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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, 25 April 14
US PRODUCED APPROXIMATELY 19 MILLION SHORT TONS OF COAL IN A WEEK
COALspot.com – United States the world's second largest coal producer, produced approximately 19.0 million short tons (mmst) of coal i ...
Friday, 25 April 14
2ND MYANMAR ELECTRIC POWER CONVENTION 2014 IS THE GATEWAY TO MYANMAR POWER INDUSTRY!
Press Release: 2nd Myanmar Electric Power Convention (MEPC) 2014 is scheduled on 21-23 October, 2014 at Traders Hotel in Yangon, Myanmar. MEPC o ...
Friday, 25 April 14
DRY BULK MARKET LOOKING FOR NEW TRACTION - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
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Thursday, 24 April 14
HANDY : A FLOW OF FRESH REQUIREMENTS LIFTING THE PACIFIC SLOWLY TO US$ 10-11 K BSS SINGAPORE FOR COAL ROUNDS
Handy
There is still no place to hide in the Atlantic for the smaller but flexible sizes. Slow and weak seems to be the headlines, although th ...
Wednesday, 23 April 14
EUROPE WOULD BE HARD PRESSED TO REPLACE RUSSIAN GAS, FITCH RATINGS SAYS
A ban on Russian gas imports to the EU would cause substantial disruption to Europe's economy and industry, Fitch Ratings says. In the immed ...
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- Neyveli Lignite Corporation Ltd, - India
- Bukit Baiduri Energy - Indonesia
- Wood Mackenzie - Singapore
- Agrawal Coal Company - India
- Pipit Mutiara Jaya. PT, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Anglo American - United Kingdom
- Cement Manufacturers Association - India
- PNOC Exploration Corporation - Philippines
- Petron Corporation, Philippines
- Electricity Generating Authority of Thailand
- Eastern Coal Council - USA
- Siam City Cement - Thailand
- Kobexindo Tractors - Indoneisa
- GN Power Mariveles Coal Plant, Philippines
- Kumho Petrochemical, South Korea
- Ministry of Finance - Indonesia
- Deloitte Consulting - India
- Sarangani Energy Corporation, Philippines
- Semirara Mining Corp, Philippines
- Directorate Of Revenue Intelligence - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Malabar Cements Ltd - India
- London Commodity Brokers - England
- Trasteel International SA, Italy
- IHS Mccloskey Coal Group - USA
- Vedanta Resources Plc - India
- Vijayanagar Sugar Pvt Ltd - India
- Ambuja Cements Ltd - India
- Wilmar Investment Holdings
- Larsen & Toubro Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Thai Mozambique Logistica
- Petrochimia International Co. Ltd.- Taiwan
- Sree Jayajothi Cements Limited - India
- MS Steel International - UAE
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Krishnapatnam Port Company Ltd. - India
- Bukit Makmur.PT - Indonesia
- Parry Sugars Refinery, India
- Videocon Industries ltd - India
- Sinarmas Energy and Mining - Indonesia
- Timah Investasi Mineral - Indoneisa
- Global Green Power PLC Corporation, Philippines
- Indian Energy Exchange, India
- Lanco Infratech Ltd - India
- Indika Energy - Indonesia
- Tata Chemicals Ltd - India
- Minerals Council of Australia
- Antam Resourcindo - Indonesia
- Rio Tinto Coal - Australia
- Goldman Sachs - Singapore
- Pendopo Energi Batubara - Indonesia
- Coal and Oil Company - UAE
- Samtan Co., Ltd - South Korea
- Jaiprakash Power Ventures ltd
- Holcim Trading Pte Ltd - Singapore
- PTC India Limited - India
- Mercator Lines Limited - India
- Independent Power Producers Association of India
- European Bulk Services B.V. - Netherlands
- Mintek Dendrill Indonesia
- Jindal Steel & Power Ltd - India
- White Energy Company Limited
- Rashtriya Ispat Nigam Limited - India
- Xindia Steels Limited - India
- Orica Mining Services - Indonesia
- Bharathi Cement Corporation - India
- Directorate General of MIneral and Coal - Indonesia
- OPG Power Generation Pvt Ltd - India
- Edison Trading Spa - Italy
- Port Waratah Coal Services - Australia
- Star Paper Mills Limited - India
- New Zealand Coal & Carbon
- San Jose City I Power Corp, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Interocean Group of Companies - India
- Bahari Cakrawala Sebuku - Indonesia
- Singapore Mercantile Exchange
- Africa Commodities Group - South Africa
- Sindya Power Generating Company Private Ltd
- Manunggal Multi Energi - Indonesia
- Georgia Ports Authority, United States
- Gujarat Mineral Development Corp Ltd - India
- India Bulls Power Limited - India
- Coastal Gujarat Power Limited - India
- Binh Thuan Hamico - Vietnam
- Essar Steel Hazira Ltd - India
- Ministry of Transport, Egypt
