In an apparent bid to capitalize upon the rising prices and growing demand in key global markets, the state-owned coal miner in Indonesia— PT Bukit Asam—decides increasing coal production by 26% in 2017 over that in the previous year. The Chief Executive Officer of the Indonesian coal miner says that the company will produce 24 MnT of coal this year.
The decision to raise the production during the year is primarily driven by the demand in China and India increasing; additionally, new markets, like Philippines and Vietnam are also starting to import coal from Indonesia.
The company is also upbeat on the domestic consumption in the country. Typically, the domestic consumers in that country consume around 60% of the company’s production. With several coal-based power stations expected to go on-stream this year, demand for PT Bukit Asam’s coal is expected to go up in 2017.
Indications of incremental demand also have prompted the Indonesian government to set a higher coal production target for 2017. The target for 2017 is set at 489 MnT, which is higher by 12.7% than the target of 434 MnT in 2016. The higher coal production target has prompted even the closed mines to be resume production.
PT Bukit Asam produced 19 MnT of coal in 2016.
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