Ministry says coal miners may continue export to RP through safer routes

Tuesday, April 26 2016 - 07:33 AM WIB

The Ministry of Energy and Mineral Resources (MEMR) will not impose suspension of coal export to the Philippines (RP) despite recent attacks on coal barges by the Abu Sayyaf rebel group.

Ministry?s Coal Chief Agung Pribadi was quoted by kontan.co.id as saying Tuesday that coal export to the Philippines may still be continued through alternative safer shipping routes. ?We?re not stopping (the coal export). Just avoid waters prone to attacks,? he said.

The Abu Sayyaf rebel group in the Philippines has taken hostage 14 Indonesian crewmembers of coal barges. Indonesian Minister of Transportation Ignatius Jonan said on April 19 that the government has placed a moratorium on sailing permits for ships heading to the Philippines from Indonesia. Vessels will be allowed to travel to the Philippines if they are escorted by the military.

The Indonesian Coal Mining Association (ICMA) has also instructed all of its members to suspend coal export to the Philippines. Meanwhile, IDX-listed coal giant PT Bukit Asam Tbk said that it has decided to suspend export to the Philippines until August of this year, diverting the dedicated coal volume to Hong Kong.

According to the MEMR, coal export volume to the Philippines last year totaled 7.6 million tons, down 3.6 percent from 7.9 million tons in 2014. Export volume in the first quarter of this year reached 300,000 tons.(*)

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