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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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Wednesday, 09 April 14
DRY BULK MARKET STRUGGLED THROUGHOUT THE WEEK - INTERMODAL
The Dry Bulk market struggled throughout the week but the poor performance across the board didn't allow for any positive reversal, pushing ...
Tuesday, 08 April 14
PORT OF NEWCASTLE SHIPPED 2.90 MMT OF POWER PLANT AND SEMI-SOFT COKING COAL IN A WEEK
COALspot.com: In the week ended 07:00 hours 7 April 2014, power plant and semi-soft coking coal shipments from the port of Newcastle in Queensla ...
Tuesday, 08 April 14
RBCT SHIPPED 53.79% MORE COAL IN MARCH 2014
COALspot.com: South Africa's Richards Bay Coal Terminal (RBCT) the single largest export coal terminal in the world, shipped 6.90 million to ...
Tuesday, 08 April 14
APRIL 2014 INDONESIAN COAL PRICE REFERENCE DROPS TO LOWEST SINCE JANUARY 2010
COALspot.com - The Ministry of Energy & Mineral Resources of Indonesia has revised down again the coal bench mark price by US$ 2.20 / MT to ...
Tuesday, 08 April 14
TALKING ABOUT A ONE-HORSE RACE - GEORGE LAZARIDIS
Ever since the onslaught of the financial crisis, China along with the other BRIICs, have played a pivotal role in supporting global economic gr ...
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- Romanian Commodities Exchange
- Kalimantan Lumbung Energi - Indonesia
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- Jaiprakash Power Ventures ltd
- SN Aboitiz Power Inc, Philippines
- Chamber of Mines of South Africa
- Vizag Seaport Private Limited - India
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- Attock Cement Pakistan Limited
- Aditya Birla Group - India
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- White Energy Company Limited
- European Bulk Services B.V. - Netherlands
- Bukit Baiduri Energy - Indonesia
- Manunggal Multi Energi - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
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- Trasteel International SA, Italy
- Renaissance Capital - South Africa
- Medco Energi Mining Internasional
- Uttam Galva Steels Limited - India
- Price Waterhouse Coopers - Russia
- Madhucon Powers Ltd - India
- Minerals Council of Australia
- Indonesian Coal Mining Association
- Petron Corporation, Philippines
- Sojitz Corporation - Japan
- Directorate Of Revenue Intelligence - India
- Cement Manufacturers Association - India
- Merrill Lynch Commodities Europe
- Africa Commodities Group - South Africa
- Mercuria Energy - Indonesia
- Mintek Dendrill Indonesia
- India Bulls Power Limited - India
- Toyota Tsusho Corporation, Japan
- Alfred C Toepfer International GmbH - Germany
- Eastern Coal Council - USA
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- LBH Netherlands Bv - Netherlands
- Baramulti Group, Indonesia
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- Orica Mining Services - Indonesia
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- Independent Power Producers Association of India
- Australian Coal Association
- Tata Chemicals Ltd - India
- Semirara Mining and Power Corporation, Philippines
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- PetroVietnam Power Coal Import and Supply Company
- Indian Oil Corporation Limited
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- Indian Energy Exchange, India
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- Star Paper Mills Limited - India
- Aboitiz Power Corporation - Philippines
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- Globalindo Alam Lestari - Indonesia
- Krishnapatnam Port Company Ltd. - India
- London Commodity Brokers - England
- Edison Trading Spa - Italy
- Kapuas Tunggal Persada - Indonesia
- South Luzon Thermal Energy Corporation
- San Jose City I Power Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- SMC Global Power, Philippines
- Maheswari Brothers Coal Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Siam City Cement - Thailand
- Holcim Trading Pte Ltd - Singapore
- Barasentosa Lestari - Indonesia
- Riau Bara Harum - Indonesia
- Ind-Barath Power Infra Limited - India
- Energy Development Corp, Philippines
- Global Green Power PLC Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Therma Luzon, Inc, Philippines
