Coal output of large miners remains weak

Coal production by the country?s major miners holding the so-called coal contracts of work (PKP2B) remains under pressure amid the lingering weak global market condition, according to the Ministry of Energy and Mineral Resources.

In the period of January-August 2016, coal output of the PKP2B miners stood at 153.53 million tons, down 21.15 percent compared to 194.71 million tons in the corresponding period of last year.

The PKP2B miners account for about 80 percent of Indonesia?s total coal production, which is targeted to reach around 419 million tons this year.

The ministry?s Coal Chief Agung Pribadi said on Wednesday that export by the PKP2B miners during the January-August 2016 period totaled 119.58 million tons, or down by 21.99 percent from 153.28 million tons in the same eight-month period of last year.

He, however, said that domestic sales during the period increased by 11.73 percent to 37.16 million tons from 33.26 million tons. About 22 million tons of the domestic sales volume were absorbed by power plants.

The domestic sales volume, as set under the domestic market obligation (DMO) policy of the government, is targeted to reach 86 million tons this year, of which 72 million tons will be allocated for power plants, he said. (*)