Indonesia delays low CV coal export ban

Indonesia will postpone plan to ban export of low-CV coal from 2014 until commercial technologies to upgrade the coal quality will be available in the market, a senior government official said on Tuesday.

Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources Bambang Setiawan said that it would not be realistic for Indonesia to issue such prohibition as most of Indonesia?s coal production would fall into low CV category.

?Government can not push producers to upgrade coal (for export) when such technology is not available in the market,? he said.

Under the new Mining Law, coal and mineral producers are required to process their producers prior to export.

An industry source told Petromindo.Com that such policy is not realistic to put such ban, as most of Indonesia?s coal export are low CV coal. ?Such policy will cause export from Indonesia?s top miners such as PT Adaro Indonesia, PT Arutmin Indonesia, PT Berau Coal and PT Kideco Jaya Agung to be negatively affected. There will be a glut of low CV coal in domestic market when such policy is immaturely enforced,? the source said. (alex)