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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, 22 December 10
PEABODY ENERGY TO SOURCE INDONESIAN COAL FROM PT SUPRA BARA ENERGI (SBE) - COAL GEOLOGY
Coal Geology reported that, Peabody Energy has entered into an agreement to source coal from PT Supra Bara Energi (SBE), which will be sold on the e ...
Wednesday, 22 December 10
INDONESIAN COAL LOAD PORT WEATHER CONDITION AND DELAYS
COALspot.com - The several leading shipping agents in Indonesia, said due to rainy season in Indonesia, loading activities in coal loading ports hav ...
Wednesday, 22 December 10
COAL INDIA CLOSE TO BUYING 15% STAKE IN AUSTRALIAN MINE - ECONOMIC TIMES
Economic Times reported that, Coal India (CIL) is close to buying a stake between 10% to 15% in an Australian mine owned by Peabody, a US company.
...
Wednesday, 22 December 10
CAPESIZE FUTURES MARKET RATES ARE EXPECTED TO CONTINUE THEIR DRIFT DOWN IN 2011 - BRS
Nearly two months of weekly declines in the Baltic Capesize Index were finally halted last week with a small 1% increase Friday-to-Friday. The impro ...
Wednesday, 22 December 10
DRY BULK MARKET LOOKING FOR DIRECTION AMID HOLIDAYS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market isn’t exhibiting a “festive” behavior, thus cheering ship owners and investors alike. Instead, the industry&rs ...
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- Rashtriya Ispat Nigam Limited - India
- Energy Development Corp, Philippines
- Thai Mozambique Logistica
- VISA Power Limited - India
- Meenaskhi Energy Private Limited - India
- Marubeni Corporation - India
- Baramulti Group, Indonesia
- Bhatia International Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- TeaM Sual Corporation - Philippines
- Standard Chartered Bank - UAE
- Kideco Jaya Agung - Indonesia
- Planning Commission, India
- Petron Corporation, Philippines
- Trasteel International SA, Italy
- Bank of Tokyo Mitsubishi UFJ Ltd
- Binh Thuan Hamico - Vietnam
- San Jose City I Power Corp, Philippines
- Eastern Energy - Thailand
- Grasim Industreis Ltd - India
- London Commodity Brokers - England
- Maharashtra Electricity Regulatory Commission - India
- Semirara Mining and Power Corporation, Philippines
- Goldman Sachs - Singapore
- Medco Energi Mining Internasional
- Coal and Oil Company - UAE
- Anglo American - United Kingdom
- Gujarat Mineral Development Corp Ltd - India
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- Bangladesh Power Developement Board
- Samtan Co., Ltd - South Korea
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- CNBM International Corporation - China
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- Chamber of Mines of South Africa
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- Salva Resources Pvt Ltd - India
- Australian Coal Association
- Xindia Steels Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- PTC India Limited - India
- Bhoruka Overseas - Indonesia
- Meralco Power Generation, Philippines
- Siam City Cement - Thailand
- Parry Sugars Refinery, India
- Pipit Mutiara Jaya. PT, Indonesia
- Edison Trading Spa - Italy
- Mjunction Services Limited - India
- New Zealand Coal & Carbon
- Larsen & Toubro Limited - India
- SMC Global Power, Philippines
- Intertek Mineral Services - Indonesia
- Oldendorff Carriers - Singapore
- Gujarat Sidhee Cement - India
- Altura Mining Limited, Indonesia
- Semirara Mining Corp, Philippines
- Karaikal Port Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- European Bulk Services B.V. - Netherlands
- Bharathi Cement Corporation - India
- ICICI Bank Limited - India
- Kapuas Tunggal Persada - Indonesia
- Cement Manufacturers Association - India
- Kumho Petrochemical, South Korea
- Jaiprakash Power Ventures ltd
- Aditya Birla Group - India
- Tata Chemicals Ltd - India
- Eastern Coal Council - USA
- ASAPP Information Group - India
- South Luzon Thermal Energy Corporation
- Rio Tinto Coal - Australia
- Minerals Council of Australia
- Georgia Ports Authority, United States
- Cigading International Bulk Terminal - Indonesia
- Interocean Group of Companies - India
- Ministry of Finance - Indonesia
- Price Waterhouse Coopers - Russia
- Aboitiz Power Corporation - Philippines
- Power Finance Corporation Ltd., India
- Kohat Cement Company Ltd. - Pakistan
- Kaltim Prima Coal - Indonesia
- Indika Energy - Indonesia
- Global Business Power Corporation, Philippines
- Malabar Cements Ltd - India
- Parliament of New Zealand
- Bahari Cakrawala Sebuku - Indonesia
