CEO 0.00% 4.2¢ c @ limited

indonesia's plan to ban low-rank coal could re

  1. 537 Posts.
    Just received this in my 'in box':
    " The Indonesia government has announced plans to ban the export
    of coal with a calorific value less than 5700kcal by 2014. If implemented, this will have
    a significant effect on the thermal coal market. Indonesia is expected to be the main
    supplier of thermal coal to the booming markets of India and China. We estimate that
    approximately 70% of Indonesia's exports would be caught up in this ban, potentially
    wiping out over 220Mt of thermal coal in 2014. The obvious solution would be to
    upgrade the coal using various new technologies being developed around the world.
    But this is fraught with risks; the technology still needs to be proven, its implementation
    is difficult and there is no guarantee that the market will accept this product. But if
    successful, it would add over $10/t to the cash costs of low-rank Indonesian coal
    producers. Which ever way you look at it, if implemented it will result in higher costs
    and higher prices."
 
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