RI?s coal output up by 9.1%, govt plans production limit

Indonesia, the world?s largest exporter of thermal coal, saw its coal production in 2013 increased by 9.1 percent to 421 million tons from 386 million tons in the previous year, Kontan daily reported on Friday.

Gultom Guska , Head of the Division for Supervisory of Production and Marketing of Coal at the Ministry of Energy and Mineral Resources, was quoted by the paper as saying that the 2013 realized production was also much higher than the government?s target of 391 million tons.

Out of the 421 million tons output, the bulk 349 million tons went to the export markets, the largest of which are China and India, and the remainder to the domestic market.

Gultom said that the high output has further undermined the lingering weak coal price in the global market.

Director General of Coal and Mineral R. Sukhyar said that the government plans to introduce a new policy to limit coal production this year. ?We?ll set up quota per province, so that production can be maintained at around 400 million tons,? he said, while adding that the legal umbrella for the policy was still being drafted. (*)