Indonesia's 2010 coal output seen falling 10-20 pct

* Rains hamper mining, seen leading to further output loss

* Govt says rains likely to hurt exports

Indonesia, the world's top thermal coal exporter, said on Thursday coal production this year may fall 10-20 percent from an initial target of 254 million tonnes as heavy rains hampered mining.

The likely fall in Indonesian coal exports may tighten a regional market that has been dampened by tepid Chinese demand in recent weeks.

"The rainy season seems to have continued and many coal producers have reported halting mining activities. Production could fall between 10 to 20 percent," Bambang Gatot Aryono, a director at the mines and energy ministry, told reporters.

He said first half 2010 coal output this year was 115 million tonnes. Indonesia produced 250 million tonnes of coal in 2009.

Aryono said the fall in production will have an impact on exports, but gave no details.

Indonesia has been hit by unseasonally heavy rains during what is normally the dry season of July to September, hitting output of coal, tin and other metals from miners such as Bayan Resources (BYAN). Source: Reuters