MEMR to issue new regulation on coal value added

The Ministry of Energy and Mineral Resources (MEMR) will issue a new minister regulation to oblige domestic coal miners to process their output at home to generate greater added value from the commodity.

Director General of Mineral and Coal, R. Sukhyar said on Monday that the ministry has been in discussions with the industry players regarding the planned policy on added value of coal, which has been mandated by the 2009 mining law.

The government has already implemented similar policy in the mineral mining sector, banning the export of mineral ores to push miners to set up domestic smelters to process the ores into greater added value products. Sukhyar, however, said that there would be no export ban on coal despite the value added policy.

Chairman of the Indonesian Coal Miners Association, Bob Kamandanu said that the coal miners in principle agree to the government?s policy to generate greater value from coal, but the need further clarification as to the definition of the value adding.

He said that coal upgrading and coal gasification are examples of adding value, but the problem is the absence of feasible technology. (*)