Indonesia coal production increases significantly in 2001: Survey

Despite political uncertainty and unfavorable security condition, Indonesia managed to significantly increase coal production in 2001.

According to the data collected by Petromindo.Com, in 2001, Indonesia produced 91.8 million tons of coal, excluding production from cooperatives and illegal mining activities, which was estimated to produce between 3 to 4 million tons of coal annually.

The figure was significant jump from 76.5 million tons of coal Indonesia produced in 2000.

According to the survey, the increase was largely due to production increases by large mining firms such as Adaro Indonesia, Kaltim Prima Coal, Arutmin Indonesia, Kideco Jaya Agung, Berau Coal and Indominco Mandiri.

Industry sources contacted by Petromindo.com said the production surge was due to combination of several factors such as the closure of several mines in China and the its focus to local market, the increase in worldwide thermal coal demand and favorable commodity prices.

The sources went on to say that in 2002, the trend would continue and demand for Indonesian coal would still be strong. The sources said that in absence of production disruption, Indonesian coal production could be pushed to 100 million tons in 2002, as most companies are aiming to increase production. (alex/godang/kominta)