COALspot.com keeps you connected across the coal world
  • THE MEoMR OF INDONESIA HAS REVISED DOWN DECEMBER 2018 COAL PRICE REFERENCE FOR EXPORTS AND DOMESTIC BUYERS EXCEPT POWER PRODUCERS TO US$ 92.51 A TON
  • SHARE YOUR CORPORATE COAL & SHIPPING NEWS WITH US - NEWS@COALSPOT.COM

Submit Your Articles
We welcome article submissions from experts in the areas of coal, mining, shipping, etc.

To Submit your article please click here.

International Energy Events


WTI Crude Oil

BRENT Crude Oil

Search News
Latest CoalNews Headlines
Tuesday, 06 September 11
INDONESIAS PROPOSED COAL EXPORT BAN MAY HAVE IMPACT ON THE INDIAN POWER SECTOR - DIPESH DIPU


COALspot.com - This is a special interview about Indonesian proposed coal export ban by 2014, with Mr. Dipesh Dipu, Director of Deloitte Touche Tohmatsu, India.

The Indonesian government is currently in the process of drafting a new regulation that could ban the export of low-grade coal by January 12, 2014. This is likely to apply to coal below 5700 kcal/kg on air dried basis in value.

As of now Indonesia is producing around 150 million tons of coal with calorific value below 5700 GAD (according to chairman of Indonesian coal mining association). However by 2014, there are possibilities the total production of below 5700 GAD coal may reach  more than 200 million per annum.

Will Indonesian coal  export ban impact on the Indian fuel requirements?
The earlier grade of coal that was being considered for proposed ban has GCV of 5100 kcal/kg of less (adb), which can be comparable to 3800-4200 kcal/kg (arb) domestic coal available in India. This grade of coal has found favor in India primarily due to likely price advantage but economics of power generation based on such grade of imported coal may be a suspect. This considering that such grades of coal from Indonesia typically have high moisture content, which makes transportation cost per unit of energy generated higher. The quantum of the low grade of coal (<5100 kcal/kg adb) procured from Indonesia is likely to remain relatively low.

However, if the new definition of low grade coal is applied (<5700 kcal/kg adb), it may be reasonable to believe that such a ban may have impact on the Indian power sector as volumes in this grade of coal are expected to rise in the proportion of coal exports to India. Several of the acquisitions made by Indian power generation companies in Indonesia have been in coal blocks that will produce coal of this grade, and a blanket ban on the exports can jeopardize power plant development in India.

On the other hand, the domestic Indonesian market may not be prepared to consume all the coal mined of this grade in view of the power generation capacity addition plans in Indonesia. In such a case, the coal mine development is likely to be deferred. The Indonesian law makers may need to reconsider domestic market demand, investment climate in coal sector and impact of the legislation on the export revenues. 

What is the alternative source for Indian power industry if the proposed coal export ban come into effect by 2014?
Indian power generation companies have been forced to look out for coal assets abroad due to the investment and regulatory environment within the country. India boasts of more than 110 billion tonnes of coal reserves, which largely fall within a 300 meters of depth. If the regulatory and investment environment is amended to allow greater participation of private sector Indian dependence on imports will be reduced.

However, for imports, India will continue to look at Indonesia, South Africa, Australia and newer destinations like Mozambique and Columbia. But these sources also have constraints, domestic demands in South Africa is likely to restrict quantum jump in exports out of South Africa. Indonesia has also proposed domestic market obligations. Mozambique may have infrastructure constraints for large volumes of coal being transported from Tete province to ports of Maputo, Ncala or Beira. Australian coal is of high quality but may have higher costs of mining and transport.

What would be the additional cost if Indian consumers switch their sourcing origin from Indonesia?
Indonesia has competitive advantage due to its geographical closeness. However, on a per tonne basis, assuming comparable quality, costs of transport may make marginal difference when compared with South Africa and Mozambique.

When compared to Australian coal, due to the high quality, cost of energy may well be comparable even though shipping costs are higher. Between Indonesian coal (5500 kcal/kg adb priced at USD 90 per tonne) and Australian coal (6500 kcal/kg adb priced at USD 120 per tonne), indicative variable cost difference of power generation may be about Indian Rupees 0.20 to 0.30 per kWh (electricity unit) in favor of Indonesian coal.

