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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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Friday, 28 May 10
INDIAS NEYVELI LIGNITE EYEING INDONESIA, SOUTH AFRICA COAL MINES
Integrated mining and power producer Neyveli Lignite Corporation Thursday said it is exploring possibilities for buying coal mines in Indonesia and ...
Friday, 28 May 10
ADARO ACQUIRES 25% ICP AT US$ 335 MIO
Indonesia's second largest thermal coal miner PT Adaro Energy Tbk (ADRO) today announces formation of new joint venture for Indonesian Coal Project ...
Thursday, 27 May 10
KPCL IS LOOKING FOR 0.50 MLN TON TO IMPORTED STEAMING COAL FOR RAICHUR THERMAL POWER STATION
COALspot.com: KARNATAKA POWER CORPORATION LIMITED, India invited from reputed parties meeting the pre qualifications stipulated for the import ...
Thursday, 27 May 10
TNPL TO BUY 0.240 MLN TON NON-COKING COAL FOR SECOND HALF OF 2010
COALspot.com: Tamil Nadu Newsprint and Papers Limited (TNPL), would like to procure 0.24 mln MT of imported Non-Coking Coal in 6 Shipments of about ...
Thursday, 27 May 10
DRY BULK RATES REACH 2010 HIGHS, BUT FUTURE REMAINS UNCERTAIN
This week is proving to be a milestone for the dry bulk market, as the Baltic Dry Index has propelled itself at never before seen levels for 2010. Y ...
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- Timah Investasi Mineral - Indoneisa
- Attock Cement Pakistan Limited
- Economic Council, Georgia
- Leighton Contractors Pty Ltd - Australia
- Rio Tinto Coal - Australia
- Jaiprakash Power Ventures ltd
- Wood Mackenzie - Singapore
- Power Finance Corporation Ltd., India
- Krishnapatnam Port Company Ltd. - India
- Holcim Trading Pte Ltd - Singapore
- Kaltim Prima Coal - Indonesia
- Global Coal Blending Company Limited - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Central Electricity Authority - India
- Wilmar Investment Holdings
- Chettinad Cement Corporation Ltd - India
- Meralco Power Generation, Philippines
- Directorate Of Revenue Intelligence - India
- Sinarmas Energy and Mining - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- IEA Clean Coal Centre - UK
- Gujarat Mineral Development Corp Ltd - India
- Medco Energi Mining Internasional
- McConnell Dowell - Australia
- Borneo Indobara - Indonesia
- Kartika Selabumi Mining - Indonesia
- India Bulls Power Limited - India
- Interocean Group of Companies - India
- London Commodity Brokers - England
- Petrochimia International Co. Ltd.- Taiwan
- New Zealand Coal & Carbon
- ICICI Bank Limited - India
- Electricity Authority, New Zealand
- Billiton Holdings Pty Ltd - Australia
- San Jose City I Power Corp, Philippines
- PowerSource Philippines DevCo
- Indika Energy - Indonesia
- Georgia Ports Authority, United States
- Sojitz Corporation - Japan
- Malabar Cements Ltd - India
- Petron Corporation, Philippines
- Thiess Contractors Indonesia
- Bharathi Cement Corporation - India
- Vedanta Resources Plc - India
- Semirara Mining Corp, Philippines
- Orica Australia Pty. Ltd.
- Tamil Nadu electricity Board
- Madhucon Powers Ltd - India
- Heidelberg Cement - Germany
- Formosa Plastics Group - Taiwan
- Ministry of Transport, Egypt
- Simpson Spence & Young - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Merrill Lynch Commodities Europe
- Siam City Cement PLC, Thailand
- Videocon Industries ltd - India
- Eastern Coal Council - USA
- Independent Power Producers Association of India
- Asmin Koalindo Tuhup - Indonesia
- South Luzon Thermal Energy Corporation
- Australian Commodity Traders Exchange
- Goldman Sachs - Singapore
- Metalloyd Limited - United Kingdom
- Barasentosa Lestari - Indonesia
- Lanco Infratech Ltd - India
- Bhoruka Overseas - Indonesia
- Star Paper Mills Limited - India
- AsiaOL BioFuels Corp., Philippines
- ASAPP Information Group - India
- Electricity Generating Authority of Thailand
- Kepco SPC Power Corporation, Philippines
- Agrawal Coal Company - India
- Globalindo Alam Lestari - Indonesia
- Antam Resourcindo - Indonesia
- Indogreen Group - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Xindia Steels Limited - India
- Eastern Energy - Thailand
- Minerals Council of Australia
- Makarim & Taira - Indonesia
- Therma Luzon, Inc, Philippines
- Latin American Coal - Colombia
- PetroVietnam Power Coal Import and Supply Company
- The University of Queensland
- Sarangani Energy Corporation, Philippines
- Sakthi Sugars Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sree Jayajothi Cements Limited - India
- Ministry of Finance - Indonesia
- European Bulk Services B.V. - Netherlands
