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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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Wednesday, 05 January 11
HIGHER COAL PRICES LIFT UP COAL STOCKS
Thermal coal price this month has gone up 5.63% to US$127.70 per ton today from mid last month at US$120.89 per ton.
Thermal coal price for next ...
Wednesday, 05 January 11
BUKIT ASAM TARGETS 20% BUY TO GROW COAL TRANSPORT CAPACITY - THE JAKARTA GLOBE
The Jakarta Globe reported that, Indonesian coal producer Tambang Batubara Bukit Asam is considering buying an additional 20 percent stake in Bukit ...
Wednesday, 05 January 11
FLOODING IN AUSTRALIA WILL CAUSE COAL PRICES TO SPIKE AT LEAST 20 PERCENT
Rising coal prices are set to spike at least 20 per cent higher because of supply shortages due to severe flooding in Australia, adding cost pressur ...
Wednesday, 05 January 11
DRY BULK MARKET BEGINS NEW YEAR ON SOUR NOTE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
Seasonal factors like the worst flooding in Australia’s Queensland in half a century, coupled with thin trade activity has put the dry bulk ma ...
Tuesday, 04 January 11
THE WCI-CHINA ROUTE WAS TRADED IN THE MID US$ 10,000S - BRS DRY BULK
As reported by BRS Dry Bulk, after a stronger than expected performance in 2010, rates finished on a sombre note in December with the BDI at1,773 po ...
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- Trasteel International SA, Italy
- Kaltim Prima Coal - Indonesia
- Larsen & Toubro Limited - India
- Metalloyd Limited - United Kingdom
- Sindya Power Generating Company Private Ltd
- Vedanta Resources Plc - India
- Interocean Group of Companies - India
- Singapore Mercantile Exchange
- Tata Chemicals Ltd - India
- Karaikal Port Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Globalindo Alam Lestari - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Asmin Koalindo Tuhup - Indonesia
- Antam Resourcindo - Indonesia
- Sical Logistics Limited - India
- Sarangani Energy Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- McConnell Dowell - Australia
- Formosa Plastics Group - Taiwan
- Port Waratah Coal Services - Australia
- Miang Besar Coal Terminal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Bukit Makmur.PT - Indonesia
- Oldendorff Carriers - Singapore
- Chamber of Mines of South Africa
- Makarim & Taira - Indonesia
- OPG Power Generation Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Merrill Lynch Commodities Europe
- Semirara Mining and Power Corporation, Philippines
- Romanian Commodities Exchange
- Malabar Cements Ltd - India
- Agrawal Coal Company - India
- Rio Tinto Coal - Australia
- Kartika Selabumi Mining - Indonesia
- GVK Power & Infra Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Bhushan Steel Limited - India
- Australian Commodity Traders Exchange
- LBH Netherlands Bv - Netherlands
- London Commodity Brokers - England
- International Coal Ventures Pvt Ltd - India
- Edison Trading Spa - Italy
- Indian Oil Corporation Limited
- Bukit Asam (Persero) Tbk - Indonesia
- Commonwealth Bank - Australia
- Deloitte Consulting - India
- Sojitz Corporation - Japan
- Kohat Cement Company Ltd. - Pakistan
- ICICI Bank Limited - India
- The Treasury - Australian Government
- Electricity Authority, New Zealand
- Goldman Sachs - Singapore
- Billiton Holdings Pty Ltd - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Planning Commission, India
- Uttam Galva Steels Limited - India
- Mjunction Services Limited - India
- Bangladesh Power Developement Board
- Barasentosa Lestari - Indonesia
- IHS Mccloskey Coal Group - USA
- Jorong Barutama Greston.PT - Indonesia
- Manunggal Multi Energi - Indonesia
- Madhucon Powers Ltd - India
- Wilmar Investment Holdings
- Timah Investasi Mineral - Indoneisa
- PNOC Exploration Corporation - Philippines
- Banpu Public Company Limited - Thailand
- Gujarat Sidhee Cement - India
- Petron Corporation, Philippines
- Vizag Seaport Private Limited - India
- Straits Asia Resources Limited - Singapore
- GN Power Mariveles Coal Plant, Philippines
- CIMB Investment Bank - Malaysia
- Orica Australia Pty. Ltd.
