Several coal producers had declared force majeure because of heavy rain, adding that if the wet weather persists until the fourth quarter it will most likely hurt output. With this condition, chairman of the Indonesian Coal Mining Association foresees that Indonesia may fail to reach its coal production target of 320mn tons
this year (+6.7% YoY).
The association only sets coal production output to stay at 2009 level or at 300mn tons after a longer than usual rainy season disrupted mining activities.
Separately, the Meteorology, Climatology and Geophysics Agency (BMKG) said that increased rainfall, or La Nina, is forecasted for Sumatra, Kalimantan and parts of Sulawesi and Java in August and September, potentially disrupting agriculture and mining. The agency added, La Nina has caused extreme weather, similar to its occurrence in 1998 but with higher intensity.
Previously, Adaro Energy (ADRO, Rp2,075, Buy) said that it may fail to reach its 45mn output target if this rainfall continues. Meanwhile, Bayan Resources (BYAN, Rp8,300) had notified customers it will miss shipments.
Any disruption on Indonesia coal production ability may affect global coal price as the country is one of the largest coal exporter. However, no impact would occur unless the rainfall did hurt the output.
Tidak ada komentar:
Posting Komentar