Indonesia coal miners move on as cash runs out

Jakarta

INDONESIAN coal miners are diversifying into other businesses to offset a collapse in demand from China, which has slashed their cash flows to the lowest levels in months.

The free cash flow of the 15 biggest coal miners and contractors on Jakarta's stock exchange averaged US$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 pick-up anytime soon in demand especially from China, the world's top consumer of the commodity.