Indonesia's 1H coal output up 9.8 pct on-year to 190 millionn tonnes

Indonesia?s coal production rose nearly 10 percent in the first half of this year as higher prices and friendlier weather helped miners to churn more coal, chairman of the Indonesian Coal Association said on Wednesday.

Miners produced 190 million tonnes of coal from January to June this year, a 9.8 percent increase from 173 million tonnes in the same period 2010, said Bob Kamandanu in an interview with Coal Asia.

?Coal prices have jumped to $120 a tonne at present from just $30-$40 a tonne five years ago. This has allowed miners to dig deeper for coal,? said Kamandanu. ?Expansion from big miners and improving prices have allowed producers to churn more coal,? he said.

Friendlier weather also helps miners to ramp up production. Unusual heavy-rains caused by La Nina weather phenomena in 2010 had flooded some mines and made hauling roads slippery, hampering miners from ramping up production.

?The weather did not go as well as we predicted. But now we can identify the weather pattern. There are certain months where the weather is wetter than other months and production will take a dip,? Kamandanu said.

Coal production in the world's largest thermal coal exporter, may reach 360 million tonnes this year, higher than initial forecast of 330 million to 340 million tonnes, if dry weather stayed until September, he said.

Indonesian producers shipped 151 million tonnes of coal in the first half of this year, a 12.7 percent increase from 134 million tonnes in the same period 2010, said Kamandanu.

Strong demand from China and India gave a boost on exports despite a lull in coal demand from Japan after March's earthquake and the devastating tsunami which temporarily stopped operation of some coal-fired power plants there. (fitri)