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Indonesia coal output at 514 million tonnes this year, 2021 target unchanged

in Commodity News 11/12/2020

Indonesia coal output in the period to Dec. 10 stood at 514.2 million tonnes, official data from the energy ministry’s website showed.

“We hope at the end of the year it will be close to our 550 million tonnes target,” director of coal at the energy ministry, Sujatmiko, who uses one name, told a virtual conference.

The country’s coal sales for the same time period stood at 472.33 million tonnes, the data showed.

The energy ministry is targeting next year’s output at 550 million tonnes, unchanged from 2020’s target, Sujatmiko said.

China and Indonesia sign £1bn deal for thermal coal imports
Agreement comes as China anticipates increase in coal imports from December

Dominic Ellis Nov 27 2020

China will buy £1 billion worth of thermal coal from Indonesia next year following the signing of a trade deal between the Indonesian Coal Mining Association (APBI) and China Coal Transportation and Distribution, according to a Reuters report.

"It is hoped that there will be an increase of coal exports to China by 200 million tonnes in the coming year," the APBI says in a statement. "The target quantity will be reviewed every year."

Indonesia, the world’s top exporter of thermal coal, has resorted to diplomatic channels to promote coal sales around Southeast Asia, particularly in Vietnam, as exports to China have slowed.

China’s imports from Indonesia, the world’s biggest shipper of thermal coal used in power plants, dropped by 24.5 percent in the first 10 months of 2020 to 86.88 million tonnes, compared to 115.03 million tonnes during the same period last year, according to data from Refinitiv.

However, according to an analysis published by Wood McKenzie, China’s thermal coal imports are forecast to increase in December this year.

According to the market analyst, seaborne thermal coal imports will grow from 9.5Mt to 20Mt in December, with the new figure much higher than 8.8Mt recorded in September this year, or the 17.7Mt average for the first nine months of the year.

In Wood McKenzie’s view, the increase will help ease domestic prices and strengthen seaborne prices. It explains that the massive increase in imports is due to a series of factors that have hindered the National Development and Reform Commission’s goal of relying more on local suppliers in order to stabilise the price for QHD5500 to below £68.18/t.

“The QHD price has stayed at above £68.18/t since late September. The market news is that the NDRC asked coal miners to increase supply at the end of September and that domestic supply increased in October to 336 Mt, compared with 331 Mt in September, or 325 Mt last October,” the analysis reads.

“But mine accidents in Shanxi, Shaanxi and Inner Mongolia have prevented output from increasing further, and the coal price has remained around £69.88/t.”

Despite the accidents, coal imports dropped to 14 Mt in September, the lowest since May 2011.
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Indonesia Plans to Produces 489 Million Tonnes Coal in 2019

Coal News - Published on Thu, 28 Nov 2019

Indonesia’s Energy and Mineral Resources Minister Mr Arifin Tasrif informed parliament that Indonesia’s production of coal for the January-September period was 390 million tonnes and that Indonesia aims to produce 489 million tonnes of coal in 2019

Indonesia revised up its 2019 coal output target to this number in March, from 480 million tonnes, after over-shooting the 2018 production target

L’Indonésie prévoit pour 2015 une croissance de ses extractions de charbon de plus de 9%

Raymond Bonnaterre

Selon Platts, les dirigeants indonésiens, prévoient pour 2015 des extractions de charbon de 460 millions de tonnes dont plus des trois quarts seront exportées. Ces extractions devraient atteindre cette année les 421 millions de tonnes
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Indonesian 2014 coal output seen at 410-420mn tonnes

08 October 2013

Indonesian coal production is expected to increase by 5 percent to between 410-420 million tonnes in 2014 but could go higher, a leading industry association said on Tuesday.

Output in the world's top thermal coal exporter is seen at around 400 million tonnes in 2013, Indonesian Coal Mining Association (ICMA) Chairman Bob Kamandanu told reporters, confirming a forecast from earlier this year.

"My figures are always conservative," said Kamandanu, adding that market conditions were changing. "If you're talking about next year, 410-420 (million tonnes), but it could reach up to 450 (million tonnes)."

Indonesia aims to produce 391 mil mt of coal in 2013, up 1% on year

Manila (Platts)--18Mar2013

The Indonesian government has set a 2013 coal production target of 391 million mt, up 1% from output last year, according to Edi Prasodjo, the coal director at the directorate for minerals and coal which is under the country's Energy and Mineral Resources Ministry.

Indonesia produced 387 million mt of coal last year, beating its target of 332 million mt, Prasodjo told Platts in an interview.

He said it is likely that actual coal production this year will also surpass the government's target.

In 2011, Indonesia produced 357 million mt, compared with a target of 327 million mt.

Prasodjo said that 80% of Indonesia's coal production last year was exported, with the rest sold in the domestic market.

Update on coal reserves in Indonesia

The Jakarta Post reported that Indonesia's coal reserves with calorific values ranging from 3,000 to 3,800 kilocalories per kilogram amount to 10 billion tonnes. However, a domestic market for such coal does not yet exist.

The lowest calorific value currently used in the country is 4,200 kilocalories per kilogram. Coal with calorific values between 3,900 and 4,000 kilocalories per kilogram is mostly exported to India.

Data from the Energy and Mineral Resources Ministry shows that in 2011, the country's target is to produce 327 million tonnes of coal, comprising 35 million tonnes of low rank coal (3,800 kilocalories per kilogram to 4,500 kilocalories per kilogram); 198 million tonnes of medium rank coal (4,900 kilocalories per kilogram to 6,000 kilocalories per kilogram) and 94 million tonnes of high rank coal (5,700 kilocalories per kilogram to 6,000 kilocalories per kilogram).

