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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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Monday, 22 August 11
NTPC TO IMPORT 16 MILLION TON OF COAL TO BRIDGE THE GAP
COALspot.com - NTPC to import 16 million tons of imported coal, which is equivalent to 23-24 million tons of Indian coal to bridge the gap.
" ...
Monday, 22 August 11
MACRO ECONOMICS - PETER SAND BIMCO / HELLENIC SHIPPING
The US is jeopardising the global recovery as job creation remains top challenge across the board.
Global economy: While growth in most emerging ...
Sunday, 21 August 11
SUPRAMAX AVAILABILITY WAS TIGHT DUE TO UPCOMING RAMADAN HOLIDAYS
COALspot.com - The financial markets have been in turmoil with all major stock exchanges down and uncertainty prevails. However the shipping market ...
Sunday, 21 August 11
TUAH TURANGGA ACQUIRES DUTA NURCAHYA
Coal miner PT Tuah Turangga Agung, a wholly owned subsidiary of PT United Tractors Tbk (UNTR) via PT Pamapersada Nusantara), has agreed to acquire 6 ...
Friday, 19 August 11
INDIAS CICTL HAS ACHIEVED ONE MILLION TONS OF DISCHARGE
COALspot.com - Chettinad International Coal Terminal (CICTL) in Ennore port, a state of the art mechanized coal terminal, which was inaugurated on 28t ...
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- Kobexindo Tractors - Indoneisa
- Interocean Group of Companies - India
- Energy Development Corp, Philippines
- SN Aboitiz Power Inc, Philippines
- Ministry of Finance - Indonesia
- Indian Energy Exchange, India
- Alfred C Toepfer International GmbH - Germany
- Anglo American - United Kingdom
- Videocon Industries ltd - India
- Cement Manufacturers Association - India
- Vijayanagar Sugar Pvt Ltd - India
- The University of Queensland
- Semirara Mining and Power Corporation, Philippines
- Renaissance Capital - South Africa
- Merrill Lynch Commodities Europe
- Sree Jayajothi Cements Limited - India
- Holcim Trading Pte Ltd - Singapore
- Maheswari Brothers Coal Limited - India
- Goldman Sachs - Singapore
- Georgia Ports Authority, United States
- Straits Asia Resources Limited - Singapore
- Kapuas Tunggal Persada - Indonesia
- Marubeni Corporation - India
- Bukit Baiduri Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Kideco Jaya Agung - Indonesia
- Kumho Petrochemical, South Korea
- AsiaOL BioFuels Corp., Philippines
- Bhoruka Overseas - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Petrochimia International Co. Ltd.- Taiwan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indonesian Coal Mining Association
- Ministry of Transport, Egypt
- International Coal Ventures Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Parry Sugars Refinery, India
- Aboitiz Power Corporation - Philippines
- Billiton Holdings Pty Ltd - Australia
- Eastern Coal Council - USA
- Heidelberg Cement - Germany
- Neyveli Lignite Corporation Ltd, - India
- Xindia Steels Limited - India
- Oldendorff Carriers - Singapore
- GMR Energy Limited - India
- GAC Shipping (India) Pvt Ltd
- Indo Tambangraya Megah - Indonesia
- Formosa Plastics Group - Taiwan
- Coal and Oil Company - UAE
- SMG Consultants - Indonesia
- Global Green Power PLC Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Indika Energy - Indonesia
- Bangladesh Power Developement Board
- Economic Council, Georgia
- Bukit Asam (Persero) Tbk - Indonesia
- Australian Commodity Traders Exchange
- Coalindo Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kohat Cement Company Ltd. - Pakistan
- Central Electricity Authority - India
- Jorong Barutama Greston.PT - Indonesia
- Wood Mackenzie - Singapore
- Chamber of Mines of South Africa
- Directorate General of MIneral and Coal - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Wilmar Investment Holdings
- Rashtriya Ispat Nigam Limited - India
- Timah Investasi Mineral - Indoneisa
- Rio Tinto Coal - Australia
- Latin American Coal - Colombia
- Orica Australia Pty. Ltd.
