•  

Coal output up 5% in first four months

  • Tuesday, May 13, 2014
  • www.petromindo.com

The country’s coal production in the first four months of this year increased by 5 percent to 147 million tons compared to the same period of last year, further increasing supply in a global market already suffering from weak price, Kontan reported on Monday.

About 109 million tons of the production were exported, with the remainder 38 million tons went to the domestic market.

The paper quoted Edi Prasodjo, Director of Coal Management and Development at the Ministry of Energy and Mineral Resources, said that the country’s coal production was actually relatively stable, but slower economic growth in some Asian countries have weakened demand for the commodity, thus undermining the price.

He is optimistic that despite the production growth in the early parts of this year, full-year coal production would not exceed last year’s figure. “We’re optimistic that coal production will be around 397 million tons for the lower limit, and 421 million tons for the upper limit,” Edi said.

He added that the government is also pushing for higher domestic coal consumption particularly by mine-mouth power plants in the hope to limit supply in the export market and push price higher.

Posted by : admin [ 5/12/2014 11:49:00 PM ]