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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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Thursday, 14 August 14
INDIA'S PLAN TO START AN INFRASTRUCTURE BOOM AND TO INVEST US$ 1 TRILLION BY 2017 WILL SURELY AFFECT THE DRY BULK TRADE - FEARNLEYS
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Wednesday, 13 August 14
WEEKLY MARKET INSIGHT - KONSTANTINOS KONTOMICHIS SNP BROKER
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Wednesday, 13 August 14
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Wednesday, 13 August 14
INDONESIAN COAL PRICE REFERENCE FALL AGAIN CLOSE TO 57 MONTHS LOWS
COALspot.com - The Ministry of Energy & Mineral Resources of Indonesia revised down the coal bench mark price in August. HBA for the month of A ...
Monday, 11 August 14
LARGEST CHINESE TRADE SURPLUS EVER RECORDED IN JULY - BIMCO
China recorded a trade surplus of USD 47.3 billion in July 2014. The record high surplus came on the back of very strong export growth while import ...
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- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Central Java Power - Indonesia
- Manunggal Multi Energi - Indonesia
- Energy Development Corp, Philippines
- Leighton Contractors Pty Ltd - Australia
- Barasentosa Lestari - Indonesia
- CIMB Investment Bank - Malaysia
- The Treasury - Australian Government
- Vijayanagar Sugar Pvt Ltd - India
- The University of Queensland
- Neyveli Lignite Corporation Ltd, - India
- Kobexindo Tractors - Indoneisa
- Renaissance Capital - South Africa
- Gujarat Sidhee Cement - India
- Rashtriya Ispat Nigam Limited - India
- Videocon Industries ltd - India
- Interocean Group of Companies - India
- Singapore Mercantile Exchange
- Dalmia Cement Bharat India
- Straits Asia Resources Limited - Singapore
- Planning Commission, India
- Agrawal Coal Company - India
- Intertek Mineral Services - Indonesia
- Electricity Authority, New Zealand
- San Jose City I Power Corp, Philippines
- Larsen & Toubro Limited - India
- Billiton Holdings Pty Ltd - Australia
- Gujarat Mineral Development Corp Ltd - India
- Electricity Generating Authority of Thailand
- CNBM International Corporation - China
- Ministry of Mines - Canada
- Kideco Jaya Agung - Indonesia
- Aboitiz Power Corporation - Philippines
- McConnell Dowell - Australia
- Economic Council, Georgia
- ICICI Bank Limited - India
- Australian Commodity Traders Exchange
- Minerals Council of Australia
- Semirara Mining and Power Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Toyota Tsusho Corporation, Japan
- Grasim Industreis Ltd - India
- Coastal Gujarat Power Limited - India
- Indian Oil Corporation Limited
- European Bulk Services B.V. - Netherlands
- Bukit Makmur.PT - Indonesia
- Independent Power Producers Association of India
- Georgia Ports Authority, United States
- Eastern Coal Council - USA
- Mercator Lines Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Sarangani Energy Corporation, Philippines
- Vedanta Resources Plc - India
- Kalimantan Lumbung Energi - Indonesia
- Indonesian Coal Mining Association
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Vizag Seaport Private Limited - India
- Indika Energy - Indonesia
- White Energy Company Limited
- Global Coal Blending Company Limited - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- AsiaOL BioFuels Corp., Philippines
- LBH Netherlands Bv - Netherlands
- Carbofer General Trading SA - India
- Simpson Spence & Young - Indonesia
- London Commodity Brokers - England
- Therma Luzon, Inc, Philippines
- India Bulls Power Limited - India
- New Zealand Coal & Carbon
- Meenaskhi Energy Private Limited - India
- Gujarat Electricity Regulatory Commission - India
- Metalloyd Limited - United Kingdom
- Salva Resources Pvt Ltd - India
- Thai Mozambique Logistica
- Ind-Barath Power Infra Limited - India
- The State Trading Corporation of India Ltd
- Power Finance Corporation Ltd., India
- Samtan Co., Ltd - South Korea
- Energy Link Ltd, New Zealand
- Miang Besar Coal Terminal - Indonesia
- PowerSource Philippines DevCo
- PNOC Exploration Corporation - Philippines
- Parry Sugars Refinery, India
- Bahari Cakrawala Sebuku - Indonesia
- Australian Coal Association
- Bulk Trading Sa - Switzerland
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Global Green Power PLC Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Rio Tinto Coal - Australia
- Sree Jayajothi Cements Limited - India
- Parliament of New Zealand
- Ceylon Electricity Board - Sri Lanka
- Kaltim Prima Coal - Indonesia
- Banpu Public Company Limited - Thailand
- Lanco Infratech Ltd - India
- IEA Clean Coal Centre - UK
- TNB Fuel Sdn Bhd - Malaysia
- Kapuas Tunggal Persada - Indonesia
- Heidelberg Cement - Germany
- Attock Cement Pakistan Limited
- Mercuria Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Altura Mining Limited, Indonesia
- SMC Global Power, Philippines
- GVK Power & Infra Limited - India
- Coal and Oil Company - UAE
- Kartika Selabumi Mining - Indonesia
- Central Electricity Authority - India
- Timah Investasi Mineral - Indoneisa
- PetroVietnam Power Coal Import and Supply Company
- Bharathi Cement Corporation - India
- Makarim & Taira - Indonesia
- Medco Energi Mining Internasional
- South Luzon Thermal Energy Corporation
- Ministry of Transport, Egypt
- OPG Power Generation Pvt Ltd - India
- Romanian Commodities Exchange
- Indo Tambangraya Megah - Indonesia
- Bukit Baiduri Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Bhushan Steel Limited - India
- Orica Australia Pty. Ltd.
