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Sunday, 20 June 10
OUR COAL: ITS DEVELOPMENT AND CONTROVERSIAL ISSUES
 Indonesia’s production of coal has been growing amazingly. In the mid 1980s, national coal production was less than 1 million tons per annum, whereas energy planners (in the fourth Five Year Development Plan: 1989-1994) pointed at 10 million tons as the national production target.
The current production has jumped dramatically, recorded as 237 million tons in 2008 (predicted to achieve 270 million tons this year), making Indonesia a world class producer and the largest exporter of coal around the globe. The skyrocketing growth of our coal production has also incited many controversial issues.
Coal is considered as the dirtiest among fossil fuels, making environmentalists oppose their wide use
as fuel.
However, the proposal for ceasing use of coal — power generation, for instance — would be challenged by power utilities demanding low cost fuel that coal may offer and by the government, which has the responsibility to provide electricity as well as have revenue from exploiting its energy resources.
Despite the world’s rising anxiety of global warming, IEA (International Energy Agency: World Energy Outlook 2009) statistics shows that the world consumption for coal, for the last decade, is still growing the fastest among primary energy sources.
The environmental problem associated with coal in Indonesia is not limited to green houses gases (GHG), but also damage and pollution since its exploitation, transportation and uses to post mining.
It is easy to find where many coal fields are not mined appropriately according to “good mining and environmental practices”, coal transportation is not considering safety standards and is damaging rivers, (public) roads and seashores.
The coal mining has polluted the land, water and air of especially Kalimantan, where more than 90 percent of Indonesia’s coal mining operations take place.
It is sad that many of the previous mining areas have been abandoned without being properly reclaimed, whereas thousands of hectares of the island’s tropical forests have been converted into desert.
The soaring exploitation, including its negative impact on the environment, has a strong correlation with the number of licensing/permits awarded.
The introduction of the 1999 Regional Autonomy Law, subsequently followed by the 1999 Fiscal Balancing Law between the Central and Regional Governments have — to some degree — impacted on the coal licensing regime, where larger authorities had been given to regional/local governments.
Under the new licensing regime by local governments, requirements for coal permits tend to be relaxed whereas monitoring has not been done properly.
As a result, the number of permits (Mining Authorization/KP) has been growing considerably (currently 462, of which 169 are producing), coal production increases, but also environmental problems and the issues of illegal mining exist.
The question of who really owns the KP licenses exists, which was defined as that it can be owned by Indonesian national/companies only.
While the largest part of coal in Indonesia are being produced by large companies (the holders of Coal Contract of Work/PKP2B), some coal is mined by small scale and illegal miners.
It is believed that a significant amount of coal has been produced by illegal miners (some 5 million tons annually) and part has gone to meet export demand.
Wherever in the world, illegal miners lack interest in responsible mining and mine rehabilitation practices. Illegal mining is a problem for potential investors, the environment and government revenues.
The government has introduced measures to crack down on problems, including arresting illegal miners.
However, it cannot be the only solution since illegal mining is actually rooted in underemployment, local poverty and weak law enforcement, while the number of people involved in these activities is quite significant.
An alternative to confrontation to illegal miners by the central government (who awards the large scale PKP2B mining license) should be a cooperative and more comprehensive approach.
“Despite the world’s anxiety of global warming, IEA statistics shows that the world consumption for coal is still growing the fastest among primary energy sources.”
Work together with local/rural governments and communities to reduce poverty, educate/assist the illegal miners to increase their awareness on good mining practices (including mine rehabilitation), provide transition period fiscal incentives to encourage illegal mining toward the regulated mining sector, among others.
It needs to maintain an appropriate balance between the soaring exports of coal (about three quarters of production on average) and the domestic growing demand for the same fuel.
Push for exports is still coming largely from the traditional East Asians (Japan is the largest), while the coal-hungry India and China are also increasing their demand for our coal.
The exports will be competed with by the Blue Print for Energy Management 2005-2025 pointing out that one third of Indonesia’s energy primary energy mix in 2025 is to be supplied by coal, (the current share is about 15 percent).
Even though it is often mentioned that our coal reserves are quite large (current proven reserves of 5.5 billion tons; estimated resources of 105 tones) and that our reserves for coal are much larger than that of oil and gas, we should watch their fast rate of exploitation cautiously.
It needs to recalculate the benefit of exploiting them, taking into account their damage to the environment and what is left post mining. Where have all the revenues from exploiting that coal gone? Is the escalating export not jeopardizing the domestic energy security in the near future?
We have ample experiences, for instance in exploiting the resources-rich Kalimantan. The forests, oil and gas reserves have been exploited for about four to five decades, but it seems that the island has not enjoyed the fruits of the excessive exploitation: the current regional economy remains weak, infrastructure is poor and energy supplies for local uses have not been secured.
It needs to promote the terms “resources balance, depletion, sustainability”, start internalizing the costs of environmental impact and enforce those concepts into workable policies for our coal mining development.
