Govt asked to review planned export ban on coal

The Association of Indonesian Mining Professionals (Perhapi) asked the government to review the plan on export ban of coal which would be regulated under the now being debated ministerial decree on added-value of coal.

The association also questioned the government on scientific basis to classify the coal, arguing that majority of coal producers are not ready to upgrade the coal due to the absence of proven coal upgrading technology in the country.

?Such regulation should not come out of the blue. There must be steps to implement the draft of regulation and to develop the required technology on commercial scale, not merely as pilot project,? Perhapi chairman Irwandy Arif said.

Energy and Mineral Resources Ministry?s director general for minerals and coal, Thamrin Sihite admitted that banning exports of coal with calories below 5,700 kilocalories/ kg would cause some problems, including on the investment aspects.

He predicted that there would be huge amount of coal which could not be exported but at the same time could not be absorbed by the domestic market.

?There is no proven technology yet that could increase calorific value of coal on commercial scale," he said.

Thamrin said that the ban on export could also impact the investment for development of coal with a calorific value below 5700 kcal/kg. On the other hand, said Thamrin, that the supply of coal for domestic use, especially for steam power plant, is not yet at optimum level.

"Therefore, there is a need to build blending facility to meet the required quality of coal power plant, and the need to build mine mouth power plant utilizing coal which is banned to be exported," he said. (denny)