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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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Thursday, 08 July 10
KPCL RECEIVES 8 QUALIFIED BIDS TO SUPPLY 500,000 MT OF COAL
COALspot.com: Indian state utility KARNATAKA POWER CORPORATION LIMITED has opened price bid yesterday.
According to a participant, the quo ...
Thursday, 08 July 10
DRY BULK MARKET STILL PLUNGING, NOW STANDING AT 14 MONTH LOWS
The dry bulk shipping market’s demise isn’t over yet, as the industry’s main benchmark, the Baltic Dry Index (BDI) has been on a f ...
Wednesday, 07 July 10
MACQUARIE SEES CHINA COMMODITIES PRICE FALLS AND CUTBACKS AHEAD - MINEWEB
MineWeb reported that, The research arm of Australia's Macquarie Bank - one of the most reliable of China watchers - in its latest briefing on Chin ...
Wednesday, 07 July 10
COAL PRICES ON THE RISE
Caixin online reported that, China's domestic coal prices have seen a 26.2 percent year-on-year rise in May. Meanwhile, the volume of coal im ...
Tuesday, 06 July 10
INCREASE IN DRY BULK SPOT FIXTURES UNABLE TO BOOST RATES, LOSING STREAK CONTINUES
Yet another week began on a negative note for the dry bulk shipping market, with the Baltic Dry Index posting its 28th straight losing daily session ...
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- Wilmar Investment Holdings
- Karbindo Abesyapradhi - Indoneisa
- TNB Fuel Sdn Bhd - Malaysia
- Samtan Co., Ltd - South Korea
- Ind-Barath Power Infra Limited - India
- Trasteel International SA, Italy
- GAC Shipping (India) Pvt Ltd
- The University of Queensland
- Commonwealth Bank - Australia
- Dalmia Cement Bharat India
- PNOC Exploration Corporation - Philippines
- Manunggal Multi Energi - Indonesia
- Mjunction Services Limited - India
- Sical Logistics Limited - India
- Straits Asia Resources Limited - Singapore
- MS Steel International - UAE
- Parliament of New Zealand
- Kapuas Tunggal Persada - Indonesia
- Minerals Council of Australia
- IHS Mccloskey Coal Group - USA
- Kobexindo Tractors - Indoneisa
- Kalimantan Lumbung Energi - Indonesia
- Sarangani Energy Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Rashtriya Ispat Nigam Limited - India
- TeaM Sual Corporation - Philippines
- Bukit Makmur.PT - Indonesia
- Renaissance Capital - South Africa
- Marubeni Corporation - India
- Grasim Industreis Ltd - India
- McConnell Dowell - Australia
- Mercator Lines Limited - India
- Xindia Steels Limited - India
- Ministry of Mines - Canada
- London Commodity Brokers - England
- Sindya Power Generating Company Private Ltd
- Bulk Trading Sa - Switzerland
- Global Business Power Corporation, Philippines
- GVK Power & Infra Limited - India
- Sree Jayajothi Cements Limited - India
- Indogreen Group - Indonesia
- Directorate Of Revenue Intelligence - India
- Therma Luzon, Inc, Philippines
- New Zealand Coal & Carbon
- GN Power Mariveles Coal Plant, Philippines
- Coastal Gujarat Power Limited - India
- Ministry of Transport, Egypt
- Orica Australia Pty. Ltd.