The writer is the senior energy planner and an economist with the National Development Planning Agency. The opinions expressed are his own.
Source: The Jakarta Post ( Hanan Nugroho)
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Friday, 23 September 11
ICMA TO BUILD UPGRADE FACILITIES TO ANTICIPATE BAN ON LOW-GRADE COAL EXPORT BY 2014
COALspot.com - January to August of this year, Indonesia’s coal production had already reached 235 million tons. Earlier estimates had targete ...
Friday, 23 September 11
UT TO PRODUCE 7 MMT OF COAL BY 2012
PT United Tractors Tbk is targeting a 7 million tons of coal production next year, a 55.55% increase from 4.5 millions targeted this year, said Pres ...
Friday, 23 September 11
RECORD RECYCLING ACTIVITY STIRS OPTIMISM IN DRY BULK SAYS BIMCOS ANALYSIS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
As expected at the start of the year, dry bulk ship owners were expected to flock scrapyards around the world, in order to take advantage of attract ...
Friday, 23 September 11
PANAMAX EXPERIENCED A SOFTENING IN RATES - FEARNLEYS AS
Handy
Still a good boost of fresh cargoes entering the market. Vessels in Black Sea with GOA clearance and Baltic positions are fetching tick abov ...
Wednesday, 21 September 11
INDIA'S COAL IMPORTS FROM INDONESIA FALL, CHINA BUYS MORE
COALspot.com - Indian coal imports from Indonesia fall to below 6 million tons in August, and this fall was continuing last few months. Ho ...
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- SMC Global Power, Philippines
- Posco Energy - South Korea
- Petron Corporation, Philippines
- Wilmar Investment Holdings
- Australian Coal Association
- SN Aboitiz Power Inc, Philippines
- OPG Power Generation Pvt Ltd - India
- Global Business Power Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Straits Asia Resources Limited - Singapore
- Mercuria Energy - Indonesia
- Karaikal Port Pvt Ltd - India
- Madhucon Powers Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Ministry of Mines - Canada
- Thai Mozambique Logistica
- Ceylon Electricity Board - Sri Lanka
- Semirara Mining Corp, Philippines
- Meralco Power Generation, Philippines
- Intertek Mineral Services - Indonesia
- Interocean Group of Companies - India
- GMR Energy Limited - India
- Holcim Trading Pte Ltd - Singapore
- Videocon Industries ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Jorong Barutama Greston.PT - Indonesia
- Indika Energy - Indonesia
- VISA Power Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Lanco Infratech Ltd - India
- Kumho Petrochemical, South Korea
- Bhushan Steel Limited - India
- Riau Bara Harum - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Anglo American - United Kingdom
- Semirara Mining and Power Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- CIMB Investment Bank - Malaysia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kobexindo Tractors - Indoneisa
- Kideco Jaya Agung - Indonesia
- MS Steel International - UAE
- Essar Steel Hazira Ltd - India
- The University of Queensland
- Makarim & Taira - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Heidelberg Cement - Germany
- Energy Link Ltd, New Zealand
- Singapore Mercantile Exchange
- Agrawal Coal Company - India
- Therma Luzon, Inc, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Jindal Steel & Power Ltd - India
- Siam City Cement - Thailand
- Baramulti Group, Indonesia
- Directorate General of MIneral and Coal - Indonesia
- India Bulls Power Limited - India
- Mintek Dendrill Indonesia
- Coalindo Energy - Indonesia
- Bukit Makmur.PT - Indonesia
- Power Finance Corporation Ltd., India
- Binh Thuan Hamico - Vietnam
- Vizag Seaport Private Limited - India
- Leighton Contractors Pty Ltd - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sakthi Sugars Limited - India
- Sindya Power Generating Company Private Ltd
- Commonwealth Bank - Australia
- AsiaOL BioFuels Corp., Philippines
- SMG Consultants - Indonesia
- GAC Shipping (India) Pvt Ltd
- Star Paper Mills Limited - India
- Indo Tambangraya Megah - Indonesia
- PNOC Exploration Corporation - Philippines
- IEA Clean Coal Centre - UK
- CNBM International Corporation - China
- Parliament of New Zealand
- Bharathi Cement Corporation - India
- Sojitz Corporation - Japan
- Aditya Birla Group - India
- Uttam Galva Steels Limited - India
- Chettinad Cement Corporation Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Renaissance Capital - South Africa
- Ministry of Transport, Egypt
- ASAPP Information Group - India
- Antam Resourcindo - Indonesia
- Barasentosa Lestari - Indonesia
- Indogreen Group - Indonesia
- Global Coal Blending Company Limited - Australia
- Goldman Sachs - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Salva Resources Pvt Ltd - India
- Xindia Steels Limited - India
- Bangladesh Power Developement Board
- Deloitte Consulting - India
- Pipit Mutiara Jaya. PT, Indonesia
- Sree Jayajothi Cements Limited - India
- Vedanta Resources Plc - India
- Miang Besar Coal Terminal - Indonesia
- Rio Tinto Coal - Australia
- Cigading International Bulk Terminal - Indonesia
- Sarangani Energy Corporation, Philippines
- Independent Power Producers Association of India
- Orica Australia Pty. Ltd.
