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Thursday, 21 July 11
COAL PRICES ARE AT US$ 120 A TONNE


COALspot.com - Indonesian coal production in 2011 is expected to reach 360 million tons or 5.8 percent higher than government's forecasts. The increase in production was driven by the higher price trend and the higher demand triggered producers ramped up production.

Executive Director of Indonesian Coal Mining Association Suhala Supriatna said, the realization of coal production this year expected to exceed the government's forecasts of 340 million tons. "Production in 2011 will be higher than the target, and may reach at least 340 million to 360 million tonnes," he explained. 

He also said that, the production increase was driven by a higher price for Indonesian coal and higher demand. After the accident at a nuclear power plant (NPP) in Japan, coal demand continues to rising. In fact, in the next 20 years, coal will play major roll  to replace nuclear energy in Asian countries.

This year's coal price for coal with calorific value 6300-6500 have reached  around US$ 120 per ton. This figure is much higher than last year's price of US$ $ 90/ton. " Due to higher price and demand, most of coal producers are planning to increase their production," he added.

Indonesian has already produced about 170 million tons of coal till end June 2011.

To contact the reporter on this story: Efendi at
efendi@coalspot.com



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