In ironic twist, drive for clean energy creates Asian coal boom


In ironic twist, drive for clean energy creates Asian coal boom

Coal, one of the world’s most polarizing commodities, has now become an Asian irony. Efforts to curb use of the so-called black diamond in the West have been a boon for coal companies in the East, more so now that the benchmark price for thermal coal exceeded $120 per ton in July, the highest since 2012.

No one was surprised in March when Tambang Batubara Bukit Asam, one of Indonesia’s largest coal producer, posted a 123% year-on-year jump in net profit to 4.4 trillion rupiah( $325 million) for the period ended December.

That was because only a week prior to the results, Adaro Energy, the country’s second-largest coal miner, posted a 45% surge in net profits to $483 million. The common denominator for both companies was rising coal prices.

“The revenue increase is a result of continued efforts by the corporate management … amid improving global coal prices,” said Bukit Asam, while Adaro noted, “2017 was a good year for Adaro Energy … within the more supportive coal sector.” Read More

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