Government seeks to accelerate underground coal gasification project

Petromindo|Lucky

The Ministry of Energy and Mineral Resources plans to soon hold a meeting with coal miners interested in the development of underground coal gasification projects in the country.

Director of Coal and Mineral Management Program at the ministry, Sri Rahardjo said on Thursday that a ministerial ruling to accelerate underground coal gasification study has been drafted, and further policy is expected to create favorable regulation. ?Hopefully, there are (coal mining) firms interested (in underground coal gasification),? he said.

Sri said that the ministry was ready to facilitate companies interested in developing underground coal gasification project. Regarding permit, it will be in the form of special mining business license for processing.

He said that regarding royalty, further assessment is required as there are two different commodities involved, namely coal as input and gas as output. ?What is still uncertain is regarding the calculation of the royalty,? he said.

PT Medco Energi Mining Internasional, a subsidiary of IDX-listed PT Medco Energi Internastional Tbk, earlier this year announced plans to develop underground coal gasification projects in South Sumatra and Kalimantan, and expects government regulation as legal umbrella for such projects. (*)