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21 May 2014
Lower Coal Prices Hamper Production
Falling coal prices have prompted some Indonesian coal producers to restrict or cease production; coal production declined to 189.24 million tons during 2013 from 231.02 million tons during the previous year. Decreased coal production has also been observed globally – most notably in Indonesia’s regional neighbour, Australia – as producers struggle to slash costs amid poorer returns. Previously, an associated boom in the steel sector prompted high demand for coal – especially coking coal – prompting large-scale expansion in production. Indonesia, for one, saw coal production amounting to 351.46 million tons during 2011.
Indonesia has large swathes of coal-producing regions including South Sumatera, South Kalimantan and East Kalimantan, as well as numerous smaller pockets of coal reserves on the islands of Sumatera, Lava, Kalimantan, Sulawesi and Papua. The impact of the aforementioned decline in coal production saw sharply reduced production from the state-owned PT Bukit Asam to 4.87 million tons during 2013 from 6.68 million tons in 2012. Similar trends were observed for many other coal producing contractors in Indonesia. Most notably, PT Adaro Indonesia, PT Kideco Jaya Agung and PT Arutmin Indonesia – the second, third and fourth largest producers during 2012 – saw production more than halved during 2013. PT Adaro’s production declined to 7.77 million tons during 2013 from 33.87 million tons during the previous year, while PT Kideco Jaya Agung saw its production fall to 15.43 million tons from 31.63 million tons during the same period. Notwithstanding the overall decline in coal production, some coal producers stood out with increased or sustained production levels during 2013. Among them, PT Kaltim Prima Coal and PT Berau Coal produced 48.99 million tons and 19.71 million tons of coal respectively, rising from 37.58 million tons and 19.02 million tons over the same time period, to emerge as the largest and second largest coal producers in 2013.
Indonesia Premium Database
+ Mining and Manufacturing Sector |
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+ Mining Production |
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+ Table ID.BAE008: Coal Production
+ Table ID.BAE009: Coal Production: by Company |
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+ Mining Sales |
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+ Table ID.BAF003: Coal Sales
+ Table ID.BAF004: Coal Sales: by Company
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