Coal production up in Q1 amid weak market

By Cepi Setiadi

National coal production hit 101 million tons in the first quarter of 2012, according to the Indonesian Coal Mining Association (ICMA), higher than the 95 million tons target despite a weak market condition.

In the first quarter of last year, production reached 90 million tons.

Supriatna Suhala, Executive Director ICMA told Petromindo.com that the production in the first quarter had not yet been influenced by the overall bearish market, although the industry could start feeling the heat in the second quarter.

"The bearish market started to influence the production in second quarter because many buyers wanted to revise their contracts," Supriatna said.

"For the coal producers who have long-term contracts, it might not be a problem, but it won?t be the case with producers selling the coal in the spot markets," he said.

Editing by Dadan Wijaksana