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Tuesday, 26 April 16
INDONESIA BANNED COAL EXPORTS TO PHILIPPINES BY BARGES DUE TO SECURITY CONCERN
coal and excavatorCOALspot.com: The Ministry of Energy and Mineral Resources (ESDM) on behalf of the government of Indonesia has Freeze coal exports by barges to Philippines from Indonesia after ten Indonesians coal barge crew were abducted by Abu Sayyaf in Mindanao, Philippines. The 10 crew members were abducted from the Brahma 12 tugboat and the Anand 12 barge carrying 7,000 tons of coal.

According to media reports, the kidnappers have demanded P50 million (approximately $1.1 million) to free the Indonesian crew. However, as of today the crew members were still held hostage by the abductors.

According to reports, the government has blocked Indonesian flagged coal barges from Indonesian ports, leaving to the Philippines ports due to security concern. However, the coal shipments by big foreign flag ships were not affected by this ban. "All our shipments to the Philippines are delivered by ocean going Vessels", said one of the unaffected coal producers.

As quoted by the media, the excess coal due to the freeze of exports to the Philippines will be redirected to other countries. However, it is not clear whether immediate redirection of excess coal, which was initially allocated for Philippines to other countries, will be easy as suppliers think.

According to market information, Philippine is depending on Indonesia for coal for its power production as Indonesia is supplying around 70% of Philippine's total imported coal requirements. Indonesia has been the major coal supplier for Philippines for decades.


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