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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, 30 March 15
WORST IS OVER FOR THE DRY BULK MARKET, BUT THE PAIN WILL REMAIN FOR YEARS TO COME, SAYS BIMCO CHIEF ANALYST - HELLENIC SHIPPING
The current demise of the dry bulk market isn’t one to go away anytime soon. That doesn’t mean that it can’t improve, with all sh ...
Monday, 30 March 15
Q3' 15 CFR SOUTH CHINA COAL SWAP: DECLINED 8.7% M-M; 12.77% Y-TO-D
COALspot.com: API 8 CFR South China Coal swap for Q2’ 2015 delivery declined US$ 5.00 (-8.70%) per MT month over month and US$ 1.33 (-2 ...
Monday, 30 March 15
Q2' FOB NEWCASTLE COAL SWAP CLOSED 4.47% HIGHER THAN Q4' CLOSING PRICE
COALspot.com: API 5 FOB Newcastle Coal swap for Q2’ 2015 delivery declined US$ 5.42 per MT (-10.43%) month over month and US$ 1.60 (-3.32%) w ...
Sunday, 29 March 15
INDO - INDIA: SUPRAMAX & PANAMAX FREIGHT MARKET STEADY
COALspot.com: The freight market was almost stable as all segments slightly up except Panamax sector.
The BDI was up by just 0.85% week over w ...
Saturday, 28 March 15
IS NORTHERN EUROPE THE NEW MINING ELDORADO?
The Europe Mining 2015 Summit, organised by Global Summits organizer IRN on 17-18 June in Amsterdam, The Netherlands, will gather senior level repr ...
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- Directorate General of MIneral and Coal - Indonesia
- Binh Thuan Hamico - Vietnam
- Bukit Makmur.PT - Indonesia
- Oldendorff Carriers - Singapore
- Mercator Lines Limited - India
- Gujarat Sidhee Cement - India
- Aditya Birla Group - India
- SMG Consultants - Indonesia
- Directorate Of Revenue Intelligence - India
- Kalimantan Lumbung Energi - Indonesia
- Cement Manufacturers Association - India
- GAC Shipping (India) Pvt Ltd
- Global Business Power Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Pendopo Energi Batubara - Indonesia
- Bukit Baiduri Energy - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Lanco Infratech Ltd - India
- Energy Development Corp, Philippines
- Antam Resourcindo - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Borneo Indobara - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Bhatia International Limited - India
- OPG Power Generation Pvt Ltd - India
- Sojitz Corporation - Japan
- Bhoruka Overseas - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bangladesh Power Developement Board
- ICICI Bank Limited - India
- PowerSource Philippines DevCo
- Trasteel International SA, Italy
- GVK Power & Infra Limited - India
- Commonwealth Bank - Australia
- IEA Clean Coal Centre - UK
- Jindal Steel & Power Ltd - India
- Singapore Mercantile Exchange
- Ambuja Cements Ltd - India
- Sical Logistics Limited - India
- Australian Commodity Traders Exchange
- Straits Asia Resources Limited - Singapore
- Price Waterhouse Coopers - Russia
- Minerals Council of Australia
- Manunggal Multi Energi - Indonesia
- Renaissance Capital - South Africa
- Semirara Mining and Power Corporation, Philippines
- Electricity Generating Authority of Thailand
- Thai Mozambique Logistica
- Chamber of Mines of South Africa
- Indo Tambangraya Megah - Indonesia
- Medco Energi Mining Internasional
- Kobexindo Tractors - Indoneisa
- Mercuria Energy - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Alfred C Toepfer International GmbH - Germany
- Kideco Jaya Agung - Indonesia
- Global Green Power PLC Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Sindya Power Generating Company Private Ltd
- Uttam Galva Steels Limited - India
- Africa Commodities Group - South Africa
- Barasentosa Lestari - Indonesia
- TeaM Sual Corporation - Philippines
- Ind-Barath Power Infra Limited - India
- Petron Corporation, Philippines
- Planning Commission, India
- European Bulk Services B.V. - Netherlands
- Dalmia Cement Bharat India
- Coalindo Energy - Indonesia
- Simpson Spence & Young - Indonesia
- Goldman Sachs - Singapore
- Merrill Lynch Commodities Europe
- Eastern Energy - Thailand
- Cigading International Bulk Terminal - Indonesia
- ASAPP Information Group - India
- Mintek Dendrill Indonesia
- Larsen & Toubro Limited - India
- PNOC Exploration Corporation - Philippines
- The University of Queensland
- Bhushan Steel Limited - India
- Ministry of Mines - Canada
- Metalloyd Limited - United Kingdom
- Electricity Authority, New Zealand
- London Commodity Brokers - England
- CIMB Investment Bank - Malaysia
- Coal and Oil Company - UAE
- Romanian Commodities Exchange
- The Treasury - Australian Government
- Petrochimia International Co. Ltd.- Taiwan
