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Saturday, 24 July 10
INDONESIAN COAL MINERS ARE REQUIRED TO SUPPLY 64.96 MLN TONS OF COAL TO DOMESTIC MARKET IN 2010


COALspot.com : Minister of Energy and Mineral Resources of Indonesia has issued a ministerial degree related to Domestic market obligation (DMO) for this year. As per the decree issued, the total requirement of coal for the domestic market for this year would be around 64.96 million tons against estimated coal production of 262.48 million tons in 2010. The remaining quantity of 197.5 million tons of coal for export market.

43 coal mining companies have requested to fulfill the domestic market obligation by allocating a minimum of 24.75 percent of their total production in 2010. Out of 43 companies, 36 mines are CCoW holders, 6 IUP holders and one are the state owned mining company PTBA.

The  ministerial degree No: 1604 K/30/MElq/2010 further said that, 43 coal miners to allocate and supply 64.96 million tons of coal to domestic power producers, cement, fertilizer and textile plants.

Power plants are expected to consume a higher quantity of coal in 2010. 

Around 55.5 million tons of coal or 86.29 percent of total coal allocated for the domestic market would be for power producers and 8.07 million tons for other industries such as cement, fertilizer and Textile.

State owned electricity company PLN alone would consume around 45.1 Million tons of 4,000 - 6200 calorific value coal.

However decree was silent about price of coal to be supplied to domestic market under DMO. According to market players, the price of coal to be negotiated and finalized by parties involved or through tender process. Hence price of coal to be decided by market condition, terms of payment, supply period and other general contractual terms and conditions.



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