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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, 04 December 12
JATENERGY SIGNS MOU FOR INDONESIAN COAL ASSET
COALspot.com - Jatenergy Limited has announced that its fully-owned Indonesian subsidiary, PT Barata Energy (BE), has signed an exclusive, non-bindi ...
Tuesday, 04 December 12
NEWCASTLE PORT SHIPPED 55.88 PERCENT MORE COAL W/E 3 DECEMBER 2012
COALspot.com - Newcastle port in Australia has loaded 2,796,341 MT of thermal and coking coal for week ended 0700 hours 3 December 2012, Newca ...
Sunday, 02 December 12
YEAR 2013, YEAR OF SUPPLY OR DEMAND?
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for average Q1 2013 delivery gained 2.87 & 0.83 percent MoM and WoW respectively ...
Saturday, 01 December 12
TIGHT SUPPLY, DEMAND PUSH INDO-INDIA SUPRAMAX FREIGHT RATES HIGHER - VISTAAR
COALspot.com - The freight market was mixed this week as cape and Panamax indices are closing softer.
The BDI was down 0.37 pct closing at 1,086 ...
Friday, 30 November 12
FUTURE TREND OF SECOND HAND SHIP VALUES PUZZLING SHIP OWNERS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
One of the major challenges that ship owners are facing today is whether or not to invest in a second hand vessel at any given time. For instance, i ...
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- New Zealand Coal & Carbon
- Malabar Cements Ltd - India
- Interocean Group of Companies - India
- Power Finance Corporation Ltd., India
- Agrawal Coal Company - India
- Bhushan Steel Limited - India
- Anglo American - United Kingdom
- Mintek Dendrill Indonesia
- Meenaskhi Energy Private Limited - India
- Barasentosa Lestari - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- TeaM Sual Corporation - Philippines
- Eastern Coal Council - USA
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- Georgia Ports Authority, United States
- Independent Power Producers Association of India
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- Attock Cement Pakistan Limited
- Latin American Coal - Colombia
- Ministry of Mines - Canada
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- Siam City Cement PLC, Thailand
- Planning Commission, India
- PowerSource Philippines DevCo
- Sojitz Corporation - Japan
- Chamber of Mines of South Africa
- SN Aboitiz Power Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- Africa Commodities Group - South Africa
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- Bayan Resources Tbk. - Indonesia
- McConnell Dowell - Australia
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- Parry Sugars Refinery, India
- PetroVietnam Power Coal Import and Supply Company
- Eastern Energy - Thailand
- Parliament of New Zealand
- Maheswari Brothers Coal Limited - India
- Riau Bara Harum - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Essar Steel Hazira Ltd - India
- IHS Mccloskey Coal Group - USA
- The State Trading Corporation of India Ltd
- Indonesian Coal Mining Association
- Bulk Trading Sa - Switzerland
- Aditya Birla Group - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Wood Mackenzie - Singapore
- Global Business Power Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Singapore Mercantile Exchange
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- Bhoruka Overseas - Indonesia
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- Rashtriya Ispat Nigam Limited - India
- VISA Power Limited - India
- Sinarmas Energy and Mining - Indonesia
- Thai Mozambique Logistica
- Semirara Mining Corp, Philippines
- Larsen & Toubro Limited - India
- Indian Energy Exchange, India
- Meralco Power Generation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Sical Logistics Limited - India
- Intertek Mineral Services - Indonesia
- Makarim & Taira - Indonesia
- Australian Commodity Traders Exchange
- Sree Jayajothi Cements Limited - India
- Kideco Jaya Agung - Indonesia
- Price Waterhouse Coopers - Russia
- Savvy Resources Ltd - HongKong
- Mjunction Services Limited - India
- Gujarat Sidhee Cement - India
- IEA Clean Coal Centre - UK
- Energy Link Ltd, New Zealand
- Australian Coal Association
- Grasim Industreis Ltd - India
- Bukit Makmur.PT - Indonesia
- Uttam Galva Steels Limited - India
- Banpu Public Company Limited - Thailand
- Dalmia Cement Bharat India
- Bukit Baiduri Energy - Indonesia
- Vedanta Resources Plc - India
- London Commodity Brokers - England
- Renaissance Capital - South Africa
- Coalindo Energy - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Economic Council, Georgia
- Cigading International Bulk Terminal - Indonesia
- Sindya Power Generating Company Private Ltd
- Star Paper Mills Limited - India
- Iligan Light & Power Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Samtan Co., Ltd - South Korea
- White Energy Company Limited
- OPG Power Generation Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- European Bulk Services B.V. - Netherlands
- Krishnapatnam Port Company Ltd. - India
- ICICI Bank Limited - India
- Global Green Power PLC Corporation, Philippines
- Orica Australia Pty. Ltd.
