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Red tape hits Indo coal exporters

NEW illegal mining regulations in Indonesia could cut the nation’s coal exports by 15-20% in October compared to the previous month.

Blair Price
Red tape hits Indo coal exporters

The regulations, which came into effect yesterday, force all coal exporters to get mining and trade ministry approval.

“The industry says the rules are poorly timed and could push many firms out of business with coal prices at a five-year low,”Reuters reported.

“Unregistered firms will not be allowed to ship coal past the deadline.”

Indonesian Coal Mining Association commercial committee chairman Pandu Sjahrir said many miners and traders have had their applications delayed and there was a backlog of firms to be registered.

"A lot of the backlog happens to be at the coal and minerals directorate level,” Sjahrir told the newswire. “Everything has to be done manually,"

Firms need to obtain signatures from directors of the relevant government departments, further complicating the process. Sjahrir said a couple of major coal companies had not yet completed registration.

ICMA has previously estimated that Indonesia, the world’s leading thermal coal exporting nation, will have a 14% year-on-year fall in exports to 300 million tonnes in 2015 due to the rules and China’s recent ban on high ash and sulphur coal imports.

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