Argus Launches ICI-5 (3,400 GAR) coal assessment
Singapore, 22 November 2011
Global energy price reporting agency Argus has launched ICI-5, a new price assessment for 3,400 kcal/kg coal. ICI-5 is published in the Argus/Coalindo Indonesian Coal Index Report — a weekly report providing price indexes for key grades of Indonesian coal.
The launch of ICI-5 was announced at an official ceremony in Jakarta on 10 November, where the director-general for mineral and coal at Indonesia’s ministry of energy and mineral resources, Dr Ir Thamrin Sihite, ME, was the keynote speaker. At the event, Dr Sihite indicated that the Indonesian government is keen to use ICI-5 for tax calculations for lower-calorific value coal.
Argus is the first publisher to assess prices for coal with less than GAR 4,000 kcal/kg, which reflects growing interest in lower-calorific value Indonesian coal from Asia-Pacific’s largest coal importers, in line with increasing production of such grades.
Argus Media chairman and chief executive Adrian Binks said: “Indonesian coals with calorific values around this range currently make up about 40pc of the country’s reserves. Argus is pleased to be the first to provide benchmark price assessments for this key coal grade, which is widely acknowledged by the industry as the market of the future as end-users move inexorably towards lower-calorific value grades of coal as higher-calorific value products are depleted.”
Indonesia is among the world's biggest producers of coal and expects to produce 352mn t this year, of which 72mn t will be used for domestic consumption and 280mn t will be exported. This is up from production of 325mn t last year, of which 60mn t was sold domestically and 265mn t was exported. By 2015, the country is expected to produce 443mn t of coal, consuming 104mn t and exporting the remaining 339mn t.
The Argus/Coalindo Indonesian Coal Index Report, jointly produced by Argus and PT Coalindo Energy, serves as a critical information tool for assessing the most widely spot-traded grades of Indonesian coal. The Indonesian Coal Index (ICI) is used as the leading coal price reference by buyers and sellers of Indonesian coal for spot trade, tax calculations, financial and investment analysis, strategic reporting and production planning. The ICI is also used in calculating the Indonesian domestic coal price and serves as a planning tool for producing companies required to fulfil domestic sales quotas.
The assessments published in the Argus/Coalindo Indonesian Coal Index Report represent an average of the assessments made by Argus and by Coalindo. Argus uses a precise and transparent methodology developed in conjunction with the industry to assess market prices. This is available online at www.argusmedia.com/methodology.
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Argus Media is a leading provider of price assessments, business intelligence and market data on the global crude, oil products, natural gas, electricity, coal, emissions, bioenergy, fertilizer and transportation industries. It is headquartered in London and has offices in Houston, Washington, New York, Portland, Calgary, Johannesburg, Dubai, Singapore, Tokyo, Beijing, Sydney, Moscow, Astana, Kiev, Santiago and other key centers of the energy industry. Argus was founded in 1970 and is a privately held UK-registered company.
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