Coal output to reach 150 million tons in 2005<\/p>\n
Fabiola Desy Unidjaja, The Jakarta Post, Jakarta<\/p>\n
With demand from domestic and overseas markets on the rise, the
\ncountry's oil output for 2005 is expected increase by 18 percent
\nfrom last year, to 150 million tons.<\/p>\n
Of that total, some 70 percent would be exported, Ministry of
\nEnergy and Mineral Resources official Mahyudin Lubis said on
\nThursday.<\/p>\n
\"Most coal mining firms here are increasing their production
\ncapacity for this year and boosting the output to 150 million
\ntons -- from 127 million tons in 2004,\" Mahyudin said.<\/p>\n
An example was PT Kaltim Prima Coal (KPC), the nation's
\nlargest coal producer, which he said would boost its output to up
\nto 25 million tons from 22 tons recorded in 2004 with the average
\nprice of US$50 a ton.<\/p>\n
\"KPC's coal price is actually above the average, and not all
\ncoal has the quality of KPC's, which can be sold at about $20 to
\n$25 per ton,\" he said.<\/p>\n
Aside from KPC, another coal mining firm PT Adaro is predicted
\nto meet its production target of 28 million tons this year,
\nmaking it the second-largest coal producer in Indonesia.<\/p>\n
Indonesia's coal industry is expected to substantially grow
\nwith the government planning to construct and develop nine more
\ncoal-fired power plants by 2009 to safeguard the country's power
\nsupplies.<\/p>\n
The first of such projects, located in Banten province, will
\nbe put onto an open tender in March.<\/p>\n
The increasing domestic demand is also in line with the upward
\ntrend in overseas demand, with Japan and China -- among the
\nworld's largest coal importers -- having shown interest in
\nincreasing their coal import from Indonesia.<\/p>\n
Japan-based Chubu Electric Power Co. Ltd. has said that it
\nwould gradually boost coal imports from Indonesia.<\/p>\n
Mahyudin estimated that demand from Japan could rise by about
\n5 percent this year.<\/p>\n
\"Currently, Japan is the largest importer of our coal, along
\nwith South Korea, India and Malaysia,\" he said.<\/p>\n
Meanwhile, PT Aneka Tambang, a gold and nickel mining company
\nwhich is 65 percent owned by the government, expects nickel
\noutput to rise by 28 percent this year.<\/p>\n
Production may rise to 10,150 metric tons from 7,945 tons last
\nyear, the company Corporate Secretary Ashur Wasif said in a
\nstatement as quoted by Bloomberg.<\/p>\n
Base metal prices soared during the past year as economic
\ngrowth in China and the U.S. spurred demand and drained
\nstockpiles, helping boost earnings of Aneka Tambang and other
\nminers. Prices of nickel, a material for stainless steel, has
\nrisen by 12 percent in the past 12 months and with gold having
\nrisen by more than 7 percent.<\/p>",
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"sponsor": "Okusi Associates",
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