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NEWS UPDATES 9 September 2009

Indonesia to raise coal shipments to India

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Indonesia is to export three million more tons of coal to India in the next two months, the Antara news agency quoted Energy and Mineral Resources Minister Purnomo Yusgiantoro as saying.

"So far we export 13 million tons of coal to India per year. Now we will ecport three million tons more over the next two or three months," the minister said. According to Purnomo, the prospects of coal exports to India were good considering that the country would need 50 million tons of coal per year in the future.

Though coal export to India was to be boosted, he said, domestic need for coal would remain the first priority. Indonesia produces 230 million tons of coal per year of which 40 percent is used to meet domestic need while India is among the world`s biggest coal exporters and importers.

In India itself, coal is used as a fuel by steel factories and power plants.

Indonesia’s coal production this year is predicted to reach 250 million tons, of which some 185 million tons will be sold overseas, according to data from the Ministry of Energy and Mineral Resources.

Indonesia expects to reserve 65 million tons of coal for the domestic market this year.
Total coal production in Indonesia is expected to increase to 270 million tons in 2010, 321 million tons in 2015, 361 million tons in 2020, and 405 million tons in 2025.

The country`s total proven reserves of coal are forecast at 18. 71 billion tons, most of which is East Kalimantan, South Kalimantan, and Sumatra, while potential reserves are predicted to stand at 105 billion tons.


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