- PetroVietnam Power Coal Import and Supply Company
- Jorong Barutama Greston.PT - Indonesia
- ICICI Bank Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Anglo American - United Kingdom
- Agrawal Coal Company - India
- Bayan Resources Tbk. - Indonesia
- Latin American Coal - Colombia
- Energy Link Ltd, New Zealand
- Ministry of Finance - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- Borneo Indobara - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Vizag Seaport Private Limited - India
- Singapore Mercantile Exchange
- Intertek Mineral Services - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Tata Chemicals Ltd - India
- Thai Mozambique Logistica
- Alfred C Toepfer International GmbH - Germany
- Chettinad Cement Corporation Ltd - India
- The Treasury - Australian Government
- Rio Tinto Coal - Australia
- Bukit Baiduri Energy - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Meralco Power Generation, Philippines
- Romanian Commodities Exchange
- AsiaOL BioFuels Corp., Philippines
- Baramulti Group, Indonesia
- SMC Global Power, Philippines
- Economic Council, Georgia
- Kideco Jaya Agung - Indonesia
- OPG Power Generation Pvt Ltd - India
- GMR Energy Limited - India
- Sakthi Sugars Limited - India
- Indo Tambangraya Megah - Indonesia
- Wood Mackenzie - Singapore
- Karaikal Port Pvt Ltd - India
- Medco Energi Mining Internasional
- Mercuria Energy - Indonesia
- Cement Manufacturers Association - India
- Independent Power Producers Association of India
- CIMB Investment Bank - Malaysia
- Salva Resources Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Pendopo Energi Batubara - Indonesia
- International Coal Ventures Pvt Ltd - India
- PowerSource Philippines DevCo
- Global Coal Blending Company Limited - Australia
- Eastern Coal Council - USA
- San Jose City I Power Corp, Philippines
- SMG Consultants - Indonesia
- Star Paper Mills Limited - India
- Chamber of Mines of South Africa
- Larsen & Toubro Limited - India
- Videocon Industries ltd - India
- Aditya Birla Group - India
- Metalloyd Limited - United Kingdom
- Maheswari Brothers Coal Limited - India
- Ambuja Cements Ltd - India
- Indonesian Coal Mining Association
- Simpson Spence & Young - Indonesia
- Coal and Oil Company - UAE
- Indian Energy Exchange, India
- Formosa Plastics Group - Taiwan
- Binh Thuan Hamico - Vietnam
- IEA Clean Coal Centre - UK
- Antam Resourcindo - Indonesia
- Lanco Infratech Ltd - India
- SN Aboitiz Power Inc, Philippines
- Orica Mining Services - Indonesia
- Australian Commodity Traders Exchange
- Australian Coal Association
- Meenaskhi Energy Private Limited - India
- Kartika Selabumi Mining - Indonesia
- Vedanta Resources Plc - India
- White Energy Company Limited
- Port Waratah Coal Services - Australia
- Indian Oil Corporation Limited
- European Bulk Services B.V. - Netherlands
- Madhucon Powers Ltd - India
- Kepco SPC Power Corporation, Philippines
- Siam City Cement - Thailand
- Jindal Steel & Power Ltd - India
- Barasentosa Lestari - Indonesia
- The State Trading Corporation of India Ltd
- Eastern Energy - Thailand
- Heidelberg Cement - Germany
- Gujarat Electricity Regulatory Commission - India
- Globalindo Alam Lestari - Indonesia
- Oldendorff Carriers - Singapore
- Makarim & Taira - Indonesia
- Bangladesh Power Developement Board
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Bhoruka Overseas - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kaltim Prima Coal - Indonesia
- Semirara Mining Corp, Philippines
- Siam City Cement PLC, Thailand
- ASAPP Information Group - India
- Kohat Cement Company Ltd. - Pakistan
- Directorate General of MIneral and Coal - Indonesia
- Malabar Cements Ltd - India
- Savvy Resources Ltd - HongKong
- Asmin Koalindo Tuhup - Indonesia
- Deloitte Consulting - India
- Power Finance Corporation Ltd., India
- Mintek Dendrill Indonesia
- Jaiprakash Power Ventures ltd
- Coalindo Energy - Indonesia
- Planning Commission, India
- Central Electricity Authority - India
- Bahari Cakrawala Sebuku - Indonesia
- Attock Cement Pakistan Limited
- Riau Bara Harum - Indonesia
- CNBM International Corporation - China
- VISA Power Limited - India
- Miang Besar Coal Terminal - Indonesia
- Carbofer General Trading SA - India
- Interocean Group of Companies - India
- Bhushan Steel Limited - India
- Edison Trading Spa - Italy
- India Bulls Power Limited - India
- Altura Mining Limited, Indonesia
- Standard Chartered Bank - UAE
- Gujarat Sidhee Cement - India
- PTC India Limited - India
- Merrill Lynch Commodities Europe
- Electricity Generating Authority of Thailand
- Thiess Contractors Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Posco Energy - South Korea
- Gujarat Mineral Development Corp Ltd - India
- Central Java Power - Indonesia
- Sojitz Corporation - Japan
- Petrochimia International Co. Ltd.- Taiwan
- Uttam Galva Steels Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Billiton Holdings Pty Ltd - Australia
- South Luzon Thermal Energy Corporation
- Bhatia International Limited - India
- Indika Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- Tamil Nadu electricity Board
- Petron Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Iligan Light & Power Inc, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bharathi Cement Corporation - India
- LBH Netherlands Bv - Netherlands
- Electricity Authority, New Zealand
- Global Green Power PLC Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Parry Sugars Refinery, India
- Maharashtra Electricity Regulatory Commission - India
- Price Waterhouse Coopers - Russia
- Bukit Asam (Persero) Tbk - Indonesia
- Energy Development Corp, Philippines
- Sinarmas Energy and Mining - Indonesia
- Essar Steel Hazira Ltd - India
- Africa Commodities Group - South Africa
- Georgia Ports Authority, United States
- Banpu Public Company Limited - Thailand
- Leighton Contractors Pty Ltd - Australia
- Kumho Petrochemical, South Korea
- Goldman Sachs - Singapore
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