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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, 22 April 10
INDONESIAN COAL PRICE REFERENCE FOR MARCH 2010 - US$ 86.64/T
COALspot.com: The directorate general of mineral, coal and geothermal of Indonesia has begun publishing a monthly coal price reference (HBA) to be use ...
Thursday, 22 April 10
NEED TO IMPORT 82 MT COAL IN FISCAL - INDIA COAL MIN
Indian Express reported that, anxious to bridge the ever-widening gap between the rising demand for coal and its inadequate supply, the Coal Ministr ...
Thursday, 22 April 10
DRY CARGO DEMAND EXPECTED TO INCREASE, FAVORING HIGHER FREIGHT RATES
Increased dry bulk cargo demand is expected to become the norm in the coming weeks and months, according to analysts, which in turn should sustain f ...
Thursday, 22 April 10
INDIA'S BORL SEEKS TO BUY INDONESIAS LOW - SULFUR COAL
COALspot.com: Bharat Oman Refineries Ltd, a joint venture company (promoted by Bharat Petroleum Corporation Ltd, India and Oman Oil Company Lt ...
Wednesday, 21 April 10
INDONESIA SHIPPED 13.24 PERCENT MORE COAL IN MARCH THAN A MONTH EARLIER
COALspot.com: Indonesia, the world largest coal exporter, shipped 27,615,191 MT of coal in March 2010, compare to 24.38 million tons in January and ...
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- Simpson Spence & Young - Indonesia
- Price Waterhouse Coopers - Russia
- Commonwealth Bank - Australia
- Minerals Council of Australia
- International Coal Ventures Pvt Ltd - India
- CIMB Investment Bank - Malaysia
- London Commodity Brokers - England
- Formosa Plastics Group - Taiwan
- Kideco Jaya Agung - Indonesia
- GVK Power & Infra Limited - India
- GMR Energy Limited - India
- Australian Commodity Traders Exchange
- Borneo Indobara - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- PowerSource Philippines DevCo
- Bhatia International Limited - India
- New Zealand Coal & Carbon
- Bangladesh Power Developement Board
- Iligan Light & Power Inc, Philippines
- Energy Link Ltd, New Zealand
- Semirara Mining and Power Corporation, Philippines
- Orica Australia Pty. Ltd.
- Heidelberg Cement - Germany
- Krishnapatnam Port Company Ltd. - India
- Coalindo Energy - Indonesia
- Kobexindo Tractors - Indoneisa
- Samtan Co., Ltd - South Korea
- Meralco Power Generation, Philippines
- Indian Energy Exchange, India
- Ind-Barath Power Infra Limited - India
- Global Coal Blending Company Limited - Australia
- Maheswari Brothers Coal Limited - India
- Kumho Petrochemical, South Korea
- GAC Shipping (India) Pvt Ltd
- Central Electricity Authority - India
- Bayan Resources Tbk. - Indonesia
- Aboitiz Power Corporation - Philippines
- Mercuria Energy - Indonesia
- Mjunction Services Limited - India
- Bulk Trading Sa - Switzerland
- Metalloyd Limited - United Kingdom
- Meenaskhi Energy Private Limited - India
- Rashtriya Ispat Nigam Limited - India
- Merrill Lynch Commodities Europe
- Goldman Sachs - Singapore
- Indika Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Aditya Birla Group - India
- SMC Global Power, Philippines
- Star Paper Mills Limited - India
- VISA Power Limited - India
- Intertek Mineral Services - Indonesia
- Kaltim Prima Coal - Indonesia
- Straits Asia Resources Limited - Singapore
- Savvy Resources Ltd - HongKong
- Attock Cement Pakistan Limited
- Africa Commodities Group - South Africa
- Eastern Energy - Thailand
- Directorate Of Revenue Intelligence - India
- Malabar Cements Ltd - India
- Energy Development Corp, Philippines
- ICICI Bank Limited - India
- Thiess Contractors Indonesia
- Posco Energy - South Korea
- South Luzon Thermal Energy Corporation
- Vedanta Resources Plc - India
- Ambuja Cements Ltd - India
- The State Trading Corporation of India Ltd
- Oldendorff Carriers - Singapore
- Sarangani Energy Corporation, Philippines
- European Bulk Services B.V. - Netherlands
- Thai Mozambique Logistica
- Makarim & Taira - Indonesia
- Essar Steel Hazira Ltd - India
- Cement Manufacturers Association - India
- PTC India Limited - India
- Ministry of Mines - Canada
- Kartika Selabumi Mining - Indonesia
- Lanco Infratech Ltd - India
- McConnell Dowell - Australia
- Global Green Power PLC Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Miang Besar Coal Terminal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Videocon Industries ltd - India
- Parry Sugars Refinery, India
- Bukit Baiduri Energy - Indonesia
