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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, 18 August 10
MADHUCON TO START MINING AT SUMATRA BLOCK IN 2-3 MONTHS
DNA India reported that, Hyderabad-based Madhucon Projects is set to begin mining at one of its coal blocks in Indonesia in 2-3 months, said S Vaiku ...
Tuesday, 17 August 10
HANDIES AND SUPRAS WOKE UP AGAIN AFTER SEVERAL WEEKS OF LETHARGY - BRS
A spectacular increase in Cape size rates pushed the BDI up more than 20% this week, with demand for prompt tonnage in the Pacific causing a major s ...
Monday, 16 August 10
INDIA'S TNPL TO SUPPORT TNEB WITH COAL SUPPLIES
COALspot.com: TNPL to award 300,000 MT of coal supply contract to Nehel General Trading of India. Tamil Nadu state undertaking , Tamil N ...
Monday, 16 August 10
INDONESIA'S PLN SECURED COAL SUPPLIES, LESS IMPACT BY RAINS
COALspot.com: Indonesian State Electricity Company, PT Perusahaan Listrik Negara (PLN), has secured coal supplies for all of its power plants except ...
Sunday, 15 August 10
THE FREIGHT MARKET IS EXPECTED TO REMAIN FIRM - CAPT REDDY
COALspot.com: The BDI rose by almost 22 pct despite peak holiday season which is usually quite market , where as the BCI up sharply by 46 pct which ...
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- The Treasury - Australian Government
- Bulk Trading Sa - Switzerland
- The State Trading Corporation of India Ltd
- Toyota Tsusho Corporation, Japan
- Aditya Birla Group - India
- Vizag Seaport Private Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Mercuria Energy - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Indogreen Group - Indonesia
- Aboitiz Power Corporation - Philippines
- Riau Bara Harum - Indonesia
- Tamil Nadu electricity Board
- Medco Energi Mining Internasional
- Indian Oil Corporation Limited
- Sical Logistics Limited - India
- Kalimantan Lumbung Energi - Indonesia
- ASAPP Information Group - India
- Vijayanagar Sugar Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Ambuja Cements Ltd - India
- Borneo Indobara - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Timah Investasi Mineral - Indoneisa
- SN Aboitiz Power Inc, Philippines
- TeaM Sual Corporation - Philippines
- Makarim & Taira - Indonesia
- Heidelberg Cement - Germany
- Barasentosa Lestari - Indonesia
- Madhucon Powers Ltd - India
- Global Coal Blending Company Limited - Australia
- Rio Tinto Coal - Australia
- Neyveli Lignite Corporation Ltd, - India
- Parliament of New Zealand
- Directorate General of MIneral and Coal - Indonesia
- IEA Clean Coal Centre - UK
- Cement Manufacturers Association - India
- Savvy Resources Ltd - HongKong
- Port Waratah Coal Services - Australia
- Thai Mozambique Logistica
- Cigading International Bulk Terminal - Indonesia
- CIMB Investment Bank - Malaysia
- Central Java Power - Indonesia
- McConnell Dowell - Australia
- Kideco Jaya Agung - Indonesia
- Larsen & Toubro Limited - India
- Attock Cement Pakistan Limited
- Standard Chartered Bank - UAE
- Sree Jayajothi Cements Limited - India
- MS Steel International - UAE
- Uttam Galva Steels Limited - India
- Maheswari Brothers Coal Limited - India
- Power Finance Corporation Ltd., India
- PowerSource Philippines DevCo
- Coastal Gujarat Power Limited - India
- GAC Shipping (India) Pvt Ltd
- Semirara Mining Corp, Philippines
- Ministry of Transport, Egypt
- Grasim Industreis Ltd - India
- Sakthi Sugars Limited - India
- Bhoruka Overseas - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Chamber of Mines of South Africa
- Africa Commodities Group - South Africa
- Sojitz Corporation - Japan
- Goldman Sachs - Singapore
- Gujarat Electricity Regulatory Commission - India
- Simpson Spence & Young - Indonesia
- Therma Luzon, Inc, Philippines
- Wood Mackenzie - Singapore
- Siam City Cement - Thailand
- Star Paper Mills Limited - India
- Parry Sugars Refinery, India
- Samtan Co., Ltd - South Korea
- Georgia Ports Authority, United States
- Bukit Makmur.PT - Indonesia
- Meenaskhi Energy Private Limited - India
- Kaltim Prima Coal - Indonesia
- New Zealand Coal & Carbon
- Pendopo Energi Batubara - Indonesia
- Marubeni Corporation - India
- Essar Steel Hazira Ltd - India
- Oldendorff Carriers - Singapore
- Antam Resourcindo - Indonesia
- Sindya Power Generating Company Private Ltd
- PetroVietnam Power Coal Import and Supply Company
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Coal and Oil Company - UAE
- Carbofer General Trading SA - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Rashtriya Ispat Nigam Limited - India
