Collapse in Coal Prices Spurs Distress for Indonesian Miners

The global collapse in coal prices this year has dealt a particularly heavy blow to miners in Indonesia, the top exporter and one of the largest producers of the fuel. Bonds from the country’s financially weak miners have suffered more than peers elsewhere in Asia due to a lack of diversification and state backing that many competitors enjoy, Bloomberg News reported. Prices of thermal coal -- the kind burned by power plants -- have slumped about 33% this year, and at least four U.S. firms have gone bankrupt. As some lenders look to stop financing coal power plants and investors are under more pressure to “go green,” companies that mine or use coal are left with fewer funding options. Read more