September 9, 2011 / 11:34 AM / 8 years ago

Indonesia govt says no low-rank coal export ban soon

JAKARTA, Sept 9 (Reuters) - Indonesian government officials
on Friday denied market talk that the country will soon impose
an export ban on all low calorie coal exports from 2014.	
    The energy and minerals ministry has been drafting a
regulation that would by 2014 require coal producers to upgrade
low-quality coal to a medium-quality coal before exporting, with
several media and analyst reports this week saying the
regulation was completed and would be implemented this month. 	
    The plan for a ban on exports of low-calorie coal was still
only a "concept" in the energy ministry, Sri Nastiti Budianti,
export director of mining products at the trade ministry, told
    This fits with comments by a senior mining official in
March, who said Indonesia was likely to delay the regulation
until the technology was commercially available to lift low rank
coal to a minimum heating value of 5,600 kcal/kg.
    Deddy Saleh, director general of foreign trade at the trade
ministry, also poured cold water on talk of an imminent
    "We do not know about the plan because there is no
discussion on the matter so far," said Saleh. "We've never
talked about the plan with other government institutions either,
he said.	
    The regulation would be part of a mining and coal law
introduced in 2009 that requires miners to process coal and
minerals into higher value products before exporting them, as
the country seeks to boost revenue from the mining sector.	
    Indonesia is expected to produce about 340-354 million
tonnes of coal this year, from around 290-320 million tonnes in
2010, according to industry groups. 	
    Southeast Asia's largest economy produces mainly lower grade
coal, used predominantly to fuel power plants in developing
countries like China and India.	
    The Indonesian Coal Mining Association has said Indonesia's
mineable reserves of low-quality coal may reach 10 billion
tonnes, or half of current total reserves of around 21 million
    Firms that could be affected if any such legislation is
passed in future include Adani Enterprises Ltd and MEC
    A source at the energy and minerals ministry told Reuters
that it was working on a ministerial decree to add value to
mining products. 	
    "But we're facing challenges by stakeholders and the
business world," the source said.	
 (Reporting by Yayat Supriatna, Andjarsari Paramaditha and
Michael Taylor; Editing by Neil Chatterjee)
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