Production of people?s coal mines falls by 50 percent

The production of the people's coal mines in South Kalimantan has dropped by about 50 percent in the last two months as most of the small-scale coal mining companies reduced their production activities due to the sharp increase in the fuel prices, Media Indonesia reported on Monday.

?The condition of the people?s coal mines is worsening due to the sharp increase in the fuel prices,? said Sholihin, the chairman of the association of people?s coal mines in South Kalimantan.

The sharp increase in the fuel prices has posed a major blow to the province?s small-scale coal mining companies which produce between 20,000 tons to 80,000 tons per day. ?Many of the small coal miners have to reduce their coal mining activities due to the high fuel prices.

Beginning July, this year the government has totally removed the subsidy for the sales of diesel oil to industries including coal mining companies. This has consequently raised the price of diesel oil to such industries to more than Rp 5,000 per litter from less than Rp 2,500 per liter previously. (*)