ICMA: India will be key driver for coal demand

By Cepi Setiadi

Indonesia Coal Mining Association (ICMA) stated that India is expected to be the key driver of coal demand growth for the rest of 2013 and in the coming years. ICMA's Executive Director Supriatna Suhala told to Petromindo.com that India has a program to develop a total of 100,000 MW power plants in 5 years.

"The demand will be huge, but currently there is de-acceleration although it is still growing," Supriatna said, adding that India will prefer to import from Indonesia, the world?s largest thermal coal exporter.

"With the domestic huge demand they have no choice but to import coal for blending because their coal has high ash and high moisture, hence it should be blended to meet the environment rule. Indonesia?s coal is the most suitable for blending, and geographically Indonesia is the nearest to India (compared to other producing countries)," he said.

Supriatna said that India has coal deficit of about 150 million tons per year. In 2011, Indonesia exported about 90 million tons to India and is expected to grow further in the upcoming years. China currently remains Indonesia?s largest coal export market, and India the second largest.

The slowing economic growth in China, the world?s largest coal consumer, has contributed significantly to the current weak global coal market.

Editing by Reiner Simanjuntak