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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, 26 September 14
NEWCASTLMAXES ARE THE MOST SOUGHT AFTER VESSELS BY SHIP OWNERS TODAY SAYS VESSELS VALUE
KNOWLEDGE TO ELEVATE
Determining a ship’s fair value can be a very tricky business, especially when you’re the one paying. As such ...
Thursday, 25 September 14
LACK OF COAL BUSINESS PUSHING DOWN PANAMAX EARNINGS IN PACIFIC
Handy
In the Atlantic we see rates steady climbing upwards. More coal cargoes out of USG and USEC are helping the TA market which is up some USD ...
Wednesday, 24 September 14
ADARO AGREED TO REDUCE ITS CONCESSION AREA TO 31,379.8 HECTARES
COALspot.com: PT Adaro Energy Tbk (Adaro Energy) today announced that, PT Adaro Indonesia (AI), its wholly owned subsidiary, entered into a M ...
Wednesday, 24 September 14
CAPESIZE: ACTIVITY IN BOTH BASINS WAS UNIMPRESSIVE
COALspot.com: The end of the week prior seems to have marked the tone for the days that followed, with the Dry Bulk market giving up a significant ...
Tuesday, 23 September 14
MEDCO TO INCREASE ITS COAL PRODUCTION NEXT YEAR
COALspot.com: PT Medco Energi Internasional is looking to increase its coal production next year, supported by the launch of operations at its Duta ...
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- Makarim & Taira - Indonesia
- Kideco Jaya Agung - Indonesia
- Minerals Council of Australia
- Mjunction Services Limited - India
- Indo Tambangraya Megah - Indonesia
- Price Waterhouse Coopers - Russia
- Gujarat Electricity Regulatory Commission - India
- Malabar Cements Ltd - India
- ICICI Bank Limited - India
- Simpson Spence & Young - Indonesia
- Indogreen Group - Indonesia
- Sarangani Energy Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Singapore Mercantile Exchange
- Salva Resources Pvt Ltd - India
- Dalmia Cement Bharat India
- Semirara Mining Corp, Philippines
- The State Trading Corporation of India Ltd
- Metalloyd Limited - United Kingdom
- Bahari Cakrawala Sebuku - Indonesia
- Star Paper Mills Limited - India
- Marubeni Corporation - India
- Barasentosa Lestari - Indonesia
- Wilmar Investment Holdings
- Altura Mining Limited, Indonesia
- Australian Coal Association
- Medco Energi Mining Internasional
- Petrochimia International Co. Ltd.- Taiwan
- Petron Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- International Coal Ventures Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indika Energy - Indonesia
- Deloitte Consulting - India
- Savvy Resources Ltd - HongKong
- TNB Fuel Sdn Bhd - Malaysia
- Commonwealth Bank - Australia
- Bhushan Steel Limited - India
- SN Aboitiz Power Inc, Philippines
- Global Business Power Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Africa Commodities Group - South Africa
- Kohat Cement Company Ltd. - Pakistan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Oldendorff Carriers - Singapore
- Power Finance Corporation Ltd., India
- Samtan Co., Ltd - South Korea
- Central Electricity Authority - India
- London Commodity Brokers - England
- PNOC Exploration Corporation - Philippines
- GVK Power & Infra Limited - India
- Cigading International Bulk Terminal - Indonesia
- Independent Power Producers Association of India
- Kepco SPC Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Indian Oil Corporation Limited
- GN Power Mariveles Coal Plant, Philippines
- Energy Link Ltd, New Zealand
- Sindya Power Generating Company Private Ltd
- Tamil Nadu electricity Board
- Eastern Energy - Thailand
- Jaiprakash Power Ventures ltd
- Standard Chartered Bank - UAE
- Maharashtra Electricity Regulatory Commission - India
- Maheswari Brothers Coal Limited - India
- Riau Bara Harum - Indonesia
- Bhoruka Overseas - Indonesia
- Antam Resourcindo - Indonesia
- Renaissance Capital - South Africa
- Bukit Asam (Persero) Tbk - Indonesia
- Holcim Trading Pte Ltd - Singapore
- MS Steel International - UAE
- Mercator Lines Limited - India
- Mercuria Energy - Indonesia
- VISA Power Limited - India
- Therma Luzon, Inc, Philippines
- Indian Energy Exchange, India
- Electricity Authority, New Zealand
- AsiaOL BioFuels Corp., Philippines
- Kartika Selabumi Mining - Indonesia
- Essar Steel Hazira Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Heidelberg Cement - Germany
- Aboitiz Power Corporation - Philippines
- Semirara Mining and Power Corporation, Philippines
- PTC India Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Economic Council, Georgia