Will it affect Indian economy growth or this coal export ban is ignorable as India can easily identify alternative sources of fuel?
The magnitude of growth in power generation in India will necessarily mean that coal will remain the mainstay. Natural gas has had issues of availability. Nuclear plant development is facing socio-political challenge in view of the risks of technology failure. Development of hydel power has also faced issues of land acquisition, rehabilitation & resettlement apart from the technical issues of hydro-geological features. Renewable sources such as solar and wind generation are still projected to constitute a small portion of India power generation mix. Identifying an alternative source that can match coal in its accessibility, availability and affordability in the context of scale of capacity addition required in India is a challenge.

What is the Indian government's role on this issue, whether government has to come out with the solution such as easing Indian mining and environment law, open up mining for foreigners,  G2G arrangement, etc…?
There is a need to look at domestic sources with pro-active and constructive approach and make all necessary legal and statutory amendments that make the resources available and mineable. Easing the regulations may not be one of such measures but making those regulations work in sync with each other in a time bound and predictable manner must certainly be.

There is certainly a case for opening the domestic coal sector for private participation, including independent miners, and for foreign participation so that newer technology and enhanced scale of operations are implemented in India. The regulation also needs to permit risk capital to come in for prospecting and exploration.

For imports the G2G relations can be leveraged to secure coal assets. India has good relationship with Indonesia and has also signed a tax treaty with Mozambique in 2010 which will facilitate investments. Government may also engage with these countries to ease exports to India and extend fiscal support to coal mining companies investing in mining and associated infrastructure development. 

About Dipesh Dipu
Dipesh Dipu works as Director with Deloitte Touche Tohmatsu India Pvt. Ltd in the Energy and Resources consulting practice of the firm and anchors the Firm’s initiative in the mining and metals sectors.

He is a mining engineering graduate from Indian School of Mines and is a Chartered Financial Analyst (CFA). He has also done executive program in business management from Indian Institute of Management Calcutta. Dipesh has recently been awarded the Abheraj Baldota Gold Medal for the Young Mining Engineer of the Year 2007 by the Mining Engineers’ Association of India in recognition of his contributions in the improvement of mining industry in India.



If you believe an article violates your rights or the rights of others, please contact us.

Recent News

Thursday, 06 December 18
IN THE EAST, BIGGER SUPRA WAS FIXED CA US$ 10K FOR INDO-CHINA COAL ROUND - FEARNLEYS
Capesize There is cautious optimism for the Capes, with healthier volumes and improving rates in the Pacific. West Australia round is gradually ...


Thursday, 06 December 18
U.S. COAL CONSUMPTION IN 2018 EXPECTED TO BE THE LOWEST IN 39 YEARS - EIA
EIA expects total U.S. coal consumption in 2018 to fall to 691 million short tons (MMst), a 4% decline from 2017 and the lowest level since 1979. U ...


Thursday, 06 December 18
DEMAND RISKS WEIGH ON GLOBAL SHIPPING SECTOR OUTLOOK - FITCH RATINGS
The global shipping sector outlook remains negative reflecting the demand-side risks of protectionism and slower economic growth, Fitch Ratings say ...


Thursday, 06 December 18
CHINA REVISES MANAGEMENT RULES ON ESTABLISHMENT OF FULLY FOREIGN-OWNED SHIPPING BUSINESSES - XINHUA
Foreign shipping companies will find it easier to establish wholly-owned subsidiaries in China thanks to a revised regulation due to take effect on ...


Wednesday, 05 December 18
WORLD COAL PRICES FALL, WITH INDONESIA BENCHMARK FOR DECEMBER, ENDING AT LOWEST SINCE JUNE 2018
COALspot.com: The Ministry of Energy and Mineral Resources of the Republic of Indonesia has revised down the benchmark price of Indonesian thermal ...


