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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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Monday, 26 April 10
COAL INDIA NEARS PORT DEAL WITH VIZAG STEEL - DNA
DNA India reported that, Coal India Ltd (CIL), the country’s largest coal producer, is close to signing a deal to acquire space at Vizag Steel ...
Sunday, 25 April 10
THE WAITING AT INDIAN PORTS FOR COAL VESSELS WAS QUITE NORMAL - VISTAAR
COALspot.com: The BDI remained unchanged this week and all other sectors also the change was not much.
The cape index continued to move up and wa ...
Saturday, 24 April 10
NTPC TO BUY COAL MINES IN KAZAKHSTAN - TELEGRAPH INDIA
Telegraph India reported that, NTPC Ltd plans to acquire coal mines and operate two thermal power plants in Kazakhstan.
“We are exploring t ...
Saturday, 24 April 10
CHINA'S COAL IMPORTS DOUBLE IN MARCH
China's General Administration of Customs said that the country imported 15.22 million tons of coal last month, more than double the amount it impo ...
Friday, 23 April 10
KPCL EYES MINE IN INDONESIA - BUSINESS STANDARD
Business-Standard reported that, Karnataka Power Corporation Ltd (KPCL), the state-owned power generator, is exploring the possibility of acquiring ...
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- VISA Power Limited - India
- Tamil Nadu electricity Board
- Salva Resources Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Commonwealth Bank - Australia
- South Luzon Thermal Energy Corporation
- Indogreen Group - Indonesia
- Cement Manufacturers Association - India
- Energy Link Ltd, New Zealand
- Kaltim Prima Coal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Star Paper Mills Limited - India
- Medco Energi Mining Internasional
- Siam City Cement PLC, Thailand
- Indika Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Economic Council, Georgia
- Orica Australia Pty. Ltd.
- The Treasury - Australian Government
- GN Power Mariveles Coal Plant, Philippines
- Coastal Gujarat Power Limited - India
- Ministry of Mines - Canada
- Bayan Resources Tbk. - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Xindia Steels Limited - India
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- Mercuria Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Asmin Koalindo Tuhup - Indonesia
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- MS Steel International - UAE
- Power Finance Corporation Ltd., India
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- IHS Mccloskey Coal Group - USA
- Meralco Power Generation, Philippines
- Parliament of New Zealand
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- Latin American Coal - Colombia
- Bulk Trading Sa - Switzerland
- Coal and Oil Company - UAE
- Thai Mozambique Logistica
- Central Electricity Authority - India
- Antam Resourcindo - Indonesia
- Videocon Industries ltd - India
- Iligan Light & Power Inc, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Standard Chartered Bank - UAE
- Independent Power Producers Association of India
- ASAPP Information Group - India
- Kohat Cement Company Ltd. - Pakistan
- Kepco SPC Power Corporation, Philippines
- Oldendorff Carriers - Singapore
- Interocean Group of Companies - India
- Maharashtra Electricity Regulatory Commission - India
- Australian Commodity Traders Exchange
- Global Coal Blending Company Limited - Australia
- Sarangani Energy Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- CNBM International Corporation - China
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Deloitte Consulting - India
- Altura Mining Limited, Indonesia
- TeaM Sual Corporation - Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Banpu Public Company Limited - Thailand
- Aboitiz Power Corporation - Philippines
- McConnell Dowell - Australia
- Formosa Plastics Group - Taiwan
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kideco Jaya Agung - Indonesia
- CIMB Investment Bank - Malaysia
- Carbofer General Trading SA - India
- Meenaskhi Energy Private Limited - India
- Attock Cement Pakistan Limited
- Electricity Generating Authority of Thailand
- Timah Investasi Mineral - Indoneisa
- Samtan Co., Ltd - South Korea
- Ministry of Finance - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- European Bulk Services B.V. - Netherlands
- Sojitz Corporation - Japan
- ICICI Bank Limited - India
- Binh Thuan Hamico - Vietnam
- Heidelberg Cement - Germany
- Mjunction Services Limited - India
- Krishnapatnam Port Company Ltd. - India
- Lanco Infratech Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- PTC India Limited - India
