S&P Says Coal Miners in Indonesia Could Shift Focus To Power Generation

Coal miners in Indonesia might find an alternative to the risk of lower prices of the commodity by shifting some of their resources to electricity generation, according to Standard & Poor’s Ratings Services.

In a report made available to the Jakarta Globe on Tuesday, S&P said that stable and steady revenues from the power business could ease weaker margins in mining production should coal prices remain low.

The rating agency said that the power sector is already attracting coal producers because of the prospects for electricity consumption. It forecasts Indonesia’s economy to grow about 6 percent annually for the next five years, but it expects electricity use to expand at a faster rate of 8 percent to 10 percent.

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Posted December 6, 2012 by repit in News

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