2015 coal DMO set at 103m tons

Out of the country?s projected coal output of 425 million tons next year, about 103 million tons will be allocated to meet domestic consumption under the so-called domestic market obligation (DMO) scheme, said Coordinating Minister for the Economy Chairul Tanjung, who is also Ad Interim Minister of Energy and Mineral Resources.

?In 2015, coal production is projected to reach 425 million tons, with DMO plan of 103 million tons,? Chairul told the House of Representatives Commission VII on energy and mining during a hearing session on Wednesday as reported by Kontan.

This year, coal output allocated for the domestic market is set at 95.55 million tons, of which according to ministry ruling, 57.4 million tons are allocated for state-owned electricity firm PLN, 19.9 million tons for independent power producers, and the remainder for other industries including cement.

Chairul did not provide a breakdown for the 2015 DMO. Director General of Mineral and Coal R. Sukhyar said that the breakdown will be set in a new ministry ruling to be issued soon.

The country, the world?s largest thermal coal producer, is estimated to produce around 421 million tons of coal this year, about the same with last year?s output level, said Sukhyar. (*)