Indonesia Cuts Requirement on Domestic Coal Sales

From Coal Guru

Bloomberg reported that the Indonesian government has decided to reduce the amount that coal miners must sell in the domestic market this year by 18% due to lower consumption by power plants.

Mr Edi Prasodjo, the coal business director at the Energy and Mineral Resources Ministry said that miners must allocate 67.3 million metric tonne of coal under the so called domestic market obligation, down from the previous requirement of 82.1 million tonne.

Mr Prasodjo said that the quota was cut because some plants aren’t ready to start commercial operations.

According to an October 31st decree signed by Thamrin Sihite, Perusahaan Listrik Negara, the state owned utility firm will need 37.2 million tonne this year, the ministry’s director general of mineral resources and coal. That’s lower than the previously estimated consumption of 57.2 million tonne.

According to the ministry’s decree, this year’s domestic coal sales obligation for Kaltim Prima Coal, a unit of Indonesia’s biggest coal producer, Bumi Resources will be cut to 9.3 million tonne from a requirement of 12.7 million tonne set in August of last year.

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