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Coal for domestic market realization reaches 74% by end of October
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A conveyor belt transports 7,500 megatons of coal in Bontang, East Kalimantan. (JP/Wahyoe Boediwardhana)
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oal-mining companies have sold 74 percent, 90.25 million tons, of this year’s target of 121.25 million tons as set by the government under the domestic market obligation (DMO) scheme.
The coal from the DMO scheme will be used to supply domestic coal-fired power plants (PLTU) and other strategic industries such as cement manufacturers. Under the scheme, the coal miners are required to sell 25 percent of their total production at a price of US$70 per metric ton.
Energy and Mineral Resources Ministry Minerals and Coal Director General Bambang Gatot Ariyono reminded the coal miners on Monday that sanctions for those who failed to put aside 25 percent of their production for DMO remained in place.
His statement came a month before the government meets to decide the minerals and coal program and budget (RKAB), which includes a coal and mineral production target for 2019.
The government will also review the achievement of this year’s target.
This year’s national coal production is forecast to be 485 million metric tons. Therefore, the coal for the DMO scheme is set at 121.25 million metric tons, 92 million metric tons of which is for state-owned electricity company PLN, while the remainder is allocated for other industries. (bbn)
