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Friday, 08 April 16
MINISTER OF ENERGY AND MINERAL RESOURCES OF INDONESIA TO ISSUE REGULATION TO GUARANTEE THE COAL SUPPLY TO ITS 35K POWER PLANT PROJECTS
Coal ExcavatorCOALspot.com: In order to guarantee the supply of coal for 35,000 megawatt (mw) coal based power plants ( still in planning stage), the Minister of Energy and Mineral Resources (ESDM) of Indonesia Mr. Sudirman Said, he will soon issue a Ministerial Regulation to set a benchmark price of coal to be used in domestic market particularly for power plants to be built.

According to a local media, the decline of the coal price in the last 4 years pushed many coal mining companies to bankrupt or dormant status. The current coal prices are not in line with increase of cost of production in recent months.

Indonesian coal miners were also almost reduced or stopped exploration activities last few years. Coal reserves are discovered through exploration activities. If there is no exploration means there are no new discoveries of new coal reserves.

Due to closure of un-economical coal mines recent months has already affected coal outputs in Indonesia. The government is assuming that, if the current price trend continues, then coal output will continually decline and the short of coal supply will threat its planned 35,000 MW power plants.

The media further reported, "In the near future the Minister will issue a regulation to regulate the minimum selling price or margin of coal to planned power plants as well as the existing plants to encourage coal miners back to pit with Truck and Shovels.


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