World’s largest Non-coking Coal exporting country, Indonesia announces directive for Coal export license.
As per the directives, domestic producers can ship Coal to other countries after obtaining license. The license will be valid for 3 years that also includes cargo verification through examiner appointed by the government. This step taken by the Indonesian government may help the country to develop trade activities through legal norms.
Director General of Foreign Trade, Mr. Partogi Pangaribuan stated in the news, “The regulation aims at preventing excessive exploitation of Coal, meeting domestic demand and securing royalty payments.”
The country supplies at an average of 340 MnT Coal every year. Export of Thermal Coal has increased by 6.8% in first half of 2014 regarding 2013.
Out of the total imports of Thermal Coal in India, around 80% has been supplied by Indonesia, which is mainly utilized to run Coal based power plants.
Export will be limited for anthracite, bituminous Coal, lignite, peat, Coke and semi-coke. However, the rule didn’t specify the quantity limits.