Govt expects flat coal output this year
Monday, January 4 2016 - 01:11 AM WIB
Adhi Wibowo, Director for Coal Development and Management at the ministry, said last week that it would be difficult to push coal output higher this year given the lingering weak global coal market condition. He said that output in 2016 is projected to be about the same with the 2015 output estimate of around 383 million tons.
The country?s coal output in the January-November period of 2015 totaled 335 million tons.
Meanwhile, The Jakarta Post reported that some of the country?s big coal miners are planning to increase output this year.
According to data from the ministry, by mid-December, as many as 71 companies, consisting of 64 coal contract of work holders (which are big miners), and 7 IUP permit holders proposed a total of 303.33 million tons production for 2016.
The paper quoted the ministry?s data, of the 11 firms producing more than 5 million tons, only two proposed lower output including PT Adaro Indonesia with a slight 0.8 percent cut and PT Kideco Jaya Agung with almost 18 percent. President Director IDX-listed PT Adaro Energy Tbk, the parent of Adaro Indonesia, Garibaldi Tohir has previously said the company was planning to produce 52-54 million tons this year, 7 percent lower compared to the 54-56 million tons target set for 2015.
Adhi said that the contribution of the smaller miners, which have yet to file their 2016 production plan with the ministry, is quite small compared to the country?s total output. The smaller miners tend to cut production as they?re the most badly affected by the current drop in coal price. (*)