Competition in world?s coal market will become even tighter this year

The competition in the world?s coal market is expected to become even more tighter this year partly due to more aggressive activities carried out by new coal producers such as China into the marketing and production of their coal products, Noke Kiroyan, the president director of East Kalimantan-based Kaltim Prima Coal said as reported by Bisnis Indonesia Thursday.

Kiroyan said the aggressive efforts made by China should be seriously anticipated by national coal producers by improving not only the quantity but also the quality of their coal products that they would be more competitive in the international market.

"The government is expected to be able to provide assistance in promoting the productivity of the national coal producers such as by improving the infrastructure facilities for the transportation of coal such as port, railway track," he was quoted as saying.

He also called on the government to evaluate some of the mining policies such as those related to coal production. According to him, some of regulations on coal mining, for example, has impeded the operation of some coal producers especially those which are not supported by insufficient infrastructure facilities.

"The government should also be more active in the issuance of the new mining law, which has been prepared for almost four years. The final draft of the new law has been competed and is ready for being submitted to the House of Representatives for approval," he said.

Kiroyan said that the Chinese aggressive efforts could be seen from their success to increase coal production to 1.2 billion tons in 2001, as compared to Indonesia?s total production of 95 million tons in the same period.

"Of the total, China exported about 100 million tons to Europe and Asia. It means that China?s total coal exports have exceeded Indonesia?s total production," he said.

Kiroyan said that he was optimistic that Kaltim Prima Coal, as one of the country?s major coal producers, would be able to reach its production 17.5 millions tons. Although the 2003 production will be about the same level with the 2002 production, the company?s production last year was much higher than 15.6 million tons in 2001 and 12.6 million tons in 2000. (*)