- Xindia Steels Limited - India
- IEA Clean Coal Centre - UK
- India Bulls Power Limited - India
- Lanco Infratech Ltd - India
- Videocon Industries ltd - India
- Posco Energy - South Korea
- Agrawal Coal Company - India
- Binh Thuan Hamico - Vietnam
- Neyveli Lignite Corporation Ltd, - India
- Kobexindo Tractors - Indoneisa
- Timah Investasi Mineral - Indoneisa
- ASAPP Information Group - India
- Indonesian Coal Mining Association
- Eastern Coal Council - USA
- McConnell Dowell - Australia
- Globalindo Alam Lestari - Indonesia
- Bhatia International Limited - India
- Vizag Seaport Private Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kumho Petrochemical, South Korea
- Global Green Power PLC Corporation, Philippines
- Orica Mining Services - Indonesia
- Central Java Power - Indonesia
- Port Waratah Coal Services - Australia
- Sical Logistics Limited - India
- Thai Mozambique Logistica
- Bulk Trading Sa - Switzerland
- Planning Commission, India
- Grasim Industreis Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Siam City Cement - Thailand
- Meenaskhi Energy Private Limited - India
- Coastal Gujarat Power Limited - India
- Uttam Galva Steels Limited - India
- SMG Consultants - Indonesia
- Mintek Dendrill Indonesia
- Ind-Barath Power Infra Limited - India
- Karaikal Port Pvt Ltd - India
- Energy Development Corp, Philippines
- Australian Commodity Traders Exchange
- Rio Tinto Coal - Australia
- Bayan Resources Tbk. - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Vedanta Resources Plc - India
- Latin American Coal - Colombia
- PetroVietnam Power Coal Import and Supply Company
- Interocean Group of Companies - India
- Carbofer General Trading SA - India
- Coalindo Energy - Indonesia
- Parliament of New Zealand
- Attock Cement Pakistan Limited
- Jorong Barutama Greston.PT - Indonesia
- Jindal Steel & Power Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Banpu Public Company Limited - Thailand
- Siam City Cement PLC, Thailand
- CNBM International Corporation - China
- Goldman Sachs - Singapore
- Baramulti Group, Indonesia
- Straits Asia Resources Limited - Singapore
- Bukit Baiduri Energy - Indonesia
- South Luzon Thermal Energy Corporation
- The Treasury - Australian Government
- Manunggal Multi Energi - Indonesia
- Chettinad Cement Corporation Ltd - India
- OPG Power Generation Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Bharathi Cement Corporation - India
- Meralco Power Generation, Philippines
- Ambuja Cements Ltd - India
- Thiess Contractors Indonesia
- Parry Sugars Refinery, India
- Sakthi Sugars Limited - India
- New Zealand Coal & Carbon
- Directorate Of Revenue Intelligence - India
- Madhucon Powers Ltd - India
- Coal and Oil Company - UAE
- Borneo Indobara - Indonesia
- PowerSource Philippines DevCo
- San Jose City I Power Corp, Philippines
- Electricity Generating Authority of Thailand
- Chamber of Mines of South Africa
- Ministry of Mines - Canada
- Merrill Lynch Commodities Europe
- Toyota Tsusho Corporation, Japan
- European Bulk Services B.V. - Netherlands
- Sojitz Corporation - Japan
- GAC Shipping (India) Pvt Ltd
- Iligan Light & Power Inc, Philippines
- Romanian Commodities Exchange
- Bukit Makmur.PT - Indonesia
- Kaltim Prima Coal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- The University of Queensland
- Aditya Birla Group - India
- Pendopo Energi Batubara - Indonesia
- Cement Manufacturers Association - India
- Karbindo Abesyapradhi - Indoneisa
- Tata Chemicals Ltd - India
- Larsen & Toubro Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Georgia Ports Authority, United States
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Krishnapatnam Port Company Ltd. - India
- SMC Global Power, Philippines
- Alfred C Toepfer International GmbH - Germany
- Intertek Mineral Services - Indonesia
- Wood Mackenzie - Singapore
- Ministry of Finance - Indonesia
- Ministry of Transport, Egypt
- Sree Jayajothi Cements Limited - India
- Bangladesh Power Developement Board
- Formosa Plastics Group - Taiwan
- Ceylon Electricity Board - Sri Lanka
- TeaM Sual Corporation - Philippines
- Anglo American - United Kingdom
- LBH Netherlands Bv - Netherlands
- Sinarmas Energy and Mining - Indonesia
- White Energy Company Limited
- Trasteel International SA, Italy
- Gujarat Sidhee Cement - India
- GMR Energy Limited - India
- Orica Australia Pty. Ltd.
- Edison Trading Spa - Italy
- Leighton Contractors Pty Ltd - Australia
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