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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, 16 March 15
MAKING THE WORLD GO ROUND - SEABORNE TRADE! - CLARKSONS
Money, or even love if you prefer, are claimed to make the world go round. For the shipping world, however, it’s trade that sets things spinn ...
Monday, 16 March 15
API 5 FOB NEWCASTLE COAL SWAPS: DECLINED
COALspot.com: API 5 FOB Newcastle Coal swap for Q2’ 2015 delivery declined US$ 2.48 per MT (-4.77%) month over month and US$ 0.93 (-1.84%) we ...
Monday, 16 March 15
CFR SOUTH CHINA THERMAL COAL SWAP DECLINED 3.74% M-O-M
COALspot.com: API 8 CFR South China Coal swap for Q2’ 2015 delivery declined US$ 2.17 (-3.74%) per MT month over month and US$ 0.67 (-1 ...
Sunday, 15 March 15
BDI DECLINED LESSER THAN 1% WEEK OVER WEEK; INDO-INDIA FIRM
COALspot.com: The most of indices, including bulk dry index were falling this week. The BDI has been down by just 0.53 points and closing at 562 po ...
Saturday, 14 March 15
CAPESIZE DRY BULKERS TO AVERAGE BETWEEN $3,000 AND $9,000/DAY IN THE COMING WEEKS SAYS BIMCO
BIMCO issued its latest short-term estimates for the dry bulk market. For March/May: BIMCO assesses that the Capesize time charter (T/C) average ra ...
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- Indo Tambangraya Megah - Indonesia
- Vedanta Resources Plc - India
- VISA Power Limited - India
- Interocean Group of Companies - India
- GAC Shipping (India) Pvt Ltd
- Samtan Co., Ltd - South Korea
- Independent Power Producers Association of India
- Indian Energy Exchange, India
- Kideco Jaya Agung - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Thai Mozambique Logistica
- Iligan Light & Power Inc, Philippines
- European Bulk Services B.V. - Netherlands
- Coalindo Energy - Indonesia
- Edison Trading Spa - Italy
- Minerals Council of Australia
- Economic Council, Georgia
- PTC India Limited - India
- Power Finance Corporation Ltd., India
- Coal and Oil Company - UAE
- Thiess Contractors Indonesia
- Bharathi Cement Corporation - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Maharashtra Electricity Regulatory Commission - India
- London Commodity Brokers - England
- Ind-Barath Power Infra Limited - India
- Altura Mining Limited, Indonesia
- Metalloyd Limited - United Kingdom
- New Zealand Coal & Carbon
- Kohat Cement Company Ltd. - Pakistan
- Meenaskhi Energy Private Limited - India
- Chettinad Cement Corporation Ltd - India
- Parry Sugars Refinery, India
- SMC Global Power, Philippines
- Marubeni Corporation - India
- Bukit Makmur.PT - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Agrawal Coal Company - India
- Savvy Resources Ltd - HongKong
- Therma Luzon, Inc, Philippines
- Carbofer General Trading SA - India
- Intertek Mineral Services - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- TeaM Sual Corporation - Philippines
- SMG Consultants - Indonesia
- Global Green Power PLC Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bhushan Steel Limited - India
- India Bulls Power Limited - India
- Formosa Plastics Group - Taiwan
- Kumho Petrochemical, South Korea
- Singapore Mercantile Exchange
- Sical Logistics Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Lanco Infratech Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Larsen & Toubro Limited - India
- Tamil Nadu electricity Board
- Gujarat Electricity Regulatory Commission - India
- Neyveli Lignite Corporation Ltd, - India
- Ministry of Transport, Egypt
- Oldendorff Carriers - Singapore
- Mercuria Energy - Indonesia
- Australian Commodity Traders Exchange
- Karaikal Port Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Parliament of New Zealand
- Australian Coal Association
- Timah Investasi Mineral - Indoneisa
- South Luzon Thermal Energy Corporation
- Maheswari Brothers Coal Limited - India
- Barasentosa Lestari - Indonesia
- The Treasury - Australian Government
- Renaissance Capital - South Africa
- Indonesian Coal Mining Association
- Bhoruka Overseas - Indonesia
- Manunggal Multi Energi - Indonesia
- Global Coal Blending Company Limited - Australia
- Kalimantan Lumbung Energi - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Kaltim Prima Coal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Latin American Coal - Colombia
- Xindia Steels Limited - India
- Banpu Public Company Limited - Thailand
- CNBM International Corporation - China
- Romanian Commodities Exchange
- Cement Manufacturers Association - India
- Malabar Cements Ltd - India
