Indonesia approves coal export permits after massive backlog - Reuters

A backlog of up to 3.5 million tonnes of coal awaiting export from Indonesian ports may finally be cleared after the energy and mineral ministry approved 60 permits for traders to resume shipments, a senior mining official on on Wednesday.

The shipments, destined to fuel power stations in China and India, were delayed because of changes to coal and mining laws that require cargoes to undergo fresh surveys in a bid to stem illegal exports that avoid tax.

The Indonesian Coal Mining Association said last week around 60-70 vessels and 3.5 million tonnes of coal were backed up in Indonesian ports because they lacked proper certification.

Some suppliers had declared force majeure on shipments, the association said, although the rule change has so far not affected shipments from top producers such as Bumi Resources and Adaro Energy.

"I have signed approval for about 60 permits. If traders submit all the required documents, the permit can be processed in just one day," said Bambang Setiawan, director general of coal and minerals at the energy ministry.

Indonesia, the world's top thermal coal exporter, is expected to produce 340 million tonnes of coal this year.
"We are glad that it ends well and we can avoid bigger financial losses," said Bob Kamandanu, chairman of the coal association.