- Australian Commodity Traders Exchange
- Africa Commodities Group - South Africa
- Kaltim Prima Coal - Indonesia
- Maheswari Brothers Coal Limited - India
- Planning Commission, India
- Sical Logistics Limited - India
- Carbofer General Trading SA - India
- Grasim Industreis Ltd - India
- Kapuas Tunggal Persada - Indonesia
- ICICI Bank Limited - India
- GVK Power & Infra Limited - India
- Attock Cement Pakistan Limited
- Manunggal Multi Energi - Indonesia
- Rashtriya Ispat Nigam Limited - India
- LBH Netherlands Bv - Netherlands
- Bukit Baiduri Energy - Indonesia
- Romanian Commodities Exchange
- Altura Mining Limited, Indonesia
- Alfred C Toepfer International GmbH - Germany
- McConnell Dowell - Australia
- The Treasury - Australian Government
- Oldendorff Carriers - Singapore
- Latin American Coal - Colombia
- Petrochimia International Co. Ltd.- Taiwan
- Borneo Indobara - Indonesia
- International Coal Ventures Pvt Ltd - India
- Malabar Cements Ltd - India
- Central Java Power - Indonesia
- Formosa Plastics Group - Taiwan
- Economic Council, Georgia
- Indonesian Coal Mining Association
- The State Trading Corporation of India Ltd
- Bulk Trading Sa - Switzerland
- Orica Mining Services - Indonesia
- Price Waterhouse Coopers - Russia
- Gujarat Sidhee Cement - India
- Kalimantan Lumbung Energi - Indonesia
- Energy Development Corp, Philippines
- Metalloyd Limited - United Kingdom
- Toyota Tsusho Corporation, Japan
- Mjunction Services Limited - India
- Ambuja Cements Ltd - India
- South Luzon Thermal Energy Corporation
- San Jose City I Power Corp, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Samtan Co., Ltd - South Korea
- Tamil Nadu electricity Board
- Trasteel International SA, Italy
- Asmin Koalindo Tuhup - Indonesia
- Electricity Generating Authority of Thailand
- Kartika Selabumi Mining - Indonesia
- Bayan Resources Tbk. - Indonesia
- Georgia Ports Authority, United States
- Ministry of Finance - Indonesia
- Iligan Light & Power Inc, Philippines
- Parry Sugars Refinery, India
- Thiess Contractors Indonesia
- Billiton Holdings Pty Ltd - Australia
- Port Waratah Coal Services - Australia
- Gujarat Electricity Regulatory Commission - India
- Krishnapatnam Port Company Ltd. - India
- Kohat Cement Company Ltd. - Pakistan
- Simpson Spence & Young - Indonesia
- Coal and Oil Company - UAE
- White Energy Company Limited
- Karbindo Abesyapradhi - Indoneisa
- PowerSource Philippines DevCo
- TeaM Sual Corporation - Philippines
- Meenaskhi Energy Private Limited - India
- Kepco SPC Power Corporation, Philippines
- Larsen & Toubro Limited - India
- Mercator Lines Limited - India
- Banpu Public Company Limited - Thailand
- Jaiprakash Power Ventures ltd
- Pendopo Energi Batubara - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indian Energy Exchange, India
- Siam City Cement PLC, Thailand
- Aboitiz Power Corporation - Philippines
- Electricity Authority, New Zealand
- Tata Chemicals Ltd - India
- Edison Trading Spa - Italy
- Bhoruka Overseas - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- London Commodity Brokers - England
- Timah Investasi Mineral - Indoneisa
- Indian Oil Corporation Limited
- Ind-Barath Power Infra Limited - India
- Standard Chartered Bank - UAE
- PTC India Limited - India
- Dalmia Cement Bharat India
- Sinarmas Energy and Mining - Indonesia
- Central Electricity Authority - India
- Eastern Energy - Thailand
- Merrill Lynch Commodities Europe
- Global Green Power PLC Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Eastern Coal Council - USA
- Cement Manufacturers Association - India
- Directorate Of Revenue Intelligence - India
- Wood Mackenzie - Singapore
- Medco Energi Mining Internasional
- Globalindo Alam Lestari - Indonesia
- Marubeni Corporation - India
- Neyveli Lignite Corporation Ltd, - India
- European Bulk Services B.V. - Netherlands
- Chamber of Mines of South Africa
- New Zealand Coal & Carbon
- Bhatia International Limited - India
- Minerals Council of Australia
- Savvy Resources Ltd - HongKong
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