- Chettinad Cement Corporation Ltd - India
- Romanian Commodities Exchange
- Indonesian Coal Mining Association
- Ministry of Finance - Indonesia
- Timah Investasi Mineral - Indoneisa
- Georgia Ports Authority, United States
- Cigading International Bulk Terminal - Indonesia
- Grasim Industreis Ltd - India
- Dalmia Cement Bharat India
- Sojitz Corporation - Japan
- Kohat Cement Company Ltd. - Pakistan
- Binh Thuan Hamico - Vietnam
- Kapuas Tunggal Persada - Indonesia
- ASAPP Information Group - India
- SMG Consultants - Indonesia
- Medco Energi Mining Internasional
- Sical Logistics Limited - India
- Siam City Cement - Thailand
- Carbofer General Trading SA - India
- Indogreen Group - Indonesia
- IEA Clean Coal Centre - UK
- Mercator Lines Limited - India
- Madhucon Powers Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Electricity Authority, New Zealand
- Orica Mining Services - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Port Waratah Coal Services - Australia
- Barasentosa Lestari - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Renaissance Capital - South Africa
- Interocean Group of Companies - India
- Maharashtra Electricity Regulatory Commission - India
- PNOC Exploration Corporation - Philippines
- Anglo American - United Kingdom
- Economic Council, Georgia
- Gujarat Sidhee Cement - India
- IHS Mccloskey Coal Group - USA
- Holcim Trading Pte Ltd - Singapore
- Agrawal Coal Company - India
- Singapore Mercantile Exchange
- Pendopo Energi Batubara - Indonesia
- Kepco SPC Power Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Power Finance Corporation Ltd., India
- CNBM International Corporation - China
- Toyota Tsusho Corporation, Japan
- OPG Power Generation Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- The University of Queensland
- Chamber of Mines of South Africa
- Coastal Gujarat Power Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Trasteel International SA, Italy
- Latin American Coal - Colombia
- Wilmar Investment Holdings
- Sree Jayajothi Cements Limited - India
- Edison Trading Spa - Italy
- Parliament of New Zealand
- White Energy Company Limited
- Wood Mackenzie - Singapore
- Bukit Makmur.PT - Indonesia
- Semirara Mining Corp, Philippines
- Uttam Galva Steels Limited - India
- Riau Bara Harum - Indonesia
- The Treasury - Australian Government
- Asmin Koalindo Tuhup - Indonesia
- Rio Tinto Coal - Australia
- Independent Power Producers Association of India
- Global Business Power Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- San Jose City I Power Corp, Philippines
- Siam City Cement PLC, Thailand
- Antam Resourcindo - Indonesia
- TeaM Sual Corporation - Philippines
- Vizag Seaport Private Limited - India
- Tata Chemicals Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Tamil Nadu electricity Board
- Larsen & Toubro Limited - India
- Electricity Generating Authority of Thailand
- Central Java Power - Indonesia
- Deloitte Consulting - India
- Gujarat Mineral Development Corp Ltd - India
- Ministry of Transport, Egypt
- Karaikal Port Pvt Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Planning Commission, India
- Coal and Oil Company - UAE
- Manunggal Multi Energi - Indonesia
- Bhoruka Overseas - Indonesia
- Bharathi Cement Corporation - India
- LBH Netherlands Bv - Netherlands
- India Bulls Power Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Petron Corporation, Philippines
- Altura Mining Limited, Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Eastern Coal Council - USA
- Ceylon Electricity Board - Sri Lanka
- Therma Luzon, Inc, Philippines
- MS Steel International - UAE
- Jindal Steel & Power Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Leighton Contractors Pty Ltd - Australia
- Baramulti Group, Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Standard Chartered Bank - UAE
- Indo Tambangraya Megah - Indonesia
- Bhushan Steel Limited - India
- Sinarmas Energy and Mining - Indonesia
- Sindya Power Generating Company Private Ltd
- Sakthi Sugars Limited - India
- Indian Oil Corporation Limited
- Australian Coal Association
- Xindia Steels Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Alfred C Toepfer International GmbH - Germany
- Mintek Dendrill Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Marubeni Corporation - India
- SN Aboitiz Power Inc, Philippines
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