Inclined of Coal Potential Threatens Mining Companies Sustainability

mining
Advertisement

The government has very ambitious targets in pursuing its carbon-neutral target of 2060 or sooner. One of the steps taken is to reduce coal consumption and retire the Steam Power Plant (PLTU).
If this coal is abandoned, then certainly this will have an impact on thousands of coal mines operating today.

Based on data from Minerba One Data Indonesia (MODI) of the Ministry of Energy and Mineral Resources, quoted on Friday (11/19/2021), the number of coal Mining Business Permits (IUPs) in 2021 was recorded at 1,162 permits, consisting of 1,157 IUPs for Coal Production Operations and 5 Coal Exploration IUP. In addition, there are around 66 Coal Mining Concession Work Agreement holders (PKP2B)

As is known, this year’s coal production is targeted to reach 625 million tons. Then, in the long term, the government imposes a coal production limit of 600 million tons.

However, in terms of domestic consumption, especially for power generation, the government has an ambitious target to reduce the power plant capacity gradually from 5.52 Giga Watt (GW) before 2030 to only less than 1 GW in 2057.