- Metalloyd Limited - United Kingdom
- Kaltim Prima Coal - Indonesia
- Coal and Oil Company - UAE
- Bukit Asam (Persero) Tbk - Indonesia
- Borneo Indobara - Indonesia
- Ministry of Finance - Indonesia
- GMR Energy Limited - India
- Australian Commodity Traders Exchange
- Vedanta Resources Plc - India
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- TNB Fuel Sdn Bhd - Malaysia
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- Global Business Power Corporation, Philippines
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- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Bhatia International Limited - India
- Wood Mackenzie - Singapore
- Siam City Cement PLC, Thailand
- TeaM Sual Corporation - Philippines
- Wilmar Investment Holdings
- Larsen & Toubro Limited - India
- Formosa Plastics Group - Taiwan
- Planning Commission, India
- Bayan Resources Tbk. - Indonesia
- Bhoruka Overseas - Indonesia
- Tamil Nadu electricity Board
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- Marubeni Corporation - India
- IEA Clean Coal Centre - UK
- Bank of Tokyo Mitsubishi UFJ Ltd
- OPG Power Generation Pvt Ltd - India
- Sical Logistics Limited - India
- Goldman Sachs - Singapore
- Xindia Steels Limited - India
- Altura Mining Limited, Indonesia
- Sarangani Energy Corporation, Philippines
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- Meralco Power Generation, Philippines
- Mjunction Services Limited - India
- Ministry of Mines - Canada
- GAC Shipping (India) Pvt Ltd
- Directorate General of MIneral and Coal - Indonesia
- Billiton Holdings Pty Ltd - Australia
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- Ceylon Electricity Board - Sri Lanka
- PTC India Limited - India
- Dalmia Cement Bharat India
- Intertek Mineral Services - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
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- Agrawal Coal Company - India
- PowerSource Philippines DevCo
- Cigading International Bulk Terminal - Indonesia
- CIMB Investment Bank - Malaysia
- Coalindo Energy - Indonesia
- Energy Link Ltd, New Zealand
- Neyveli Lignite Corporation Ltd, - India
- Malabar Cements Ltd - India
- Indo Tambangraya Megah - Indonesia
- Thai Mozambique Logistica
- MS Steel International - UAE
- Bharathi Cement Corporation - India
- IHS Mccloskey Coal Group - USA
- The State Trading Corporation of India Ltd
- New Zealand Coal & Carbon
- Iligan Light & Power Inc, Philippines
- Indogreen Group - Indonesia
- Oldendorff Carriers - Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Standard Chartered Bank - UAE
- VISA Power Limited - India
- Rashtriya Ispat Nigam Limited - India
- Eastern Energy - Thailand
- Indika Energy - Indonesia
- Heidelberg Cement - Germany
- Central Java Power - Indonesia
- Ministry of Transport, Egypt
- Samtan Co., Ltd - South Korea
- Parry Sugars Refinery, India
- Pendopo Energi Batubara - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Antam Resourcindo - Indonesia
- Singapore Mercantile Exchange
- The University of Queensland
- Simpson Spence & Young - Indonesia
- Salva Resources Pvt Ltd - India
- Interocean Group of Companies - India
- The Treasury - Australian Government
- Bangladesh Power Developement Board
- Orica Australia Pty. Ltd.
- Grasim Industreis Ltd - India
- Bulk Trading Sa - Switzerland
- Mercator Lines Limited - India
- Georgia Ports Authority, United States
- Electricity Generating Authority of Thailand
- Asmin Koalindo Tuhup - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Rio Tinto Coal - Australia
- Power Finance Corporation Ltd., India
- Lanco Infratech Ltd - India
- PNOC Exploration Corporation - Philippines
- Chettinad Cement Corporation Ltd - India
- Binh Thuan Hamico - Vietnam
- CNBM International Corporation - China
- Economic Council, Georgia
- Global Coal Blending Company Limited - Australia
- Semirara Mining Corp, Philippines
- AsiaOL BioFuels Corp., Philippines
- Sinarmas Energy and Mining - Indonesia
- Port Waratah Coal Services - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Bukit Makmur.PT - Indonesia
- Electricity Authority, New Zealand
- Ambuja Cements Ltd - India
- Meenaskhi Energy Private Limited - India
- Thiess Contractors Indonesia
- McConnell Dowell - Australia
- Kohat Cement Company Ltd. - Pakistan
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