Coal news and updates

Indonesia mulls cut-down in coal production at Kalimantan

April 9: The Indonesian government is considering plans to cut down coal production at Kalimantan by around 100 million tons (mt) to conserve its resources, trade sources said.

“There is talk that Indonesia aims at an immediate reduction in production at Kalimantan from 250 mt to 150 mt with a view to conserving its resources,” the sources said.

However, ICMW understands that any cut in production might be prompted by a steep fall in prices and not because of any other reasons as being talked of.

“If coal prices fall sharply due to lack of demand, miners will have no option other than to cut production,” an official with a leading coal trading company said.

The country is also trying to fix quotas for each and every mine, the official said.

If this happens, sources said, there will be a significant reduction in availability of Indonesian coal which in turn will impact prices.