   1 2 3 4 5   
Showing 1 to 5 news of total 5332
News by Category
Popular News
 
Total Members : 25,664
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

  • GVK Power & Infra Limited - India
  • UBS Singapore
  • Karaikal Port Pvt Ltd - India
  • MEC Coal - Indonesia
  • Freeport Indonesia
  • Rio Tinto Coal - Australia
  • Meenaskhi Energy Private Limited - India
  • Essar Steel Hazira Ltd - India
  • Vizag Seaport Private Limited - India
  • Lanco Infratech Ltd - India
  • Asian Development Bank
  • Samtan Co., Ltd - South Korea
  • Posco Energy - South Korea
  • Kapuas Tunggal Persada - Indonesia
  • Idemitsu - Japan
  • Madhucon Powers Ltd - India
  • Goldman Sachs - Singapore
  • APGENCO India
  • Chamber of Mines of South Africa
  • CNBM International Corporation - China
  • OPG Power Generation Pvt Ltd - India
  • LBH Netherlands Bv - Netherlands
  • Core Mineral Indonesia
  • Infraline Energy - India
  • Jaiprakash Power Ventures ltd
  • Pendopo Energi Batubara - Indonesia
  • Vale Mozambique
  • Aditya Birla Group - India
  • Deloitte Consulting - India
  • Star Paper Mills Limited - India
  • Simpson Spence & Young - Indonesia
  • Standard Chartered Bank - UAE
  • Central Java Power - Indonesia
  • Krishnapatnam Port Company Ltd. - India
  • Holcim Trading Pte Ltd - Singapore
  • European Bulk Services B.V. - Netherlands
  • CESC Limited - India
  • Argus Media - Singapore
  • Planning Commission, India
  • Platou - Singapore
  • Sakthi Sugars Limited - India
  • bp singapore
  • Vijayanagar Sugar Pvt Ltd - India
  • Gujarat Mineral Development Corp Ltd - India
  • Minerals Council of Australia
  • Carbofer General Trading SA - India
  • Maharashtra Electricity Regulatory Commission - India
  • NALCO India
  • SRK Consulting
  • Anglo American - United Kingdom
  • Reliance Power - India
  • Straits Asia Resources Limited - Singapore
  • Makarim & Taira - Indonesia
  • Bank of Tokyo Mitsubishi UFJ Ltd
  • Siam City Cement - Thailand
  • Orica Australia Pty. Ltd.
  • PetroVietnam
  • Gujarat Electricity Regulatory Commission - India
  • Offshore Bulk Terminal Pte Ltd, Singapore
  • Jindal Steel & Power Ltd - India
  • globalCOAL - UK
  • Directorate Of Revenue Intelligence - India
  • Intertek Mineral Services - Indonesia
  • PLN Batubara - Indonesia
  • Agrawal Coal Company - India
  • Jorong Barutama Greston.PT - Indonesia
  • SASOL - South Africa
  • Malabar Cements Ltd - India
  • Maheswari Brothers Coal Limited - India
  • Barclays Capital - USA
  • Indogreen Group - Indonesia
  • Credit Suisse - India
  • Platts
  • EIA - United States
  • Geoservices-GeoAssay Lab
  • India Bulls Power Limited - India
  • Tamil Nadu electricity Board
  • Kumho Petrochemical, South Korea
  • DBS Bank - Singapore
  • Indika Energy - Indonesia
  • Commonwealth Bank - Australia
  • Ambuja Cements Ltd - India
  • Kartika Selabumi Mining - Indonesia
  • Maybank - Singapore
  • BRS Brokers - Singapore
  • Kalimantan Lumbung Energi - Indonesia
  • MS Steel International - UAE
  • Chettinad Cement Corporation Ltd - India
  • Interocean Group of Companies - India
  • Thiess Contractors Indonesia
  • Xindia Steels Limited - India
  • Gujarat Sidhee Cement - India
  • Australian Commodity Traders Exchange
  • Panama Canal Authority
  • Australian Coal Association
  • GNFC Limited - India
  • TeaM Sual Corporation - Philippines
  • Global Coal Blending Company Limited - Australia
  • Barasentosa Lestari - Indonesia
  • Shree Cement - India
  • NTPC Limited - India
  • Ministry of Mines - Canada
  • Borneo Indobara - Indonesia
