Indonesia's leading thermal coal company Bumi Plc which is also one of the world's largest exporters of thermal coal said that it is actively looking for cost cutting to fight against the falling prices of thermal coal.
Thermal coal prices are at near two-year low, largely due to softer demand and increased supply from markets including Indonesia and the United States, where cheap natural gas has replaced coal used in power generation.
The drop in prices is a clear concern that would have a material impact on the industry's profitability if prolonged, “We are therefore accelerating our efforts at reducing costs and improving efficiencies wherever we can, across the wider group,” Chairman Samin Tan said at the company's annual meeting on Thursday.
Tan also welcomed confirmation from the Indonesian energy minister last week that export duties would not be imposed on coal, after officials had said such curbs were under consideration.
Leave a Reply