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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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Tuesday, 15 January 13
GRANT SMITH APPOINTED GROUP MANAGING DIRECTOR OF BRAEMAR ADJUSTING
The Board of Braemar Adjusting is delighted to announce the appointment of Grant Smith as Group Managing Director of the company with immediate effe ...
Tuesday, 15 January 13
2ND MYANMAR MINING SUMMIT & OFFICIAL HOST MINISTRY OF MINES TO WELCOME OVER 200 DELEGATES NEXT WEEK
Press Release: The Ministry of Mines is hosting the 2nd Myanmar Mining Summit in Yangon on 21-24 January to unravel the local mining climate, prospe ...
Monday, 14 January 13
NEWCASTLE PORT SHIPPED 2.32 PERCENT LESS COAL W/E 14 JANUARY 2013
COALspot.com - Newcastle port in Australia has loaded 3,123,312 MT of thermal and coking coal for week ended 0700 hours 14 January 2013, Newca ...
Monday, 14 January 13
THE COAL MONGOLIA - 2013 OFFICIALLY IN COOPERATION WITH TOP MINING COMPANIES
Press Release: Mongolian first mining portal site Mining.mn has already started its preparation of the International Conference “COAL MONGOLIA ...
Monday, 14 January 13
NTPC INVITES BIDS FOR 500K MT OF IMPORTED COAL
COALspot.com - NTPC Limited (formerly National Thermal Power Corporation) is the largest Indian state-owned electric utilities company called for a ...
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- Jorong Barutama Greston.PT - Indonesia
- Electricity Authority, New Zealand
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- Deloitte Consulting - India
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- The University of Queensland
- Trasteel International SA, Italy
- Vijayanagar Sugar Pvt Ltd - India
- Dalmia Cement Bharat India
- Vedanta Resources Plc - India
- Pendopo Energi Batubara - Indonesia
- Eastern Coal Council - USA
- Samtan Co., Ltd - South Korea
- Coastal Gujarat Power Limited - India
- Chettinad Cement Corporation Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Bayan Resources Tbk. - Indonesia
- Global Green Power PLC Corporation, Philippines
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- Directorate Of Revenue Intelligence - India
- Kobexindo Tractors - Indoneisa
- Ind-Barath Power Infra Limited - India
- Goldman Sachs - Singapore
- Kepco SPC Power Corporation, Philippines
- Ministry of Finance - Indonesia
- ICICI Bank Limited - India
- IHS Mccloskey Coal Group - USA
- Manunggal Multi Energi - Indonesia
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- India Bulls Power Limited - India
- Uttam Galva Steels Limited - India
- MS Steel International - UAE
- Indian Energy Exchange, India
- Global Coal Blending Company Limited - Australia
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- Attock Cement Pakistan Limited
- Anglo American - United Kingdom
- Dong Bac Coal Mineral Investment Coporation - Vietnam
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- Parry Sugars Refinery, India
- Toyota Tsusho Corporation, Japan
- Binh Thuan Hamico - Vietnam
- Kapuas Tunggal Persada - Indonesia
- Jindal Steel & Power Ltd - India
- Chamber of Mines of South Africa
- Kaltim Prima Coal - Indonesia
- Madhucon Powers Ltd - India
- Baramulti Group, Indonesia
- Oldendorff Carriers - Singapore
- Xindia Steels Limited - India
- Merrill Lynch Commodities Europe
- Makarim & Taira - Indonesia
- Latin American Coal - Colombia
- The Treasury - Australian Government
- Sarangani Energy Corporation, Philippines
- Malabar Cements Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Alfred C Toepfer International GmbH - Germany
- Thai Mozambique Logistica
- Coalindo Energy - Indonesia
- Carbofer General Trading SA - India
- Posco Energy - South Korea
- Aditya Birla Group - India
- Straits Asia Resources Limited - Singapore
- Independent Power Producers Association of India
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- The State Trading Corporation of India Ltd
- Ambuja Cements Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Jaiprakash Power Ventures ltd
- Ministry of Mines - Canada
- Karbindo Abesyapradhi - Indoneisa
- TeaM Sual Corporation - Philippines
- GVK Power & Infra Limited - India
- Central Java Power - Indonesia
- Georgia Ports Authority, United States
- New Zealand Coal & Carbon
- Karaikal Port Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Mjunction Services Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Energy Development Corp, Philippines
- PTC India Limited - India
- Central Electricity Authority - India
- Planning Commission, India
- White Energy Company Limited
- Gujarat Electricity Regulatory Commission - India
- Orica Australia Pty. Ltd.