  • Bank of China, Malaysia
  • Orica Mining Services - Indonesia
  • Central Electricity Authority - India
  • Price Waterhouse Coopers - Russia
  • Sree Jayajothi Cements Limited - India
  • Bukit Asam (Persero) Tbk - Indonesia
  • IHS Mccloskey Coal Group - USA
  • PNOC Exploration Corporation - Philippines
  • ICICI Bank Limited - India
  • World Bank
  • Inco-Indonesia
  • International Coal Ventures Pvt Ltd - India
  • Bahari Cakrawala Sebuku - Indonesia
  • Total Coal South Africa
  • Cosco
  • Attock Cement Pakistan Limited
  • Thermax Limited - India
  • Bulk Trading Sa - Switzerland
  • Enel Italy
  • Tanito Harum - Indonesia
  • Coaltrans Conferences
  • Coal and Oil Company - UAE
  • Power Finance Corporation Ltd., India
  • Xstrata Coal
  • Aboitiz Power Corporation - Philippines
  • Billiton Holdings Pty Ltd - Australia
  • Rashtriya Ispat Nigam Limited - India
  • Rudhra Energy - India
  • Indo Tambangraya Megah - Indonesia
  • Asia Cement - Taiwan
  • Vitol - Bahrain
  • Eastern Coal Council - USA
  • Surastha Cement
  • Leighton Contractors Pty Ltd - Australia
  • Alfred C Toepfer International GmbH - Germany
  • Mintek Dendrill Indonesia
  • Petrosea - Indonesia
  • Glencore India Pvt. Ltd
  • Wilmar Investment Holdings
  • WorleyParsons
  • Mitsui
  • Coastal Gujarat Power Limited - India
  • The University of Queensland
  • BNP Paribas - Singapore
  • Humpuss - Indonesia
  • Ind-Barath Power Infra Limited - India
  • Filglen & Citicon Mining (HK) Ltd - Hong Kong
  • Trasteel International SA, Italy
  • Cardiff University - UK
  • GMR Energy Limited - India
  • Altura Mining Limited, Indonesia
  • Electricity Generating Authority of Thailand
  • Wood Mackenzie - Singapore
  • Grasim Industreis Ltd - India
  • Siam City Cement PLC, Thailand
  • Ceylon Electricity Board - Sri Lanka
  • Sojitz Corporation - Japan
  • Fearnleys - India
  • Sucofindo - Indonesia
  • Malco - India
  • Gresik Semen - Indonesia
  • McConnell Dowell - Australia
  • Berau Coal - Indonesia
  • Indorama - Singapore
  • TNB Fuel Sdn Bhd - Malaysia
  • Merrill Lynch Bank
  • Permata Bank - Indonesia
  • Kideco Jaya Agung - Indonesia
  • Kohat Cement Company Ltd. - Pakistan
  • OCBC - Singapore
  • IBC Asia (S) Pte Ltd
  • Japan Coal Energy Center
  • Thai Mozambique Logistica
  • Thailand Anthracite
  • GAC Shipping (India) Pvt Ltd
  • Romanian Commodities Exchange
  • Coal Orbis AG
  • New Zealand Coal & Carbon
  • VISA Power Limited - India
  • IEA Clean Coal Centre - UK
  • The Treasury - Australian Government
  • HSBC - Hong Kong
  • KEPCO - South Korea
  • Shenhua Group - China
  • Coal India Limited
  • Indian Oil Corporation Limited
  • Independent Power Producers Association of India
  • ASAPP Information Group - India
  • Medco Energi Mining Internasional
  • Bangladesh Power Developement Board
  • UOB Asia (HK) Ltd
  • CoalTek, United States
  • Sindya Power Generating Company Private Ltd
  • Cement Manufacturers Association - India
  • Inspectorate - India
  • Peabody Energy - USA
  • GHCL Limited - India
  • GB Group - China
  • World Coal - UK
  • Parry Sugars Refinery, India
  • Latin American Coal - Colombia
  • PTC India Limited - India
  • PetroVietnam Power Coal Import and Supply Company
  • Ince & co LLP
  • Mitra SK Pvt Ltd - India
  • Cargill India Pvt Ltd
  • Bangkok Bank PCL
  • Singapore Mercantile Exchange
  • Arch Coal - USA
  • Larsen & Toubro Limited - India
  • ETA - Dubai
  • Kobexindo Tractors - Indoneisa
  • Bhatia International Limited - India
  • JPower - Japan
