Golden Energy unit does not foresee impact from Indonesia's coal export restrictions

GOLDEN Energy Mines (GEMS), a unit of mainboard-listed Golden Energy and Resources (Gear), does not expect its plans for 2022 to be hit by Indonesia's temporary ban on coal exports.

On Friday (Dec 31), Indonesia's Ministry of Energy and Mineral Resources prohibited all Indonesian coal-mining companies from exporting the commodity from Jan 1 to Jan 31. The ministry cited concerns over critically low inventories at domestic power plants in Indonesia, which could lead to widespread blackouts in the country, Gear said in a Monday bourse filing.

However, this ban is not seen to affect the GEMS' production quota for the year. The ministry has also subsequently said that it is reviewing the temporary ban, said Gear.

The company added that GEMS has complied with Indonesia's existing domestic market obligation (DMO) regulation since it came into effect in 2018. The DMO mandates that at least 25 per cent of mining production is sold for domestic purposes. GEMS "well exceeded" this obligation last year.

Shares of Gear closed at S$0.295 on Monday, up 1.72 per cent.