… the current low coal prices were mainly due to a global oversupply condition, spurred by numerous mining exploitations in the past three to four years due to attractive coal prices.
// Excerpt from The Jakarta Post.
This certainly is a quite difficult situation for every one in coal industry. The impact is worse on small scale mines or ones that have just been settled the infrastructure investment.
Major coal producers are doing massive cost reduction programs – surviving the scenario which low price is going to be prolonged until 2013. This scenario would impact on the overall production output – although I believe that it won’t impact on the ability to fulfill domestic energy demand.