ICMA says heavy rainfall would not significantly affect coal production

Abnormal rain that is predicted to fall in East and South Kalimantan provinces in the 4th quarter of the year would not affect national coal production as miners usually had preparing themselves to operate in unusual weather condition, Indonesian coal mining association ICMA said on Thursday.

?Coal miners, especially major ones, had been well prepared to face heavy rainfall that are usually happening in the fourth quarter of the year. I Don?t think production would be affected significantly should the weather forecaster?s prediction materialize,? ICMA chairman Jeffrey Muljono.

National whether forecaster BMG on Wednesday issued a warning that abnormal rain might fall in the Southern part of East Kalimantan and eastern part of South Kalimantan, where some major coal mining operations are located, with potential to cause flood.

Jeffrey said that in the abnormality was only 20-25 percent above normal condition, production would unlikely to be affected. ?But the story might be different if the rainfall is 100 percent above normal,? he said. Another industry source said that heavier than usual rain usually slash down production target for the quarter by 20 percent at most.

However, Jeffrey said that smaller miners that are not equipped to cope with extreme rainfall might be forced to close down production if the rainfall is to heavy. ?But in term of overall number, it would be relatively insignificant,? he said.

Most Indonesian coal miners produce less coal during the fourth quarter due to rainy season.

Indonesia is targeted to produce 155 million tones of coal this year, 70 percent of which would go to export market. Around 80 percent of Indonesian coal is produced by less than 10 major coal miners. (alex)