Mining

Coal Mining Investment – Why Should You Join It

Indonesia’s coal mining sector has a long history. This sector had been hit in 2012 and 2013 when the commodity’s price sharply dropped. But soon after, the coal miners make up the loss by increasing the supply and selling more coal to importers. With better days in the future, this sector is still determined to be prospective mining sector in Indonesia alongside crude oil sector.

Being the fourth largest producers and exporters of coal in the world, Indonesia has numerous coal resources pocket throughout the country. Among them, Kalimantan Island has the biggest amount of coal. Indonesia’s strategic position between two continents with a lot of hungry markets like India, China and other developing countries has put Indonesia being the most desirable partner for importing coal.

The production cost in coal mining industry has been increase during the last few years but Indonesia remains the quite competitive coal exporter even compared to Australia as the second biggest coal exporter. The lower labor cost and the coal deposits’ location being close to the surface are the reasons Indonesia’s coal productions are desired by lots of countries. Most deposits are beneath the sea but they are still in close proximity to the land and with the use of inland waterways, the transportation cost can be kept low.

Coal mining industry in Indonesia definitely represents rich resource mining sector with growing production. And that’s merely the reason why coal mining investment is very prospective and desirable. Coal Investors company is one of the leading coal mining industries in Indonesia that extract several most promising coal deposits in Indonesia. No wonder this industry has been rapidly growing within the last 10 years since it was first established. Coal Investors produce coal in three different calories. They are GAR 6000-5800, FAR 4200-4000 and GAR 3800-3600.

Coal mining investment does come with some challenges like land acquisition, community relations, local government relations, competitiveness of royalty and taxation system and security assets. Despite existing challenges, coal mining is still being a very prosperous mining sector especially with the rapid increase in domestic coal consumption following the new government’s mega project of 35.000 megawatt electricity program. The domestic market itself is very promising. 

35.000 MW electricity project isn’t the only government’s program driving up the increase in domestic coal consumption. The domestic metal industries have also predicted to be requiring big amount of coal product. With metal industries development in foreseeable future, coal mining industry will certainly be inseparable from the development.

Even the latest figures made by Indonesia Ministry of Energy and the Mineral Resources have marked a significant increase for the following years. Meanwhile, this mining industry will remain prospective for 70 years ahead. In Indonesia, Kalimantan and Sumatra Island have being the most prospective country’s coal resources. Meanwhile, there are thousands of small coal deposits throughout the country. Most of the deposits are manageable meaning they are mostly close to the surface. This strategic location allows lower production which is a good thing for business to sustain.