Upgrading LRC (Low Rank Coal) looking attractive

With some thermal coal prices soaring to over US$150/t and declining supplies of high- quality coal worldwide, upgrading of Indonesia’s low rank coal (LRC) is becoming an increasingly attractive option.
Long regarded as uneconomical to mine because of its high moisture and low heat value, LRC now is being seen more as an alternative fuel to bituminous coal, principally for power generation. At an estimated 60.8Bt, LRC – coal with a calorific value below 5,100kcal/kg – accounts for some two-thirds of Indonesia’s total coal resources.
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Indonesia 2009 Coal production rate target

The Indonesian government is set to target a production rate of 261.6 million mt of coal in the state budget draft for 2009. It will be the first time the government will set a target in the budget revenue, a senior official said June 19.
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