[SMM Iron & Steel] AM/NS India Commences Phase 2 Expansion at Hazira to 15 MTPA

Indonesia’s state-owned coal miner PT Bukit Asam (PTBA) recorded coal production of 34.41 million tonnes in the first nine months of 2026, down 4% year on year from 35.90 million tonnes. The decline was mainly due to heavy rainfall in the first quarter, which disrupted mining activities. Production recovered in the third quarter, reaching a record quarterly high of 14.96 million tonnes, up 17% quarter on quarter. Coal sales fell 4% year on year to 32.23 million tonnes in 9M26, while the average selling price (ASP) rose approximately 11%, supported by higher coal prices and improved export pricing. PTBA expects full-year sales of around 48 million tonnes, below its initial target of 50 million tonnes, due to weather-related and logistical disruptions. Its 2026 RKAB production quota stands at 53.2 million tonnes.

PT Batamindo Investment Cakrawala (BIC), part of Anthoni Salim’s business group, has secured US$1.58 billion in funding for a coal-fired power plant project on Setokok Island, Batam. The funding comprises a US$900 million bank loan and convertible bonds of up to US$683.6 million. The first phase will involve three supercritical coal-fired units with a combined capacity of 1,050 MW and an estimated investment of US$1.5 billion. The broader development plan includes additional coal-fired capacity and a 400 MW solar power plant, bringing total planned investment to US$2.7-3 billion. The project aims to meet rising electricity demand in Batam and Bintan, particularly from industrial facilities and data centres.

Iron ore futures were weaker today. The DCE most-traded contract settled at 669 yuan/mt, down 1.83% from the previous session. Qingdao port spot prices fell by around 9–15 yuan/mt on average. Traders were reluctant to offer, while mill inquiries were reasonable.