Coal production rises 10 percent in first quarter

Indonesia?s coal production rose about 10 percent to 99 million tons in the first quarter of this year from about 90 million tons in the same quarter of 2011, due to the increase in exports during the period, a senior official at the energy and mineral resources ministry said.

Edy Prasodjo, the director for coal department at the ministry, said in Jakarta that exports had begun to increase in the first quarter thanks to an increase in coal prices in the international market.

?We hope this year?s coal production will not exceed 400 million tons,? he added.

Edy said quoted by Kontan Tuesday that the government and coal miners had agreed to limit production at about 391 million tons this year, of which about 306 million tons would be allocated for exports, and the rest for the domestic market.

He said that the rise in coal prices, which at present reach about US$90 per ton as compared to $86 per ton last year, had encouraged coal miners to increase their exports. ?This could cause coal production to exceed the original plan,? he added.

Edy said that the ministry was still exploring the best possible ways on how to restrict coal production so that the country?s coal reserves would not be over-exploited. (*)