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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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Sunday, 06 March 11
THE S6 ROUTE MAY CONTINUE TO BE FIRM - VISTAAR
COALspot.com - The freight market was firm this week with all indices up. The BDI , Cape Index and Panamax index was up by almost 9 pct where as Sup ...
Friday, 04 March 11
IRON ORE FROM INDIA HAS BEEN QUIET
Handy
Activity has been gradually rising in the Atlantic but it is mostly confined to the USG market. Short period basis redelivery Atlantic has b ...
Thursday, 03 March 11
TNPL INDIA LOOKING FOR 160,000 MT OF NON-COKING COAL
COALspot.com - Tamil Nadu Newsprint and Papers Ltd. is seeking to import 160,000 plus minus 5 percent metric tons of non-coking coal with Gross Calo ...
Wednesday, 02 March 11
MIXED FORTUNES FOR DRY BULK OWNERS THIS WEEK - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
Although the dry bulk market has been on the positive side this week, things still look quite uncertain in the near term, with most owners puzzled a ...
Wednesday, 02 March 11
INDIA, 2ND LARGEST IMPORTER OF INDONESIAN COAL IN 2010
COALspot.com: Indonesia, the world largest coal exporter, shipped 24.68 million tons of coal in January 2011, which was 1.19 percent higher Y-o- ...
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- Kartika Selabumi Mining - Indonesia
- Ind-Barath Power Infra Limited - India
- Thai Mozambique Logistica
- Minerals Council of Australia
- Kapuas Tunggal Persada - Indonesia
- San Jose City I Power Corp, Philippines
- Mintek Dendrill Indonesia
- Antam Resourcindo - Indonesia
- Medco Energi Mining Internasional
- Romanian Commodities Exchange
- Sakthi Sugars Limited - India
- Sojitz Corporation - Japan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Attock Cement Pakistan Limited
- ASAPP Information Group - India
- Jaiprakash Power Ventures ltd
- Meralco Power Generation, Philippines
- Bukit Baiduri Energy - Indonesia
- Trasteel International SA, Italy
- Bhoruka Overseas - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Holcim Trading Pte Ltd - Singapore
- Latin American Coal - Colombia
- Coal and Oil Company - UAE
- Coalindo Energy - Indonesia
- Grasim Industreis Ltd - India
- Uttam Galva Steels Limited - India
- MS Steel International - UAE
- The Treasury - Australian Government
- GMR Energy Limited - India
- Mercator Lines Limited - India
- Barasentosa Lestari - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Madhucon Powers Ltd - India
- Ministry of Transport, Egypt
- Energy Development Corp, Philippines
- Orica Mining Services - Indonesia
- Siam City Cement PLC, Thailand
- Malabar Cements Ltd - India
- Vizag Seaport Private Limited - India
- Standard Chartered Bank - UAE
- Asmin Koalindo Tuhup - Indonesia
- Karaikal Port Pvt Ltd - India
- Australian Coal Association
- Africa Commodities Group - South Africa
- India Bulls Power Limited - India
- Edison Trading Spa - Italy
- Petron Corporation, Philippines
- Posco Energy - South Korea
- White Energy Company Limited
- Pendopo Energi Batubara - Indonesia
- GVK Power & Infra Limited - India
- Coastal Gujarat Power Limited - India
- Port Waratah Coal Services - Australia
- Rio Tinto Coal - Australia
- Kobexindo Tractors - Indoneisa
- Kideco Jaya Agung - Indonesia
- Straits Asia Resources Limited - Singapore
- New Zealand Coal & Carbon
- Kohat Cement Company Ltd. - Pakistan
- Wood Mackenzie - Singapore
- Bayan Resources Tbk. - Indonesia
- Indogreen Group - Indonesia
- Sree Jayajothi Cements Limited - India
- Timah Investasi Mineral - Indoneisa
- Leighton Contractors Pty Ltd - Australia
- Intertek Mineral Services - Indonesia
- Commonwealth Bank - Australia
- Anglo American - United Kingdom
- Bukit Makmur.PT - Indonesia
- Chamber of Mines of South Africa
- The State Trading Corporation of India Ltd
- TeaM Sual Corporation - Philippines
- Central Java Power - Indonesia
- Indo Tambangraya Megah - Indonesia
- Ambuja Cements Ltd - India
- VISA Power Limited - India
- AsiaOL BioFuels Corp., Philippines
- Eastern Coal Council - USA
- Gujarat Sidhee Cement - India
- Sinarmas Energy and Mining - Indonesia
- Kepco SPC Power Corporation, Philippines
- Singapore Mercantile Exchange
- Sindya Power Generating Company Private Ltd
- Miang Besar Coal Terminal - Indonesia
- Heidelberg Cement - Germany
- Indonesian Coal Mining Association
- Planning Commission, India
- Neyveli Lignite Corporation Ltd, - India
- CIMB Investment Bank - Malaysia
- Orica Australia Pty. Ltd.
