Polemic of Mining Sanctions

By Editorial Team 22/05/2019
Coal Mining
Summary

  • The Ministry of Energy and Mineral Resources imposed sanction to 10 provinces in the form of production quota reduction for coal mining business because those provinces did not fulfill the Domestic Market Obligation (DMO) in 2018.
  • For the second half of 2019, production quota will be evaluated based on submissions from the Provincial Government by considering the results of the production feasibility analysis.
  • For mining companies, the production reduction policy has the potential to have an impact on delivery to export market consumers whose contracts have been previously signed.

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