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Thursday, 18 March 10
INDONESIAN COAL PRODUCTION EXPECTED TO BEAT EARLIER FORECAST


The Jakarta Globe reported that, the government expects coal output this year to exceed its initial projection of 250 million metric tons as the drier-than-usual weather helps boost production in Asia’s largest coal exporter.

Bambang Gatot Ariyono, director of coal and minerals at the Ministry of Energy and Mineral Resources, said on Wednesday that coal miners had been able to run their operations at a greater capacity as the weather has been drier than normal.

Bambang did not say how large the output increase was expected to be, but the Indonesian Coal Producers Association (APBI) has estimated that output this year could reach 300 million tons, 20 percent higher than the government’s projection.

“The increase may not reach 20 percent, but it surely will exceed our initial target this year,” Bambang said.

APBI chairman Bob Kamandanu agreed that weather played an important role. “But demand is also important for coal producers,” he told the Jakarta Globe.

“I see a positive outlook for demand this year, with strong growth from China, and our coal output will increase to 300 million metric tons.”

China is the main customer for Indonesian coal, as its rapidly growing economy is hungry for fuel to supply its power plants.

All of the coal mines in Indonesia are open-cast mines, so the weather can have a significant impact on production. Heavy rain can cause floods and landslides, halting production.

Indonesia produced 254 million tons of coal in 2009, a 5.8 percent increase from 2008, according to figures released by the Energy Ministry.

About 78 percent of the coal — worth $14.85 billion — was exported to buyers in Japan, China, India, Australia and Africa.
Source: 
The Jakarta Globe - By: Reva Sasistiya



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