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Saturday, 23 May 09
INDONESIA'S COAL OUTPUT SLUMPS IN Q1 ON LOWER PRICES, FALLING DEMAND - THE JAKARTA GLOBE


Falling international coal prices, bad weather and other problems cut first-quarter coal output by 50 percent to 30 million tons against an initial government target of 60 million tons, an Energy and Mineral Resources Ministry official said on Wednesday.

Bambang Gatot Arioyono, the director general of coal, mineral and geothermal energy, said big coal companies including PT Bumi Resources, Asia’s biggest coal exporter, as well as PT Adaro Energy, PT Berau Coal, PT Arutmin and PT Kaltim Prima Coal, had been hampered significantly. Many smaller companies, he said, have also been badly hit by the currently unfavorable market conditions.

“The current price must be affected by demand,” he said. “We are now urging producers to ramp up their production in the second quarter.”

Indonesia, the world’s second biggest coal exporter in 2007 after Australia, has been hit by falling export volumes and prices, and declining domestic demand, with the state electricity utility PLN predicting demand would fall by more than 10 percent as well, with its 10,000 megawatt generating-capacity expansion project well behind schedule.

"50 percent Jan-March collapse in production"

Although the government initially predicted that domestic consumption would rise by nearly 30 percent, from 52.57 million tons to 68.3 million, in March excess coal supply skyrocketed, with PLN reporting excess coal supplies at 50 days, more than double the usual 20-day supply. To read more 
The Jakarta Globe 



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Recent News

Monday, 27 April 09
JSW ENERGY SET TO SNAP UP AFRICAN COAL MINE FOR $70 MN - ECONOMIC TIMES
Sajjan Jindal-led JSW Energy is close to acquiring a sub-Saharan African thermal coal mine, which has reserves of more than 200 million   ...


Monday, 27 April 09
INDONESIA MINING RULES MAY DETER INVESTORS-OFFICIALS - REUTERS
Indonesia's rules on foreign divestment of mining projects must be revised to address issues such as finding buyers if Southeast Asia's biggest ec ...


Monday, 27 April 09
UNDERGROUND MINING IN FOREST AREAS NOT SO SIMPLE - THE JAKARTA POST
The government's plan to issue a presidential decree allowing mining companies to mine underground in protected forest concession areas has resulte ...


Monday, 27 April 09
COAL PRICES ABOVE FUNDAMENTALS - STUFF.CO.NZ
Coal prices have defied the gravity of fundamental factors, supported by stockpiling prompted by cheaper prompt prices rather than a reflextion of a ...


Sunday, 26 April 09
MITRA HOPES TO SECURE DEALS WITH TWO COAL FIRMS BY JUNE - THE JAKARTA POST
An integrated oil and gas services company, publicly listed PT Mitra Rajasa, is expecting to seal acquisition deals with two coal companies in June, ...


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