Bengkulu cannot meet coal orders from Malaysia, India

Bengkulu cannot fulfill the demand for its coal from foreign buyers including Malaysia and India due to the province?s low coal production, Antara news agency reported on Tuesday evening.

Governor Hazan Zen said that the province?s coal production was still too low to meet the high demand that reached over seven million tons a year.

The local government has invited several foreign countries to develop the province?s coal reserves in a bid to meet the high demand from international buyers, he said. ?One Chinese company has shown its keen interest to develop coal mining in the province. A memorandum of understanding has been signed with the company,? he added.

According to the province?s mining office, the province has coal reserves totaling about 159 million tons, mostly found in North Bengkulu and South Bengkulu. As many as seven companies are now developing coal mines in the province, including PT Bukit Bara Utama, PT Bahari Lestari, PT Danau Mas Hitam, PT Bukit Sanur and PT Bahari Bara Tambang.

Bengkulu?s coal production which reached a total of 1.2 tons a year in 1999 continued to decline due to the lack of new exploration activities. The coal production dropped to 672,000 tons in 2000, to 429,000 tons in 2001 and to 400,000 tons in 2002. About 80 percent of the production are exported. (*)