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Mineweb reported that Indonesian coal miners are diversifying into other businesses to counteract the dip in their cash flows caused due to a collapse in demand from China.
Mineweb reported that Indonesian coal miners are diversifying into other businesses to counteract the dip in their cash flows caused due to a collapse in demand from China.
As quoted in the market news,
The free cash flow of the 15 biggest coal miners and contractors on Jakarta’s stock exchange averaged $10.7 million in the three months ended December, Thomson Reuters data shows. That’s the lowest since January-to-March 2014. Six of the firms, including PT Indo Tambangraya Megah Tbk and PT Golden Energy Mines Tbk, experienced negative free cash flow. That means the cash they generated could not cover operating costs. Company executives and industry groups are not expecting a pickup anytime soon in demand especially from China, the world’s top consumer of the commodity.