Government to establish national coal stocks

The government plans to build national coal stocks to ensure certainty of coal supply for the local industries especially the state owned electricity company PLN, one of the coal users in the country.

Director General of Mineral Resources and Coal at the Ministry of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta on Friday evening that the establishment of the coal stocks was quite important so that the local industries would have enough coal supply.

According to him, PLN and other industries often face difficulties to get coal supply especially when there is an increase in the prices of coal in the international market. The high price overseas has encouraged coal miners to export larger part of their coal production.

He said that the government would use part of the state receipts from coal mining to finance the purchase of the coal for the national stocks. At present, the government receives between 6 percent to 13.5 percent of coal production in a production split and another 7.5 percent royalties from coal miners.

Sembiring said that his office would negotiate with the ministry of finance on the possible use of the government?s receipt from the production split to finance the coal stocks. (godang)