Indonesia may cap coal

10 July 2017

The investment management group said Indonesia’s Ministry of Energy and Mineral Resources planned to issue a decree on this by 2019.

Last year, Indonesia’s coal production totalled 434Mt, with domestic consumption accounting for less than a quarter. Figures from the Indonesian Coal Mining Association show the country’s production and export totals have reduced in the past two years while domestic consumption has gradually increased.

VTB said preliminary data for 2017 showed a 9% year-on-year growth in coal exports from the country, which implied a 31Mt higher annualised run-rate than last year.

“Overall, we do not see any significant impact on market fundamentals in the short and medium term from this limit (if implemented), as the effect of the limit represents less than 1% of total global output and 3% of global trade,” VTB said.

“However, this might cap output growth in the country in the long run,” VTB said, adding this could be marginally positive for integrated coal miner and steel manufacturer Evraz and Russian coal miner KTK.

Source- mining-journal