ICMA expects lower coal output, export in 2016

By Tri Subhki R

The Indonesian Coal Mining Association (ICMA) expects the country?s coal production this year to further decline to around 350 million tons to 370 million tons from 392 million tons last year amid the lingering coal market downturn.

"The production for this year may be 10 percent to 15 percent lower than last year?s. It may be too aggressive, and there is a risk to the downside," ICMA's Chairman Pandu Sjahrir said to Petromindo.com recently.

Pandu also expects slower coal export this year to under 300 million. "It may be down to 270 million tons," he said. Indonesia is the world?s largest exporter of thermal coal for power plants.

According to data from the Directorate General of Mineral and Coal, the country?s coal output last year fell 14.41 percent to 392 million tons from previous year?s level, while export dropped 22.65 percent to 295.45 million tons.

Editing by Reiner Simanjuntak