- Chettinad Cement Corporation Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Energy Link Ltd, New Zealand
- Global Business Power Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Intertek Mineral Services - Indonesia
- Electricity Authority, New Zealand
- Banpu Public Company Limited - Thailand
- Bhushan Steel Limited - India
- Commonwealth Bank - Australia
- Australian Commodity Traders Exchange
- Meralco Power Generation, Philippines
- SMG Consultants - Indonesia
- Price Waterhouse Coopers - Russia
- Simpson Spence & Young - Indonesia
- Romanian Commodities Exchange
- IEA Clean Coal Centre - UK
- South Luzon Thermal Energy Corporation
- VISA Power Limited - India
- Bhoruka Overseas - Indonesia
- Merrill Lynch Commodities Europe
- Tamil Nadu electricity Board
- Ind-Barath Power Infra Limited - India
- Marubeni Corporation - India
- Karaikal Port Pvt Ltd - India
- Parliament of New Zealand
- Economic Council, Georgia
- Heidelberg Cement - Germany
- Ministry of Mines - Canada
- AsiaOL BioFuels Corp., Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dalmia Cement Bharat India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kapuas Tunggal Persada - Indonesia
- Oldendorff Carriers - Singapore
- The State Trading Corporation of India Ltd
- Central Java Power - Indonesia
- Australian Coal Association
- Attock Cement Pakistan Limited
- Latin American Coal - Colombia
- Coalindo Energy - Indonesia
- Iligan Light & Power Inc, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Leighton Contractors Pty Ltd - Australia
- Therma Luzon, Inc, Philippines
- Borneo Indobara - Indonesia
- Makarim & Taira - Indonesia
- Straits Asia Resources Limited - Singapore
- Kepco SPC Power Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- Indian Oil Corporation Limited
- The Treasury - Australian Government
- Bhatia International Limited - India
- Maheswari Brothers Coal Limited - India
- Indonesian Coal Mining Association
- SN Aboitiz Power Inc, Philippines
- Renaissance Capital - South Africa
- Metalloyd Limited - United Kingdom
- Jorong Barutama Greston.PT - Indonesia
- GMR Energy Limited - India
- Carbofer General Trading SA - India
- CIMB Investment Bank - Malaysia
- Indogreen Group - Indonesia
- Uttam Galva Steels Limited - India
- Aboitiz Power Corporation - Philippines
- Mjunction Services Limited - India
- Toyota Tsusho Corporation, Japan
- Global Coal Blending Company Limited - Australia
- Kaltim Prima Coal - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Orica Australia Pty. Ltd.
- Medco Energi Mining Internasional
- Bayan Resources Tbk. - Indonesia
- Gujarat Sidhee Cement - India
- Semirara Mining and Power Corporation, Philippines
- Energy Development Corp, Philippines
- ICICI Bank Limited - India
- Savvy Resources Ltd - HongKong
- CNBM International Corporation - China
- Planning Commission, India
- TNB Fuel Sdn Bhd - Malaysia
- ASAPP Information Group - India
- Asmin Koalindo Tuhup - Indonesia
- Mercuria Energy - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Sojitz Corporation - Japan
- Riau Bara Harum - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Ceylon Electricity Board - Sri Lanka
- Siam City Cement PLC, Thailand
- Aditya Birla Group - India
- Formosa Plastics Group - Taiwan
- Power Finance Corporation Ltd., India
- Salva Resources Pvt Ltd - India
- Eastern Energy - Thailand
- McConnell Dowell - Australia
- PetroVietnam Power Coal Import and Supply Company
- Karbindo Abesyapradhi - Indoneisa
- Meenaskhi Energy Private Limited - India
- Sical Logistics Limited - India
- Altura Mining Limited, Indonesia
- Baramulti Group, Indonesia
- Bangladesh Power Developement Board
- Chamber of Mines of South Africa
- The University of Queensland
- SMC Global Power, Philippines
- PowerSource Philippines DevCo
- Bulk Trading Sa - Switzerland
- Kartika Selabumi Mining - Indonesia
- Indo Tambangraya Megah - Indonesia
- Central Electricity Authority - India
- GVK Power & Infra Limited - India
- Kideco Jaya Agung - Indonesia
- Madhucon Powers Ltd - India
- TeaM Sual Corporation - Philippines
- Vizag Seaport Private Limited - India
- Standard Chartered Bank - UAE
- Thiess Contractors Indonesia
- LBH Netherlands Bv - Netherlands
- Globalindo Alam Lestari - Indonesia
- International Coal Ventures Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Sakthi Sugars Limited - India
- Miang Besar Coal Terminal - Indonesia
- Posco Energy - South Korea
- Grasim Industreis Ltd - India
- Barasentosa Lestari - Indonesia
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