Govt revises 2009 coal production target

The government will lower the 2009 state revenue target from coal from Rp 15.2 trillion (1US$ = Rp 11,700) to about Rp 12 trillion due to the significant drop in coal prices and the market's demand.

Director of Coal and Geothermal at the Ministry of Energy and Mineral Resources, Bambang Gatot Aryono said in Jakarta on Wednesday that the revision would be made in line with the downward trend in coal prices.

He refused to unveil the percentage of the drop, saying it was being calculated. But he added that it would not be lower "than between Rp 11 trillion and 12 trillion booked in 2008".

Bambang said that coal exports dropped by 34.7 percent to 8.82 million tons in January from 13.5 million tons in December, last year due to the low demand in the world market. ?But I am sure it is only temporary and it will increase again next month,? he added.

He said that his office had also lowered coal production target this year to 230 million tons from 250 million as an adjustment to the drop in the world demand. The coal demand in the country would account for about 60 percent of the total production or about 139.84 million tons. (*)