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29.08.202506:47:59UTC+00Coal Falls as Indonesia Lifts Minimum Price Requirement

In late August, Newcastle coal futures dipped below $110 per tonne, reaching a seven-week low. This decline followed Indonesia's decision to abolish the mandate that required miners to adhere to government benchmark prices as the minimum for mineral and coal sales. The new policy enables miners to sell at prices below these set levels, with many in the industry opting for the Indonesian Coal Index due to its enhanced transparency, more frequent updates, and generally lower price levels compared to official benchmarks. As the world's third-largest coal producer, Indonesia reported an output of 833 million tonnes and exports of 566 million tonnes in 2024. Meanwhile, in the demand sector, China, the largest consumer, experienced a boom in new coal power developments in the first half of the year, alongside a record increase in clean energy capacity.

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