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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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Tuesday, 24 February 15
IHS ENERGY COAL CONFERENCE OF THE AMERICAS
Attend the IHS Energy Coal Conference of the Americas 17-19 March in Cartagena, Colombia and learn about timely concerns in today's coal indust ...
Monday, 23 February 15
Q2' CFR SOUTH CHINA COAL SWAP FOR Q2 ROSE 3.39% M-O-M
COALspot.com: API 8 CFR South China Coal swap for Q2’ 2015 delivery rose US$ 1.90 (+3.39%) per MT month over month and declined US$ 0.08 ...
Monday, 23 February 15
Q2' API 5 FOB NEWCASTLE COAL SWAP CLOSED $1 HIGHER THAN Q3
COALspot.com: API 5 FOB Newcastle Coal swap for Q2’ 2015 delivery rose US$ 3.12 per MT (+6.44%) month over month and fall US$ 0.43 (-0.83%) w ...
Sunday, 22 February 15
THE BALTIC DRY INDEX LOST ALMOST 3.2% OR 17 POINTS WEEK ON WEEK
COALspot.com: The Baltic Dry Index, one of the economic indicators that monitors the health of the world's economy by tracking the price of shi ...
Friday, 20 February 15
GOVT SET TO INCREASE COAL OUTPUT TARGET THIS YEAR - JAKARTA POST
The Energy and Mineral Resources Ministry is planning to increase its coal output target this year as the government seeks to offset the ongoing de ...
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- PetroVietnam Power Coal Import and Supply Company
- Bhatia International Limited - India
- Meralco Power Generation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Petron Corporation, Philippines
- Anglo American - United Kingdom
- Ind-Barath Power Infra Limited - India
- Electricity Authority, New Zealand
- Maharashtra Electricity Regulatory Commission - India
- Sinarmas Energy and Mining - Indonesia
- Lanco Infratech Ltd - India
- Oldendorff Carriers - Singapore
- Maheswari Brothers Coal Limited - India
- New Zealand Coal & Carbon
- Offshore Bulk Terminal Pte Ltd, Singapore
- Coal and Oil Company - UAE
- PTC India Limited - India
- Kepco SPC Power Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Rio Tinto Coal - Australia
- Kobexindo Tractors - Indoneisa
- Cement Manufacturers Association - India
- Riau Bara Harum - Indonesia
- Bangladesh Power Developement Board
- Therma Luzon, Inc, Philippines
- Coalindo Energy - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Trasteel International SA, Italy
- Marubeni Corporation - India
- Sarangani Energy Corporation, Philippines
- Georgia Ports Authority, United States
- Antam Resourcindo - Indonesia
- Attock Cement Pakistan Limited
- Energy Development Corp, Philippines
- TeaM Sual Corporation - Philippines
- Agrawal Coal Company - India
- Timah Investasi Mineral - Indoneisa
- Siam City Cement PLC, Thailand
- Sindya Power Generating Company Private Ltd
- Meenaskhi Energy Private Limited - India
- Leighton Contractors Pty Ltd - Australia
- Chamber of Mines of South Africa
- Star Paper Mills Limited - India
- Ministry of Finance - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Central Electricity Authority - India
- Intertek Mineral Services - Indonesia
- Samtan Co., Ltd - South Korea
- IHS Mccloskey Coal Group - USA
- Billiton Holdings Pty Ltd - Australia
- Australian Commodity Traders Exchange
- Kartika Selabumi Mining - Indonesia
- Port Waratah Coal Services - Australia
- Tamil Nadu electricity Board
- Barasentosa Lestari - Indonesia
- Indian Oil Corporation Limited
- Parry Sugars Refinery, India
- Bhushan Steel Limited - India
- SMC Global Power, Philippines
- Wood Mackenzie - Singapore
- Thai Mozambique Logistica
- Latin American Coal - Colombia
- Bukit Baiduri Energy - Indonesia
- Globalindo Alam Lestari - Indonesia
- Larsen & Toubro Limited - India
- SN Aboitiz Power Inc, Philippines
- Gujarat Sidhee Cement - India
- Iligan Light & Power Inc, Philippines
- Commonwealth Bank - Australia
- Australian Coal Association
- Banpu Public Company Limited - Thailand
- Ceylon Electricity Board - Sri Lanka
- Bayan Resources Tbk. - Indonesia
- Romanian Commodities Exchange
- Sakthi Sugars Limited - India
- Rashtriya Ispat Nigam Limited - India
- Ambuja Cements Ltd - India
- Aditya Birla Group - India
- Electricity Generating Authority of Thailand
- Global Coal Blending Company Limited - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Global Business Power Corporation, Philippines
- Baramulti Group, Indonesia
- European Bulk Services B.V. - Netherlands
- Heidelberg Cement - Germany
- Karbindo Abesyapradhi - Indoneisa
- IEA Clean Coal Centre - UK
- Videocon Industries ltd - India
- LBH Netherlands Bv - Netherlands
- Jaiprakash Power Ventures ltd
- GAC Shipping (India) Pvt Ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Mercuria Energy - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Wilmar Investment Holdings
- Medco Energi Mining Internasional
- Pipit Mutiara Jaya. PT, Indonesia
- Malabar Cements Ltd - India
- Pendopo Energi Batubara - Indonesia
- Ministry of Transport, Egypt
- Bulk Trading Sa - Switzerland
- Holcim Trading Pte Ltd - Singapore
- Parliament of New Zealand
- Standard Chartered Bank - UAE
- Orica Australia Pty. Ltd.
