Coal production rises despite drop in prices

Indonesia?s coal production rose by 7.6 percent to 198 million tons in the first quarter of this year from about 184 million tons in the same quarter, last year, Kontan daily reported on Wednesday.

Gultom Guska, the head of the supervision and consultation division at the Ministry of Energy and Mineral Resources, said in Jakarta on Tuesday that the low coal prices in the international coal market did not seriously affect the country?s coal production.

The larger part of the coal production came from mining sites operated under PKP2B mining permits, Gultom said. According to the ministry?s data, the larger part of production from PKP2B miners come from subsidiaries of PT Indika Energy and PT Kideco Jaya Agung which reached 5.9 million tons.

Of the total production in the first quarter, about 144 million tons were exported, and the remaining 54 million tons were sold in the domestic market, mostly to state owned electricity company PT Perusahaan Listrik Negara.

The ministry expects total coal production will reach 391 million tons this year, of which about 306 million tons will be exported and other 85 million tons to be sold in the domestic market.

The coal price is expected to reach an average of $87.46 per ton in the second semester of this year, down 8.3 percent from $95.48 per ton in 2012. (*)