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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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Saturday, 26 March 11
FLSMIDTH WINS MULTIMILLION DOLLAR MATERIAL HANDLING PROJECT IN INDONESIA
FLSmidth has signed a contract in Jakarta worth in excess of USD 135m (DKK 700m) with PT Adaro Indonesia, a subsidiary of PT Adaro Energy Tbk., to s ...
Saturday, 26 March 11
ADARO AIMS TO DOUBLE COAL PRODUCTION -THE JAKARTA POST
The Jakarta Post reported that, coal producer PT Adaro Indonesia is planning to soon boost its production capacity to 80 million tons annually, almo ...
Friday, 25 March 11
KNOWLEDGE INFRASTRUCTURE TO BAG 160,000 MT COAL SUPPLY ORDER FROM TNPL
COALspot.com - Delhi based Knowledge infrastructure Systems Pvt. Ltd offered lowest price of US$ 97.10 per metric ton for calorific value of 6000 GA ...
Friday, 25 March 11
THE CAPESIZE MARKET CONTINUED TO FALL - FEARNBULK
Handy
The Atlantic market remains stable with more activity from the Black Sea to Feast paying in the mid 20´s on supras.
The USG remain ...
Friday, 25 March 11
BORNEO ENERGI FY10 NET INCOME SOARS - INSIDER STORIES
Coking coal producer PT Borneo Lumbung Energi Tbk (BORN) booked a skyrocket net income by 499.72% from net loss position in 2009, as quoted by Insid ...
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- VISA Power Limited - India
- Sarangani Energy Corporation, Philippines
- Eastern Energy - Thailand
- White Energy Company Limited
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kepco SPC Power Corporation, Philippines
- The State Trading Corporation of India Ltd
- Chettinad Cement Corporation Ltd - India
- Bukit Baiduri Energy - Indonesia
- Kideco Jaya Agung - Indonesia
- India Bulls Power Limited - India
- Videocon Industries ltd - India
- Mercuria Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Timah Investasi Mineral - Indoneisa
- Miang Besar Coal Terminal - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Posco Energy - South Korea
- Georgia Ports Authority, United States
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- CIMB Investment Bank - Malaysia
- Parliament of New Zealand
- Central Java Power - Indonesia
- PNOC Exploration Corporation - Philippines
- Rashtriya Ispat Nigam Limited - India
- Jindal Steel & Power Ltd - India
- Tata Chemicals Ltd - India
- Kartika Selabumi Mining - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Directorate Of Revenue Intelligence - India
- Romanian Commodities Exchange
- Uttam Galva Steels Limited - India
- Price Waterhouse Coopers - Russia
- TNB Fuel Sdn Bhd - Malaysia
- Indonesian Coal Mining Association
- Indogreen Group - Indonesia
- Tamil Nadu electricity Board
- Bhoruka Overseas - Indonesia
- Electricity Authority, New Zealand
- Pipit Mutiara Jaya. PT, Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Indika Energy - Indonesia
- Bhushan Steel Limited - India
- Cement Manufacturers Association - India
- Leighton Contractors Pty Ltd - Australia
- Carbofer General Trading SA - India
- Goldman Sachs - Singapore
- Aditya Birla Group - India
- Straits Asia Resources Limited - Singapore
- Cigading International Bulk Terminal - Indonesia
- Larsen & Toubro Limited - India
- Bhatia International Limited - India
- Agrawal Coal Company - India
- GAC Shipping (India) Pvt Ltd
- Kalimantan Lumbung Energi - Indonesia
- Bulk Trading Sa - Switzerland
- PetroVietnam Power Coal Import and Supply Company
- CNBM International Corporation - China
- Kapuas Tunggal Persada - Indonesia
- Energy Link Ltd, New Zealand
- London Commodity Brokers - England
- Neyveli Lignite Corporation Ltd, - India
- SMG Consultants - Indonesia
- Essar Steel Hazira Ltd - India
- Madhucon Powers Ltd - India
- PTC India Limited - India
- Gujarat Electricity Regulatory Commission - India
- Baramulti Group, Indonesia
- IHS Mccloskey Coal Group - USA
- Independent Power Producers Association of India
- Global Business Power Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Altura Mining Limited, Indonesia
- Makarim & Taira - Indonesia
- Savvy Resources Ltd - HongKong
- Singapore Mercantile Exchange
- Jorong Barutama Greston.PT - Indonesia
- Deloitte Consulting - India
- Energy Development Corp, Philippines
- Metalloyd Limited - United Kingdom
- Interocean Group of Companies - India
- Sinarmas Energy and Mining - Indonesia
- Petron Corporation, Philippines
- The Treasury - Australian Government
- Manunggal Multi Energi - Indonesia
- Economic Council, Georgia
- Australian Commodity Traders Exchange
