COALspot.com keeps you connected across the coal world
  • MARCH 2020 INDONESIAN COAL PRICE REFERENCE FOR EXPORTS AND DOMESTIC BUYERS INCLUDING POWER PRODUCERS FIXED AT US$ 67.08 A TON

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

Wednesday, 11 May 16
MARKET INSIGHT - KATERINA RESTIS
On Saturday 7th May, Riyadh replaced the long-serving oil minister of more than two decades, Ali-Al-Naimi, as part of a major government overhaul, ...


Tuesday, 10 May 16
VOLATILITY? VARIATION NO ENIGMA TO SHIPPING..... - CLARKSONS
Along with cyclicality, the other characteristic of the shipping markets which receives frequent mention is volatility. This is so evident that the ...


Monday, 09 May 16
INDONESIAN CS COAL INDICES UP CONTINUES; POSITIVE DIRECTION
COALspot.com: Average 5000 GAR coal index of Indonesian origin up 0.10 percent week over week to averaging $38.82 per ton on this past Wednesday, a ...


Monday, 09 May 16
DRY BULK SHIPPING TO WITNESS STEADY PROGRESS MOVING FORWARD ON THE BACK OF GROWING TRADE VOLUMES - BIMCO
In its latest short-term analysis of the shipping markets, BIMCO reiterated its optimism on the prospects of the dry bulk market moving forward. Ac ...


Monday, 09 May 16
BALTIC DRY INDEX ENDS WEEK ON A NEGATIVE NOTE
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities decline this week. The freight market was weak and a ...


   281 282 283 284 285   
Showing 1411 to 1415 news of total 5840
News by Category
Popular News
 
Total Members : 26,838
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

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