Indonesia expects its coal production to edge down in 2017, as smaller miners cut output due to lower prices for the commodity, a government official said on Monday. “It’s natural selection. The small mines that are not efficient will not be strong and will die,” Bambang Gatot, director-general of coal and minerals, told reporters at an industry event.
Smaller miners are expected to face difficulty marketing their coal and “will face obstacles”, Gatot said. Indonesia is expected to produce 419-million tonnes this year and 409-million tonnes in 2017, Gatot said. That compares with “above 400-million” in 2015, he added. An energy ministry official had said in January that the country produced 392-million tonnes of coal last year.