Severe Drought in East Kalimantan Disrupts Coal Shipments
A severe dry spell in Indonesia's East Kalimantan has lowered river levels, disrupting coal transport and increasing costs for miners.
An industry group has reported that extremely dry weather is disrupting coal shipments from several miners in Indonesia's East Kalimantan province. The Indonesia Coal Miners Association stated that receding water levels in the region's rivers are hampering the transportation of coal.
Indonesia, the world's largest exporter of thermal coal, is currently experiencing 'super-El Niño' conditions. This weather phenomenon has led to drought and worsened wildfires in Sumatra and Kalimantan, where many of the country's coal mines are located.
The Mahakam River, a crucial 980-kilometre logistics route, has seen its water levels drop in recent weeks. Data from Indonesia's weather agency indicates that East Kalimantan received almost no rainfall during the entire month of August.
According to Gita Mahyarani, executive director of the association, some members have been forced to reduce the amount of coal loaded onto barges to prevent them from running aground. This reduction in carrying capacity means more trips are needed to move the same volume, leading to higher logistics costs.
The impact varies among companies, depending on their mine locations and the specific stretches of the waterway they use. The association does not yet have an estimate of the total volume affected.
A local port authority official, Mursidi, told the Kompas news website that barges which normally carry 7,000 metric tons have had to lower their loads to around 5,500 tons. Despite these precautions, some vessels are still encountering difficulties when travelling upstream due to the shallow water.