COAL COMPANIES` DOMESTIC MARKET OBLIGATION TO BE RAISED GRADUALLY

Jakarta, Nov 6 (ANTARA) - The government will gradually increase the domestic market obligation (DMO) of coal-mining companies until it reaches 70 million tons in 2010, an energy ministry official said.

"The DMO of coal companies for this year is 47 million tons but within the next two years it will be raised to 70 million tons," Bambang Setiawan, the ministry's director general for mineral resources, geothermal and coal, said here Thursday.
Of the 47 million tons of DMO coal in 2008, some 33 million tons would be used to meet the coal need of state electricity company PT PLN, Setiawan said.
About a reported shortage in coal supply to PLN, Setiawan said coal producers had made a commitment to continue their supply to PLN.
"We have checked it. The coal companies are still committed to supplying PLN in accordance with their contracts -- in terms of volume as well as price," he said.
The ministry, he said, would facilitate a meeting between PLN and coal companies to solve the former's problem.
"The shortage in supply happened because PLN had asked for coal outside the agreed contract," Setiawan added.