Coal output in first semester up 7.6%

Despite efforts by the government to limit production this year, the country?s coal output in the first half of this year increased by 7.6 percent to 213 million tons from 198 million tons in the first six-month period of last year, Kontan reported on Wednesday.

The paper quoted the Ministry of Energy and Mineral Resources? Coal Chief, Edi Prasodjo as saying that about 158 million tons of the first-semester output went to the export market, while the remainder 55 million tons were sold in the domestic market.

The strong coal production has contributed to the oversupply situation in the global coal market, causing price to remaining under pressure. As a result, the government-administered HBA coal reference price for July declined by 1.6 percent to US$72.45 per ton from $73.64 in June.

The government has said it would limit the country?s coal output at 397-421 million tons this year, or about the same with last year?s output of 421 million tons, in a bid to help stabilize price. (*)