Noble sees Indonesia?s 2011 coal exports to grow above 7 percent on-year

Noble Group expects Indonesia?s coal exports to increase by more than 7 percent this year, boosted by strong demand from China and India, a company executive said on Monday.

Indonesia, the world?s top thermal coal exporter, is expected to ship more than 280 million tonnes of coal this year, up from 264 million tonnes in 2010, said Neil T. Dhar, Noble's Director of Energy Coal and Carbon Complex.

An obligation to sell coal to domestic market and regulatory frame work will be among key issues for export growth from Indonesia, Neil told participants in Coaltrans Asia conference.

Indonesia wants to boost the use of coal for domestic power plants the country is seeking to cut reliance on oil.

Indonesia shipped around 60 million tonnes of coal to China in 2010 and is expected to ship more as China is facing severe drought that was depleting its hydroelectricity supply and could force utilities there to burn more coal.

Noble expects China?s coal import demand to be steady this year at around 90 million tonnes from last year but the country?s coal import demand may increase to 200 million tonnes by 2015, Neil said.

India may import around 67 million tonnes of coal this year to fuel its massive power plants, more than 15 percent increase from 58 million tonnes in 2010, said Neil, adding the country?s coal import may exceed 100 million tonnes by 2015.

Indonesia exported an estimated 48 million tonnes to India in 2010, Neil said in his presentation. (denny/fitri)