Indonesian Coal Production

Indonesia Produces 180 MnT Coal in H1 CY18

Indonesia mined 180 MnT coal in the first six months of 2018, Agung Pribadi, the spokesman for the Energy and Mineral Resources Ministry said in text messages, Aug. 13.

The production data didn’t include output from mines operated under the Mining Business License (IUP). Production from miners operating with IUP accounts for roughly 30% of Indonesia’s coal output. Producers with coal contract of works account for the rest 70%.

Pribadi didn’t explain whether the production was higher or lower than output in the same period a year ago. However, Investor Daily reported on Tuesday that Indonesia produced 139 MnT in the January to June of 2017.

The first half production was 37% of the country’s coal output target of 485 MnT for this year.

Hendra Sinadia, executive director of the Indonesian Coal Mining Association, as quoted by Investor Daily, said limited capacity of heavy equipment due to rising demand and adverse weather had hampered producers from rising their output.

“From production data in the first half, rising commodity prices hasn’t significantly increased production,” Sinadia said.

Production normally will pick up in the second half of this year, such as happened in 2017, Sinadia. But he’s yet to give forecast how much production will be in the July to December period.

In the January to June period, Indonesia consumed 61 MnT of coal, mostly for power generation, the ministry’s data show. The remaining 119 MnT were sold overseas.


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