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Miners unlikely to meet 2024 coal output target: IMA
The national mining industry association says domestic producers are likely to miss this year's coal output target amid ongoing oversupply in the global market, and possibly see a continuing decline in production over the next two years.
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Two workers walk on Jan. 4, 2022 past a coal barge at the Kertapati coal terminal belonging to PT Bukit Asam in Palembang, South Sumatra. (Antara/Nova Wahyudi) (Reuters)
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oal producers expect to generate below the 922.14 million tonne output targeted in the work plan and budget (RKAB) they agreed with the government for this year, the Indonesia Mining Association (IMA) has said.
IMA executive director Hendra Sinadia said on Friday that the coal output in the first quarter of this year was less optimal relative to previous years, particularly in view of global oversupply that led to a drop in coal prices compared to the first quarter of 2023.
“I [expect] it will be difficult to achieve the target set for 2024,” Hendra said, as quoted by Bisnis.com.
Indonesia has been the world’s top coal exporter for nearly the past two decades. Coal is the country’s second leading export commodity, after crude palm oil (CPO) and palm oil derivatives.
Read also: Indonesia to omit private coal power plants from its JETP investment plan
Domestic coal producers are anticipating a possible successive drop in production over the next two years, with many forecasting output of 917.16 million tonnes in 2025 and 902.97 million tonnes in 2026.
Indonesia produced 138 million tonnes of coal in the first three months of 2024, around 24 percent less than the 183 million tonnes it produced in the same period last year.
