As many as 10 percent of Indonesian coal producers are operating mines below cost after prices for the commodity slumped amid weaker Asian demand, according to Australia & New Zealand Banking Group.
Stability in international business is based on many factors but one of the strongest is the sanctity of contracts.
Adaro Energy, Indonesia’s second-biggest coal miner, said late on Tuesday that its subsidiary, Alam Tri Abadi, had signed an agreement to a buy a majority stake in Mustika Indah Permai. The 75 percent stake in MIP, a coal mining company developing a
Newmont Nusa Tenggara, a unit of US miner Newmont Mining Corp , said on Sunday there had been no significant impact on production from several days of protests at its Indonesian copper and gold mine. Local authorities have dispersed the protesters who since Aug. 2 had been blocking access and disrupting operations at the Batu Hijau copper and gold mine in the island of West Sumbawa. Newmont also plans to review its job application process, which had been the focus of the protests. Batu Hijau aims to produce around 275 million pounds of copper and 275,000 ounces of gold in 2011.
A subsidiary of coal miner Bumi Resources, and Japanese steel manufacturer Kobe Steel are jointly constructing a smelter that will transform brown coal into higher-quality coal.