Commodity price intelligence provider Argus in August revealed that parts of the upper reaches of the Barito River have become completely unnavigable, with some mining companies in the area already declaring force majeure on shipments.
A coal barge sails the western Java Sea on Oct. 31, 2023, as it heads to a coal terminal near the Suralaya coal-fired power plant in Cilegon, Banten. (AFP/Ronald Siagian)
Businesses are growing wary of shrinking river water levels in Kalimantan, which have disrupted coal shipments amid prolonged dry weather exacerbated by El Niño. Indonesian Coal Mining Association (APBI) executive director Gita Maharyani said that droughts and lower water levels had affected coal barging activities in some regions of Kalimantan.
“In several river basins, falling water levels can limit barge draft, leaving barges unable to operate at maximum capacity,” she said, as reported by CNBC Indonesia on Monday.
Gita added that this condition could potentially increase stockpiles at mining sites and ports. However, the association believed that coal price fluctuations would still be influenced by multiple factors, particularly supply and demand dynamics in the global market.
