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Monday, 22 August 11
INDONESIA TO BAN BELOW 5700 KCAL/KG COAL FOR EXPORT


COALspot.com - Ministry of Energy and Mineral Resources of Indonesia is in the process of drafting a regulation which is requiring mine owners to improve the value of their coal by upgrading to a minimum level of 5700 kcal/kg on adb basis, if the mine is produce the coal below 5700 GAD.  According to latest draft regulation, Indonesian coal producers must add value for their coal by processing their product to a higher-grade coal. 

The value added of coal can be done through washing, crushing, blending or upgrading.

According to latest draft regulation, the holder of the mining license for coal production & operation must take necessary steps to improve  the value of coal above 5700 Kcal/Kg (adb) prior to Ministerial regulation come into effect.

The new Ministerial Regulation once signed it will be in force within five (5) years from the date of implementation of law number 4 of 2009 or by 12 January 2014.

The draft regulation also requests the low calorific value coal producers, to submit the progress report on developments on their upgrading process to the government authority on a regular basis, to make sure the regulation can be implemented by January 2014.

The calorific value of coal which is below 5700 kcal/kg on adb basis may not be allowed for export after 12 January 2014. Coal below 5700 kcal/kg (adb) must be processed through the upgrading technology to reduce total moisture and increase energy.

The availability of economically viable and proven technology to upgrade the coal is unanswered until today.  Whether the coal producers can identify a technology to upgrade their coal before 12 January 2014, or whether the technology can process coal in a bigger volume also has to be answered by industry.

How the world’s coal industry going to react to this coal export ban by 2014 is another interesting question.
 



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