ICMA: National output might only reach 340 million tons

By Cepi Setiadi

The Indonesian Coal Mining Association (ICMA) predicts that the national coal production in 2012 could be lower than the recorded output in previous year.

Supriatna Suhala, Executive Director of ICMA told Petromindo.com that the national production can only reach 340 million tons this year if the price is still low.

"Initially we predicted that the production will only reach 360 million tons from the targeted 390 million tons this year, but seeing the market condition, and the year will end in the next 3-4 months, and if the price is still falling, we think that the production will only be at the level of 340 million and it can be lower than the year before," Supriatna said adding that there are many coal miners who have cut their production or even stopped their operation, especially small miners.

While for the big coal miners according to Supriatna, their profit margin is considerately lower than the previous year's margin.

Editing by Audy Zandri