APBI says Indonesia to produce 320MT of coal in 2010

Indonesian Coal Mining Association (APBI) said on Monday that Indonesia's coal production was expected to increase by 6.67 percent from 300 million tons (MT) last year to 320 MT this year.

"Coal demand is bullish, especially from China and India and of course as producers we will provide the suuply needed," Bob Kamandanu, chairman of Indonesian Coal Mining Association (APBI) said on Monday.

He said, however, that 40 million tons of the annual total production was still contributed by the illegal mining as the government has not yet fully tackled the problem.

Of the total production, 90 MT will be allocated to domestic market. But according to Bob, domestic market will only absorb around 60 MT.

In November, the association had said that Indonesia was expected to produce between 270 MT and 280 MT of coal in 2010, up from 250 MT and 260 MT in 2009. Those figures did not include coal produced by the illegal miners. (bernard)