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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, 15 January 14
CFR SOUTH CHINA COAL SWAPS FALL BY 6.57% MONTH ON MONTH
COALspot.com : API 8 CFR South China Coal swaps for average Q1’ 14 delivery lost 6.57 percept month on month and closed at US$ 78.90 per mt as ...
Wednesday, 15 January 14
INDONESIAN MINING LAW AVERTS BOP PRESSURE, RISKS REMAIN, FITCH SAYS
The last-minute intervention at the weekend by Indonesia's politicians to avert a significant disruption of mining activity and exports, should lim ...
Wednesday, 15 January 14
Q3 AND Q4 INDONESIAN COAL SWAPS DECLINE MONTH ON MONTH
COALspot.com – Sub-Bit Indonesia coal swap (FOB) for average Q1’ 14 delivery lost $ 1.23 pmt month on month on Friday 10 January 2014. T ...
Wednesday, 15 January 14
PANAMAX: PACIFIC - REMAINED QUIET; ATLANTIC - CONTINUED THEIR RETREAT
COALspot.com: The holiday hangover seems well underway for the Dry Bulk market that saw more ground being lost this past week. The BDI has closed of ...
Tuesday, 14 January 14
AUSTRALIAN NEWCASTLE PORT'S WEEKLY COAL EXPORTS FALL 18.28 %
COALspot.com: In the week ended January 13, power plant and semi-soft coking coal shipments from the port of Newcastle in Queensland, totalled 2.67 ...
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- Alfred C Toepfer International GmbH - Germany
- Indogreen Group - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- London Commodity Brokers - England
- Therma Luzon, Inc, Philippines
- SN Aboitiz Power Inc, Philippines
- Kobexindo Tractors - Indoneisa
- Sree Jayajothi Cements Limited - India
- Africa Commodities Group - South Africa
- Anglo American - United Kingdom
- Baramulti Group, Indonesia
- PTC India Limited - India
- Krishnapatnam Port Company Ltd. - India
- Formosa Plastics Group - Taiwan
- Wood Mackenzie - Singapore
- Australian Commodity Traders Exchange
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Renaissance Capital - South Africa
- Borneo Indobara - Indonesia
- IHS Mccloskey Coal Group - USA
- MS Steel International - UAE
- Gujarat Sidhee Cement - India
- Bukit Asam (Persero) Tbk - Indonesia
- European Bulk Services B.V. - Netherlands
- Wilmar Investment Holdings
- Bukit Baiduri Energy - Indonesia
- Bhoruka Overseas - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Karaikal Port Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Semirara Mining Corp, Philippines
- CNBM International Corporation - China
- Siam City Cement PLC, Thailand
- Barasentosa Lestari - Indonesia
- Eastern Energy - Thailand
- Mercuria Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Gujarat Mineral Development Corp Ltd - India
- SMG Consultants - Indonesia
- Energy Link Ltd, New Zealand
- Carbofer General Trading SA - India
- Cement Manufacturers Association - India
- Medco Energi Mining Internasional
- Electricity Generating Authority of Thailand
- Star Paper Mills Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Videocon Industries ltd - India
- Sinarmas Energy and Mining - Indonesia
- GVK Power & Infra Limited - India
- Sindya Power Generating Company Private Ltd
- Marubeni Corporation - India
- Sojitz Corporation - Japan
- Romanian Commodities Exchange
- Bulk Trading Sa - Switzerland
- Grasim Industreis Ltd - India
- Thai Mozambique Logistica
- Semirara Mining and Power Corporation, Philippines
- Planning Commission, India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Deloitte Consulting - India
- Savvy Resources Ltd - HongKong
- Pendopo Energi Batubara - Indonesia
- Bukit Makmur.PT - Indonesia
- Economic Council, Georgia
- Kapuas Tunggal Persada - Indonesia
- Ministry of Finance - Indonesia
- Central Java Power - Indonesia
- Bhatia International Limited - India
- Bayan Resources Tbk. - Indonesia
- New Zealand Coal & Carbon
- Posco Energy - South Korea
- Jindal Steel & Power Ltd - India
- Agrawal Coal Company - India
- Edison Trading Spa - Italy
- Iligan Light & Power Inc, Philippines
- Mjunction Services Limited - India
- The State Trading Corporation of India Ltd
- Manunggal Multi Energi - Indonesia
- Maheswari Brothers Coal Limited - India
- GAC Shipping (India) Pvt Ltd
- Jaiprakash Power Ventures ltd
- TNB Fuel Sdn Bhd - Malaysia
- Parry Sugars Refinery, India
- Larsen & Toubro Limited - India
- Rio Tinto Coal - Australia
- Indian Oil Corporation Limited
- South Luzon Thermal Energy Corporation
- Metalloyd Limited - United Kingdom
- Petron Corporation, Philippines
- Trasteel International SA, Italy