- Jaiprakash Power Ventures ltd
- Energy Development Corp, Philippines
- CNBM International Corporation - China
- Ind-Barath Power Infra Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- San Jose City I Power Corp, Philippines
- Manunggal Multi Energi - Indonesia
- Romanian Commodities Exchange
- Bharathi Cement Corporation - India
- Jindal Steel & Power Ltd - India
- Globalindo Alam Lestari - Indonesia
- Trasteel International SA, Italy
- GN Power Mariveles Coal Plant, Philippines
- Merrill Lynch Commodities Europe
- Maharashtra Electricity Regulatory Commission - India
- The University of Queensland
- Gujarat Electricity Regulatory Commission - India
- Central Electricity Authority - India
- Lanco Infratech Ltd - India
- Central Java Power - Indonesia
- Simpson Spence & Young - Indonesia
- Electricity Authority, New Zealand
- Commonwealth Bank - Australia
- Binh Thuan Hamico - Vietnam
- Indika Energy - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Medco Energi Mining Internasional
- MS Steel International - UAE
- Directorate Of Revenue Intelligence - India
- International Coal Ventures Pvt Ltd - India
- Posco Energy - South Korea
- Ministry of Finance - Indonesia
- Antam Resourcindo - Indonesia
- CIMB Investment Bank - Malaysia
- Baramulti Group, Indonesia
- Semirara Mining and Power Corporation, Philippines
- Siam City Cement - Thailand
- Goldman Sachs - Singapore
- Kobexindo Tractors - Indoneisa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- PTC India Limited - India
- Vizag Seaport Private Limited - India
- Xindia Steels Limited - India
- Aboitiz Power Corporation - Philippines
- PNOC Exploration Corporation - Philippines
- Port Waratah Coal Services - Australia
- SMC Global Power, Philippines
- Edison Trading Spa - Italy
- The Treasury - Australian Government
- Ambuja Cements Ltd - India
- Bangladesh Power Developement Board
- Timah Investasi Mineral - Indoneisa
- GMR Energy Limited - India
- Leighton Contractors Pty Ltd - Australia
- Holcim Trading Pte Ltd - Singapore
- LBH Netherlands Bv - Netherlands
- Indian Oil Corporation Limited
- Neyveli Lignite Corporation Ltd, - India
- Altura Mining Limited, Indonesia
- South Luzon Thermal Energy Corporation
- Billiton Holdings Pty Ltd - Australia
- Toyota Tsusho Corporation, Japan
- Coal and Oil Company - UAE
- Mercator Lines Limited - India
- Bhatia International Limited - India
- Kepco SPC Power Corporation, Philippines
- Indogreen Group - Indonesia
- Indo Tambangraya Megah - Indonesia
- Rio Tinto Coal - Australia
- India Bulls Power Limited - India
- Standard Chartered Bank - UAE
- Electricity Generating Authority of Thailand
- Heidelberg Cement - Germany
- Pendopo Energi Batubara - Indonesia
- Sarangani Energy Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Borneo Indobara - Indonesia
- Madhucon Powers Ltd - India
- ASAPP Information Group - India
- Miang Besar Coal Terminal - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Therma Luzon, Inc, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Straits Asia Resources Limited - Singapore
- Petron Corporation, Philippines
- Ministry of Transport, Egypt
- Thiess Contractors Indonesia
- Sakthi Sugars Limited - India
- Global Coal Blending Company Limited - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Salva Resources Pvt Ltd - India
- Orica Mining Services - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Videocon Industries ltd - India
- Tamil Nadu electricity Board
- Wilmar Investment Holdings
- TNB Fuel Sdn Bhd - Malaysia
- Formosa Plastics Group - Taiwan
- Oldendorff Carriers - Singapore
- Minerals Council of Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Alfred C Toepfer International GmbH - Germany
- Petrochimia International Co. Ltd.- Taiwan
- Directorate General of MIneral and Coal - Indonesia
- Kaltim Prima Coal - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Cement Manufacturers Association - India
- Marubeni Corporation - India
- Mercuria Energy - Indonesia
- Coastal Gujarat Power Limited - India
- SMG Consultants - Indonesia
- Carbofer General Trading SA - India
- Tata Chemicals Ltd - India
- Kumho Petrochemical, South Korea
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