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Indonesia's sudden coal export ban hits mining shares

Move to ensure local supply could sap earnings, analysts say

An Indonesian coal producer's trade association has urged authorities in the country to revoke the ban on coal exports, warning the move will cost the government revenue. (File photo by Reuters) 

JAKARTA -- Indonesia's hastily announced ban on coal exports for the month of January has hit the share price of domestic producers of the commodity, with analysts warning the move could damage miners' earnings this year.

On Tuesday, shares in coal miner Bumi Resources were trading some 1.5% below their closing price of 2021, while another miner, Bukit Asam, traded 1.8% lower. Adaro Energy shares have so far this year risen versus their 2021 closing price, but in early Tuesday trading, they were some 3% lower than the previous day's close.

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