- PNOC Exploration Corporation - Philippines
- SMC Global Power, Philippines
- Petron Corporation, Philippines
- Edison Trading Spa - Italy
- Port Waratah Coal Services - Australia
- GAC Shipping (India) Pvt Ltd
- Sindya Power Generating Company Private Ltd
- Grasim Industreis Ltd - India
- Sree Jayajothi Cements Limited - India
- Wilmar Investment Holdings
- PowerSource Philippines DevCo
- Tata Chemicals Ltd - India
- New Zealand Coal & Carbon
- Eastern Coal Council - USA
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- The State Trading Corporation of India Ltd
- Aditya Birla Group - India
- Cigading International Bulk Terminal - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Baramulti Group, Indonesia
- India Bulls Power Limited - India
- Vizag Seaport Private Limited - India
- Indian Oil Corporation Limited
- Metalloyd Limited - United Kingdom
- Miang Besar Coal Terminal - Indonesia
- Jaiprakash Power Ventures ltd
- AsiaOL BioFuels Corp., Philippines
- San Jose City I Power Corp, Philippines
- Borneo Indobara - Indonesia
- Uttam Galva Steels Limited - India
- Ceylon Electricity Board - Sri Lanka
- Electricity Authority, New Zealand
- OPG Power Generation Pvt Ltd - India
- Georgia Ports Authority, United States
- Thiess Contractors Indonesia
- Straits Asia Resources Limited - Singapore
- Australian Coal Association
- Singapore Mercantile Exchange
- Gujarat Sidhee Cement - India
- Simpson Spence & Young - Indonesia
- Malabar Cements Ltd - India
- White Energy Company Limited
- Jorong Barutama Greston.PT - Indonesia
- Central Java Power - Indonesia
- Trasteel International SA, Italy
- Kartika Selabumi Mining - Indonesia
- Dalmia Cement Bharat India
- Bangladesh Power Developement Board
- Indonesian Coal Mining Association
- Bukit Makmur.PT - Indonesia
- Agrawal Coal Company - India
- Romanian Commodities Exchange
- Mintek Dendrill Indonesia
- Gujarat Electricity Regulatory Commission - India
- IEA Clean Coal Centre - UK
- Directorate Of Revenue Intelligence - India
- GMR Energy Limited - India
- Ambuja Cements Ltd - India
- Renaissance Capital - South Africa
- Maheswari Brothers Coal Limited - India
- London Commodity Brokers - England
- Neyveli Lignite Corporation Ltd, - India
- Sical Logistics Limited - India
- Minerals Council of Australia
- Semirara Mining Corp, Philippines
- Madhucon Powers Ltd - India
- International Coal Ventures Pvt Ltd - India
- Ministry of Transport, Egypt
- Intertek Mineral Services - Indonesia
- Goldman Sachs - Singapore
- Bank of Tokyo Mitsubishi UFJ Ltd
- Directorate General of MIneral and Coal - Indonesia
- Bhatia International Limited - India
- Ind-Barath Power Infra Limited - India
- Pendopo Energi Batubara - Indonesia
- Barasentosa Lestari - Indonesia
- Riau Bara Harum - Indonesia
- Essar Steel Hazira Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Kobexindo Tractors - Indoneisa
- Africa Commodities Group - South Africa
- SMG Consultants - Indonesia
- Larsen & Toubro Limited - India
- Sinarmas Energy and Mining - Indonesia
- Coalindo Energy - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Bukit Baiduri Energy - Indonesia
- Globalindo Alam Lestari - Indonesia
- Planning Commission, India
- Petrochimia International Co. Ltd.- Taiwan
- Mercator Lines Limited - India
- Jindal Steel & Power Ltd - India
- Global Business Power Corporation, Philippines
- Indian Energy Exchange, India
- Bhoruka Overseas - Indonesia
- Karaikal Port Pvt Ltd - India
- Marubeni Corporation - India
- Indo Tambangraya Megah - Indonesia
- Energy Development Corp, Philippines
- LBH Netherlands Bv - Netherlands
- Anglo American - United Kingdom
- Makarim & Taira - Indonesia
- Manunggal Multi Energi - Indonesia
- GVK Power & Infra Limited - India
- Wood Mackenzie - Singapore
- Kumho Petrochemical, South Korea
- Price Waterhouse Coopers - Russia
- The University of Queensland
- TNB Fuel Sdn Bhd - Malaysia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Posco Energy - South Korea
- Siam City Cement - Thailand
- Global Green Power PLC Corporation, Philippines
- Merrill Lynch Commodities Europe
- Rio Tinto Coal - Australia
- Vedanta Resources Plc - India
- Eastern Energy - Thailand
- Gujarat Mineral Development Corp Ltd - India
- Orica Mining Services - Indonesia
- Chamber of Mines of South Africa
- Bharathi Cement Corporation - India
- Sakthi Sugars Limited - India
- SN Aboitiz Power Inc, Philippines
- Savvy Resources Ltd - HongKong
- Bukit Asam (Persero) Tbk - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
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