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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, 06 November 12
NOVEMBER 2012 HBA $35.21 LOWER THAN A YEAR AGO
COALspot.com - The Indonesian government’s declared coal reference price for November’ 12 has lost US$ 4.60 per MT M-o-M.
...
Sunday, 04 November 12
SUB-BIT INDONESIA COAL SWAPS FOR DECEMBER' 12 DELIVERY FALLS TO $ 59.78
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for December 2012 delivery fell -1.02 percent on WoW but gained 0.08 percent on D-D on Friday, 2 ...
Saturday, 03 November 12
THE SUPRAMAX FREIGHT EXPECTED TO BE SOFT NEXT WEEK - VISTAAR
COALspot.com - This week the market remained soft with all the sectors soft.
The BDI and was down by 6 pct closing at 986 points. The cape index ...
Saturday, 03 November 12
DEMOLITION IS THE KEY FOR DRY BULK SHIPPING'S RECOVERY SAYS SHIPBROKER - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
With the number of new building deliveries so far in 2012 already having surpassed the total of 2011, it's more than clear that the dry bulk sector ...
Thursday, 01 November 12
INDONESIA HAS REVISED DOWN ITS 2012 DOMESTIC MARKET OBLIGATION REQUIREMENT FOR COAL
COALspot.com - Minister of Energy and Mineral Resources of Indonesia has revised down its 2012 domestic market obligation requirement due to lower d ...
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- Port Waratah Coal Services - Australia
- Bayan Resources Tbk. - Indonesia
- Madhucon Powers Ltd - India
- Jaiprakash Power Ventures ltd
- Wood Mackenzie - Singapore
- Price Waterhouse Coopers - Russia
- Antam Resourcindo - Indonesia
- Iligan Light & Power Inc, Philippines
- Edison Trading Spa - Italy
- Ministry of Transport, Egypt
- Energy Link Ltd, New Zealand
- Global Coal Blending Company Limited - Australia
- Planning Commission, India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Vedanta Resources Plc - India
- Indonesian Coal Mining Association
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Parliament of New Zealand
- Kaltim Prima Coal - Indonesia
- Independent Power Producers Association of India
- Chettinad Cement Corporation Ltd - India
- London Commodity Brokers - England
- Aboitiz Power Corporation - Philippines
- Central Java Power - Indonesia
- Kumho Petrochemical, South Korea
- Ceylon Electricity Board - Sri Lanka
- Marubeni Corporation - India
- Chamber of Mines of South Africa
- Sakthi Sugars Limited - India
- Medco Energi Mining Internasional
- Attock Cement Pakistan Limited
- Alfred C Toepfer International GmbH - Germany
- Indian Oil Corporation Limited
- PTC India Limited - India
- Australian Coal Association
- Globalindo Alam Lestari - Indonesia
- Petron Corporation, Philippines
- Malabar Cements Ltd - India
- GMR Energy Limited - India
- PowerSource Philippines DevCo
- Gujarat Electricity Regulatory Commission - India
- Miang Besar Coal Terminal - Indonesia
- White Energy Company Limited
- Straits Asia Resources Limited - Singapore
- Banpu Public Company Limited - Thailand
- Cigading International Bulk Terminal - Indonesia
- Eastern Energy - Thailand
- Posco Energy - South Korea
- Kapuas Tunggal Persada - Indonesia
- Bhushan Steel Limited - India
- Parry Sugars Refinery, India
- Meralco Power Generation, Philippines
- Xindia Steels Limited - India
- Baramulti Group, Indonesia
- Metalloyd Limited - United Kingdom
- GAC Shipping (India) Pvt Ltd
- European Bulk Services B.V. - Netherlands
- Goldman Sachs - Singapore
- Merrill Lynch Commodities Europe
- Orica Mining Services - Indonesia
- Bulk Trading Sa - Switzerland
- Power Finance Corporation Ltd., India
- Pipit Mutiara Jaya. PT, Indonesia
- TeaM Sual Corporation - Philippines
- Semirara Mining Corp, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Essar Steel Hazira Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Jorong Barutama Greston.PT - Indonesia
- Interocean Group of Companies - India
- Vijayanagar Sugar Pvt Ltd - India
- Grasim Industreis Ltd - India
- Eastern Coal Council - USA
- Bharathi Cement Corporation - India
- Makarim & Taira - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Directorate Of Revenue Intelligence - India
- Standard Chartered Bank - UAE
- TNB Fuel Sdn Bhd - Malaysia
- Sree Jayajothi Cements Limited - India
- Meenaskhi Energy Private Limited - India
- SN Aboitiz Power Inc, Philippines
- Thai Mozambique Logistica
- Coalindo Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
- Bhatia International Limited - India
