COALspot.com keeps you connected across the coal world
  • CHINESE COAL PRODUCTION IN OCTOBER ROSE BY 7.6% ON THE YEAR TO 9.8M TONNES/DAY, NATIONAL BUREAU OF STATISTICS DATA SHOWED
  • THE INTERNATIONAL ENERGY AGENCY'S LATEST WORLD ENERGY OUTLOOK (WEO) UPDATE SHOWS THAT, THE ESTIMATED DEMAND FOR COAL IN THE ASIA PACIFIC WILL INCREASE BY 492-MILLION TONNES OF COAL EQUIVALENT BY 2040
  • PTBA'S EXPORTS UP 39% AND ASP UP 13% YOY FOR THE PERIOD JAN - SEPT 2018
  • PT BUKIT ASAM TBK HAS SHIPPED 18.5 MILLION TONS OF COAL TO DOMESTIC AND OVERSEAS FOR THE PERIOD JAN TO SEPT 2018, UP 7.8% YOY
  • THE MEoMR OF INDONESIA HAS REVISED DOWN NOVEMBER 2018 COAL PRICE REFERENCE FOR EXPORTS AND DOMESTIC BUYERS EXCEPT POWER PRODUCERS TO US$ 97.90 A TON
  • SHARE YOUR CORPORATE COAL & SHIPPING NEWS WITH US - NEWS@COALSPOT.COM
  • WE WELCOME ARTICLE SUBMISSIONS FROM EXPERTS IN THE AREAS OF COAL, MINING, SHIPPING, ETC.

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

Monday, 12 November 18
INDONESIA'S HBA ENDS DECLINE IN NOVEMBER
COALspot.com: The Ministry of Energy and Mineral Resources of the Republic of Indonesia has revised down the benchmark price of Indonesian thermal ...


Wednesday, 07 November 18
SHIPPING MARKET INSIGHT - VASILIS MOIRIS
This has been another active week in the second-hand market for both the dry bulk and tanker sectors. Buying interest has recently increased, which ...


Monday, 05 November 18
TIGHTER FUEL RULES COULD RAISE SHIPOWNERS' COSTS AND CAPEX - FITCH RATINGS
More stringent fuel regulations regarding sulphur content could significantly increase global shipping companies’ operating costs and capex n ...


Friday, 02 November 18
COAL FETCHES 102% PREMIUM IN E-AUCTION, SURPASSING THE EARLIER HIGHEST OF 95% - FINANCIAL EXPRESS
Coal prices have received a premium of 102% in spot e-auction during September 2018, surpassing the earlier highest of 95% premium during the spot ...


Friday, 02 November 18
CHINA: COAL CONSUMPTION POSTS STRONG GROWTH ON BACK OF POWER GENERATION DEMAND - CHINA DAILY
China’s energy consumption experienced continuous rebound during the first three quarters in 2018, National Energy Administration announced o ...


   1 2 3 4 5   
Showing 6 to 10 news of total 5307
News by Category
Popular News
 
Total Members : 25,599
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

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