Indonesia coal production in 1st semester below target

Indonesia?s coal production totaled only about 72 million tons in the first semester of this year, far below the government?s target, partly due to a low production in the first quarter of the year.

Of the total production in the first semester, coal mining companies operate under coal contract of work (CCoW) permit produced about 62 million tons, and those operating under KP contracts produced only 10 million tons.

The January-June output represents only 31 percent of the government's annual target of about 230 million tons.

Bambang Setiawan, the Director General of Coal and Geothermal at the Energy and Mineral Resources Ministry, said last week that the low production was normal.

?Coal production is usually low in the first and second quarter of the year due to a lot of rains. But in the third quarter the production will usually increase and the trend will continue through the end of the year,? he said.

Coal sales in the first semester of the year reached 75 million tons. About 52 million tons were exported, and the remaining 23 million tons were sold on the domestic market, he added. (bernard)