China?s coal import ban to shut down 150 coal firms in RI

By Bambang Atmaja

China's latest plan to stop importing lower calorie coal creates a serious threat to the operation of about 150 mining companies in Indonesia, Executive Director of Indonesian Mining Association Supriatna Suhala said on Thursday.

Supriatna said that the application of the policy amid already weak global price of the commodity was going to further weaken the prices, further undermining coal miners revenue. China is Indonesia?s largest coal export market.

The impact would hit mining firms spending huge cost on operation, such as high transport cost due to long distance from mine to sea port.

"There are about 300 mining firms which are not our members (association), half of them is going to stop operation," he told Petromindo.com.

Suhala pointed out that the rise in transportation cost alone has caused 30 coal firms in Jambi to have recently stop their operation as the regional government ban them from passing through public road in transporting coal, forcing them to take a longer route.

Editing by Reiner Simanjuntak