COALspot.com keeps you connected across the coal world
  • JULY 2019 INDONESIAN COAL PRICE REFERENCE FOR EXPORTS AND DOMESTIC BUYERS EXCEPT POWER PRODUCERS FIXED AT US$ 71.92 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, 20 June 19
BUMI RESOURCES EXPECTS TO SELL 42 MILLION TONS OF COAL IN FIRST HALF - JAKARTA POST
PT Bumi Resources (BUMI), Indonesia's largest thermal coal miner, expects to close the first half of this year with coal sales of 42 million to ...


Tuesday, 18 June 19
TANKER SHIPPING: WHILE WE WAIT FOR 2020 TO KICK IN, IT'S ALL ABOUT POLITICS - BIMCO
Demand drivers and freight rates Iran, Libya and Venezuela face export limitations because of sanctions and internal political troubles. At the s ...


Saturday, 15 June 19
SUPRAMAX: A 58,000-TONNER, OPEN QINGDAO, WAS BOOKED TO REDELIVER IN EAST COAST INDIA AT $6,500 - BALTIC BRIEFING
Capesize The market closed on a quiet Friday last week after a few hectic days of mid-week trading. Trade routes from Brazil to the Far East we ...


Friday, 14 June 19
PANAMAX: OUTLOOK IS MIXED - FERNLEYS
Capesize Sentiment changed to a more nervous tone as pacific cargo volumes failed to deliver as expected, however latest activity indicates res ...


Friday, 14 June 19
ELECTRONIC (PAPERLESS) TRADING - SKULD
KNOWLEDGE TO ELEVATE Electronic Shipping Solutions: Bolero International Ltd, E-Title Authority Pte Ltd, Global Share S.A. (edoxOnline platfor ...


   2 3 4 5 6   
Showing 16 to 20 news of total 5506
News by Category
Popular News
 
Total Members : 26,328
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

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