- Energy Development Corp, Philippines
- Pendopo Energi Batubara - Indonesia
- Commonwealth Bank - Australia
- PNOC Exploration Corporation - Philippines
- Meralco Power Generation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- San Jose City I Power Corp, Philippines
- Price Waterhouse Coopers - Russia
- Ministry of Mines - Canada
- Miang Besar Coal Terminal - Indonesia
- Chamber of Mines of South Africa
- Vijayanagar Sugar Pvt Ltd - India
- Deloitte Consulting - India
- GMR Energy Limited - India
- Kartika Selabumi Mining - Indonesia
- Makarim & Taira - Indonesia
- ICICI Bank Limited - India
- Aditya Birla Group - India
- GN Power Mariveles Coal Plant, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Posco Energy - South Korea
- Eastern Coal Council - USA
- Global Business Power Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Siam City Cement PLC, Thailand
- White Energy Company Limited
- Sinarmas Energy and Mining - Indonesia
- Anglo American - United Kingdom
- Petrochimia International Co. Ltd.- Taiwan
- Semirara Mining Corp, Philippines
- LBH Netherlands Bv - Netherlands
- Rashtriya Ispat Nigam Limited - India
- Jaiprakash Power Ventures ltd
- Riau Bara Harum - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Bukit Asam (Persero) Tbk - Indonesia
- Alfred C Toepfer International GmbH - Germany
- MS Steel International - UAE
- SN Aboitiz Power Inc, Philippines
- Vizag Seaport Private Limited - India
- Globalindo Alam Lestari - Indonesia
- ASAPP Information Group - India
- Georgia Ports Authority, United States
- The University of Queensland
- Indika Energy - Indonesia
- Energy Link Ltd, New Zealand
- Bayan Resources Tbk. - Indonesia
- Baramulti Group, Indonesia
- Coastal Gujarat Power Limited - India
- Merrill Lynch Commodities Europe
- Mjunction Services Limited - India
- Binh Thuan Hamico - Vietnam
- Trasteel International SA, Italy
- Ambuja Cements Ltd - India
- Directorate Of Revenue Intelligence - India
- Sree Jayajothi Cements Limited - India
- PowerSource Philippines DevCo
- Sojitz Corporation - Japan
- Billiton Holdings Pty Ltd - Australia
- Uttam Galva Steels Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Star Paper Mills Limited - India
- Electricity Generating Authority of Thailand
- Eastern Energy - Thailand
- The State Trading Corporation of India Ltd
- Toyota Tsusho Corporation, Japan
- Jorong Barutama Greston.PT - Indonesia
- Africa Commodities Group - South Africa
- Antam Resourcindo - Indonesia
- Indogreen Group - Indonesia
- Salva Resources Pvt Ltd - India
- Port Waratah Coal Services - Australia
- Orica Australia Pty. Ltd.
- Attock Cement Pakistan Limited
- Straits Asia Resources Limited - Singapore
- Videocon Industries ltd - India
- Simpson Spence & Young - Indonesia
- Mintek Dendrill Indonesia
- Goldman Sachs - Singapore
- Bulk Trading Sa - Switzerland
- Sindya Power Generating Company Private Ltd
- Petron Corporation, Philippines
- Borneo Indobara - Indonesia
- Gujarat Sidhee Cement - India
- Electricity Authority, New Zealand
- Siam City Cement - Thailand
- Central Electricity Authority - India
- Holcim Trading Pte Ltd - Singapore
- GVK Power & Infra Limited - India
- IHS Mccloskey Coal Group - USA
- Sakthi Sugars Limited - India
- Wilmar Investment Holdings
- Rio Tinto Coal - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Planning Commission, India
- Medco Energi Mining Internasional
- Krishnapatnam Port Company Ltd. - India
- Indian Oil Corporation Limited
- Cigading International Bulk Terminal - Indonesia
- Orica Mining Services - Indonesia
- Bangladesh Power Developement Board
- International Coal Ventures Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Madhucon Powers Ltd - India
- Tata Chemicals Ltd - India
- McConnell Dowell - Australia
- Kapuas Tunggal Persada - Indonesia
- Wood Mackenzie - Singapore
- Dalmia Cement Bharat India
- Central Java Power - Indonesia
- Kepco SPC Power Corporation, Philippines
- Bukit Baiduri Energy - Indonesia
- CIMB Investment Bank - Malaysia
- OPG Power Generation Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Bhatia International Limited - India
- Essar Steel Hazira Ltd - India
- Heidelberg Cement - Germany
- Sarangani Energy Corporation, Philippines
- Ministry of Finance - Indonesia
- Ceylon Electricity Board - Sri Lanka
- IEA Clean Coal Centre - UK
- Standard Chartered Bank - UAE
- Mercator Lines Limited - India
- Grasim Industreis Ltd - India
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