RI coal production may reach 391 million tonnes this year

March 1, 2013, 2:00 pm | Admin

RI coal production may reach 391 million tons this year

Friday, March 01, 2013 – 09:11AM GMT+7

With the upward trend in the production level in January, the government is optimistic that Indonesia’s total coal production will reach 391 million tons this year, a 1.3 percent increase from the production figure recorded in 2012.

Edi Prasodjo, the director for coal mine development at the Energy and Mineral Resources Ministry, said in Jakarta on Thursday that the country’s coal production had showed an upward direction in January in line with the increase in coal prices.

The country’s coal production rose 10 percent to 33 tons in January from 30 tons in December, last year,” he said. “The rise in coal prices have resulted in an increase in the production,” he was quoted as saying by the Kontan business daily.

The coal reference price for February issued by the directorate general of mineral and coal rose slightly to US$88.35 per ton from $87.55 per ton in January, but it jumped from $81.75 per ton in December.

Edi said that about 25 tons of the coal production in January were exported and the remaining 8 tons were sold in the domestic market, mostly to state owned electricity company PLN.

Meanwhile, Supriatna Sahala, the executive director of the association of Indonesian coal miners (APBI), estimated coal price would fluctuate between $95 and $100 per ton this year. According to him, this year’s price range will be higher than about $84 per ton in 2012.

He attributed the increase in coal prices to the surge in the demand not only in the international but also domestic markets. (*)


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