Earthquake will not affect coal exports to Japan: Perhapi
Tuesday, March 22 2011 - 02:24 AM WIB
The association?s chairman Irwandy Arif said in Jakarta Monday that Japan's demand for Indonesian coal would even be higher because the country would likely use more coal for power generation because the shutdown of several nuclear power plants following the strong earthquake.
"At present, Japan?s coal imports from Indonesia reach 132 million tonnes a year. The quake will not affect our coal exports to the country. The demand could be even higher because of the closure of several nuclear power plants in the country,? he added.
Irwandy said that it would not take long time for Japan to shift into coal-fired power plants in coping with the country?s acute power shortage following the explosion of the nuclear power plants.
According to him, many coal-fired power plants in the country, which have been left idle, could be re-operated to solve the power shortage problem.
Supriatna Suhala, executive director of Indonesian Coal Mining Association (APBI), admitted that there are many coal power plants in Japan that have been left idle as the country relies more on nuclear power plants which have lower production costs than coal-fired power plants.
Last week, The Ministry of Energy and Mineral Resources said the tsunami disaster that hit Japan last week might affect coal prices in Asia.
The fear will materialize if the ongoing coal purchase contracts between three Japanese main power enterprises and biggest coal thermal exporters in the world Xstrata remains on the balance, the ministry said in a statement.
The ministry said the deal might be delayed following the tsunami.
The main buyers of Australia's thermal coal include Japan's Tokyo Electric Power Co (TEPCO), Tohoku Electric Power Co Inc, and Chubu Electric.
The ministry said Japan imported 24 million tons of coal from Indonesia in 2010, nearly 10 percent of Indonesia's total coal production of 275 million tons. Japan's realized coal imports in 2010 hit 116.5 million tons, with Indonesia supplying around 20 percent of the total amount. (denny/giok)