Coal news and updates

 

Indonesia, the world’s biggest exporter of power-station coal, will require companies to apply for licenses as registered exporters, according to a July 15 regulation signed by Trade Minister Muhammad Lutfi.

 

Producers can ship coal overseas after obtaining licenses valid for three years, according to the regulation. Companies must receive a recommendation from the Energy and Mineral Ministry before applying. The rule will be effective Sept. 1.

 

“The regulation aims at preventing excessive exploitation of coal, meeting domestic demand and securing royalty payments,” Director General of Foreign Trade Partogi Pangaribuan said in a statement today.

 

Coal cargoes will need to be verified by government-appointed surveyors before they are loaded onto vessels, according to the regulation. Exports will also be limited for anthracite, bituminous coal, briquette, lignite, peat, coke and semi-coke. The rule didn’t quantify the limits.

 

The requirements apply to coal companies holding contract of works or trading licenses for mining, known as Ijin Usaha Pertambang. Exporter licenses will be revoked if companies are found to have falsified documents, failed to report shipments three times or exported grades or quantities other than stated, according to the rule.

 

Indonesia’s coal exports climbed to 431 million metric tons in 2013 from 220 million tons in 2009, Trade Ministry data show.

 

 

Source: Bloomberg