Coal production down drastically because of declining Prices

Production of coal in South Kalimantan (Kalimantan Selatan) decreased sharply between 40-50 percent since the global financial crisis occurred in 2008.

Head of Mining and South Kalimantan, Banjarmasin in Mazanie Ali, Friday, said, in 2008 coal production Kalsel reach 70 million tons, and raised to 90 million tons this year. But with the decline of coal production to the present, he said, it is difficult to meet the target, and even to maintain the production of 70 million tons of heavy also.

"Up to August this decrease in production can reach 40-50 percent of total production in 2008, we expect in the months ahead will be improved, so that production can remain still survive at least 70 million tons," he said.

According to Ali, coal production decline Kalsel at this time because most companies were forced to suspend production because of the selling price of coal is quite low. "The stone ballast with calories or good only up to six in the range of 50-60 U.S. dollars, still far from what we want is 90 U.S. dollars," said Ali.

The low selling price of coal to make coal operators are reluctant to make local production despite its potential is still quite large.