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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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Sunday, 28 April 13
PANAMAX FREIGHT COULD BE SOFT NEXT WEEK - CAPT. REDDY
COALspot.com - This BDI closed slightly lower at 871 points (down by 1.91 pct) mainly due to drop in the Panamax index by almost 10 pct.
Th ...
Saturday, 27 April 13
HANDY : SLIDING ; PANAMAX : POSITIVE ; CAPESIZE : STILL ON ITS KNEES - FEARNRESEARCH
Handy
The Atlantic markets started sliding with no fresh cargoes seen in the market. The USG-Feast was at USD 18k and Black sea-Feast was at USD 11 ...
Saturday, 27 April 13
2ND CHINA INTERNATIONAL SHALE GAS SUMMIT
Press Release - 2nd China International Shale Gas Summit, 10-13 September 2013 | Chengdu, China
*The largest annual event for the shale gas indus ...
Friday, 26 April 13
LIMA SUMMIT IN JULY TO HIGHLIGHT LATIN AMERICAN MINING POTENTIAL
COALspot.com - Latin American mining industry officials and their private sector counterparts will be gathering in Lima, Peru on July 1-2 for the La ...
Wednesday, 24 April 13
FUTURE US POWER MARKET SHARES OF COAL, NATURAL GAS GENERATORS DEPEND ON RELATIVE FUEL PRICES - EIA
COALspot.com - In recent years, in US, natural gas competed more effectively with coal as a fuel for electricity generation as the cost of operating ...
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- GN Power Mariveles Coal Plant, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Makarim & Taira - Indonesia
- Altura Mining Limited, Indonesia
- Parry Sugars Refinery, India
- Sindya Power Generating Company Private Ltd
- Toyota Tsusho Corporation, Japan
- Kaltim Prima Coal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Wilmar Investment Holdings
- SN Aboitiz Power Inc, Philippines
- Coastal Gujarat Power Limited - India
- PTC India Limited - India
- TeaM Sual Corporation - Philippines
- PetroVietnam Power Coal Import and Supply Company
- SMG Consultants - Indonesia
- Star Paper Mills Limited - India
- Petron Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Vedanta Resources Plc - India
- Ministry of Finance - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Attock Cement Pakistan Limited
- Semirara Mining Corp, Philippines
- Bayan Resources Tbk. - Indonesia
- Deloitte Consulting - India
- Eastern Energy - Thailand
- Neyveli Lignite Corporation Ltd, - India
- Globalindo Alam Lestari - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Thiess Contractors Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Kohat Cement Company Ltd. - Pakistan
- Uttam Galva Steels Limited - India
- Indonesian Coal Mining Association
- Global Business Power Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Intertek Mineral Services - Indonesia
- Formosa Plastics Group - Taiwan
- Sakthi Sugars Limited - India
- Cement Manufacturers Association - India
- Larsen & Toubro Limited - India
- Pendopo Energi Batubara - Indonesia
- London Commodity Brokers - England
- Gujarat Electricity Regulatory Commission - India
- Global Coal Blending Company Limited - Australia
- Wood Mackenzie - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Malabar Cements Ltd - India
- Economic Council, Georgia
- Sojitz Corporation - Japan
- TNB Fuel Sdn Bhd - Malaysia
- New Zealand Coal & Carbon
- Madhucon Powers Ltd - India
- McConnell Dowell - Australia
- Grasim Industreis Ltd - India
- Jaiprakash Power Ventures ltd
- Indogreen Group - Indonesia
- Price Waterhouse Coopers - Russia
- Energy Development Corp, Philippines
- Coalindo Energy - Indonesia
- Planning Commission, India
- Kumho Petrochemical, South Korea
- LBH Netherlands Bv - Netherlands
- Miang Besar Coal Terminal - Indonesia
- Timah Investasi Mineral - Indoneisa
- Coal and Oil Company - UAE
- Therma Luzon, Inc, Philippines
- Kapuas Tunggal Persada - Indonesia
- Minerals Council of Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- GAC Shipping (India) Pvt Ltd
- Riau Bara Harum - Indonesia
- Barasentosa Lestari - Indonesia
- Bharathi Cement Corporation - India
- Posco Energy - South Korea
- Metalloyd Limited - United Kingdom
- Trasteel International SA, Italy
- Kepco SPC Power Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- IEA Clean Coal Centre - UK
- Offshore Bulk Terminal Pte Ltd, Singapore
- Africa Commodities Group - South Africa
- Chettinad Cement Corporation Ltd - India
- Salva Resources Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Bhoruka Overseas - Indonesia
- San Jose City I Power Corp, Philippines
- The State Trading Corporation of India Ltd
- Aditya Birla Group - India
- Renaissance Capital - South Africa
- Sical Logistics Limited - India
- Tamil Nadu electricity Board
- Binh Thuan Hamico - Vietnam
- MS Steel International - UAE
- Rio Tinto Coal - Australia
- Bhushan Steel Limited - India
- Mercuria Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Orica Mining Services - Indonesia
- South Luzon Thermal Energy Corporation
- Australian Commodity Traders Exchange
- Marubeni Corporation - India
- The University of Queensland
- Ceylon Electricity Board - Sri Lanka
- Indo Tambangraya Megah - Indonesia
- Orica Australia Pty. Ltd.
