Singapore, 28 July (Argus) — Bayan Resources, Indonesia's fifth-largest coal mining group, has declared force majeure at one of its mines in south Kalimantan.

“There is heavy rain and floods. The mine is not closed but production is affected. The rains are continuing and it is hard to say when the force majeure will be lifted,” the company said.

Only one shipment has been affected by the force majeure so far, 115,000t for early-August delivery to trading firm Vitol, the company said.

The recent heavy rains have affected production at some other mines, but no other force majeures have been declared. Other companies operating mines in south Kalimantan include Adaro Energy, Arutmin Indonesia and Jorong, which is owned by Thailand's Banpu.

Kalimantan has been inundated with heavy rains this year, and Bayan declared a two-week force majeure on coal shipments in late April from a mine in east Kalimantan. The rains have led to higher Indonesian coal prices this year, as shut-in production and transport bottlenecks limited the availability of coal in the country.

Prices of 6,500 kcal/kg Indonesian coal on a GAR basis are currently assessed at $100.50/t, while 5,800 kcal/kg supply has been assessed at $81.37/t. Prices of 5,000 kcal/kg coal are at $68.48/t, while 4,200 kcal/kg has been assessed at $43.25/t.

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