- SMG Consultants - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Central Electricity Authority - India
- Posco Energy - South Korea
- PNOC Exploration Corporation - Philippines
- Madhucon Powers Ltd - India
- Global Coal Blending Company Limited - Australia
- Sojitz Corporation - Japan
- Bukit Baiduri Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Merrill Lynch Commodities Europe
- Latin American Coal - Colombia
- Ministry of Mines - Canada
- Indian Oil Corporation Limited
- Savvy Resources Ltd - HongKong
- Metalloyd Limited - United Kingdom
- Thiess Contractors Indonesia
- Therma Luzon, Inc, Philippines
- The University of Queensland
- Borneo Indobara - Indonesia
- CIMB Investment Bank - Malaysia
- Toyota Tsusho Corporation, Japan
- Jorong Barutama Greston.PT - Indonesia
- Mercuria Energy - Indonesia
- Australian Commodity Traders Exchange
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Ministry of Transport, Egypt
- Directorate Of Revenue Intelligence - India
- Sakthi Sugars Limited - India
- PowerSource Philippines DevCo
- The Treasury - Australian Government
- Coalindo Energy - Indonesia
- GMR Energy Limited - India
- MS Steel International - UAE
- Simpson Spence & Young - Indonesia
- Central Java Power - Indonesia
- Mintek Dendrill Indonesia
- Dalmia Cement Bharat India
- Romanian Commodities Exchange
- Karbindo Abesyapradhi - Indoneisa
- Manunggal Multi Energi - Indonesia
- Wilmar Investment Holdings
- Leighton Contractors Pty Ltd - Australia
- Kalimantan Lumbung Energi - Indonesia
- Banpu Public Company Limited - Thailand
- Sinarmas Energy and Mining - Indonesia
- Coastal Gujarat Power Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Independent Power Producers Association of India
- Alfred C Toepfer International GmbH - Germany
- Riau Bara Harum - Indonesia
- Commonwealth Bank - Australia
- Antam Resourcindo - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- McConnell Dowell - Australia
- GAC Shipping (India) Pvt Ltd
- Sindya Power Generating Company Private Ltd
- Vijayanagar Sugar Pvt Ltd - India
- Indogreen Group - Indonesia
- LBH Netherlands Bv - Netherlands
- Krishnapatnam Port Company Ltd. - India
- Indonesian Coal Mining Association
- Straits Asia Resources Limited - Singapore
- Tamil Nadu electricity Board
- Heidelberg Cement - Germany
- Directorate General of MIneral and Coal - Indonesia
- Economic Council, Georgia
- Orica Mining Services - Indonesia
- International Coal Ventures Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Offshore Bulk Terminal Pte Ltd, Singapore
- Globalindo Alam Lestari - Indonesia
- Sree Jayajothi Cements Limited - India
- Sarangani Energy Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Mercator Lines Limited - India
- Kobexindo Tractors - Indoneisa
- Neyveli Lignite Corporation Ltd, - India
- GVK Power & Infra Limited - India
- Formosa Plastics Group - Taiwan
- Star Paper Mills Limited - India
- AsiaOL BioFuels Corp., Philippines
- Asmin Koalindo Tuhup - Indonesia
- Attock Cement Pakistan Limited
- Chettinad Cement Corporation Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Electricity Generating Authority of Thailand
- Agrawal Coal Company - India
- Miang Besar Coal Terminal - Indonesia
- Iligan Light & Power Inc, Philippines
- Singapore Mercantile Exchange
- Bukit Makmur.PT - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Deloitte Consulting - India
- India Bulls Power Limited - India
- Orica Australia Pty. Ltd.
- Timah Investasi Mineral - Indoneisa
- White Energy Company Limited
- Gujarat Electricity Regulatory Commission - India
- Sical Logistics Limited - India
- Bulk Trading Sa - Switzerland
- Siam City Cement PLC, Thailand
- Carbofer General Trading SA - India
- IHS Mccloskey Coal Group - USA
- Bhushan Steel Limited - India
- Lanco Infratech Ltd - India
- Bayan Resources Tbk. - Indonesia
- Electricity Authority, New Zealand
- Jindal Steel & Power Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Uttam Galva Steels Limited - India
- The State Trading Corporation of India Ltd
- IEA Clean Coal Centre - UK
- GN Power Mariveles Coal Plant, Philippines
- Vedanta Resources Plc - India
- Renaissance Capital - South Africa
- Wood Mackenzie - Singapore
- Global Green Power PLC Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Indian Energy Exchange, India
- Energy Link Ltd, New Zealand
- Videocon Industries ltd - India
- Port Waratah Coal Services - Australia
- Africa Commodities Group - South Africa
- SN Aboitiz Power Inc, Philippines
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