- Formosa Plastics Group - Taiwan
- Ministry of Finance - Indonesia
- Agrawal Coal Company - India
- Orica Mining Services - Indonesia
- Timah Investasi Mineral - Indoneisa
- Kumho Petrochemical, South Korea
- CNBM International Corporation - China
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- GMR Energy Limited - India
- Malabar Cements Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Parry Sugars Refinery, India
- Parliament of New Zealand
- Posco Energy - South Korea
- Power Finance Corporation Ltd., India
- Port Waratah Coal Services - Australia
- Attock Cement Pakistan Limited
- Bharathi Cement Corporation - India
- Wilmar Investment Holdings
- Global Coal Blending Company Limited - Australia
- Sakthi Sugars Limited - India
- Sarangani Energy Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- International Coal Ventures Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Central Electricity Authority - India
- Vedanta Resources Plc - India
- SMC Global Power, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Holcim Trading Pte Ltd - Singapore
- Karbindo Abesyapradhi - Indoneisa
- IHS Mccloskey Coal Group - USA
- Jorong Barutama Greston.PT - Indonesia
- McConnell Dowell - Australia
- Tata Chemicals Ltd - India
- Energy Link Ltd, New Zealand
- Gujarat Mineral Development Corp Ltd - India
- Kaltim Prima Coal - Indonesia
- Carbofer General Trading SA - India
- Makarim & Taira - Indonesia
- Anglo American - United Kingdom
- Kartika Selabumi Mining - Indonesia
- Siam City Cement PLC, Thailand
- Meenaskhi Energy Private Limited - India
- Standard Chartered Bank - UAE
- Star Paper Mills Limited - India
- Orica Australia Pty. Ltd.
- Iligan Light & Power Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Baramulti Group, Indonesia
- LBH Netherlands Bv - Netherlands
- Indogreen Group - Indonesia
- SN Aboitiz Power Inc, Philippines
- Indonesian Coal Mining Association
- Sinarmas Energy and Mining - Indonesia
- Altura Mining Limited, Indonesia
- New Zealand Coal & Carbon
- San Jose City I Power Corp, Philippines
- Mjunction Services Limited - India
- Kapuas Tunggal Persada - Indonesia
- Rio Tinto Coal - Australia
- Tamil Nadu electricity Board
- Interocean Group of Companies - India
- Aboitiz Power Corporation - Philippines
- Gujarat Electricity Regulatory Commission - India
- Asmin Koalindo Tuhup - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bahari Cakrawala Sebuku - Indonesia
- Videocon Industries ltd - India
- Karaikal Port Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Krishnapatnam Port Company Ltd. - India
- Deloitte Consulting - India
- MS Steel International - UAE
- Bulk Trading Sa - Switzerland
- Globalindo Alam Lestari - Indonesia
- Sree Jayajothi Cements Limited - India
- PTC India Limited - India
- Economic Council, Georgia
- Pipit Mutiara Jaya. PT, Indonesia
- Madhucon Powers Ltd - India
- Heidelberg Cement - Germany
- The State Trading Corporation of India Ltd
- Georgia Ports Authority, United States
- Chettinad Cement Corporation Ltd - India
- Maheswari Brothers Coal Limited - India
- Xindia Steels Limited - India
- Coastal Gujarat Power Limited - India
- Vizag Seaport Private Limited - India
- Central Java Power - Indonesia
- Independent Power Producers Association of India
- Salva Resources Pvt Ltd - India
- Meralco Power Generation, Philippines
- Toyota Tsusho Corporation, Japan
- Indian Oil Corporation Limited
- Bayan Resources Tbk. - Indonesia
- White Energy Company Limited
- Indika Energy - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Riau Bara Harum - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Banpu Public Company Limited - Thailand
- Miang Besar Coal Terminal - Indonesia
- Savvy Resources Ltd - HongKong
- Ministry of Transport, Egypt
- Kepco SPC Power Corporation, Philippines
- Australian Coal Association
- Samtan Co., Ltd - South Korea
- Semirara Mining Corp, Philippines
- Grasim Industreis Ltd - India
- Siam City Cement - Thailand
- Essar Steel Hazira Ltd - India
- Wood Mackenzie - Singapore
- Eastern Coal Council - USA
- Intertek Mineral Services - Indonesia
- Thiess Contractors Indonesia
- India Bulls Power Limited - India
- Indian Energy Exchange, India
- Latin American Coal - Colombia
- Edison Trading Spa - Italy
- Marubeni Corporation - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- VISA Power Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Therma Luzon, Inc, Philippines
- Jaiprakash Power Ventures ltd
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