- Global Green Power PLC Corporation, Philippines
- India Bulls Power Limited - India
- Altura Mining Limited, Indonesia
- Renaissance Capital - South Africa
- McConnell Dowell - Australia
- San Jose City I Power Corp, Philippines
- Thiess Contractors Indonesia
- Kideco Jaya Agung - Indonesia
- PNOC Exploration Corporation - Philippines
- Makarim & Taira - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Semirara Mining Corp, Philippines
- Energy Link Ltd, New Zealand
- Mjunction Services Limited - India
- ASAPP Information Group - India
- Kumho Petrochemical, South Korea
- Directorate General of MIneral and Coal - Indonesia
- Mercator Lines Limited - India
- Straits Asia Resources Limited - Singapore
- PowerSource Philippines DevCo
- Carbofer General Trading SA - India
- Planning Commission, India
- Toyota Tsusho Corporation, Japan
- Ministry of Mines - Canada
- Vijayanagar Sugar Pvt Ltd - India
- White Energy Company Limited
- Merrill Lynch Commodities Europe
- Kaltim Prima Coal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Karaikal Port Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- Savvy Resources Ltd - HongKong
- Salva Resources Pvt Ltd - India
- Interocean Group of Companies - India
- Miang Besar Coal Terminal - Indonesia
- Grasim Industreis Ltd - India
- Indika Energy - Indonesia
- Borneo Indobara - Indonesia
- Central Java Power - Indonesia
- Sree Jayajothi Cements Limited - India
- Bhoruka Overseas - Indonesia
- Goldman Sachs - Singapore
- Sical Logistics Limited - India
- GVK Power & Infra Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Independent Power Producers Association of India
- Bukit Makmur.PT - Indonesia
- Indogreen Group - Indonesia
- South Luzon Thermal Energy Corporation
- Bukit Asam (Persero) Tbk - Indonesia
- GMR Energy Limited - India
- Indo Tambangraya Megah - Indonesia
- Directorate Of Revenue Intelligence - India
- ICICI Bank Limited - India
- Aboitiz Power Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indonesian Coal Mining Association
- Neyveli Lignite Corporation Ltd, - India
- MS Steel International - UAE
- International Coal Ventures Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Essar Steel Hazira Ltd - India
- The University of Queensland
- Vedanta Resources Plc - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Minerals Council of Australia
- Bharathi Cement Corporation - India
- Sojitz Corporation - Japan
- Price Waterhouse Coopers - Russia
- London Commodity Brokers - England
- Kohat Cement Company Ltd. - Pakistan
- The Treasury - Australian Government
- SMG Consultants - Indonesia
- VISA Power Limited - India
- Uttam Galva Steels Limited - India
- Vizag Seaport Private Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- The State Trading Corporation of India Ltd
- Bahari Cakrawala Sebuku - Indonesia
- Orica Mining Services - Indonesia
- Siam City Cement - Thailand
- Formosa Plastics Group - Taiwan
- Posco Energy - South Korea
- CIMB Investment Bank - Malaysia
- Edison Trading Spa - Italy
- Binh Thuan Hamico - Vietnam
- Economic Council, Georgia
- CNBM International Corporation - China
- Coastal Gujarat Power Limited - India
- Africa Commodities Group - South Africa
- Semirara Mining and Power Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Jindal Steel & Power Ltd - India
- Dalmia Cement Bharat India
- Indian Energy Exchange, India
- Xindia Steels Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Singapore Mercantile Exchange
- Power Finance Corporation Ltd., India
- Tata Chemicals Ltd - India
- Deloitte Consulting - India
- Eastern Energy - Thailand
- OPG Power Generation Pvt Ltd - India
- Mintek Dendrill Indonesia
- Eastern Coal Council - USA
- Madhucon Powers Ltd - India
- Metalloyd Limited - United Kingdom
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