In 2012, coal production is set for 332 million tonnes, comprising 29.3 million tonnes of low rank; 191.6 million tonnes of medium rank and 111.1 million tonnes of high rank.

In 2013, production is targeted at 337 million tonnes, comprising 29.7 million tonnes of low rank; 194.5 million tonnes of medium rank and 112.8 million tonnes of high rank.

Meanwhile, Bloomberg reported that Indonesia, the world's largest exporter of power station coal, cut the benchmark price for sales in November by 2.2%. The cost of coal with a gross energy value of 6,322 kilocalories was set at USD 116.65 per tonne as compared with USD 119.24 in October 2011.

Japan-Indonesia Consortium Wins $4 Billion Java Coal Power Plant Project

TOKYO -(Dow Jones) 07 October 2011

Electric Power Development Co. (9513.TO), Itochu Corp. (8001.TO) and PT Adaro Energy (ADRO.JK) said Friday that they have signed an agreement with Indonesia's state-owned electricity company, PT. Perusahaan Listrik Negara, under which the three firms will build a coal-fired power plant with capacity of two gigawatts in Central Java province and supply electricity to PLN for 25 years.

The total project cost is approximately $4 billion, the Japanese-Indonesian consortium said in a statement.

The engineering, procurement and construction contractor that will soon be appointed will use Japanese technology, and construction is expected to begin next October with commercial operations starting in late 2016, they said.

The consortium gained exclusive negotiating right for the power plant project in June.

This will be Indonesia's first ultra-super-critical coal-fired power plant. Ultra-super-critical plants typically produce 7% less carbon dioxide than the subcritical plants that are widely used in Indonesia, so the project will likely help Indonesia curb its CO2 emissions.

The consortium plans to produce electricity using sub-bituminous coal, which is abundant in Indonesia but can't be exported at high prices due to its relatively high water content.

Indonesian coal production to exceed 340 million tonnes in 2011

07 Jan 2011

Indonesian coal miners expect to produce 340 million tonnes of coal in 2011, an increase of 23% from 275 million tonnes last year, to catch up with the growing demand at domestic and international markets.

Mr Supriatna Suhala executive director of Indonesian Coal Mining Association said almost all coal miners in the country had expressed their commitments to expanding their production in 2011.

He said that “As the global economy recovers, we expect to see growing demand for coal both at domestic and international markets in 2011.”

Of the planned 340 million tonnes of coal produced in 2011, the association estimates 20% of them around 70 million tonnes will be allocated to fulfill domestic market demand, while the remaining 80% will be exported.

Mr Supriatna said that “We predict that we’ll see soaring demand for coal in emerging market economies in 2011, particularly to supply their energy sectors adding that Japan, India, China and South Korea would remain the largest importers of Indonesia’s coal.”

(Sourced from http://www.thejakartapost.com)

Indonesia plans to double coal production by 2025

07 Dec 2010

A former government official said that Indonesia plans to more than double coal production to 560 million tonne per year by 2025, of which 300 million tonne per year will be allocated to the domestic market and the remaining 260 million tonne per year will be exported.

According to Mr Mangantar Marpaung former director of mining technique and environment for mineral, coal and geothermal at Indonesia's directorate general of mineral, coal and geothermal, Indonesia's power industry is likely to consume 50 million tonne of coal this year, followed by the cement industry with consumption of 10 million tonne and the metallurgy and paper industry with 7 million tonne.

Indonesia needs an additional 45 million tonne per year of coal on top of existing power plant requirements to support its crash electricity expansion program that aims to add 20,000MW of generation capacity by 2014.

Mr Marpaung at the McCloskey Asia Pacific Coal Outlook Conference 2010 in Bali said that “The 45 million tonne per year of coal will be supplied by about 15 designated mining companies, some of which are also exporting.”

The three largest suppliers are Consorsium PT Arutmin Indonesia & PT Darma Henwa, PT Hason Energy and Consorsium PT Kasih Industri Ind & PT Senamas, which will contribute about 8.5 million tonne per year, 4.4 million tonne per year and 3.8 million tonne per year respectively.

Indonesia produced about 250 million tonne of coal last year. Heavy rains could cut this year's production, the country's coal mining association warned in September.

Bloomberg reported that Indonesia's coal production may rise to 309 million tonnes by 2014 from an estimated 250 million tonnes in 2010.

Mr Bambang Setiawan director general for coal, minerals and geothermal at the energy ministry said that copper output may fall to 944,919 tonnes in 2014 from 1.02 million tonnes in 2010, while tin output may rise to 110,250 tonnes in 2014 from 105,000 tonnes this year. Ferronickel output may rise to 20,364 tonnes in 2014 from 18,276 tonnes in 2010 and bauxite production may increase to 11.46 million tonnes from 10.28 million tonnes.

Middle East Coal to invest $1.4 bn in Indonesia

MUMBAI: It could soon become a model to emulate for companies wanting to export minerals from India. Singapore-based, India-oriented Middle East
Coal, which owns coal mines in Indonesia, will invest $1.4 bn (about Rs 5,600 crore) in the SouthEast Asian country, as part of its deal, to mine coal and ship it to Indian power producers.

Middle East Coal has assured the Indonesian government to spend a fifth of the coal it mines in Indonesia itself, besides building infrastructure, in return for shipping coal from its mines in the Kalimantan province that are estimated to hold reserves of more than 2 billion tonnes.

This development may be closely watched by India for adopting to its iron ore policy — India has abundant reserves of the ore, while Indonesia is rich in coal — as the Indian government is currently in a bind on the issue of ore exports
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The infrastructure that Middle East would build, would include a railway line that can be used to transport coal from the mine to the port from where it would be shipped to India. The railway line would be financed by IL&FS on a build-operate-transfer basis and Canada’s Canac would be the operator in handling the commodity at both railhead and the port.