RI coal output down 19.4%

Indonesia?s coal production in the January-May period of this year totaled 166 million tons, a 19.4 percent drop compared to 206 million tons in the same five-month period of last year.

Director of Coal Management and Development at the Ministry of Energy and Mineral Resources Adhi Wibowo was quoted by reports on Monday as saying that the production decline was due to lingering downturn in the global coal market, which has seen price of the commodity falling and forcing miners to cut cost, and heavy rainfall in some mining areas.

Export during the first five months of this year totaled 135 million tons, with the remaining output went to the domestic market.

The rate of production decline was also deeper in the January-May period compared to 11.56 percent in the January-April period.

The Indonesian HBA benchmark coal price stood at US$59.59 per ton in June of this year, down about 19 percent compared to $73.64 per ton in June of last year.

Meanwhile, Chairman of the Indonesian Coal Mining Association (ICMA) Pandu Sjahrir was quoted by Kontan as saying that aside from the falling price of the commodity, the government?s new policy requiring coal miners to use the L/C payment system in making export starting April has affected export performance. (*)