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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, 11 September 15
SHIPPING MARKETS SHOW MIXED EMOTIONS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The dry bulk market has managed to show marginal improvements over the past few days, with the Capesize segment faring better than smaller dry bulk ...
Friday, 11 September 15
U.S'S WEEKLY COAL PRODUCTION WAS ALMOST FLAT PAST WEEK
COALspot.com – United States the world’s second largest coal producer has produced approximately totaled an estimated 18.6 million shor ...
Thursday, 10 September 15
U.S. H1' 15 STEAM COAL EXPORTS FELL BY 21 PER CENT Y-Y: EIA
Coal Trade
Slower growth in world coal demand, lower international coal prices, and higher coal output in other coal-exporting countries have all ...
Thursday, 10 September 15
INDONESIAN COAL BENCHMARK PRICE HITS A NEW LOW OF $58.21 PER TON
COALspot.com - The Director General of Mineral and Coal of Indonesia once a again revised down Indonesian coal benchmark price to US$ 58.21 per MT ...
Thursday, 10 September 15
IF NOT NOW, WHEN? - GIANNIS ANDRITSOPOULOS
Our industry is well known to be cyclical with some cycles lasting longer than others. Despite the fact that these shifts in the behavior of the fr ...
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- Medco Energi Mining Internasional
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kepco SPC Power Corporation, Philippines
- Carbofer General Trading SA - India
- ICICI Bank Limited - India
- Price Waterhouse Coopers - Russia
- The University of Queensland
- OPG Power Generation Pvt Ltd - India
- Chamber of Mines of South Africa
- Agrawal Coal Company - India
- Planning Commission, India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sical Logistics Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Straits Asia Resources Limited - Singapore
- Bharathi Cement Corporation - India
- Ministry of Mines - Canada
- Indogreen Group - Indonesia
- CNBM International Corporation - China
- Oldendorff Carriers - Singapore
- Star Paper Mills Limited - India
- Pendopo Energi Batubara - Indonesia
- Sakthi Sugars Limited - India
- Sinarmas Energy and Mining - Indonesia
- GAC Shipping (India) Pvt Ltd
- SMG Consultants - Indonesia
- Thai Mozambique Logistica
- Gujarat Sidhee Cement - India
- Ministry of Transport, Egypt
- Intertek Mineral Services - Indonesia
- Standard Chartered Bank - UAE
- Maharashtra Electricity Regulatory Commission - India
- VISA Power Limited - India
- PowerSource Philippines DevCo
- Kartika Selabumi Mining - Indonesia
- Port Waratah Coal Services - Australia
- Barasentosa Lestari - Indonesia
- Thiess Contractors Indonesia
- IEA Clean Coal Centre - UK
- Directorate General of MIneral and Coal - Indonesia
- Singapore Mercantile Exchange
- Jaiprakash Power Ventures ltd
- South Luzon Thermal Energy Corporation
- Holcim Trading Pte Ltd - Singapore
- Indian Oil Corporation Limited
- Global Coal Blending Company Limited - Australia
- Bulk Trading Sa - Switzerland
- Coal and Oil Company - UAE
- Ministry of Finance - Indonesia
- Bhatia International Limited - India
- Africa Commodities Group - South Africa
- Siam City Cement - Thailand
- Parliament of New Zealand
- Bukit Asam (Persero) Tbk - Indonesia
- Vizag Seaport Private Limited - India
- SN Aboitiz Power Inc, Philippines
- Karaikal Port Pvt Ltd - India
- Indonesian Coal Mining Association
- PNOC Exploration Corporation - Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Energy Development Corp, Philippines
- Indo Tambangraya Megah - Indonesia
- Samtan Co., Ltd - South Korea
- Mercuria Energy - Indonesia
- Petron Corporation, Philippines
- New Zealand Coal & Carbon
- Posco Energy - South Korea
- Mercator Lines Limited - India
- GVK Power & Infra Limited - India
- Bhushan Steel Limited - India
- Mintek Dendrill Indonesia
- Cigading International Bulk Terminal - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Meenaskhi Energy Private Limited - India
- Independent Power Producers Association of India
- Alfred C Toepfer International GmbH - Germany
- Sree Jayajothi Cements Limited - India
- Rio Tinto Coal - Australia
- Larsen & Toubro Limited - India
- Banpu Public Company Limited - Thailand
- Kohat Cement Company Ltd. - Pakistan
- Asmin Koalindo Tuhup - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Goldman Sachs - Singapore
- Deloitte Consulting - India
- Therma Luzon, Inc, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Vedanta Resources Plc - India
- CIMB Investment Bank - Malaysia
