Foreign coal buyers still confident about supply security despite Bali bomb blast

Worsening security condition in Indonesia triggered by Bali bombing that killed almost 200 two weeks ago had increased concern among foreign coal buyers about the security of coal supply from Indonesia, but thus far, none of them cancelled contracts, a top executive of Indonesian Coal Mining Association (ICMA) said.

?I?ve checked around, apparently buyers are concerned, but they still think risk is manageable and therefore, no contract had been cancelled,? said ICMA chairman Jeffrey Mulyono, who is also president of East Kalimantan based coal-mining firm Berau Coal in an interview Friday.

He also said most coal-mining firms are working at normal production capacity.

Indonesia is the third largest thermal coal producer cum exporter, with this year?s production is expected to reach 100 million tones this year.

Security apparatus are on alert after intelligence report warned that terrorists network is also targeting vital projects including energy projects.

A Japan buyer contacted by Petromindo.Com recently said that as long as the terror did not hit South and East Kalimantan, where most Indonesian coal come from, buyer would not likely to cancel contracts. (godang/alex)