MEMR urges coal miners to continue exploration activities to help boost reserves

By Tri Subhki R

The Ministry of Energy and Mineral Resources (MEMR) calls on coal mining firms to continue exploration activities to boost the country?s coal reserves to help ensure future supply of the fuel for new power plants currently being developed and planned under the government?s five-year program to develop a total of 35,000 MW power plants.

"We urge coal mining companies to spend their money to conduct exploration activities in order to increase the coal reserve," Agung Pribadi, Director of Coal at Directorate General of Mineral and Coal, said on Monday.

Agung said MEMR fully supports the 35,000 MW project, of which 20,000 MW will be fueled by coal.

The new power plants are expected to be completed in 2019, and have a lifetime of up to 30 years.

A joint survey conducted by the Indonesian Coal Mining Association (ICMA) and PriceWaterhouseCoopers (PWC), unveiled recently, suggested that the country may have to import coal in the future to fuel domestic power plants due to depleting reserves as miners have been discouraged from carrying out exploration activities amid the lingering weak coal price. At current rate of decline, the country?s coal reserves are projected to deplete in 2033-2036. ICMA said that the government should provide incentives including an attractive coal pricing scheme for domestic power plants to encourage miners to continue exploration activities.

Editing by Reiner Simanjuntak