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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, 18 August 14
SUB-BIT FOB INDONESIA COAL SWAP CLOSED AT $58.60 FOR SEPTEMBER 2015; UP $4 FROM SEPTEMBER 2014 CLOSING
COALspot.com: Indonesian coal swaps for average September 2014 decreased US$ 0.15 (-0.27%) day on day and US$ 0.75 (-1.36%) per mt week on week. Th ...
Monday, 18 August 14
CFR SOUTH CHINA COAL SWAP PERFORMED WELL THIS PAST WEEK
COALspot.com: API 8 CFR South China Coal swap for delivery in September 2014 increased US$ 0.45 (+0.66%) day on day and US$ 0.30 (+0.44%)&nbs ...
Saturday, 16 August 14
HIGH DEMAND OF IRON ORE SHIPMENTS PUSHED CAPE INDEX UPWARDS
COALspot.com: This week's freight market was buoyant with Cape and panamax index seeing a big jump pushing the BDI above 1,000 points week on c ...
Friday, 15 August 14
5TH ANNUAL POWER AND ELECTRICITY INDONESIA
5TH ANNUAL POWER AND ELECTRICITY INDONESIA
13-16 October 2014
Grand Hyatt Jakarta, Indonesia
Web Site
The country’s definitive ...
Thursday, 14 August 14
U.S. STEAM COAL IMPORTS REMAIN DOWN SHARPLY FROM HISTORIC HIGH IN 2007, SAYS EIA
COALspot.com: U.S. steam coal imports at power plants have fallen significantly from their peak level of more than 30 million tons in 2007 to less ...
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- Sojitz Corporation - Japan
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- Eastern Energy - Thailand
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- Mjunction Services Limited - India
- OPG Power Generation Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Directorate General of MIneral and Coal - Indonesia
- Bhatia International Limited - India
- Minerals Council of Australia
- Leighton Contractors Pty Ltd - Australia
- LBH Netherlands Bv - Netherlands
- Asmin Koalindo Tuhup - Indonesia
- Directorate Of Revenue Intelligence - India
- Mercuria Energy - Indonesia
- Orica Mining Services - Indonesia
- Central Electricity Authority - India
- Kepco SPC Power Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Energy Development Corp, Philippines
- The State Trading Corporation of India Ltd
- Larsen & Toubro Limited - India
- Intertek Mineral Services - Indonesia
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- Mintek Dendrill Indonesia
- Electricity Generating Authority of Thailand
- Global Business Power Corporation, Philippines
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- Georgia Ports Authority, United States
- Lanco Infratech Ltd - India
- Antam Resourcindo - Indonesia
- London Commodity Brokers - England
- Dalmia Cement Bharat India
- PetroVietnam Power Coal Import and Supply Company
- Port Waratah Coal Services - Australia
- Straits Asia Resources Limited - Singapore
- Parliament of New Zealand
- Bayan Resources Tbk. - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Global Coal Blending Company Limited - Australia
- GMR Energy Limited - India
- White Energy Company Limited
- Sarangani Energy Corporation, Philippines
- Cement Manufacturers Association - India
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- Bharathi Cement Corporation - India
- Economic Council, Georgia
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- CIMB Investment Bank - Malaysia
- Ministry of Mines - Canada
- GN Power Mariveles Coal Plant, Philippines
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- Interocean Group of Companies - India
- Baramulti Group, Indonesia
- Oldendorff Carriers - Singapore
- Metalloyd Limited - United Kingdom
- Vizag Seaport Private Limited - India
- Standard Chartered Bank - UAE
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- Simpson Spence & Young - Indonesia
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- Semirara Mining and Power Corporation, Philippines
- Indian Energy Exchange, India
- Chamber of Mines of South Africa
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- TeaM Sual Corporation - Philippines
- Billiton Holdings Pty Ltd - Australia
- Global Green Power PLC Corporation, Philippines
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- Offshore Bulk Terminal Pte Ltd, Singapore
- Medco Energi Mining Internasional
- Ministry of Finance - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Semirara Mining Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Borneo Indobara - Indonesia
- Kideco Jaya Agung - Indonesia
- The Treasury - Australian Government
- Coal and Oil Company - UAE
- Trasteel International SA, Italy
- Sakthi Sugars Limited - India
- Meenaskhi Energy Private Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Kobexindo Tractors - Indoneisa
- Parry Sugars Refinery, India
- Romanian Commodities Exchange
- GAC Shipping (India) Pvt Ltd
- Eastern Coal Council - USA
- Coalindo Energy - Indonesia
- Star Paper Mills Limited - India
- Attock Cement Pakistan Limited
- Malabar Cements Ltd - India
- Marubeni Corporation - India
- PowerSource Philippines DevCo
- IEA Clean Coal Centre - UK
- Chettinad Cement Corporation Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Rashtriya Ispat Nigam Limited - India
- San Jose City I Power Corp, Philippines
- PNOC Exploration Corporation - Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Merrill Lynch Commodities Europe
- Toyota Tsusho Corporation, Japan
- India Bulls Power Limited - India
- Orica Australia Pty. Ltd.
