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Jakarta Post

Adaro expects coal production to plateau next year

  • Anton Hermansyah
    Anton Hermansyah

    The Jakarta Post

Jakarta   /   Tue, December 20, 2016   /  11:04 am
Adaro expects coal production to plateau next year A backhoe loads tons of coal in to a heavy-duty truck at Adaro Energy's site in Kalimantan in a recent photo. (Courtesy of http://www.adaro.com//-)

Publicly listed coal miner Adaro Energy expects to see a flat production target next year amid low demand following China's policy to cut its domestic coal mining production.

"Our production target will be flat next year, or maybe [the target] will be even lower," Adaro Energy corporate secretary Mahardika Putranto told reporters in Jakarta on Monday.

Mahardika said Adaro's production is expected to reach about 52 million to 54 million metric tons next year, similar to 2016's target.

According to Mahardika, there would likely be no significant increase in the demand for coal next year despite news that China, which is by far the world's largest coal consumer, is likely to ease its restriction on domestic coal production next year.

China has limited its domestic coal production since April this year to 276 days a year instead of the normal 330 days. However, the Chinese government has signaled recently that it would ease these restrictions after securing a price deal with major domestic miners.

Regarding the price, Mahardika expected the price to increase slightly next year.

Indonesian coal prices now stand at US$70 per metric ton. (dmr)

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