- Oldendorff Carriers - Singapore
- The University of Queensland
- Heidelberg Cement - Germany
- Indonesian Coal Mining Association
- Intertek Mineral Services - Indonesia
- Ministry of Mines - Canada
- Interocean Group of Companies - India
- Georgia Ports Authority, United States
- Port Waratah Coal Services - Australia
- Energy Development Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Banpu Public Company Limited - Thailand
- VISA Power Limited - India
- Gujarat Electricity Regulatory Commission - India
- Sical Logistics Limited - India
- PowerSource Philippines DevCo
- Directorate Of Revenue Intelligence - India
- Coal and Oil Company - UAE
- Global Green Power PLC Corporation, Philippines
- Siam City Cement - Thailand
- Independent Power Producers Association of India
- San Jose City I Power Corp, Philippines
- Xindia Steels Limited - India
- Lanco Infratech Ltd - India
- The Treasury - Australian Government
- Kepco SPC Power Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Dalmia Cement Bharat India
- Bhushan Steel Limited - India
- Riau Bara Harum - Indonesia
- Chettinad Cement Corporation Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kaltim Prima Coal - Indonesia
- LBH Netherlands Bv - Netherlands
- Makarim & Taira - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Toyota Tsusho Corporation, Japan
- Chamber of Mines of South Africa
- Uttam Galva Steels Limited - India
- Orica Australia Pty. Ltd.
- Orica Mining Services - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Vedanta Resources Plc - India
- Samtan Co., Ltd - South Korea
- Malabar Cements Ltd - India
- Power Finance Corporation Ltd., India
- Essar Steel Hazira Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- IEA Clean Coal Centre - UK
- PetroVietnam Power Coal Import and Supply Company
- Salva Resources Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Vizag Seaport Private Limited - India
- Commonwealth Bank - Australia
- Indika Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GMR Energy Limited - India
- Coastal Gujarat Power Limited - India
- Merrill Lynch Commodities Europe
- White Energy Company Limited
- TeaM Sual Corporation - Philippines
- Meenaskhi Energy Private Limited - India
- Tata Chemicals Ltd - India
- Bangladesh Power Developement Board
- Global Business Power Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Bahari Cakrawala Sebuku - Indonesia
- ASAPP Information Group - India
- Antam Resourcindo - Indonesia
- Altura Mining Limited, Indonesia
- Cigading International Bulk Terminal - Indonesia
- India Bulls Power Limited - India
- Parliament of New Zealand
- Mercator Lines Limited - India
- OPG Power Generation Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Electricity Authority, New Zealand
- Straits Asia Resources Limited - Singapore
- Ambuja Cements Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Binh Thuan Hamico - Vietnam
- Goldman Sachs - Singapore
- Ind-Barath Power Infra Limited - India
- Rashtriya Ispat Nigam Limited - India
- Australian Coal Association
- PNOC Exploration Corporation - Philippines
- Meralco Power Generation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Standard Chartered Bank - UAE
- Thiess Contractors Indonesia
- SMC Global Power, Philippines
- Tamil Nadu electricity Board
- Coalindo Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- Singapore Mercantile Exchange
- Ministry of Transport, Egypt
- Eastern Coal Council - USA
- Miang Besar Coal Terminal - Indonesia
- Global Coal Blending Company Limited - Australia
- Petrochimia International Co. Ltd.- Taiwan
- International Coal Ventures Pvt Ltd - India
- Sakthi Sugars Limited - India
- Price Waterhouse Coopers - Russia
- Kumho Petrochemical, South Korea
- Attock Cement Pakistan Limited
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mintek Dendrill Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Aboitiz Power Corporation - Philippines
- Indian Energy Exchange, India
- Bharathi Cement Corporation - India
- ICICI Bank Limited - India
- Latin American Coal - Colombia
- Neyveli Lignite Corporation Ltd, - India
- McConnell Dowell - Australia
- Kideco Jaya Agung - Indonesia
- Central Electricity Authority - India
- Indo Tambangraya Megah - Indonesia
- Simpson Spence & Young - Indonesia
- Minerals Council of Australia
- Billiton Holdings Pty Ltd - Australia
- Aditya Birla Group - India
- Globalindo Alam Lestari - Indonesia
- Timah Investasi Mineral - Indoneisa
- Madhucon Powers Ltd - India
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