Govt may restrict coal production

The government may limit coal production in the country in order to prevent over production which would not only cause rapid depletion of the coal reserves but could also damage the environment, Kontan reported on Monday.

Edi Prasodjo, the director for supervision of coal mining operations at the Energy and Mineral Resources Ministry, said that the production control would be imposed to all coal mining companies ? both holders of IUP mining permits and PKP2B contracts of works.

He did not say how the production control would be carried out, but said that the policy could be introduced soon.

According to the ministry?s data, coal production reached a total of 211 million tons in the first semester of this year. Of the total, 153 million tons were exported and 54 million tons for domestic market. This year?s total production is expected to reach 400 million tons, exceeding the initial target of 391 million tons, he said.

He said that most of the coal miners increased their production in the first semester of this year although coal prices in the international were still relatively low. ?They boosted their production to achieve economic scale, despite low prices,? he added.

According to him, the regulation on the production control is now being prepared. The depletion of the coal reserves which has dropped to only 28 billion tons now should be halted so that in Indonesia would be able to meet the future demand which would further increase due to the growing number of coal fired power plants. (*)