Australia Flood Coal profitable RI

Flooding that hit Queensland, Australia resulted in some coal mines to supply fuel Asia's steel industry was forced to stop operating. Conditions that cause the price of coal soared for a while.

"Flooding in Queensland affect the price of coal for a while, because of flooding like crazy over there," said Director General of Mineral and Coal, Bambang Setiawan in Jakarta, Friday, January 7, 2011.

Bambang explained that the increase in coal prices affect commodity price increases for local coal. However, according to Bambang, the situation was no significant effect on the coal industry in Indonesia, because there are other factors that most affect the price of coal, the world oil price.

Meanwhile, Director of the Indonesia Coal Society, Singgih Widagdo, explaining Indonesia should capitalize on opportunities related to the cessation of coal production in Australia.

Singgih explained, coal exports to Australia could be done to supply the demand in the Atlantic region.

"With the flood, it is clear the Indonesian market will go to supply coal in Australia. Just see how big that can not be met by Australia," he said.

Singgih added, although confronted by extreme weather, coal production in Indonesia continues to increase. Based on the count of the government, coal production is estimated to reach 320 million tons.

In addition, with the number of mining permit (IUP), which amounted to thousands, it can increase the production of 20-30 million tons.

"So, this is an opportunity for Indonesia because of the coal market is supplied by Indonesia and Australia," he said.