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Indonesia dishes out further coal export bans

More coal export bans are coming into place in Indonesia, at a time where demand for the commodity is approaching record highs.

Indonesia, the world’s largest coal exporter, is banning 48 miners who have failed to meet their domestic market obligations (DMO).

Energy and mineral resources minister Arifin Tasrif revealed yesterday that 71 coal companies have failed to meet the DMO policy, requiring them to set aside 25% of the total production for the local electricity sector. Of the 71 coal companies that did not comply with the DMO policy, 48 of them did not even report, and are now banned from exporting for an undetermined period of time as punishment.

The price of coal has tripled this year and old mining communities have been resuscitated as Europe in particular seeks alternative energy supplies outside of Russia with plenty of business going to Indonesia.

The International Energy Agency (IEA) is now predicting an all-time-high coal demand this year of about 8bn tons after an increase in requirements last year of 5.8% year-on-year.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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