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ug. 5, 14

Major coal producers reported a significant increase in sales during the first half of the year but most failed to turn favorable profits as coal market prices plunged even deeper.

State-owned coal miner PT Bukit Asam sold 20 percent more coal in the first half of the year compared to the same period last year, and listed coal miner PT Bumi Resources estimated that its sales volume rose 20.2 percent year-on-year in the first six months.

Your comments:

With the current market conditions, which are expected to last at least another year, miners will find it hard to make profits.

Price levels are just above production costs, especially with the price of fuel, i.e. diesel, recently increasing almost 20 percent higher. Many mines will close this year and thousands will lose their job.

This is the reality, but the officers at the ministry are still asleep and talking about increasing royalties, increasing taxes, banning exports, etc.

This is a major economic disaster waiting to happen, and the ministry and the government are snoring.

Malam