- GVK Power & Infra Limited - India
- Kalimantan Lumbung Energi - Indonesia
- OPG Power Generation Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Toyota Tsusho Corporation, Japan
- Rio Tinto Coal - Australia
- SMG Consultants - Indonesia
- Siam City Cement PLC, Thailand
- Altura Mining Limited, Indonesia
- Sarangani Energy Corporation, Philippines
- Ministry of Finance - Indonesia
- Bukit Makmur.PT - Indonesia
- Indika Energy - Indonesia
- The University of Queensland
- MS Steel International - UAE
- Mintek Dendrill Indonesia
- Indogreen Group - Indonesia
- Bukit Baiduri Energy - Indonesia
- Simpson Spence & Young - Indonesia
- Tamil Nadu electricity Board
- Heidelberg Cement - Germany
- Riau Bara Harum - Indonesia
- Coastal Gujarat Power Limited - India
- McConnell Dowell - Australia
- Kobexindo Tractors - Indoneisa
- Lanco Infratech Ltd - India
- Uttam Galva Steels Limited - India
- Trasteel International SA, Italy
- Barasentosa Lestari - Indonesia
- The State Trading Corporation of India Ltd
- Mjunction Services Limited - India
- IHS Mccloskey Coal Group - USA
- Coal and Oil Company - UAE
- Indian Energy Exchange, India
- Bangladesh Power Developement Board
- Tata Chemicals Ltd - India
- Sindya Power Generating Company Private Ltd
- Kideco Jaya Agung - Indonesia
- South Luzon Thermal Energy Corporation
- VISA Power Limited - India
- SMC Global Power, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Australian Commodity Traders Exchange
- Singapore Mercantile Exchange
- Billiton Holdings Pty Ltd - Australia
- Wilmar Investment Holdings
- Sical Logistics Limited - India
- Star Paper Mills Limited - India
- Latin American Coal - Colombia
- Renaissance Capital - South Africa
- Minerals Council of Australia
- Georgia Ports Authority, United States
- Petrochimia International Co. Ltd.- Taiwan
- Electricity Generating Authority of Thailand
- Thiess Contractors Indonesia
- Oldendorff Carriers - Singapore
- Cement Manufacturers Association - India
- ICICI Bank Limited - India
- Ambuja Cements Ltd - India
- Larsen & Toubro Limited - India
- Savvy Resources Ltd - HongKong
- Africa Commodities Group - South Africa
- Gujarat Sidhee Cement - India
- Energy Development Corp, Philippines
- Indo Tambangraya Megah - Indonesia
- Anglo American - United Kingdom
- Sojitz Corporation - Japan
- Mercuria Energy - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Videocon Industries ltd - India
- Agrawal Coal Company - India
- Therma Luzon, Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Intertek Mineral Services - Indonesia
- CNBM International Corporation - China
- New Zealand Coal & Carbon
- Salva Resources Pvt Ltd - India
- Economic Council, Georgia
- Vizag Seaport Private Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Leighton Contractors Pty Ltd - Australia
- CIMB Investment Bank - Malaysia
- Karbindo Abesyapradhi - Indoneisa
- Bahari Cakrawala Sebuku - Indonesia
- Mercator Lines Limited - India
- Samtan Co., Ltd - South Korea
- Manunggal Multi Energi - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Global Business Power Corporation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Krishnapatnam Port Company Ltd. - India
- Borneo Indobara - Indonesia
- India Bulls Power Limited - India
- IEA Clean Coal Centre - UK
- San Jose City I Power Corp, Philippines
- Deloitte Consulting - India
- Binh Thuan Hamico - Vietnam
- GN Power Mariveles Coal Plant, Philippines
- Formosa Plastics Group - Taiwan
- Bhoruka Overseas - Indonesia
- Central Electricity Authority - India
- Pendopo Energi Batubara - Indonesia
- Timah Investasi Mineral - Indoneisa
- Maheswari Brothers Coal Limited - India
- Ind-Barath Power Infra Limited - India
- The Treasury - Australian Government
- Karaikal Port Pvt Ltd - India
- ASAPP Information Group - India
- Dalmia Cement Bharat India
- International Coal Ventures Pvt Ltd - India
- Aditya Birla Group - India
- Electricity Authority, New Zealand
- Siam City Cement - Thailand
- Orica Australia Pty. Ltd.
- Gujarat Mineral Development Corp Ltd - India
- Commonwealth Bank - Australia
- Jindal Steel & Power Ltd - India
- Sinarmas Energy and Mining - Indonesia
- LBH Netherlands Bv - Netherlands
- AsiaOL BioFuels Corp., Philippines
- Carbofer General Trading SA - India
- Ministry of Mines - Canada
- Asmin Koalindo Tuhup - Indonesia
- Kepco SPC Power Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- Romanian Commodities Exchange
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