- Aboitiz Power Corporation - Philippines
- Cement Manufacturers Association - India
- Lanco Infratech Ltd - India
- GAC Shipping (India) Pvt Ltd
- Sical Logistics Limited - India
- Larsen & Toubro Limited - India
- IEA Clean Coal Centre - UK
- SMC Global Power, Philippines
- Global Coal Blending Company Limited - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Banpu Public Company Limited - Thailand
- PNOC Exploration Corporation - Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Sarangani Energy Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Central Electricity Authority - India
- Essar Steel Hazira Ltd - India
- European Bulk Services B.V. - Netherlands
- South Luzon Thermal Energy Corporation
- Manunggal Multi Energi - Indonesia
- Maheswari Brothers Coal Limited - India
- PowerSource Philippines DevCo
- Videocon Industries ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- GN Power Mariveles Coal Plant, Philippines
- Renaissance Capital - South Africa
- McConnell Dowell - Australia
- Borneo Indobara - Indonesia
- Binh Thuan Hamico - Vietnam
- Agrawal Coal Company - India
- Rashtriya Ispat Nigam Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- ICICI Bank Limited - India
- Carbofer General Trading SA - India
- IHS Mccloskey Coal Group - USA
- Kumho Petrochemical, South Korea
- Salva Resources Pvt Ltd - India
- Mercuria Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Electricity Generating Authority of Thailand
- Xindia Steels Limited - India
- Global Business Power Corporation, Philippines
- Merrill Lynch Commodities Europe
- Power Finance Corporation Ltd., India
- OPG Power Generation Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- Ministry of Finance - Indonesia
- Energy Link Ltd, New Zealand
- Thiess Contractors Indonesia
- The University of Queensland
- Eastern Energy - Thailand
- Jindal Steel & Power Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Parliament of New Zealand
- Directorate General of MIneral and Coal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- SMG Consultants - Indonesia
- Tamil Nadu electricity Board
- Petrochimia International Co. Ltd.- Taiwan
- Formosa Plastics Group - Taiwan
- Price Waterhouse Coopers - Russia
- Marubeni Corporation - India
- Bharathi Cement Corporation - India
- Economic Council, Georgia
- Georgia Ports Authority, United States
- Gujarat Mineral Development Corp Ltd - India
- Toyota Tsusho Corporation, Japan
- Makarim & Taira - Indonesia
- Star Paper Mills Limited - India
- Semirara Mining Corp, Philippines
- Deloitte Consulting - India
- Siam City Cement - Thailand
- Bahari Cakrawala Sebuku - Indonesia
- London Commodity Brokers - England
- Indian Energy Exchange, India
- Riau Bara Harum - Indonesia
- Simpson Spence & Young - Indonesia
- Therma Luzon, Inc, Philippines
- Vedanta Resources Plc - India
- Australian Commodity Traders Exchange
- Altura Mining Limited, Indonesia
- Aditya Birla Group - India
- Vijayanagar Sugar Pvt Ltd - India
- Mjunction Services Limited - India
- Directorate Of Revenue Intelligence - India
- Electricity Authority, New Zealand
- PTC India Limited - India
- CNBM International Corporation - China
- Samtan Co., Ltd - South Korea
- Savvy Resources Ltd - HongKong
- Bhatia International Limited - India
- Interocean Group of Companies - India
- Maharashtra Electricity Regulatory Commission - India
- Global Green Power PLC Corporation, Philippines
- Tata Chemicals Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Metalloyd Limited - United Kingdom
- Krishnapatnam Port Company Ltd. - India
- Indika Energy - Indonesia
- Baramulti Group, Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Independent Power Producers Association of India
- Ministry of Mines - Canada
- Wilmar Investment Holdings
- PetroVietnam Power Coal Import and Supply Company
- LBH Netherlands Bv - Netherlands
- Dalmia Cement Bharat India
- SN Aboitiz Power Inc, Philippines
- Bangladesh Power Developement Board
- Indian Oil Corporation Limited
- Billiton Holdings Pty Ltd - Australia
- International Coal Ventures Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Goldman Sachs - Singapore
- Globalindo Alam Lestari - Indonesia
- Parry Sugars Refinery, India
- Oldendorff Carriers - Singapore
- Bhushan Steel Limited - India
- Kaltim Prima Coal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bulk Trading Sa - Switzerland
- Iligan Light & Power Inc, Philippines
- Ceylon Electricity Board - Sri Lanka
- Meenaskhi Energy Private Limited - India
- Gujarat Electricity Regulatory Commission - India
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