Coal news and updates

Multiple ships bound for Japan awaiting Indonesia’s pending approval for coal exports: METI

Multiple ships loaded with coal bound for Japan are among 14 ships that could depart Indonesia as soon as a decision on whether to lift the country’s export ban is made Jan. 12, an official with Japan’s Ministry of Economy, Trade and Industry told S&P Global Platts Jan. 11.

The Japanese coal loading information comes as there are currently five vessels loaded with coal among the coal carriers stuck in Indonesia, the METI official said, adding that it was not immediately clear an exact number of vessels bound for Japan on the list of 14 ships.

Noting an improvement in the coal stockpile situation at state-owned PT Perusahaan Listrik Negara, or PLN, and independent power producers, the Indonesian government will allow some vessels to be released for export, according to the minutes of a meeting that was attended by top government officials and PLN, which were seen by Platts.

“As of today, seeing the condition of PLN’s supply is much better, 14 ships that already have a cargo of coal and have been paid for by the buyer can be immediately released for export,” the minutes of the meeting said.

It added that this was subject to verification by the Directorate General of Mineral and Coal and Hubla.

The minutes also noted that a decision on the export ban would be made Jan. 12 following assessments by a cross-ministerial team, which will decide how exports will resume in the context of the fulfillment of domestic market obligations.

Indonesia banned coal exports in January over concerns that low supply of coal at domestic power plants could lead to power outages, according to a letter sent to coal producers by the country’s energy ministry Dec. 31.

The ban was imposed because coal stockpiles at some of state-owned PT Perusahaan Listrik Negara’s power plants have declined to critically low levels, the ministry had said earlier.