Indonesia's coal exports are expected to rise to 330 million
tons in 2013, up 6.5 % from a year ago, chairman of the Indonesia Coal
Mining Association said.
Indonesia which is world's top exporter of thermal coal largely uses coal to
fuel power stations in China and India. Its mineral sector including coal is
worth $93 billion and contributes 12 % to the country's gross domestic product.
“Exports remained high due to domestic consumption remaining small,” said Bob
Kamandanu adding that demand from key consumer China, especially for
low-quality coal, was quite strong.
“India always needs coal and (exports to India) will continue to increase” he further
added.
Kamandanu said the government had lifted a ban on exports of low-grade coal as
the coal industry has suffered from low prices during the slowdown of the
global economy.
Also he said that he did not expect the government to re-instate the export ban
for at least the next two to three years.
Indonesian coal miners have been affected broadly by recent low coal prices
that have forced many higher cost operations out of the market. The benchmark
Newcastle spot index has recovered slightly this year after dropping by a third
last year to lows of around $80 a ton.
Kamandanu also expected the forecast of Indonesia's coal output to 400 million
tons this year, up from a prior forecast of 370-375 million tons.
The rise in the forecast came despite some weather-related output problems at
the beginning of the year.
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