Indonesian Coal Association Says Quota Cuts Risks Mine Shutdowns

The Indonesian Coal Miners Association said drastic cuts in production quotas granted by the government may force some operations to shutdown, adding to the woes of the country’s already beleaguered industry.

Output quotas permitted under annual work-plans, known as RKABs, are significantly below last year’s tonnage, the association said in a statement on Saturday. Cuts to individual miners vary from 40% to 70%, likely forcing some to halt if production falls below a viable level, it said in the statement.