- Mjunction Services Limited - India
- SMC Global Power, Philippines
- OPG Power Generation Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Kalimantan Lumbung Energi - Indonesia
- Mercator Lines Limited - India
- Intertek Mineral Services - Indonesia
- Iligan Light & Power Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- MS Steel International - UAE
- CNBM International Corporation - China
- Global Green Power PLC Corporation, Philippines
- Chamber of Mines of South Africa
- Miang Besar Coal Terminal - Indonesia
- Bhushan Steel Limited - India
- Mintek Dendrill Indonesia
- Planning Commission, India
- International Coal Ventures Pvt Ltd - India
- Vizag Seaport Private Limited - India
- Thai Mozambique Logistica
- Directorate General of MIneral and Coal - Indonesia
- Toyota Tsusho Corporation, Japan
- Jorong Barutama Greston.PT - Indonesia
- IHS Mccloskey Coal Group - USA
- Singapore Mercantile Exchange
- Ind-Barath Power Infra Limited - India
- Cigading International Bulk Terminal - Indonesia
- Savvy Resources Ltd - HongKong
- Standard Chartered Bank - UAE
- Orica Mining Services - Indonesia
- TeaM Sual Corporation - Philippines
- CIMB Investment Bank - Malaysia
- Grasim Industreis Ltd - India
- Uttam Galva Steels Limited - India
- Africa Commodities Group - South Africa
- Posco Energy - South Korea
- Indo Tambangraya Megah - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Altura Mining Limited, Indonesia
- GVK Power & Infra Limited - India
- Alfred C Toepfer International GmbH - Germany
- Essar Steel Hazira Ltd - India
- PTC India Limited - India
- Coastal Gujarat Power Limited - India
- Karbindo Abesyapradhi - Indoneisa
- VISA Power Limited - India
- Samtan Co., Ltd - South Korea
- Energy Development Corp, Philippines
- Kobexindo Tractors - Indoneisa
- The Treasury - Australian Government
- Coal and Oil Company - UAE
- Global Business Power Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Karaikal Port Pvt Ltd - India
- Marubeni Corporation - India
- Indian Energy Exchange, India
- Coalindo Energy - Indonesia
- Ambuja Cements Ltd - India
- Gujarat Sidhee Cement - India
- Port Waratah Coal Services - Australia
- Bulk Trading Sa - Switzerland
- Anglo American - United Kingdom
- Straits Asia Resources Limited - Singapore
- Parry Sugars Refinery, India
- Manunggal Multi Energi - Indonesia
- Renaissance Capital - South Africa
- Ministry of Mines - Canada
- SMG Consultants - Indonesia
- Australian Coal Association
- Gujarat Electricity Regulatory Commission - India
- Indian Oil Corporation Limited
- GN Power Mariveles Coal Plant, Philippines
- Salva Resources Pvt Ltd - India
- Romanian Commodities Exchange
- Sical Logistics Limited - India
- Tata Chemicals Ltd - India
- Cement Manufacturers Association - India
- Ceylon Electricity Board - Sri Lanka
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bayan Resources Tbk. - Indonesia
- Bangladesh Power Developement Board
- Energy Link Ltd, New Zealand
- Rashtriya Ispat Nigam Limited - India
- Maharashtra Electricity Regulatory Commission - India
- GAC Shipping (India) Pvt Ltd
- Aboitiz Power Corporation - Philippines
- Binh Thuan Hamico - Vietnam
- Banpu Public Company Limited - Thailand
- Maheswari Brothers Coal Limited - India
- Central Java Power - Indonesia
- Riau Bara Harum - Indonesia
- Deloitte Consulting - India
- Commonwealth Bank - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- PNOC Exploration Corporation - Philippines
- Pendopo Energi Batubara - Indonesia
- GMR Energy Limited - India
- Mercuria Energy - Indonesia
- Bukit Baiduri Energy - Indonesia
- Aditya Birla Group - India
- Sindya Power Generating Company Private Ltd
- Dalmia Cement Bharat India
- Siam City Cement - Thailand
- Parliament of New Zealand
- Semirara Mining and Power Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Kideco Jaya Agung - Indonesia
- Oldendorff Carriers - Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Larsen & Toubro Limited - India
- Price Waterhouse Coopers - Russia
- Carbofer General Trading SA - India
- Kumho Petrochemical, South Korea
- Indonesian Coal Mining Association
- Kapuas Tunggal Persada - Indonesia
- Bhatia International Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Trasteel International SA, Italy
- LBH Netherlands Bv - Netherlands
- Meenaskhi Energy Private Limited - India
- The State Trading Corporation of India Ltd
- Bukit Makmur.PT - Indonesia
- White Energy Company Limited
- Vijayanagar Sugar Pvt Ltd - India
- Edison Trading Spa - Italy
- Baramulti Group, Indonesia
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