Ministry plans regulation to limit coal output

Petromindo|Lucky

The Ministry of Energy and Mineral Resources plans a new regulation to limit the country?s coal production in a bid to help maintain reserves to meet the country?s future coal demand, Koran Tempo reported on Monday.

?It (the new regulation) to control production is still being prepared. It will not be implemented this year,? said Director General of Mineral and Coal at the ministry Bambang Gatot Ariyono as quoted by the paper, but did not say when the coal production limit will be implemented.

He said that under the new regulation, the government will limit the production of each coal producing provinces. The provincial administrations will then limit the production of the coal miners holding the business mining license (IUP) in their respective provinces.

The ministry will limit the production of coal miners holding the coal contracts of work (PKP2B), which currently accounts for about 80 percent of the country?s coal production.

The government will also limit the country?s coal export. Indonesia is the largest thermal coal exporter in the world.

The country?s coal reserves are estimated at around 28.5 billion tons. At current production rate, the reserves will be depleted in 70 years, the paper said.

This year, the country?s coal output is estimated to reach 470 million tons, way above the 413 million tons target set under the 2015-2019 National Medium Term Development Plan (or RPJM), as miners boost output amid recovery in the price of the commodity. (*)