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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, 06 January 14
INDONESIAN COAL SWAPS SLIDE TO $ 61.25 FOR Q4' 14 DELIVERY
COALspot.com – Sub-Bit Indonesia coal swap (FOB) for average Q1’ 14 delivery lost $ 0.32 pmt month on month on Friday 3 January 2014. Th ...
Sunday, 05 January 14
API 8 CFR SOUTH CHINA COAL SWAP FOR Q3 DELIVERY CLOSED $ 80.05, A $ 0.90 LOWER THAN Q1 PRICE
COALspot.com : API 8 CFR South China Coal swaps for average Q1’ 14 delivery lost 1.40 percept day on day closed at US$ 80.95 per mt as o ...
Sunday, 05 January 14
CENTRAL BUREAU OF INVESTIGATION OF INDIA REGISTERS CASES IN CONNECTION WITH ALLEGED SUPPLY OF LOW QUALITY INDONESIAN COAL BY A PRIVATE COMPANY TO NTPC & NSPCL
COALspot.com: The Central Bureau of Investigation of India has registered two cases regarding alleged supply of low quality imported Indonesian coal ...
Saturday, 04 January 14
THE INDONESIAN GOVERNMENT TO DOWNSIZE ITS COAL PRODUCTION TARGET TO 400 MMT THIS YEAR
COALspot.com: Indonesia to downsize its coal production target to 400 million tons in 2014, lower than the production in 2013, which stood at 421 mi ...
Friday, 03 January 14
IN 2013 RBCT HAS, FOR THE FIRST TIME, EXPORTED MORE THAN 70 MILLION TONS OF COAL
COALspot.com: South Africa's Richards Bay coal terminal, the world’s largest single coal exporting terminal shipped 6.788 million tonnes of c ...
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- Ministry of Mines - Canada
- Pipit Mutiara Jaya. PT, Indonesia
- Orica Australia Pty. Ltd.
- Maheswari Brothers Coal Limited - India
- The University of Queensland
- Asmin Koalindo Tuhup - Indonesia
- India Bulls Power Limited - India
- Semirara Mining and Power Corporation, Philippines
- Attock Cement Pakistan Limited
- Semirara Mining Corp, Philippines
- Tamil Nadu electricity Board
- SN Aboitiz Power Inc, Philippines
- Africa Commodities Group - South Africa
- Agrawal Coal Company - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- The State Trading Corporation of India Ltd
- GMR Energy Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Australian Commodity Traders Exchange
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Vijayanagar Sugar Pvt Ltd - India
- Carbofer General Trading SA - India
- Anglo American - United Kingdom
- Thai Mozambique Logistica
- Singapore Mercantile Exchange
- Orica Mining Services - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Indo Tambangraya Megah - Indonesia
- PNOC Exploration Corporation - Philippines
- Grasim Industreis Ltd - India
- Straits Asia Resources Limited - Singapore
- Pendopo Energi Batubara - Indonesia
- GVK Power & Infra Limited - India
- Malabar Cements Ltd - India
- Essar Steel Hazira Ltd - India
- Mintek Dendrill Indonesia
- Globalindo Alam Lestari - Indonesia
- IHS Mccloskey Coal Group - USA
- Ambuja Cements Ltd - India
- CIMB Investment Bank - Malaysia
- Posco Energy - South Korea
- Energy Development Corp, Philippines
- Metalloyd Limited - United Kingdom
- Intertek Mineral Services - Indonesia
- IEA Clean Coal Centre - UK
- Tata Chemicals Ltd - India
- TeaM Sual Corporation - Philippines
- Energy Link Ltd, New Zealand
- Economic Council, Georgia
- OPG Power Generation Pvt Ltd - India
- Chamber of Mines of South Africa
- Bangladesh Power Developement Board
- TNB Fuel Sdn Bhd - Malaysia
- International Coal Ventures Pvt Ltd - India
- Rio Tinto Coal - Australia
- Kideco Jaya Agung - Indonesia
- Baramulti Group, Indonesia
- Eastern Coal Council - USA
- Formosa Plastics Group - Taiwan
- Indika Energy - Indonesia
- Savvy Resources Ltd - HongKong
- Parry Sugars Refinery, India
- Banpu Public Company Limited - Thailand
- Kobexindo Tractors - Indoneisa
- LBH Netherlands Bv - Netherlands
- Directorate General of MIneral and Coal - Indonesia
- Indonesian Coal Mining Association
- Renaissance Capital - South Africa
- Georgia Ports Authority, United States
- Bahari Cakrawala Sebuku - Indonesia
- Mercuria Energy - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Bayan Resources Tbk. - Indonesia
- Romanian Commodities Exchange
- New Zealand Coal & Carbon
- MS Steel International - UAE
- AsiaOL BioFuels Corp., Philippines
- Coastal Gujarat Power Limited - India
- Gujarat Sidhee Cement - India
- Aboitiz Power Corporation - Philippines
- Global Coal Blending Company Limited - Australia
- Oldendorff Carriers - Singapore
- VISA Power Limited - India
- GAC Shipping (India) Pvt Ltd
- Heidelberg Cement - Germany
- Videocon Industries ltd - India
- Uttam Galva Steels Limited - India
- The Treasury - Australian Government