- Makarim & Taira - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Gujarat Electricity Regulatory Commission - India
- LBH Netherlands Bv - Netherlands
- Thiess Contractors Indonesia
- Metalloyd Limited - United Kingdom
- Altura Mining Limited, Indonesia
- New Zealand Coal & Carbon
- Mintek Dendrill Indonesia
- Standard Chartered Bank - UAE
- Jindal Steel & Power Ltd - India
- IHS Mccloskey Coal Group - USA
- Kalimantan Lumbung Energi - Indonesia
- Eastern Energy - Thailand
- CIMB Investment Bank - Malaysia
- Global Business Power Corporation, Philippines
- Port Waratah Coal Services - Australia
- Savvy Resources Ltd - HongKong
- Tata Chemicals Ltd - India
- Singapore Mercantile Exchange
- Australian Coal Association
- Malabar Cements Ltd - India
- ICICI Bank Limited - India
- Thai Mozambique Logistica
- The State Trading Corporation of India Ltd
- Mjunction Services Limited - India
- Minerals Council of Australia
- Bukit Makmur.PT - Indonesia
- Coastal Gujarat Power Limited - India
- European Bulk Services B.V. - Netherlands
- TNB Fuel Sdn Bhd - Malaysia
- Posco Energy - South Korea
- Kepco SPC Power Corporation, Philippines
- Mercator Lines Limited - India
- Bharathi Cement Corporation - India
- Asmin Koalindo Tuhup - Indonesia
- Edison Trading Spa - Italy
- Siam City Cement PLC, Thailand
- Binh Thuan Hamico - Vietnam
- Planning Commission, India
- Gujarat Mineral Development Corp Ltd - India
- Uttam Galva Steels Limited - India
- Ministry of Mines - Canada
- CNBM International Corporation - China
- Grasim Industreis Ltd - India
- Therma Luzon, Inc, Philippines
- Meenaskhi Energy Private Limited - India
- Barasentosa Lestari - Indonesia
- Romanian Commodities Exchange
- Larsen & Toubro Limited - India
- OPG Power Generation Pvt Ltd - India
- Carbofer General Trading SA - India
- Medco Energi Mining Internasional
- Ceylon Electricity Board - Sri Lanka
- ASAPP Information Group - India
- Baramulti Group, Indonesia
- PTC India Limited - India
- Cigading International Bulk Terminal - Indonesia
- The Treasury - Australian Government
- Electricity Generating Authority of Thailand
- Banpu Public Company Limited - Thailand
- Central Java Power - Indonesia
- Energy Link Ltd, New Zealand
- GN Power Mariveles Coal Plant, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Samtan Co., Ltd - South Korea
- TeaM Sual Corporation - Philippines
- Independent Power Producers Association of India
- Sinarmas Energy and Mining - Indonesia
- Salva Resources Pvt Ltd - India
- Sakthi Sugars Limited - India
- Pendopo Energi Batubara - Indonesia
- McConnell Dowell - Australia
- IEA Clean Coal Centre - UK
- PowerSource Philippines DevCo
- San Jose City I Power Corp, Philippines
- Africa Commodities Group - South Africa
- Borneo Indobara - Indonesia
- Mercuria Energy - Indonesia
- Antam Resourcindo - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Vedanta Resources Plc - India
- Attock Cement Pakistan Limited
- Meralco Power Generation, Philippines
- PNOC Exploration Corporation - Philippines
- Bulk Trading Sa - Switzerland
- Madhucon Powers Ltd - India
- Orica Mining Services - Indonesia
- Price Waterhouse Coopers - Russia
- Tamil Nadu electricity Board
- Semirara Mining Corp, Philippines
- Electricity Authority, New Zealand
- Offshore Bulk Terminal Pte Ltd, Singapore
- White Energy Company Limited
- Bhushan Steel Limited - India
- Commonwealth Bank - Australia
- Vizag Seaport Private Limited - India
- Sarangani Energy Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- Lanco Infratech Ltd - India
- Manunggal Multi Energi - Indonesia
- GVK Power & Infra Limited - India
- Star Paper Mills Limited - India
- Aditya Birla Group - India
- Ambuja Cements Ltd - India
- London Commodity Brokers - England
- Kaltim Prima Coal - Indonesia
- Indian Oil Corporation Limited
- Siam City Cement - Thailand
- Bahari Cakrawala Sebuku - Indonesia
- SMC Global Power, Philippines
- Toyota Tsusho Corporation, Japan
- Karbindo Abesyapradhi - Indoneisa
- Intertek Mineral Services - Indonesia
- Riau Bara Harum - Indonesia
- Chettinad Cement Corporation Ltd - India
- Iligan Light & Power Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Trasteel International SA, Italy
- Sindya Power Generating Company Private Ltd
- Sical Logistics Limited - India
- Krishnapatnam Port Company Ltd. - India
- Bhatia International Limited - India
- India Bulls Power Limited - India
- Kartika Selabumi Mining - Indonesia
- Deloitte Consulting - India
- MS Steel International - UAE
- Dalmia Cement Bharat India
- Jaiprakash Power Ventures ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Directorate Of Revenue Intelligence - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Global Coal Blending Company Limited - Australia
- Leighton Contractors Pty Ltd - Australia
- Parliament of New Zealand
- VISA Power Limited - India
- Indogreen Group - Indonesia
- South Luzon Thermal Energy Corporation
- Power Finance Corporation Ltd., India
- Globalindo Alam Lestari - Indonesia
- Gujarat Sidhee Cement - India
- Simpson Spence & Young - Indonesia
- Sojitz Corporation - Japan
- Agrawal Coal Company - India
- Petron Corporation, Philippines
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