Coal output this year likely to be lower than production plan

Indonesia?s coal production this year is likely to be lower than the 477.91 million tons combined production plans of coal miners submitted to the government.

?It?s possible that production will be lower than 477 million tons because a number of companies could not meet their production targets due to a number of reasons,? said Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources Bambang Gatot Ariyono on Tuesday.

A number of coal miners previously have said that production this year may be lower than target due to the unseasonal heavy rainfall, hampering mining activities.

Bambang, however, said that realized coal output this year will still be higher than the 413 million tons target set in the government?s National Medium Term Development Plan (RPJMN).

He acknowledged that the government has been finding difficulties in meeting the lower production target set in the RPJMN as many IUP coal miners entered production target, and some are ramping up output to capitalize on the latest coal price recovery.

The country?s production target is set at 406 million for next year, and 400 million tons in 2019, according to RPJMN. Bambang said that, production next year hopefully would not far beyond the target set in the RPJMN. (*)