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Saturday, 11 October 14
COAL PRODUCTION RISES ONLY SLIGHTLY AS GOVT LIMITS MINING OPERATIONS - THE JAKARTA POST

Indonesian coal production rose by only 4 percent in the first nine months of this year, a relatively low increase compared to previous years, as the government tried to slow the country’s coal production growth, the Jakarta Post reported.

The first nine months coal production hit 310.84 million tons, compared to the 299 million tons in the same period last year.

According to Director for coal at the Energy and Mineral Resources Ministry, 234.76 million tons coal was shipped to foreign buyers in first nine month and the domestic market had absorbed 75.19 million, the post further said.

The ministry’s mineral and coal directorate general has capped total coal production at a maximum 421 million tons this year. “The 421 million tons is our upper limit. By year end, we are sure that the coal output will be in the 400 million ton range,” the director general for minerals and coal, R. Sukhyar, said, as quoted by paper.

The paper further said, the government has asked mining companies to obtain coal exporter status, known locally as ET Batubara, if they export part of their production. The regulation, which became effective on Oct. 1, was issued to ensure that no coal being shipped overseas was procured from illegal mining companies.

As quoted by paper, according to Bambang, his office had issued recommendations for 160 companies to process the ET with the Trade Ministry. Out of that number, 36 companies held coal contracts of work, locally known as PKP2B. Meanwhile, 91 recommendations were issued to coal mining permit (IUP) holders and the remaining 33 to coal trading and transportation firms (IUP OPK) holders.

There are 73 coal contract of work (CCoW) holders in the country, of which 55 were already in production with total production accounting for 80 percent of the national output. Meanwhile, 1,394 IUP holders currently in production contributed to the remaining 20 percent.

Given that many CCoW holders have still not secured an export recommendation, the government is expecting a further slowdown in coal production and exports in the fourth quarter of the year.



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