中文
Indonesia's energy ministry (ESDM) is actively seeking increased investments in underground coal mining to tap into high-quality coal resources that lie in deeper seams, media reported.
With declining deposits of higher-CV coal due to years of open-pit mining, the country aims to boost production and meet its coal output target of 710 million tonnes by 2024.
Indonesia produced 741.47 million tonnes of coal as of December 21, according to latest data from the ESDM. It should be noted that the output figure is frequently revised upwards due to delays in reporting by certain producers. As a result, the actual production for this year is likely to be even higher.
The limitations of open-cast mining, such as strip ratio constraints, escalating costs, and tighter environmental regulations, have prompted a shift towards underground mining.
While underground mining requires higher upfront investments and operational costs, it offers advantages such as direct access to coal seams, reduced waste generation, and lower surface disturbance.
The Indonesian government recognizes the potential of underground mining to mitigate environmental impacts compared to surface mining. Although the costs are higher, advancements in mining technologies can help lower operational expenses associated with underground mining.
The government expects an upward trend in underground mining as surface mineral reserves continue to decline.
The global underground mining market is projected to experience a 3.62% compound annual growth rate (CAGR) between 2023 and 2033, reaching a value of $34.97 billion, according to a report released by a consulting firm.
Increased demand for minerals like iron, copper and coal, driven by renewable energy and electric vehicle production, contributes to the growing importance of underground mining.
Indonesia already has several companies operating underground coal mines, including PT Sumber Daya Energi (SDE), PT Merge Mining Industri, and PT Kusuma Raya Utama.
SDE, a subsidiary of China's Qinfa Group, has invested $300 million in the construction of the SDE 1 underground coal mine in South Kalimantan. Other minerals, such as copper, are also being mined underground, as companies like Freeport Indonesia transition from surface mining to underground operations.
To extend mineral reserves, the Indonesian government plans to attract more investments for exploration projects and promote the development of recycling facilities within the country.
Additionally, seabed mining is being considered as a potential avenue, although it faces opposition from activists and environmental groups due to concerns about marine ecosystem risks.
(Writing by Riley Liang Editing by Emma Yang)
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