Coal news and updates

Bambang Gatot, Director General for Coal and Minerals at Indonesia's Energy and Mineral Resources Ministry, said especially the smaller Indonesian miners have been under severe pressure ever since coal prices slid after 2011 because these companies have less cash reserves to fall back on. Ceasing production is basically the only option as production costs exceed sales income.

Indonesia's coal production is estimated to reach 419 million tons in 2016 and 409 million tons in 2017 according to Gatot. Part of the problem is that India's demand for coal is expected to decline as the nation is eager to purchase higher quality coal from Australia, South Africa and Colombia (Indonesian coal consists mostly of the lower-quality type). Coal accounts for more than 60 percent of power generation in India and over 75 percent of its electricity production. In February 2016 the nation had doubled the clean-energy tax on coal in an effort to combat environmental pollution. This tax has a bigger impact on low-grade coal than on high-grade coal and therefore India prefers to import high grade coal from Australia, South Africa and Colombia.

Source: indonesia-investments