- Binh Thuan Hamico - Vietnam
- McConnell Dowell - Australia
- Sinarmas Energy and Mining - Indonesia
- Salva Resources Pvt Ltd - India
- Makarim & Taira - Indonesia
- Agrawal Coal Company - India
- Power Finance Corporation Ltd., India
- Cigading International Bulk Terminal - Indonesia
- Sindya Power Generating Company Private Ltd
- Kalimantan Lumbung Energi - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Ceylon Electricity Board - Sri Lanka
- Electricity Authority, New Zealand
- Globalindo Alam Lestari - Indonesia
- Thai Mozambique Logistica
- Samtan Co., Ltd - South Korea
- Ambuja Cements Ltd - India
- SMG Consultants - Indonesia
- Wilmar Investment Holdings
- ICICI Bank Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Goldman Sachs - Singapore
- PTC India Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- VISA Power Limited - India
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- Pipit Mutiara Jaya. PT, Indonesia
- Indian Oil Corporation Limited
- Sical Logistics Limited - India
- New Zealand Coal & Carbon
- Deloitte Consulting - India
- Price Waterhouse Coopers - Russia
- Thiess Contractors Indonesia
- Riau Bara Harum - Indonesia
- Bhoruka Overseas - Indonesia
- Ministry of Transport, Egypt
- Aboitiz Power Corporation - Philippines
- Africa Commodities Group - South Africa
- Grasim Industreis Ltd - India
- Altura Mining Limited, Indonesia
- Kumho Petrochemical, South Korea
- Vedanta Resources Plc - India
- Singapore Mercantile Exchange
- Maheswari Brothers Coal Limited - India
- Iligan Light & Power Inc, Philippines
- Anglo American - United Kingdom
- Indogreen Group - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indo Tambangraya Megah - Indonesia
- Banpu Public Company Limited - Thailand
- Manunggal Multi Energi - Indonesia
- The University of Queensland
- MS Steel International - UAE
- Planning Commission, India
- European Bulk Services B.V. - Netherlands
- Australian Commodity Traders Exchange
- Madhucon Powers Ltd - India
- IHS Mccloskey Coal Group - USA
- Carbofer General Trading SA - India
- Kaltim Prima Coal - Indonesia
- Central Java Power - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Rio Tinto Coal - Australia
- Petron Corporation, Philippines
- Renaissance Capital - South Africa
- Holcim Trading Pte Ltd - Singapore
- Bangladesh Power Developement Board
- Savvy Resources Ltd - HongKong
- Timah Investasi Mineral - Indoneisa
- Independent Power Producers Association of India
- Meralco Power Generation, Philippines
- Pendopo Energi Batubara - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Jaiprakash Power Ventures ltd
- Latin American Coal - Colombia
- International Coal Ventures Pvt Ltd - India
- Edison Trading Spa - Italy
- Wood Mackenzie - Singapore
- Commonwealth Bank - Australia
- Barasentosa Lestari - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Aditya Birla Group - India
- Bulk Trading Sa - Switzerland
- CNBM International Corporation - China
- Xindia Steels Limited - India
- SN Aboitiz Power Inc, Philippines
- GVK Power & Infra Limited - India
- Krishnapatnam Port Company Ltd. - India
- Videocon Industries ltd - India
- Indonesian Coal Mining Association
- Tamil Nadu electricity Board
- Jindal Steel & Power Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Siam City Cement - Thailand
- Siam City Cement PLC, Thailand
- Australian Coal Association
- SMC Global Power, Philippines
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- Bukit Makmur.PT - Indonesia
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- Therma Luzon, Inc, Philippines
- Bhushan Steel Limited - India
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