Govt to ban low rank coal exports starting next year

By Godang Sitompul

Director General of Minerals and Coal Thamrin Sihite said that starting next year, all coal producers would not be allowed to export low rank coal unless the calorie content of the coal have been upgraded.

?When it comes to minerals, the mineral ores should be first refined in the country prior to exports starting next year. As far as coal is concerned, low rank coal should be upgraded by blending it with coal with high calorie content before being exported,? Thamrin told reporters, adding the policy is effective early next year.

He did not specify the bottom calorie content of coal that is qualified for exports.

He made the statement following reports that China, which is one of the largest buyers of Indonesian coal, has imposed import tariff of 3 percent on low rank coal.

Editing by Johannes Simbolon