Govt to set limits on coal exports

The government will set a limit on coal exports in order to secure supplies on the domestic market, a senior official at the Ministry of Energy and Mineral Resources said on Wednesday.

?The maximum limit will be set at 150 million tons per year,? Director General of Mineral, Coal and Geothermal Bambang Setiawan said.

According to Bambang, the national output is estimated to reach 230 million tons this year, including 68.5 million allocated for the domestic market. Of the among allocated for the domestic market, 40-46 million tons are supplied to local power plants.

?The export limit is set to ensure supplies for domestic power plants. When all the coal-fired power plants now being built by PLN (state owned PT Perusahaan Listrik Negara) come into operation, the country will need a total of 65-70 million tons of coal per year for power plants,? Bambang said.

According to Bambang, the rule regarding the export limit will be elaborated in a governmental regulation implementing the Mineral and Coal Law No. 2009. The government is drafting four governmental regulations implementing the law, which are expected to be issued later this year. (*)