Indonesia: 2012 coal production in Indonesia may exceed government target
2011/09/23
2012 coal production in Indonesia
According to the Indonesian Coal Mining Association, Indonesia coal production may reach 380 million tons in 2012 or 14.4% higher than the Energy and Mineral Resources Ministry production target of 332 million tonnes.
Ms Supriatna Suhala the association executive director said in Jakarta on Monday that the estimate was reasonable since this year's production had already reached almost 360 million tons.
She said that "Production may surpass the government's target because this year the production has hit nearly 360 million tonnes. Next year, we forecast that production may hit between 370 million tonnes and 380 million tonnes."
She added that the government's target was lower than the association's estimates because the government did not take into account small mining companies.
Ms Supriatna said "Only around 80% of companies are registered in the central government's data. The ministry estimated its target without calculating the production of all companies. There are hundreds of coal mining companies in the country, but only a few of them are bound to DMO.
To date only 63 coal mining companies are obliged to comply with DMO. Next year the amount of coal sold under the DMO scheme is predicted to reach 82.07 million tonnes. Around 69.7% of that amount will go to PLN power plants.
One of the 63 companies obliged to comply with DMO in 2012 is PT Kaltim Prima Coal the country largest coal producer. The company is obliged to sell 12.68 million tonnes to domestic users next year.
The second-largest coal producer, PT Adaro Indonesia must sell 11.74 million tonnes to the domestic market while the third-largest producer, PT Kideco Jaya Agung is obliged to reserve 8 million tons for the domestic market.
PT Arutmin Indonesia and PT Berau Coal the fourth and fifth largest coal producers, must sell 6.6 million tonnes and 5.51 million tonnes respectively to the domestic market.
In addition to the five major coal producers, the Energy and Mineral Resources Ministry also obliges 35 mining contract license holders to sell 22.52 million tonnes domestically while state coal miner PT Bukit Asam must reserve 3.21 million tonnes for Indonesia market.
Indonesia, the world largest thermal coal exporter produced 275 million tonnes of coal in 2010.
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