Coal output this year projected at 470 million tons

The country?s coal output this year is projected to reach 470 million tons, up from 434 million tons last year, according to a senior government official.

Director General of Coal and Mineral at the Ministry of Energy and Mineral Resources Bambang Gatot Ariyono said late last week that the coal production projection this year is based on the 2017 work and budget plan (WP&B) of coal miners which have been approved by the ministry.

He, however, said that the final coal production target for this year must be first discussed with the National Development Planning Agency (or Bappenas) as the 470 million tons target is much higher than the 413 million tons target set under the 2015-2019 National Medium Term Development Plan (or also known as RPJM).

?The (coal production target in the 2017) WP&B is around 470 million tons, and the reality is that it would be difficult for the government to lower the production to 413 million tons. This will be discussed (with Bappenas),? said Bambang, who said last month that based on the initial production proposals made by the miners, the 2017 coal output projection was much higher at 489 million tons.

Bambang said that the higher coal production this year (compared to the RPJM target) is because some 3,000 IUP coal miners are set to start production this year. He said that the ministry does not have authority over the IUP miners as it lies in the hands of regional governments.

The higher coal production also comes in the wake of recent recovery in the price of the commodity, he added. (*)