Indonesian Coal Output Projected to Fall

16 August 2010 (Last Updated August 16th, 2010 18:30)

Indonesian coal output may fall by 6% this year to 300 million tons due to continuous unseasonal rains, which may tighten an oversupplied regional market. The Indonesian Meteorology, Climatology and Geophysics Agency has forecast that unseasonal heavy rains will continue across Indonesia

Indonesian coal output may fall by 6% this year to 300 million tons due to continuous unseasonal rains, which may tighten an oversupplied regional market.

The Indonesian Meteorology, Climatology and Geophysics Agency has forecast that unseasonal heavy rains will continue across Indonesia for the rest of the year, according to Reuters.

Indonesian Coal Mining Association chairman Bob Kamandanu said the initial target of 320 million tons will be difficult to achieve if rains continue.

"Coal mining usually stops when it rains except producers that have good inventory management," Kamandanu said.