Coal sales increase in Indonesia

Coal miner Harum Energy said Tuesday that January-September sales rose 44% year-on-year to 3.6 million tonnes, while the average selling price rose 28% to $ 63.70 a tonne. The company said that steam coal production in the nine months was 3.2 million tonnes, up 57.5% from the previous year.

Thermal coal prices have risen this year on strong demand from China at a time when Indonesia saw rain and disaster strikes at mines in Australia, leading to reduced supplies.

Coal production in the third quarter was 1 million tons, up from 800,000 tons in the same quarter a year earlier, the company said. It sells most of its products to South Korea, Malaysia and Taiwan. In January-September, South Korea and Malaysia accounted for 28% of total sales, while Taiwan accounted for 16%.

Looking ahead, the company expects Chinese sea freight demand to ease in the fourth quarter as buyers are cautious amid government directives.