Insight
Can Indonesia's coal mines maximise strip ratios and boost reserves?
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
The declining trend in strip ratios for Indonesia's coal mines have allowed producers to survive in periods of lower coal prices through reduction in production costs and margins. However, producers are likely to have sterilised coal and jeopardised future coal reserves with continuous mining in lower strip areas. Our analysis suggests that the top 16 producers in Indonesia has been able to increase reserve, but other coal producers have experienced a declining trend in reserve reduction and is expected to lose 364 Mt in 2016. With concerns of Indonesia running out of reserves to fulfil domestic obligations, we seek to understand Indonesia's coal mines potential to maximise strip ratios and boost reserves. In this insight, we analysed the breakeven strip ratios for currently operating surface mines in Indonesia and its potential impact to reserves.
Table of contents
- Executive summary
- Indonesia's strip ratio falling year on year
- Producers can increase strip ratio and still maintain some margins
- Reserves likely to increase with higher strip areas becoming viable
Tables and charts
This report includes the following images and tables:
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Indonesia yearly LoM Weighted average strip ratio & change in reserves (2013-2016)Indonesia yearly weighted average and percentage change in strip ratioIndonesia's 2017 break-even LoM strip ratio on a normalised curve at US$73/t price
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Indonesia's 2017 breakeven LoM strip ratio on a normalised curve at US$60/t and US$80/t pricesRegional breakdown of break-even strip ratio and total cash costs at US$73/t price scenarioTop 16 mines on Q4 LoM strip ratio and cumulative marketable production curveTop 16 mines on breakeven LoM strip ratio and cumulative marketable production curvePercentage of change in strip ratio to break even relative to coal quality 4,200GAR at US73/tPotential reserve increase for Indonesia mines
What's included
This report contains:
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