Government revises up coal output target to 477m tons

Petromindo|Thomas

The Ministry of Energy and Mineral Resources has revised upward this year?s coal production target to 477 million tons, higher than the 413 million target set under the government?s 2015-2019 National Medium Term Development Plan (or RPJM).

Director General of Coal and Mineral at the ministry, Bambang Gatot Ariyono said on Monday that the ministry has to increase this year coal production target as many coal miners holding IUP mining business license enter production stage this year. He said that it?s impossible to suspend production of all of the IUP coal miners.

Bambang said that the upward revision in this year?s coal production target has also been approved by the National Development Planning Agency (Bappenas), which drafted the RPJM.

Major coal miners in the country have also previously announced higher coal production this year to capitalize on the current recovery in the price of the commodity.

Bambang said in February that based on the work and budget program submitted by major coal mining firms holding coal contracts of work, the country?s coal production this year was projected to reach around 470 million tons, up from 434 million tons last year. (*)