On December 21, St. Louis, US-based coal behemoth Peabody Energy announced that it has entered into an agreement to source coal from Indonesia's PT Supra Bara Energi (SBE), which will be sold on the export market to customers in Asia through Peabody's COALTRADE International Singapore trading hub.
The company said that it will source several million mt of coal over five years from SBE's mine in East Kalimantan.
"This agreement continues to demonstrate the strength of Peabody's leading coal trading and brokerage platform to serve enormous demand growth in China, India and other key Asian markets," said Peabody president and chief commercial officer Richard A. Navarre.
Indonesia is the fastest-growing supplier of coal to the Pacific Rim. More than 90 percent of the 3.5 billion metric ton forecast coal demand growth is expected to come from this region in the next 20 years, Peabody said.