  • Vedanta Resources Plc - India
  • Dong Bac Coal Mineral Investment Coporation - Vietnam
  • Russian Coal LLC
  • ANZ Bank - Australia
  • Port Waratah Coal Services - Australia
  • Mitsubishi Corporation
  • Dr Ramakrishna Prasad Power Pvt Ltd - India
  • KOWEPO - South Korea
  • ING Bank NV - Singapore
  • Mercuria Energy - Indonesia
  • U S Energy Resources
  • Pinang Coal Indonesia
  • TANGEDCO India
  • Dalmia Cement Bharat India
  • Samsung - South Korea
  • Ernst & Young Pvt. Ltd.
  • Neyveli Lignite Corporation Ltd, - India
  • Coeclerici Indonesia
  • Bank of America
  • Britmindo - Indonesia
  • Bukit Makmur.PT - Indonesia
  • Ministry of Finance - Indonesia
  • Sinarmas Energy and Mining - Indonesia
  • Adani Power Ltd - India
  • Oldendorff Carriers - Singapore
  • Deutsche Bank - India
  • Mechel - Russia
  • Metalloyd Limited - United Kingdom
  • CCIC - Indonesia
  • SMG Consultants - Indonesia
  • White Energy Company Limited
  • Truba Alam Manunggal Engineering.Tbk - Indonesia
  • Marubeni Corporation - India
  • Toyota Tsusho Corporation, Japan
  • Merrill Lynch Commodities Europe
  • Kaltim Prima Coal - Indonesia
  • Indonesian Coal Mining Association
  • Miang Besar Coal Terminal - Indonesia
  • Coalindo Energy - Indonesia
  • SGS (Thailand) Limited
  • Thomson Reuters GRC
  • KPCL - India
  • Bhoruka Overseas - Indonesia
  • Tata Chemicals Ltd - India
  • Uttam Galva Steels Limited - India
  • Runge Indonesia
  • Petrochimia International Co. Ltd.- Taiwan
  • Ministry of Transport, Egypt
  • Parliament of New Zealand
  • Eastern Energy - Thailand
  • Cemex - Philippines
  • Maruti Cements - India
  • The India Cements Ltd
  • Indian School of Mines
  • Salva Resources Pvt Ltd - India
  • Asmin Koalindo Tuhup - Indonesia
  • Bharathi Cement Corporation - India
  • Edison Trading Spa - Italy
  • The State Trading Corporation of India Ltd
  • J M Baxi & Co - India
  • London Commodity Brokers - England
  • Heidelberg Cement - Germany
  • EMO - The Netherlands
  • JPMorgan - India
  • Kobe Steel Ltd - Japan
  • Adaro Indonesia
  • Manunggal Multi Energi - Indonesia
  • Karbindo Abesyapradhi - Indoneisa
  • Banpu Public Company Limited - Thailand
  • South Luzon Thermal Energy Corporation
  • Timah Investasi Mineral - Indoneisa
  • Bukit Baiduri Energy - Indonesia
  • Economic Council, Georgia
  • Tata Power - India
  • IOL Indonesia
  • Bayan Resources Tbk. - Indonesia
  • Formosa Plastics Group - Taiwan
  • Renaissance Capital - South Africa
  • Lafarge - France
  • IMC Shipping - Singapore
  • Moodys - Singapore
  • Indonesia Power. PT
  • Mercator Lines Limited - India
  • Africa Commodities Group - South Africa
  • KPMG - USA
  • Jatenergy - Australia
  • Qatrana Cement - Jordan
  • Videocon Industries ltd - India
  • Savvy Resources Ltd - HongKong
  • ACC Limited - India
  • Mjunction Services Limited - India
  • Arutmin Indonesia
  • Sical Logistics Limited - India
  • Directorate General of MIneral and Coal - Indonesia
  • Riau Bara Harum - Indonesia
  • McKinsey & Co - India
  • Maersk Broker
  • PowerSource Philippines DevCo
  • Cigading International Bulk Terminal - Indonesia
  • Bhushan Steel Limited - India
  • Thriveni
  • Energy Link Ltd, New Zealand
  • SUEK AG - Indonesia
  • Gupta Coal India Ltd
  • CIMB Investment Bank - Malaysia
  • RBS Sempra - UK
  • Antam Resourcindo - Indonesia
  • Georgia Ports Authority, United States
  • Binh Thuan Hamico - Vietnam
  • TNPL - India
  • Noble Europe Ltd - UK
  • Globalindo Alam Lestari - Indonesia
  • PLN - Indonesia
  • Clarksons - UK