Wednesday, 5 September 2012

Indonesia coal assoc cuts 2012 output forecast to 340-350 mln T

Wed Sep 5, 2012
JAKARTA, Sept 5 (Reuters) - Indonesia's Coal Mining Association revised its 2012 production forecast down to 340-350 million tonnes in 2012 from 360 million tonnes earlier, as some companies have cut production because of a reduction in prices, the association said on Wednesday.

Coal is a key component of Indonesia's mining sector, which makes up 12 percent of GDP in the largest economy in Southeast Asia.

"With the reduction in coal prices over the past nine months, several companies have cut production and even some marginal companies have closed their operations temporarily," Bob Kamandanu, the chairman of the association, told Reuters.

(Reporting by Fergus Jensen; Writing by Matthew Bigg; Editing by Neil Chatterjee)

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