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

Thursday, 01 November 18
IMO 2020 - EXPLORING THE OPTION OF SOX SCRUBBERS - SIDDHARTH MAHAJAN, GARD
KNOWLEDGE TO ELEVATE There are four possible methods of compliance:   1.use VLSFO (very low Sulphur oil) or blends; 2,use dis ...


Wednesday, 31 October 18
INDIA: COAL IMPORTS SURGE ON DOMESTIC SHORT SUPPLY - HINDU
Shortage of thermal coal supply in India has pushed imports up to 85 million tonnes (mt) in the first half of the current fiscal compared to 75 mt ...


Wednesday, 31 October 18
SHIPPING MARKET INSIGHT - APOSTOLOS ROMPOPOULOS
Since the IMO’s 2020 global cap on sulphur in marine fuels is coming into force, ship-owners have to decide whether they will operate using e ...


Monday, 29 October 18
IMPLEMENTATION OF SULPHUR 2020 LIMIT - CARRIAGE BAN ADOPTED - IMO
An amendment to support consistent implementation of the forthcoming 0.50% limit on sulphur in ships fuel oil was adopted by the International Mari ...


Monday, 29 October 18
SUPRAMAX: THE ASIAN AREA SAW FALLING RATES, WITH A 61,000DWT FIXING DELIVERY KOHSICHANG TRIP VIA INDONESIA, REDELIVERY INDIA, AT $10,500 - BALTIC BRIEFING
Capesize A market of two halves for most of the week with rates in the Atlantic firming and easing in the East for most of the week, but then, ...


   1 2 3 4 5   
Showing 11 to 15 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 ...

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