- Jindal Steel & Power Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Goldman Sachs - Singapore
- Jorong Barutama Greston.PT - Indonesia
- Therma Luzon, Inc, Philippines
- Price Waterhouse Coopers - Russia
- Parliament of New Zealand
- Coalindo Energy - Indonesia
- Bhushan Steel Limited - India
- CNBM International Corporation - China
- Kartika Selabumi Mining - Indonesia
- Aditya Birla Group - India
- Barasentosa Lestari - Indonesia
- Petron Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- Standard Chartered Bank - UAE
- Electricity Authority, New Zealand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Makarim & Taira - Indonesia
- Indian Oil Corporation Limited
- Kepco SPC Power Corporation, Philippines
- Wilmar Investment Holdings
- Indogreen Group - Indonesia
- Eastern Energy - Thailand
- Sinarmas Energy and Mining - Indonesia
- Ministry of Finance - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Miang Besar Coal Terminal - Indonesia
- SMC Global Power, Philippines
- Billiton Holdings Pty Ltd - Australia
- Vedanta Resources Plc - India
- Star Paper Mills Limited - India
- ASAPP Information Group - India
- Kalimantan Lumbung Energi - Indonesia
- Altura Mining Limited, Indonesia
- Sical Logistics Limited - India
- Dalmia Cement Bharat India
- Bukit Baiduri Energy - Indonesia
- Bulk Trading Sa - Switzerland
- Larsen & Toubro Limited - India
- Global Green Power PLC Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Edison Trading Spa - Italy
- Gujarat Mineral Development Corp Ltd - India
- Central Java Power - Indonesia
- Latin American Coal - Colombia
- Bharathi Cement Corporation - India
- ICICI Bank Limited - India
- Rashtriya Ispat Nigam Limited - India
- Sakthi Sugars Limited - India
- Krishnapatnam Port Company Ltd. - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kapuas Tunggal Persada - Indonesia
- Interocean Group of Companies - India
- Australian Coal Association
- Riau Bara Harum - Indonesia
- Mercator Lines Limited - India
- Jaiprakash Power Ventures ltd
- Xindia Steels Limited - India
- Samtan Co., Ltd - South Korea
- Minerals Council of Australia
- Borneo Indobara - Indonesia
- White Energy Company Limited
- Vizag Seaport Private Limited - India
- Global Business Power Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Merrill Lynch Commodities Europe
- Cigading International Bulk Terminal - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Deloitte Consulting - India
- PTC India Limited - India
- SMG Consultants - Indonesia
- Coal and Oil Company - UAE
- European Bulk Services B.V. - Netherlands
- Alfred C Toepfer International GmbH - Germany
- Commonwealth Bank - Australia
- Neyveli Lignite Corporation Ltd, - India
- Timah Investasi Mineral - Indoneisa
- South Luzon Thermal Energy Corporation
- Leighton Contractors Pty Ltd - Australia
- Sree Jayajothi Cements Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Power Finance Corporation Ltd., India
- Chettinad Cement Corporation Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Ministry of Transport, Egypt
- Karaikal Port Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- Madhucon Powers Ltd - India
- Port Waratah Coal Services - Australia
- Salva Resources Pvt Ltd - India
- Trasteel International SA, Italy
- Mjunction Services Limited - India
- Sarangani Energy Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Thiess Contractors Indonesia
- Sindya Power Generating Company Private Ltd
- Iligan Light & Power Inc, Philippines
- Directorate Of Revenue Intelligence - India
- London Commodity Brokers - England
- Lanco Infratech Ltd - India
- Kumho Petrochemical, South Korea
- Meralco Power Generation, Philippines
- Bhoruka Overseas - Indonesia
- Planning Commission, India
- Central Electricity Authority - India
- Marubeni Corporation - India
- Simpson Spence & Young - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Cement Manufacturers Association - India
- Meenaskhi Energy Private Limited - India
- San Jose City I Power Corp, Philippines
- Bhatia International Limited - India
- Ind-Barath Power Infra Limited - India
- Sojitz Corporation - Japan
- Wood Mackenzie - Singapore
- Independent Power Producers Association of India
- Siam City Cement - Thailand
- Medco Energi Mining Internasional
- McConnell Dowell - Australia
- Karbindo Abesyapradhi - Indoneisa
- PowerSource Philippines DevCo
- Siam City Cement PLC, Thailand
- Binh Thuan Hamico - Vietnam
- Indian Energy Exchange, India
- Antam Resourcindo - Indonesia
- Electricity Generating Authority of Thailand
- Toyota Tsusho Corporation, Japan
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