Domestic coal sales to increase 61 percent in 2009

Coal sales in the domestic market are expected to substantially increase within the next three years due to an increase in the demand from coal-fired power plants to be built under the government's crash power program, according to the Indonesian association of the coal mining companies (APBI).

 

The chairman of the association Jeffrey Mulyono said that the local coal consumption was projected to increase by 61.2 percent to 79 million tons in 2009 from about 49 million tons this year.

 

"Of the total domestic sales, about 61.8 million tons will be used by coal-fired power plants," he said, adding the domestic sales were projected to further increase to 90 million tons in 2010, or an increase of 183 percent from this year's figures.

 

Jeffrey said that the rise in the demand from coal fired power plants would also result in the increase in the production from about 205 million tons in 2007 to 218 million tons in 2008, and to about 244 million tons in 2009.

 

"The production is projected to further increase to 260 million tons in 2010," he said, adding that about 170 million tons of the total production or about 65.38 percent would be used for exports, while the remaining will be used to meet the domestic demand," he said.

 

He also estimated that of the total production of about 218 million tons in 2008, about 160 million tons would be exported with the remaining 58 million tons for the domestic market.

 

Meanwhile, of the total production of about 244 million tons in 2009, about 165 million tons will be used to meet export commitment, with the remaining for the domestic market.

 

According to state owned electricity firm PT PLN, the coal demand from coal-fired power plants to be built under the crash program would reach about 31 million tons a year. "The contracts for about 17.84 millions have been auctioned off. The auction for the remainders is still under preparation," PLN’s deputy director for primary energy Tony Agus Mulyantono said. (godang)