ICMA calls for significant cut in coal output

By Tri Subhki R

Indonesian Coal Mining Association (ICMA) Chairman Bob Kamandanu urged the government for a significant cut in the country?s coal output next year in a bid to help resolve the current oversupply situation in the global coal market, seen as a key factor to the current drop in the price of the commodity.

Indonesia is the world?s largest exporter of thermal coal, with annual export of around 420 million tons. Bob said that the country?s coal export in 2015 should be reduced by a significant volume of around 75 million tons.

"The cut must be in a significant volume by about 75 million (tons). For instance, if the government sets production target at 425 million tons for next year, it should be cut to 350 million tons," he said to Petromindo.com.

He suggested that Indonesia's coal mining companies should not have to worry if other coal producers will tap the 75 million tons of supply from Indonesia.

"All coal mining companies, not only in Indonesia but also in all over the world, are suffering now. If a nation decides to cut production, other nations will follow suit," he added.

Editing by Reiner Simanjuntak