Indonesia’s coal output is estimated to fall by 5 percent in 2014, nearly 400 million tonnes, after the government asked miners to reduce their production to conserve the resource and stem declining prices.
According to Bob Kamandanu, head of the Indonesian Coal Mining Association (APBI), the government has asked coal miners to cap this year’s production at 397 million tonnes, down from 421 million tonnes in 2013, as domestic demand remains low.
The government allocated 73 million tonnes for the domestic market this year, up slightly from the 72 million tonnes last year.
Kamandanu said the association’s estimate was slightly higher than the government’s target of 400 million tonnes of coal this year due to the huge demand for coal from China and India.
The association forecasts coal will fetch 80 USD per tonne this year compared to the monthly average coal price of 85.3 USD a tonne last year, which was down 12 percent from a year earlier.
Meanwhile, R. Sukhyar, director general for coal and mineral resources at the Energy and Mineral Resources Ministry, said that the country needed to conserve its coal reserves, anticipating a surge in domestic demand in the future, such as from mineral smelters, and cement and paper plants.
He added that the ministry would enforce sanctions against companies that mine more coal that approved, which includes suspensions and cuts in production allocations for the coming year.-VNA
According to Bob Kamandanu, head of the Indonesian Coal Mining Association (APBI), the government has asked coal miners to cap this year’s production at 397 million tonnes, down from 421 million tonnes in 2013, as domestic demand remains low.
The government allocated 73 million tonnes for the domestic market this year, up slightly from the 72 million tonnes last year.
Kamandanu said the association’s estimate was slightly higher than the government’s target of 400 million tonnes of coal this year due to the huge demand for coal from China and India.
The association forecasts coal will fetch 80 USD per tonne this year compared to the monthly average coal price of 85.3 USD a tonne last year, which was down 12 percent from a year earlier.
Meanwhile, R. Sukhyar, director general for coal and mineral resources at the Energy and Mineral Resources Ministry, said that the country needed to conserve its coal reserves, anticipating a surge in domestic demand in the future, such as from mineral smelters, and cement and paper plants.
He added that the ministry would enforce sanctions against companies that mine more coal that approved, which includes suspensions and cuts in production allocations for the coming year.-VNA
