Coal exports may reach 179 million in 2008: ICMA

Indonesian coal mining association (ICMA) said that Indonesia would export about 179 million tons of coal next year or about 75 percent of total coal production.

ICMA Chairman Jeffrey Mulyono said in Jakarta Tuesday that the country?s total production would increase by 9 percent, reaching 234 million tons next year from about 215 million tons this year.

?The market is waiting, and they (coal producers) have the capacity. So there is no reason why the production cannot be increased,? he was quoted by The Jakarta Post as saying.

Responding to the government?s plan to oblige coal producers to sell a part of production locally to ensure sufficient supply electricity, the association said the government would have to consider the country?s total coal reserves and maximum production capacity on an annual basis.

It also called on the government to let the price of coal that are sold domestically be set by the market to protect interests of coal producers.

Earlier, the director general of mineral, coal and geothermal energy, Simon Sembiring said that coal export could be as high as 150 million tons beginning 2009 and through 2025 in order to meet the surge in demand from new coal power plants.

Simon also said that in 2008, the country?s total coal production is expected to reach 198 millions, two million tons higher than the estimated output this year. (*)