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Govt approves five downstream coal projects
The Energy and Mineral Resources Ministry has approved five projects in the downstream coal business as one of the conditions for coal mining firms to have their licenses extended.
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Heavy machinery is used at a coal mining site at Sumber Batu village, Meureubo district, West Aceh regency, Aceh, on May 24, 2024. (Antara/Syifa Yulinnas)
T
he Energy and Mineral Resources Ministry has approved five downstream coal projects as a condition for mining firms to continue operating by having their coal mining business work agreements (PKP2B) changed into special mining business permits (IUPK).
“One of the conditions (for the extension of coal mining permits) is to have a coal downstream program,” the ministry’s natural resources economics expert, Lana Saria, said in Jakarta on Thursday, as reported by news agency Antara.
The approved downstream projects are run by PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia, both of which are subsidiaries of top coal miner Bumi Resources, as well as by PT Multi Harapan Utama, PT Adaro Indonesia and Indika Energy subsidiary PT Kideco Jaya Agung.
KPC and Arutmin submitted proposals to build coal-to-methanol production facilities. The companies aim to produce 1.8 million and 2.95 million tonnes of methanol annually, respectively.
Read also: Bukit Asam explores new downstream coal partnerships
However, Lana noted that coal-to-methanol gasification projects had little economic value, so some aspects of the proposals would need to be changed.
“For example, from downstream gasification to methanol will be changed to [from coal to] ammonia,” Lana said, as reported by Antara.
