MEMR assures coal supply for mine-mouth power plants
Monday, October 27 2014 - 01:19 AM WIB
Director General of Mineral and Coal at the ministry, R. Sukhyar told reporters last week that the domestic market obligation (DMO) policy provides assurance for mine-mouth power plants to be able to get the necessary coal.
He said that through the policy, coal miners in the country, the world?s largest exporter of thermal coal for power plants, are obliged to first fulfill domestic demand before export.
He added that price of coal dedicated for mine-mouth power plants is set based on the formula of production cost plus 25 percent margin as stipulated under MEMR Regulation No 10/2014, thus preventing the price from being affected by the international market.
The DMO quota for this year has been set at 90 million tons, while realized volume as of the third quarter period was 75.19 million tons. Indonesia is expected to produce around 420 million tons of coal this year.
?Yesterday, we discussed with PLN on the issue of mine-mouth power plant. In principle, all miners are obliged to fulfill domestic demand,? Sukhyar said, referring to the state-owned electricity company.
PLN has said that its coal consumption is projected to jump to 100 million tons in 2017 from around 74 million tons currently as new mine-mouth power plants come on stream. (*)