimantan 4,200 kcal/kg GAR coal has jumped 69.5% since the start of 2016, to be assessed Thursday at $44.75/mt, according to S&P Global Platts data. The FOB Kalimantan 5,000 kcal/kg GAR coal price has surged 66.5% in the same period to $62.45/mt, the data showed.
Thermal coal prices surged during the latter half of 2016 following supply tightness at various producing regions as well as increased Chinese demand for seaborne cargoes.
Indika, which is also into trading, said its coal sales dropped to 7.1 million mt in 2016, from 8.2 million mt a year ago, while average selling price fell to $29.40/mt, from $32.20/mt.
Indika has equity interests in coal miners Kideco, Santan Batubara, Multi Tambangjaya Utama and Mitra Energi Agung.
