A Cost Comparison Of Selected U.S. And Indonesian Coal Mines - Executive Summary

Indonesia is poised to become a major player in the Pacific Rim thermal coal markets. Although the colonial Dutch developed numerous coal mines in the late 1800's for steamship bunkers and domestic fuel, Indonesia's coal industry has only recently begun to actively participate in the growing global marketplace. This export coal is primarily the result of the commercial development of coal mines in eastern Kalimantan by foreign contractors. From virtually no coal exports in the late 1980?s, Indonesia's coal industry has increased its exports to approximately 15 million metric tons (Mmt) in 1992. In 1992, Indonesia was the world?s sixth largest exporter of steam coal, By the year 2000, Indonesia projects that it will supply approximately 25 percent of the seaborne thermal coal requirements of the Pacific Rim countries. Although limited quantities of this coal may enter the European and U.S. markets, high qualities, low production casts, and favorable transportation rates will make Indonesian coals very competitive in the rapidly growing Pacific Rim markets. This study examines the Indonesian coal mining industry and compares it to the U.S. coal mining industry. This report is the sixth in a series of coal exporting country studies requested by the House Appropriations Committee. Previous studies examined the Colombian, Canadian, Australian, South African, Polish, and Venezuelan coal industries.