- Krishnapatnam Port Company Ltd. - India
- Coastal Gujarat Power Limited - India
- Tata Chemicals Ltd - India
- IHS Mccloskey Coal Group - USA
- Orica Mining Services - Indonesia
- European Bulk Services B.V. - Netherlands
- Anglo American - United Kingdom
- Electricity Generating Authority of Thailand
- Merrill Lynch Commodities Europe
- Petrochimia International Co. Ltd.- Taiwan
- Altura Mining Limited, Indonesia
- SMC Global Power, Philippines
- Central Java Power - Indonesia
- Videocon Industries ltd - India
- Sojitz Corporation - Japan
- Manunggal Multi Energi - Indonesia
- Metalloyd Limited - United Kingdom
- Timah Investasi Mineral - Indoneisa
- Tamil Nadu electricity Board
- Jindal Steel & Power Ltd - India
- Riau Bara Harum - Indonesia
- Malabar Cements Ltd - India
- Commonwealth Bank - Australia
- Global Green Power PLC Corporation, Philippines
- Edison Trading Spa - Italy
- Borneo Indobara - Indonesia
- Wilmar Investment Holdings
- Neyveli Lignite Corporation Ltd, - India
- TeaM Sual Corporation - Philippines
- Kobexindo Tractors - Indoneisa
- McConnell Dowell - Australia
- Indian Energy Exchange, India
- Salva Resources Pvt Ltd - India
- GMR Energy Limited - India
- Gujarat Mineral Development Corp Ltd - India
- White Energy Company Limited
- Heidelberg Cement - Germany
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Ambuja Cements Ltd - India
- Toyota Tsusho Corporation, Japan
- Georgia Ports Authority, United States
- Essar Steel Hazira Ltd - India
- Aboitiz Power Corporation - Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- India Bulls Power Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Australian Coal Association
- Simpson Spence & Young - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Latin American Coal - Colombia
- The Treasury - Australian Government
- Power Finance Corporation Ltd., India
- London Commodity Brokers - England
- Kumho Petrochemical, South Korea
- Antam Resourcindo - Indonesia
- PTC India Limited - India
- Parry Sugars Refinery, India
- Bayan Resources Tbk. - Indonesia
- Romanian Commodities Exchange
- Semirara Mining Corp, Philippines
- International Coal Ventures Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- Renaissance Capital - South Africa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Meralco Power Generation, Philippines
- Sarangani Energy Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- ASAPP Information Group - India
- Economic Council, Georgia
- Iligan Light & Power Inc, Philippines
- Interocean Group of Companies - India
- Energy Link Ltd, New Zealand
- The State Trading Corporation of India Ltd
- Globalindo Alam Lestari - Indonesia
- LBH Netherlands Bv - Netherlands
- Maheswari Brothers Coal Limited - India
- Sindya Power Generating Company Private Ltd
- Bhoruka Overseas - Indonesia
- Eastern Energy - Thailand
- Kaltim Prima Coal - Indonesia
- Bukit Makmur.PT - Indonesia
- Binh Thuan Hamico - Vietnam
- Eastern Coal Council - USA
- Dalmia Cement Bharat India
- Semirara Mining and Power Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Baramulti Group, Indonesia
- Xindia Steels Limited - India
- Kideco Jaya Agung - Indonesia
- Siam City Cement PLC, Thailand
- Indika Energy - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Trasteel International SA, Italy
- Electricity Authority, New Zealand
- Uttam Galva Steels Limited - India
- Formosa Plastics Group - Taiwan
- Wood Mackenzie - Singapore
- Ceylon Electricity Board - Sri Lanka
- Directorate Of Revenue Intelligence - India
- MS Steel International - UAE
- Billiton Holdings Pty Ltd - Australia
- San Jose City I Power Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Central Electricity Authority - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Savvy Resources Ltd - HongKong
- Cement Manufacturers Association - India
- Coalindo Energy - Indonesia
- Global Business Power Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Grasim Industreis Ltd - India
- Orica Australia Pty. Ltd.
- Minerals Council of Australia
- TNB Fuel Sdn Bhd - Malaysia
- Bukit Baiduri Energy - Indonesia
- Madhucon Powers Ltd - India
- Makarim & Taira - Indonesia
- Aditya Birla Group - India
- Lanco Infratech Ltd - India
- Australian Commodity Traders Exchange
- Ind-Barath Power Infra Limited - India
- Bangladesh Power Developement Board
- Mjunction Services Limited - India
- Marubeni Corporation - India
- Rashtriya Ispat Nigam Limited - India
- Attock Cement Pakistan Limited
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