Coal production this year to exceed 413m tons target

The country?s coal production this year is expected to slightly exceed the 413 million tons target set under the 2015-2019 National Medium Term Development Plan (or RPJM) as coal miners plan to increase production in the wake of recent price recovery.

Director General of Mineral and Coal Bambang Gatot Ariyono said that the higher production will also be contributed by coal miners holding the so-called IUP mining business license which will start production this year.

He pointed out that about half of the 6,000 IUP coal mining companies which have obtained the clean and clear (C&C) status will begin production this year, and that the central government can?t control them as authority over the IUP miners lies in the hands of the local governments.

He said that the central government through the directorate can only control the production plan of coal miners holding the coal contracts of work (CCoW).

Bambang said that evaluation of the 2017 work and budget plan including production of the CCoW miners will be completed by the ministry soon.

Bisnis Indonesia quoted Bambang as saying that based on the initial production plan of the CCoW coal miners, the country?s coal production this year will reach 489 million tons, about 311 million tons to be contributed by the CCoW miners. But he said that the directorate will try to lower the production target for this year, although acknowledging it will be higher than the 413 million tons target set in the RPJM. (*)