Bareksa.com - New Indonesian coal export rules had little impact in October, the first month they were in effect, as shipments from the world's top thermal coal exporter increased 9.8 percent on the year, a mining ministry official said.

Industry had warned that exports could fall by up to 20 percent in October and 5 percent this year as firms scrambled to obtain government export permits to comply with new rules from Oct. 1, designed to stamp out illegal mining and ensure ample domestic supplies.

Indonesia's coal exports in October hit 31.4 million tonnes, up from 25.7 million in September and 28.6 million in October 2013, government data showed.

"The registered exporter requirement has not had much of an impact on monthly output," Bambang Tjahjono Setiabudi, the ministry's coal mining director, told reporters on Monday.

His office has now provided recommendations for export registration for 220 firms, he said.

Production declined, however, by 15.9 percent to 29.7 million tonnes in October from 35.3 million in October 2013.

According to Tjahjono, October exports exceeded production as firms sold off stocks. "To measure the impact of this regulation we should review it for a couple of months," he said.

He provided January-October figures showing that Indonesia's overall production had declined 7.5 percent to 342.3 million tonnes from 369.9 million tonnes over the same period in 2013.

This decline, the first in at least 30 years for Indonesia, could have been the result of low prices, which have led producers to cut output around the world.

Prices for Australian thermal coal cargoes for delivery next month from the Newcastle export terminal, a benchmark for the Asia-Pacific region, have more than halved since 2011 to reach five-year lows of $62 per tonne at the end of October, as rising output has combined with stalling demand.

Earlier the government said it hoped coal production in Southeast Asia's largest economy would be 397 million to 421 million tonnes this year, with exports of 310 million tonnes.

The mining ministry, meanwhile, has revised its 2013 production figure up to 443.9 million tonnes from 426 million previously. (Source : Reuters)