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Saturday, 23 October 10
HEAVY RAINS NO DAMPENER FOR 2010 COAL OUTPUT TARGET, MINISTRY SAYS - THE JAKARTA GLOBE


The Jakarta Globe reported that, National coal production would likely meet the target set by the Energy Ministry despite unusually heavy rain this year, a senior ministry official said on Friday.

Bambang Setiawan, director general of mineral, coal and geothermal energy, said he did not believe the wet weather would cause coal companies to miss the target of 275 million tons.

“I am still optimistic that by the end of the year we can reach 290 million tons of coal production,” he said.

Bambang said total coal production was 206.2 million tons during the first three quarters of the year — or 75 percent of the target of 275 million tons.

The short, wet dry season caused by the La Nina weather phenomenon has hampered production of a range of commodities, from tin and coffee to coal and rubber.

Bob Kamandanu, chairman of the Indonesian Coal Mining Association, said in August that the nation may miss the association’s 2010 production target of 320 million tons, and that output may be flat from last year at 300 million tons.

He said some producers had declared force majeure, a legal clause allowing companies to abandon contractual obligations because of circumstances beyond their control,

Bambang said that as of September, the government had received Rp 13 trillion ($1.45 billion in tax revenue from the coal sector, 85 percent of the target.
Source: The Jakarta Globe

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