- Eastern Energy - Thailand
- Meenaskhi Energy Private Limited - India
- Ambuja Cements Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Binh Thuan Hamico - Vietnam
- Parliament of New Zealand
- Kobexindo Tractors - Indoneisa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Savvy Resources Ltd - HongKong
- Siam City Cement - Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Ceylon Electricity Board - Sri Lanka
- ASAPP Information Group - India
- Samtan Co., Ltd - South Korea
- Bayan Resources Tbk. - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Iligan Light & Power Inc, Philippines
- Mercator Lines Limited - India
- Salva Resources Pvt Ltd - India
- Mintek Dendrill Indonesia
- Simpson Spence & Young - Indonesia
- Economic Council, Georgia
- Posco Energy - South Korea
- Riau Bara Harum - Indonesia
- Aditya Birla Group - India
- Eastern Coal Council - USA
- Semirara Mining Corp, Philippines
- Kideco Jaya Agung - Indonesia
- Bhoruka Overseas - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Bank of Tokyo Mitsubishi UFJ Ltd
- Parry Sugars Refinery, India
- Ind-Barath Power Infra Limited - India
- IEA Clean Coal Centre - UK
- Kumho Petrochemical, South Korea
- Directorate Of Revenue Intelligence - India
- Karbindo Abesyapradhi - Indoneisa
- Africa Commodities Group - South Africa
- Attock Cement Pakistan Limited
- TeaM Sual Corporation - Philippines
- Neyveli Lignite Corporation Ltd, - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PTC India Limited - India
- Heidelberg Cement - Germany
- Grasim Industreis Ltd - India
- Indogreen Group - Indonesia
- Cement Manufacturers Association - India
- Bulk Trading Sa - Switzerland
- Altura Mining Limited, Indonesia
- Ministry of Finance - Indonesia
- Coal and Oil Company - UAE
- TNB Fuel Sdn Bhd - Malaysia
- Essar Steel Hazira Ltd - India
- Anglo American - United Kingdom
- Aboitiz Power Corporation - Philippines
- Siam City Cement PLC, Thailand
- India Bulls Power Limited - India
- Global Business Power Corporation, Philippines
- Indonesian Coal Mining Association
- Videocon Industries ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Vijayanagar Sugar Pvt Ltd - India
- Orica Mining Services - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Baramulti Group, Indonesia
- Intertek Mineral Services - Indonesia
- Meralco Power Generation, Philippines
- The University of Queensland
- Bukit Baiduri Energy - Indonesia
- Renaissance Capital - South Africa
- Bharathi Cement Corporation - India
- New Zealand Coal & Carbon
- Kapuas Tunggal Persada - Indonesia
- Global Green Power PLC Corporation, Philippines
- Lanco Infratech Ltd - India
- MS Steel International - UAE
- Bhatia International Limited - India
- White Energy Company Limited
- SMG Consultants - Indonesia
- Medco Energi Mining Internasional
- Gujarat Electricity Regulatory Commission - India
- Jindal Steel & Power Ltd - India
- Australian Coal Association
- Georgia Ports Authority, United States
- Toyota Tsusho Corporation, Japan
- Energy Link Ltd, New Zealand
- Rashtriya Ispat Nigam Limited - India
- Leighton Contractors Pty Ltd - Australia
- AsiaOL BioFuels Corp., Philippines
- South Luzon Thermal Energy Corporation
- Sree Jayajothi Cements Limited - India
- European Bulk Services B.V. - Netherlands
- Minerals Council of Australia
- Price Waterhouse Coopers - Russia
- San Jose City I Power Corp, Philippines
- Krishnapatnam Port Company Ltd. - India
- Dalmia Cement Bharat India
- Wood Mackenzie - Singapore
- Kalimantan Lumbung Energi - Indonesia
- VISA Power Limited - India
- Electricity Generating Authority of Thailand
- Cigading International Bulk Terminal - Indonesia
- Power Finance Corporation Ltd., India
- Maheswari Brothers Coal Limited - India
- Indika Energy - Indonesia
- Ministry of Mines - Canada
- PowerSource Philippines DevCo
- Sinarmas Energy and Mining - Indonesia
- Carbofer General Trading SA - India
- Coastal Gujarat Power Limited - India
- Mercuria Energy - Indonesia
- Independent Power Producers Association of India
- Indo Tambangraya Megah - Indonesia
- Indian Energy Exchange, India
- GMR Energy Limited - India
- CNBM International Corporation - China
- Marubeni Corporation - India
- Latin American Coal - Colombia
- Thiess Contractors Indonesia
- SMC Global Power, Philippines
- Global Coal Blending Company Limited - Australia
- Central Electricity Authority - India
- SN Aboitiz Power Inc, Philippines
- Standard Chartered Bank - UAE
- Ministry of Transport, Egypt
- Tamil Nadu electricity Board
- Alfred C Toepfer International GmbH - Germany
- Central Java Power - Indonesia
- Chettinad Cement Corporation Ltd - India
- Therma Luzon, Inc, Philippines
- Jaiprakash Power Ventures ltd
- Sakthi Sugars Limited - India
- Xindia Steels Limited - India
- Energy Development Corp, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Thai Mozambique Logistica
- Kepco SPC Power Corporation, Philippines
- Borneo Indobara - Indonesia
- Coalindo Energy - Indonesia
- Star Paper Mills Limited - India
- GAC Shipping (India) Pvt Ltd
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