JAKARTA (Rambu Energy) – The Energy and Mineral Resources (ESDM) mulls a plan to cut national coal production if coal price continues to fall to below US$60 per ton.
Director General for Mineral and Coal at the Energy Ministry R. Sukhyar said that the production cut would lead to a reduction of coal exports. He hopes the move would jack up international coal price since Indonesia is one of largest coal producers in the world.
Sukhyar was quoted by Bisnis Indonesia as saying that his office will coordinate with coal producer association.
He said as of September 2014, reference price of coal stood at US$69.69 per tons, down from US$81.90 per ton in January this year.
Sukhyar said earlier that the Indonesian government expects national coal production in 2014 to reach 400 million, down from 421 million tons in 2013.
Of this, around 95 tons, or 23.7 percent will be sold to domestic market and the remainder will be export market. (*)