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Islands in focus: 66 coal firms go bankrupt in Jambi
JAMBI: As many as 66 coal mining companies in Jambi had gone bankrupt due to plummeting coal prices, said a local official on Friday
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AMBI: As many as 66 coal mining companies in Jambi had gone bankrupt due to plummeting coal prices, said a local official on Friday. Jambi Energy and Mineral Resources Agency head Gamal Husin said the latest data showed that only 11 out of 77 registered coal mining companies in the province were still operating.
'Only 11 companies are now still in operation, as they have a stable market. These companies supply coal to, among others, steam-powered electricity plants [PLTU] and gas-fueled power plants [PLTG]. The others, meanwhile, have closed their operations,' Gamal said.
He added the current price of coal ranged from Rp 300,000 (US$22) per ton, much lower than its earlier price, which ranged from Rp 900,000 or Rp 1 million per ton.
With many coal firms closing their operations, Gamal said the Jambi provincial administration had seen its income from coal royalties significantly drop in the past few years.
'The local administration used to get Rp 86 billion annually [from coal royalties], but now it only gets between Rp 20 billion and Rp 30 billion annually at the most,' he said.
