Coal miners run out of supply to meet overseas orders

Indonesian coal producers have run out of supply to meet the sharp increase in demand from overseas buyers following the cancellation of China?s coal export commitment to South Korea, one of the largest coal buyers in Asia, Bisnis Indonesia reported on Tuesday.

Singgih Widagdo, the director of Indonesian Coal Society (MBI), said in Jakarta on Monday that the shortage of the coal supply from China had prompted Korea and other countries such as the Philippines to seek coal from other countries including Indonesia.

?As a result, the national coal stock allocated for export for the first semester of this year have been all used to meet the orders,? he was quoted as saying by the daily.

He said that China, one of the world?s largest coal exporters, was forced to cancel its export commitment to South Korea due to shipment difficulties. This has led to a sharp increase in the coal prices in the international market.

The coal price in the world rose to US$43.35 per ton on Feb. 12, the highest level in seven years due to the decline in the world?s coal supply. Although the price declined to US$43.25 per ton on Feb. 19 and US$43.12 per ton in Feb. 26, the level was still far from the average price level of US$24.5 per ton in January and US$23.5 per ton in June, last year.

Indonesia?s coal export rose to 74.17 million tons in 2002 from 62.63 million tons in 2001 and 58.19 million tons in 2000. The coal export also increased sharply last year but the actual figure is still being calculated. (*)