Coal production undermined by weak export

Indonesia?s coal export in January-August period of this year declined by 18 percent to 211 million tons compared to 258 million tons in the corresponding period of last year due to weak global demand.

Director of Coal Management at the Ministry of Energy and Mineral Resources, Adhi Wibowo said on Monday that the weak export performance, coupled with falling price of the commodity, has undermined production performance in the world?s largest thermal coal exporter.

He said that production in the first eight months of this year fell by 15.43 percent to 263 million tons compared to 311 million tons in the same period of last year.

Weaker demand particularly in the key export market of China and an oversupply situation have depressed coal price, prompting many miners in the country to revise downward its coal production target for this year.

The government has initially set production target for this year at 425 million tons, but Adhi told this portal last week that output this year may be 16-20 percent lower than the target. (*)