- Straits Asia Resources Limited - Singapore
- Interocean Group of Companies - India
- VISA Power Limited - India
- AsiaOL BioFuels Corp., Philippines
- Semirara Mining and Power Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kartika Selabumi Mining - Indonesia
- Eastern Coal Council - USA
- Rashtriya Ispat Nigam Limited - India
- Kobexindo Tractors - Indoneisa
- GMR Energy Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bukit Asam (Persero) Tbk - Indonesia
- PNOC Exploration Corporation - Philippines
- Central Electricity Authority - India
- Electricity Authority, New Zealand
- Power Finance Corporation Ltd., India
- Kalimantan Lumbung Energi - Indonesia
- Banpu Public Company Limited - Thailand
- Sree Jayajothi Cements Limited - India
- Parliament of New Zealand
- Karaikal Port Pvt Ltd - India
- Central Java Power - Indonesia
- Directorate Of Revenue Intelligence - India
- Australian Coal Association
- Asmin Koalindo Tuhup - Indonesia
- Antam Resourcindo - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Tata Chemicals Ltd - India
- Jindal Steel & Power Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Pipit Mutiara Jaya. PT, Indonesia
- Essar Steel Hazira Ltd - India
- Thai Mozambique Logistica
- Singapore Mercantile Exchange
- Simpson Spence & Young - Indonesia
- The Treasury - Australian Government
- Manunggal Multi Energi - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Carbofer General Trading SA - India
- Global Green Power PLC Corporation, Philippines
- Mintek Dendrill Indonesia
- Chamber of Mines of South Africa
- Mjunction Services Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Baramulti Group, Indonesia
- Latin American Coal - Colombia
- Romanian Commodities Exchange
- GVK Power & Infra Limited - India
- Savvy Resources Ltd - HongKong
- Bukit Baiduri Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- SMC Global Power, Philippines
- Bangladesh Power Developement Board
- Goldman Sachs - Singapore
- Indika Energy - Indonesia
- Ministry of Transport, Egypt
- India Bulls Power Limited - India
- IHS Mccloskey Coal Group - USA
- Samtan Co., Ltd - South Korea
- Ambuja Cements Ltd - India
- Kideco Jaya Agung - Indonesia
- Heidelberg Cement - Germany
- Anglo American - United Kingdom
- CNBM International Corporation - China
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Port Waratah Coal Services - Australia
- Meralco Power Generation, Philippines
- Agrawal Coal Company - India
- OPG Power Generation Pvt Ltd - India
- Edison Trading Spa - Italy
- Meenaskhi Energy Private Limited - India
- Mercator Lines Limited - India
- Vizag Seaport Private Limited - India
- PowerSource Philippines DevCo
- Electricity Generating Authority of Thailand
- Cigading International Bulk Terminal - Indonesia
- Georgia Ports Authority, United States
- Gujarat Sidhee Cement - India
- Commonwealth Bank - Australia
- Oldendorff Carriers - Singapore
- ICICI Bank Limited - India
- Iligan Light & Power Inc, Philippines
- Ministry of Mines - Canada
- White Energy Company Limited
- European Bulk Services B.V. - Netherlands
- ASAPP Information Group - India
- Lanco Infratech Ltd - India
- Siam City Cement - Thailand
- CIMB Investment Bank - Malaysia
- Medco Energi Mining Internasional
- Indian Oil Corporation Limited
- Bhatia International Limited - India
- Independent Power Producers Association of India
- Sinarmas Energy and Mining - Indonesia
- Dalmia Cement Bharat India
- Indian Energy Exchange, India
- Billiton Holdings Pty Ltd - Australia
- Maheswari Brothers Coal Limited - India
- Standard Chartered Bank - UAE
- Aboitiz Power Corporation - Philippines
- Merrill Lynch Commodities Europe
- Videocon Industries ltd - India
- Xindia Steels Limited - India
- International Coal Ventures Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Bulk Trading Sa - Switzerland
- Borneo Indobara - Indonesia
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