Coal export up 3% despite tighter export policy

The country?s coal export continued to rise in October despite a new tighter export procedure introduced earlier in the month in which miners must obtain export permit to be able to ship the commodity overseas.

Kontan reported Friday that the country?s coal production in October increased by 18 percent to 36 million tons from 30.5 million tons in September. Meanwhile, export rose to 24.2 million tons during the month from 23.5 million tons in the previous month, the paper quoted Coal Chief at the Ministry of Energy and Mineral Resources, Bambang Tjahjono as saying.

The rise in export came despite the new export policy, which has cut down the number of exporters to only 160 companies compared to the total 1,051 coal producers in the country, the world?s largest exporter of thermal coal. The figure comprises of 997 IUP mining permit holders and 56 PKP2B permit holders which have been in production stage.

Some producers have also expressed optimism for higher production this year despite the tougher export permit and the lingering downturn in the global coa market and price.

Kontan quoted Cameron Tough, Corporate Secretary of PT Adaro Energy as saying that output this year is estimate to reach 54-56 million tons, or a 3-7 percent increase from 52.3 million tons last year.

PT Berau Coal Energy Tbk is also optimistic to be able to increase output to 24.2 million tons this year from 23.56 million tons last year. PT Toba Bara Sejahtera, meanwhile, estimated output to rise to 7.8 million tons from 6.5 million tons. (*)