JAKARTA (TheInsiderStories) – The energy and mineral resources (EMR) ministry estimates that 2021′ coal production will rises 11 percent to 609 million tones (MT) of coal compared to this year’ targets 550 MT of coal. Then, in 2022 the production is projected increases to 618 MT of coal, in 2023 around 625 MT of coal, and in 2024 to 628 MT of coal.
Director general at the ministry, Ridwan Djamaludin, told the lawmaker on Thursday (08/28), the projected coal volumes until 2024 based on the miner’ production capacity plans, domestic market needs, and the economic growth. But, he said, the export projection during 2021 to 2024 is stagnant at 441 MT of coal.
However, this figure is an increase compared to 2020 about 395 MT of coal. He continued, the domestic coal demand in 2021 could reached 168 MT of coal or up 13 MT of coal from 155 MT of coal in this year. Then, in 2022 rises to 177 MT of coal, 2023 around 184 MT of coal, and in 2024 to 187 MT of coal. The calculation based on the increasing demand in various domestic industrial sectors such as Steam Power Plants, industry, cement, and smelters, he adds.
Based on data from Minerba One Data Indonesia, the realization of Indonesia’ coal production from January to July 2020 reached 322.9 MT of coal or 58.7 percent of this year’ production target. Previously, the Indonesian Coal Mining Association has announced to cut the production capacity by 20 percent in this year due COVID-19 outbreak.
A number of miners are also preparing to cut their production volumes, which have been set at the beginning of this year in line with weaker demand which is pressing down on coal prices. Two issuers with the largest market capitalization, PT Adaro Energy Tbk (IDX: ADRO) and PT Bayan Resources Tbk (IDX: BYAN), are some of the producers that have announced production cut.
Bayan, which originally set a production target of 31 million to 33 MT of coal at the beginning of this year, has cut the target to only 26 million tons by the end of 2020. While, Adaro cut its coal production target by around 10 percent of last year’ total production, or is below this year targets of 54 to 58 MT of coal.
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