Govt plans coal production limit starting April

The government plans to implement the planned coal production limit starting April of this year after taking into account the country?s first quarter coal production results and discussing them with governors and regents of coal-producing regions, Kontan reported on Friday.

Director of Coal Business Development at the Ministry of Energy and Mineral Resources Edi Prasodjo said that the government is trying to limit the country?s coal production this year not to exceed 400 million tons. ?Realized production in January was 37.5 million tons,? he told Kontan, adding that export accounting for about 78.4 percent of the month?s production, with the remainder went to the domestic market.

The government is determined to limit coal production this year in a bid to help coal price to recover from its multi-year low, and ensure domestic supply in the future.

Edi said that while the government has direct control on coal miners holding the so-called PKP2B contracts (large miners), it has no control on miners holding the IUP mining business permits as they are issued by regional governments, thus the importance of talking with the governors and regents. He hoped a meeting the regional leaders can take place in April after the first quarter production results can be obtained, to formulate production quota for each producing-regions based on the working plans of coal miners.

Chairman of the Indonesian Coal Miners Association (APBI) Bob Kamandanu predicted that coal production in the world?s largest thermal coal exporter this year to reach 390-410 million tons, compared to last year?s figure of 421 million tons. (*)