Coal output drops on slower export

Indonesia?s coal output in the January-July period of this year dropped by 15.28 percent compared to the corresponding period of last year due to slower export amid the lingering weak global coal market.

Director for Coal Management and Development at the Ministry of Energy and Mineral Resources Adhi Wibowo said Tuesday that production in the first seven months of this year fell to 232.9 million tons from 274.9 million tons.

The government has set coal production target of 425 million tons this year, 7.21 percent lower than last year?s 458 million tons.

Adhi said that the lower production was a result of slower export, which dropped by 18.03 percent to 186.8 million tons in the January-July period of this year compared to 227.9 million tons in the same seven-month period of last year.

Domestic market absorption also weakened during the period, albeit slightly by 1.91 percent to 46.1 million tons.

Adhi reiterated that many coal miners have proposed lower production this year in their revised work and budget plans submitted to the ministry. Only a few such as PT Kaltim Prima Coal and PT Asmin Bara Bronang revised for higher production this year. (*)