Government anticipates lower coal output next year

By Thomas R. Sembiring

The government said that the country?s coal production next year may be lower than this year?s target with the Directorate General of Mineral and Coal at the Ministry of Energy set a lower preliminary estimate of 419 million tons amid the lingering weak global market demand.

The figure is not yet final, said Director of Coal Management and Development at the directorate, Adhi Wibowo to Petromindo.com last week, as the government is still evaluating this year?s coal production performance, and has yet to receive production plans for next year by the country?s coal miners.

The government has initially set coal production target for this year at 425 million tons. But Director General of Mineral and Coal Bambang Gatot Ariyono told this portal recently that realized production may be 16-20 percent lower than the original target as many miners revised downward their production targets for this year amid the lingering drop in coal price triggered by a combination of weak global demand and oversupply situation.

Editing by Reiner Simanjuntak