Tuesday, November 6, 2012

Indonesia Coal production is expected to be retained In 2013

Asosiasi Pertambangan Batubara Indonesia (APBI) or Indonesian Coal Mining Association (ICMA) said in 2013 coal production will be halted. APBI chairman Bob Kamandanu said coal production in 2013 will be suspended because a lot of young players who no longer play in the coal business.

"Production will be suspended, but not because of the players do not grow. It is Because of the loss of small players," Bob said at the sidelines of the Coal Investment 2012 in Jakarta, Tuesday (6/11).

According to him, the coal production in 2013 will be flat. Means there will be much change from the 2012 production. If this year's coal production is predicted to reach 340 million tonnes, likely next year will also revolve in the figure. He said the production much better on hold when the price is low.
"Better hold until the high price. Suspended because many mining companies that appear later in the lid, large margin those expectations," he explained. Bob pointed out in Jambi, from 32 companies now left only 4. They are trying to hard. Moreover, South Kalimantan is actually good for the market and industry.

Coal production in 2013 will be flat and muffled. As well as the allocation of coal for domestic needs (Domestic Market Obligation / DMO). Previously, the government slashed the allocation of coal for domestic needs (Domestic Market Obligation / DMO) this year about 15 million tons, from the original plan of 82.07 million tonnes to 67.25 million tonnes only.

"The year 2013 will remain DMO with this year, because the output still remains. I would look at the expectations and the realization of the demand for coal."

On October 31, 2012, the government issued Decree on Amendments to No.909.K/30/DJB/2012 EMR EMR Decree No.1991 K/30/MEM/2011 on the Determination Requirements and Minimum Percentage Coal Sales in the Interest of the Interior in 2012.

The decree was signed by Thamrin Sihite, Director General of Mineral and Coal on behalf of the Minister. Decree was also forwarded to the President, the Vice President, the Minister of Energy and Mineral Resources, Minister for Economic Affairs, Minister of the Interior, and the Minister of Industry. In the new decree, the estimation of coal for domestic interest this year was revised to 67.25 million tonnes from 82.07 million tonnes previously. Thus, a minimum percentage of domestic sales of coal by coal mining enterprises also revised to 20.47% from 24.72% previously. There is no coal production this year is estimated around 332 million tonnes.

While the price of coal, is expected in the second half of next year the price of coal will again reach common ground. "Proverbially, I have not seen the light," he explained. According to him, coal price for above USD 100 per tonne only be seen within the period of 18 months from now.
"If the second half of next year around USD 90 to 95 per tonne. Recover at least after 18 months." The price is still stable between USD 80 to 85 per tonne.

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