A government official said that Indonesia will allow coal production in 2014 to match last year’s levels, pulling back from its earlier attempts to reduce output.
The world’s top thermal coal exporting nation had in January targeted capping production at 397 million tonne, a cut of 5.7% from the 2013 figure. The move was aimed at helping support coal prices that are now at four-year lows and securing supplies to meet growing domestic demand.
But coal companies have said they need to boost output to compensate for declining prices and are planning increases despite government threats of sanctions.
The top 6 producers in Indonesia all aim to boost production in 2014 to compensate for continuing low prices.
Indonesia ships USD 2 billion worth of coal a month to power plants across Asia. A failure to rein in production by the Southeast Asian nation could keep a lid on coal prices and increase market competition as rival supplier Australia is also boosting output.
Read more at: http://www.steelguru.com/international_news/Indonesia_relaxes_coal_output_cap_as_miners_aim_for_volumes/334530.html
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