- Wood Mackenzie - Singapore
- GN Power Mariveles Coal Plant, Philippines
- Globalindo Alam Lestari - Indonesia
- Sical Logistics Limited - India
- Mintek Dendrill Indonesia
- Global Business Power Corporation, Philippines
- Formosa Plastics Group - Taiwan
- Siam City Cement PLC, Thailand
- Sojitz Corporation - Japan
- SN Aboitiz Power Inc, Philippines
- Petron Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- Anglo American - United Kingdom
- Asia Pacific Energy Resources Ventures Inc, Philippines
- TeaM Sual Corporation - Philippines
- Sinarmas Energy and Mining - Indonesia
- Binh Thuan Hamico - Vietnam
- Tata Chemicals Ltd - India
- GAC Shipping (India) Pvt Ltd
- Orica Mining Services - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Indian Energy Exchange, India
- Krishnapatnam Port Company Ltd. - India
- Chamber of Mines of South Africa
- Antam Resourcindo - Indonesia
- Edison Trading Spa - Italy
- Commonwealth Bank - Australia
- Uttam Galva Steels Limited - India
- Deloitte Consulting - India
- VISA Power Limited - India
- SMG Consultants - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Thiess Contractors Indonesia
- Sakthi Sugars Limited - India
- Oldendorff Carriers - Singapore
- Cigading International Bulk Terminal - Indonesia
- Pendopo Energi Batubara - Indonesia
- Jaiprakash Power Ventures ltd
- Riau Bara Harum - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Xindia Steels Limited - India
- Cement Manufacturers Association - India
- Kumho Petrochemical, South Korea
- Borneo Indobara - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Ministry of Finance - Indonesia
- Trasteel International SA, Italy
- Tamil Nadu electricity Board
- Directorate General of MIneral and Coal - Indonesia
- Merrill Lynch Commodities Europe
- IHS Mccloskey Coal Group - USA
- Wilmar Investment Holdings
- Directorate Of Revenue Intelligence - India
- Kohat Cement Company Ltd. - Pakistan
- Petrochimia International Co. Ltd.- Taiwan
- Baramulti Group, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Ambuja Cements Ltd - India
- International Coal Ventures Pvt Ltd - India
- Malabar Cements Ltd - India
- Marubeni Corporation - India
- Aditya Birla Group - India
- Maharashtra Electricity Regulatory Commission - India
- Bhoruka Overseas - Indonesia
- Madhucon Powers Ltd - India
- GMR Energy Limited - India
- MS Steel International - UAE
- Sindya Power Generating Company Private Ltd
- Eastern Energy - Thailand
- Siam City Cement - Thailand
- Bayan Resources Tbk. - Indonesia
- Bhatia International Limited - India
- Posco Energy - South Korea
- Semirara Mining Corp, Philippines
- Jindal Steel & Power Ltd - India
- Africa Commodities Group - South Africa
- Indogreen Group - Indonesia
- Essar Steel Hazira Ltd - India
- Maheswari Brothers Coal Limited - India
- Bangladesh Power Developement Board
- Goldman Sachs - Singapore
- Port Waratah Coal Services - Australia
- Meralco Power Generation, Philippines
- ASAPP Information Group - India
- Latin American Coal - Colombia
- Standard Chartered Bank - UAE
- Karaikal Port Pvt Ltd - India
- PTC India Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Mjunction Services Limited - India
- Coalindo Energy - Indonesia
- Kepco SPC Power Corporation, Philippines
- Star Paper Mills Limited - India
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