- Banpu Public Company Limited - Thailand
- Bayan Resources Tbk. - Indonesia
- SMG Consultants - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Leighton Contractors Pty Ltd - Australia
- Sinarmas Energy and Mining - Indonesia
- Australian Coal Association
- Singapore Mercantile Exchange
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ind-Barath Power Infra Limited - India
- SMC Global Power, Philippines
- Dalmia Cement Bharat India
- European Bulk Services B.V. - Netherlands
- Formosa Plastics Group - Taiwan
- San Jose City I Power Corp, Philippines
- Globalindo Alam Lestari - Indonesia
- Anglo American - United Kingdom
- Pipit Mutiara Jaya. PT, Indonesia
- Bhatia International Limited - India
- Planning Commission, India
- GN Power Mariveles Coal Plant, Philippines
- Australian Commodity Traders Exchange
- Central Electricity Authority - India
- Latin American Coal - Colombia
- Ministry of Finance - Indonesia
- Commonwealth Bank - Australia
- Trasteel International SA, Italy
- VISA Power Limited - India
- OPG Power Generation Pvt Ltd - India
- Indian Energy Exchange, India
- Ceylon Electricity Board - Sri Lanka
- Deloitte Consulting - India
- Wilmar Investment Holdings
- South Luzon Thermal Energy Corporation
- Kapuas Tunggal Persada - Indonesia
- India Bulls Power Limited - India
- Agrawal Coal Company - India
- Thiess Contractors Indonesia
- Alfred C Toepfer International GmbH - Germany
- GVK Power & Infra Limited - India
- Merrill Lynch Commodities Europe
- Eastern Energy - Thailand
- Gujarat Sidhee Cement - India
- Romanian Commodities Exchange
- IHS Mccloskey Coal Group - USA
- Videocon Industries ltd - India
- Petron Corporation, Philippines
- Mjunction Services Limited - India
- Minerals Council of Australia
- Edison Trading Spa - Italy
- Billiton Holdings Pty Ltd - Australia
- Jindal Steel & Power Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Price Waterhouse Coopers - Russia
- Metalloyd Limited - United Kingdom
- Binh Thuan Hamico - Vietnam
- Renaissance Capital - South Africa
- Electricity Authority, New Zealand
- Xindia Steels Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- The University of Queensland
- Siam City Cement PLC, Thailand
- Directorate Of Revenue Intelligence - India
- Krishnapatnam Port Company Ltd. - India
- Economic Council, Georgia
- TNB Fuel Sdn Bhd - Malaysia
- Electricity Generating Authority of Thailand
- ICICI Bank Limited - India
- Global Business Power Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- CNBM International Corporation - China
- Coalindo Energy - Indonesia
- Independent Power Producers Association of India
- Interocean Group of Companies - India
- Orica Australia Pty. Ltd.
- Global Green Power PLC Corporation, Philippines
- Bharathi Cement Corporation - India
- Lanco Infratech Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Altura Mining Limited, Indonesia
- Tata Chemicals Ltd - India
- Orica Mining Services - Indonesia
- Semirara Mining and Power Corporation, Philippines
- London Commodity Brokers - England
- Intertek Mineral Services - Indonesia
- Kepco SPC Power Corporation, Philippines
- Mercator Lines Limited - India
- Eastern Coal Council - USA
- LBH Netherlands Bv - Netherlands
- Kumho Petrochemical, South Korea
- Bukit Baiduri Energy - Indonesia
- Malabar Cements Ltd - India
- Energy Link Ltd, New Zealand
- Kobexindo Tractors - Indoneisa
- Indika Energy - Indonesia
- White Energy Company Limited
- Energy Development Corp, Philippines
- GMR Energy Limited - India
- Indonesian Coal Mining Association
- Iligan Light & Power Inc, Philippines
- Bhushan Steel Limited - India
- Sarangani Energy Corporation, Philippines
- Baramulti Group, Indonesia
- Vedanta Resources Plc - India
- Salva Resources Pvt Ltd - India
- Bangladesh Power Developement Board
- Asmin Koalindo Tuhup - Indonesia
- PTC India Limited - India
- Indo Tambangraya Megah - Indonesia
- International Coal Ventures Pvt Ltd - India
- Mintek Dendrill Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Jaiprakash Power Ventures ltd
- Manunggal Multi Energi - Indonesia
- Posco Energy - South Korea
- Ministry of Mines - Canada
- Kartika Selabumi Mining - Indonesia
- Straits Asia Resources Limited - Singapore
- Chettinad Cement Corporation Ltd - India
- Karaikal Port Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Meralco Power Generation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
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