Indonesia's coal production expected to reach 320 million tons in 2010

16:09, May 25, 2010      

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Indonesian coal miners were expected to produce as much as 320 million tons of coal this year, an increase of nearly 7 percent from the 300 million tons extracted last year, the Jakarta Post quoted an official as saying on Tuesday.

Bob Kamandanu, chairman on the Indonesian Coal Mining Association (APBI) said in Jakarta on Monday the rise in production would be partly due to rising demand from India and China.

"The coal market is very bullish at the moment. Demand is rising everywhere, especially in China and India," Bob said.

He estimated the coal demand in the international market would continue to increase for at least the next five years, and that the surging demand would encourage the miners to boost their production.

"They will move on with exploration and exploitation. They will also seek for 'un-organic' growth through acquisition," he said.

Bob added that as much as 59 million tons coal had been produced as of February this year.

"Therefore, the figure of 320 million is very much achievable," he said.

Indonesian coal production stood at 238 million tons in 2008.

Of the 320 million tons estimated to be produced this year, Bob said the producers were required to allocate as much as 30 percent of their production for the domestic market to comply with the domestic market obligations (DMO) imposed by the government.



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