Alfian , THE JAKARTA POST , JAKARTA<\/p>\n
Amidst the global economic downturn, local mining companies have set higher production targets this year primarily due to last year\u2019s shortfalls.<\/p>\n
Miners recently submitted production plans to the government with output increases seen in all commodities - including nickel, tin and copper whose prices have been hit hard by reduced demand.<\/p>\n
Nickel ore production in 2009 is set at 14,6 million tons, up by 37 percent from last year. Tin output is estimated to reach 105,000 tons, up 46 percent, while copper is set at 826,370 tons, up 38 percent.<\/p>\n
These figures are based on all miners\u2019 production proposals submitted to the ministry last month, said Bambang Gator Ariyono, director of the Energy and Mineral Resources Ministry\u2019s coal and mineral development division.<\/p>\n
Despite significant increases, Bambang believes the target is nothing extraordinary.<\/p>\n
\u201cThe figures seem to be high, but there is nothing too special about these targets. Many miners could not meet their 2008 production targets, which makes this year\u2019s targets seem too high,\u201d Bambang said recently.<\/p>\n
Extreme weather and natural disasters in some big mining concessions last year were the main cause for miners\u2019 failure to meet output targets, he said.<\/p>\n
\u201cTake Freeport, for example. The company could not meet its target last year because there were landslides in its mining concession,\u201d Bambang said, adding that the government would monitor the performance of miners during the first quarter of this year for any plan to revise output targets.<\/p>\n
Coal and minerals are expected to attract US$2.24 billion in investments this year, up from US$1.65 billion in 2008.<\/p>\n
However, a recent study by mining industry consultants PricewaterhouseCoopers (PwC) suggests that large scale investment is unlikely to come immediately to Indonesia due in part to possible legal uncertainty following the passage of a new mining law.<\/p>\n
\u201cThere is likely to be greater uncertainty around large-scale capital projects as the new law does not offer the long-term protection of the contract of work system,\u201d PwC\u2019s mining technical adviser Sacha Winzenried said on Feb. 26.<\/p>\n
PwC found that the investment spending is mainly for replacement plants and equipment to maintain existing operations instead of greenfields exploration.<\/p>\n
Coal and minerals production
\n
\nCommodities Unit 2008 2009*
\nCoal million tons 229.18 230
\nCopper thousand tons 597.07 826.37
\nGold tons 58.83 99.34
\nSilver tons 209.00 238.61
\nTin thousand tons 71.61 105.00
\nBauxite thousand tons 9,885.55 14,439.32
\nNickel in matte thousand tons 73.36 86.18
\nNickel ore thousand tons 10,634.45 14,660.14
\nGranite million m3 1.71 2.50
\nDiamond carat 27,668.00 96,000.00
\nIron Ore tons 3,965,046.64 4,609,540.54
\n*production target<\/p>",
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