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Wednesday, 23 February 11
INDONESIA NEEDS TO REVISE EXPORT BAN ON 5600 GAD COAL EXPORT - INDUSTRY


COALspot.com - The Indonesian government may be forced to revise its 2014 timeline for the proposed ban on all low quality coal exports, Patrick Hanna Cokal Executive Director ,told the 9th Annual Coal Market conference in Singapore on 21 Feb,  which was orgainzed by IBC.

Accordign to him, it may take at least five years before coal upgrading technology is fully operational. The proposed upgrading technology was very much at the laboratory stage, and production needs to be ramped up, but to get to a commercial stage it's at least five years.

Industry analysts also say without the commercially workable upgrading technology, it would be impossible for the government to implement the export ban.  It would destroy the Indonesian coal industry, and the country would lose so much business from foreign investors. 

According to Indonesian coal industry, 50 to 60 percent of total exports of Indonesian coal was 5600 GAD or less. 

69 percent of 205 participants have replied , "yes the ban will impact on coal mine investment in Indonesia", according to our opinion poll that we have conducted during 24 - 30 January 2011. 



76 percent of 58 investors believe that, the ban may disturb Indonesian coal mine investments by foreigners.

The
proposed export ban will require all export coal to be upgraded to a calorific value of 5,600kcal/kg or above, in a bid to increase coal royalties to the government.



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