- Ministry of Transport, Egypt
- Kobexindo Tractors - Indoneisa
- Mjunction Services Limited - India
- Parry Sugars Refinery, India
- Kumho Petrochemical, South Korea
- Iligan Light & Power Inc, Philippines
- Ministry of Mines - Canada
- Attock Cement Pakistan Limited
- Thiess Contractors Indonesia
- Merrill Lynch Commodities Europe
- MS Steel International - UAE
- Latin American Coal - Colombia
- Gujarat Sidhee Cement - India
- Standard Chartered Bank - UAE
- Bukit Makmur.PT - Indonesia
- Sojitz Corporation - Japan
- Semirara Mining and Power Corporation, Philippines
- Ambuja Cements Ltd - India
- Orica Mining Services - Indonesia
- Binh Thuan Hamico - Vietnam
- Port Waratah Coal Services - Australia
- Coal and Oil Company - UAE
- Lanco Infratech Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Mintek Dendrill Indonesia
- Minerals Council of Australia
- Vijayanagar Sugar Pvt Ltd - India
- Anglo American - United Kingdom
- Billiton Holdings Pty Ltd - Australia
- TeaM Sual Corporation - Philippines
- Siam City Cement - Thailand
- GMR Energy Limited - India
- Global Coal Blending Company Limited - Australia
- Antam Resourcindo - Indonesia
- Australian Coal Association
- Offshore Bulk Terminal Pte Ltd, Singapore
- Africa Commodities Group - South Africa
- Intertek Mineral Services - Indonesia
- LBH Netherlands Bv - Netherlands
- Sindya Power Generating Company Private Ltd
- Borneo Indobara - Indonesia
- Banpu Public Company Limited - Thailand
- Kohat Cement Company Ltd. - Pakistan
- Wood Mackenzie - Singapore
- Coalindo Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Meenaskhi Energy Private Limited - India
- Bangladesh Power Developement Board
- Samtan Co., Ltd - South Korea
- Indo Tambangraya Megah - Indonesia
- ASAPP Information Group - India
- AsiaOL BioFuels Corp., Philippines
- Central Electricity Authority - India
- Simpson Spence & Young - Indonesia
- Ministry of Finance - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Sical Logistics Limited - India
- Bharathi Cement Corporation - India
- Globalindo Alam Lestari - Indonesia
- Xindia Steels Limited - India
- Dalmia Cement Bharat India
- Meralco Power Generation, Philippines
- Marubeni Corporation - India
- IEA Clean Coal Centre - UK
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Electricity Generating Authority of Thailand
- Vedanta Resources Plc - India
- Barasentosa Lestari - Indonesia
- OPG Power Generation Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- Eastern Coal Council - USA
- Grasim Industreis Ltd - India
- Global Green Power PLC Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- ICICI Bank Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Holcim Trading Pte Ltd - Singapore
- Therma Luzon, Inc, Philippines
- Wilmar Investment Holdings
- Ind-Barath Power Infra Limited - India
- Kaltim Prima Coal - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Chamber of Mines of South Africa
- San Jose City I Power Corp, Philippines
- Planning Commission, India
- Semirara Mining Corp, Philippines
- Medco Energi Mining Internasional
- Commonwealth Bank - Australia
- Edison Trading Spa - Italy
- Indian Energy Exchange, India
- PowerSource Philippines DevCo
- Orica Australia Pty. Ltd.
- Krishnapatnam Port Company Ltd. - India
- Bayan Resources Tbk. - Indonesia
- Jaiprakash Power Ventures ltd
- Trasteel International SA, Italy
- SMC Global Power, Philippines
- Pendopo Energi Batubara - Indonesia
- GVK Power & Infra Limited - India
- McConnell Dowell - Australia
- Power Finance Corporation Ltd., India
- Indian Oil Corporation Limited
- Siam City Cement PLC, Thailand
- International Coal Ventures Pvt Ltd - India
- The University of Queensland
- Asmin Koalindo Tuhup - Indonesia
- Sakthi Sugars Limited - India
- Mercator Lines Limited - India
- Coastal Gujarat Power Limited - India
- Karaikal Port Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Toyota Tsusho Corporation, Japan
- Star Paper Mills Limited - India
- Aboitiz Power Corporation - Philippines
- Oldendorff Carriers - Singapore
- Formosa Plastics Group - Taiwan
- Rio Tinto Coal - Australia
- Thai Mozambique Logistica
- New Zealand Coal & Carbon
- Heidelberg Cement - Germany
- Vizag Seaport Private Limited - India
- European Bulk Services B.V. - Netherlands
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Riau Bara Harum - Indonesia
- Renaissance Capital - South Africa
- Malabar Cements Ltd - India
- Sree Jayajothi Cements Limited - India
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