- Sical Logistics Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Simpson Spence & Young - Indonesia
- Wood Mackenzie - Singapore
- CNBM International Corporation - China
- Altura Mining Limited, Indonesia
- Tata Chemicals Ltd - India
- Bangladesh Power Developement Board
- Commonwealth Bank - Australia
- Port Waratah Coal Services - Australia
- Mintek Dendrill Indonesia
- Medco Energi Mining Internasional
- Meenaskhi Energy Private Limited - India
- Edison Trading Spa - Italy
- Sojitz Corporation - Japan
- SMC Global Power, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Africa Commodities Group - South Africa
- Kideco Jaya Agung - Indonesia
- Thiess Contractors Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Kumho Petrochemical, South Korea
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Vizag Seaport Private Limited - India
- Therma Luzon, Inc, Philippines
- Heidelberg Cement - Germany
- Bukit Baiduri Energy - Indonesia
- Bhatia International Limited - India
- Semirara Mining Corp, Philippines
- Power Finance Corporation Ltd., India
- Savvy Resources Ltd - HongKong
- International Coal Ventures Pvt Ltd - India
- Orica Mining Services - Indonesia
- Bulk Trading Sa - Switzerland
- Antam Resourcindo - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Kartika Selabumi Mining - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Standard Chartered Bank - UAE
- Interocean Group of Companies - India
- AsiaOL BioFuels Corp., Philippines
- Star Paper Mills Limited - India
- Sakthi Sugars Limited - India
- Riau Bara Harum - Indonesia
- Billiton Holdings Pty Ltd - Australia
- McConnell Dowell - Australia
- Krishnapatnam Port Company Ltd. - India
- Economic Council, Georgia
- Ceylon Electricity Board - Sri Lanka
- GAC Shipping (India) Pvt Ltd
- Australian Commodity Traders Exchange
- Petron Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Indonesian Coal Mining Association
- Bhoruka Overseas - Indonesia
- Parliament of New Zealand
- Larsen & Toubro Limited - India
- PowerSource Philippines DevCo
- Wilmar Investment Holdings
- Timah Investasi Mineral - Indoneisa
- Bhushan Steel Limited - India
- Indian Oil Corporation Limited
- Bharathi Cement Corporation - India
- Mercuria Energy - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Indogreen Group - Indonesia
- Videocon Industries ltd - India
- Rio Tinto Coal - Australia
- VISA Power Limited - India
- Grasim Industreis Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- GMR Energy Limited - India
- Price Waterhouse Coopers - Russia
- Agrawal Coal Company - India
- Bukit Makmur.PT - Indonesia
- Sindya Power Generating Company Private Ltd
- South Luzon Thermal Energy Corporation
- Salva Resources Pvt Ltd - India
- Cement Manufacturers Association - India
- ASAPP Information Group - India
- IEA Clean Coal Centre - UK
- Renaissance Capital - South Africa
- Siam City Cement PLC, Thailand
- Borneo Indobara - Indonesia
- San Jose City I Power Corp, Philippines
- OPG Power Generation Pvt Ltd - India
- Ministry of Transport, Egypt
- London Commodity Brokers - England
- Sree Jayajothi Cements Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- CIMB Investment Bank - Malaysia
- Romanian Commodities Exchange
- Coal and Oil Company - UAE
- Directorate General of MIneral and Coal - Indonesia
- Meralco Power Generation, Philippines
- Mercator Lines Limited - India
- Gujarat Sidhee Cement - India
- Singapore Mercantile Exchange
- Electricity Generating Authority of Thailand
- Marubeni Corporation - India
- Iligan Light & Power Inc, Philippines
- Tamil Nadu electricity Board
- SN Aboitiz Power Inc, Philippines
- Australian Coal Association
- Lanco Infratech Ltd - India
- Formosa Plastics Group - Taiwan
- Global Business Power Corporation, Philippines
- Energy Link Ltd, New Zealand
- PNOC Exploration Corporation - Philippines
- Miang Besar Coal Terminal - Indonesia
- Metalloyd Limited - United Kingdom
- European Bulk Services B.V. - Netherlands
- Eastern Energy - Thailand
- Sinarmas Energy and Mining - Indonesia
- Intertek Mineral Services - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Siam City Cement - Thailand
- Indika Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Maheswari Brothers Coal Limited - India
- Minerals Council of Australia
- LBH Netherlands Bv - Netherlands
- SMG Consultants - Indonesia
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