Ministry sets higher coal DMO volume in 2018
Thursday, December 28 2017 - 01:07 AM WIB
The Ministry of Energy and Mineral Resources has set a target that around 28.20 percent of the country?s coal output next year must be allocated for the domestic market under its domestic market obligation (DMO) policy as coal demand from industries is set to increase.
The ministry?s Directorate General of Mineral and Coal said in a statement on Wednesday that domestic coal consumption next year is projected to increase to 114.51 million tons. In comparison, the coal DMO volume target for 2017 was set at 107.92 million tons, or 26 percent of the full-year production.
The statement said that the 2018 coal DMO volume will be fulfilled by 53 coal miners holding the coal contract of work, one state-owned coal miner holding the IUP mining business license, 11 foreign investment coal firms, and IUP coal firms located in 11 provinces.
The statement said that that about 89.75 million tons of the 2018 coal DMO volume will be allocated for coal-fired power plants, 15.6 million tons for the cement industry, 1.78 million tons for the metallurgy industry, 1.44 million tons for the fertilizer industry, 2.79 million tons for the textile industry, 3.18 million tons for the paper industry, and 10,000 tons for the briquette industry.
The higher 2018 coal DMO volume comes despite concerns that the 2017 coal DMO volume target is unlikely to be realized amid weaker demand from industries. As per September 2017, according to ministry data, out of the projected domestic coal consumption of 107.92 million tons for 2017, only 71.86 million tons have been realized.
Editing by Reiner Simanjuntak