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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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Friday, 18 May 12
EXPORT TAX WILL ERODE PROFITS, INDONESIAN COAL EXEC COMPLAINS - THE JAKARTA GLOBE
The Jakarta Globe reported that, A 20 percent export duty the government has imposed on 14 mineral ore products will not only take a toll on mining ...
Friday, 18 May 12
KOREA EAST WEST POWER LOOKING FOR TOTAL 2.6 MILLION TONS OF 4600 NAR COAL AT FIXED PRICE FOR 5 YEARS
COALspot.com - Korea East West Power Co., Ltd is inviting bids to supply of 520,000 Metric Tons (per annum) of minimum 4,600 kcal/kg coal of N ...
Friday, 18 May 12
NICKEL ORE CARGOES ARE NOT SEEN IN MARKET ANYMORE DUE TO ON-GOING INDONESIAN BAN - FEARNLEYS AS
Handy
The market remained variable.
Fronthaul voyages both from Baltic and Black Sea paid over USD 18k/day. From USG to Cont tonnage would get ...
Thursday, 17 May 12
COAL MINERS OPPOSE EXPORT TAX, SUGGEST OUTPUT QUOTA - THE JAKARTA POST
The Jakarta Post reported that, coal miners have suggested that the government apply a production quota instead of implementing an export tax in ord ...
Thursday, 17 May 12
DRY BULK MARKET STILL LOOKING FOR NEW DIRECTION - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market has kept on moving sideways during this week, with the mixed performance across all segments. Yesterday, the industry’s be ...
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- Central Java Power - Indonesia
- Baramulti Group, Indonesia
- MS Steel International - UAE
- Grasim Industreis Ltd - India
- Merrill Lynch Commodities Europe
- Uttam Galva Steels Limited - India
- Kaltim Prima Coal - Indonesia
- Heidelberg Cement - Germany
- Orica Australia Pty. Ltd.
- Eastern Coal Council - USA
- Cigading International Bulk Terminal - Indonesia
- Thiess Contractors Indonesia
- Coalindo Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Gujarat Sidhee Cement - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bayan Resources Tbk. - Indonesia
- ASAPP Information Group - India
- Commonwealth Bank - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- VISA Power Limited - India
- Electricity Generating Authority of Thailand
- GVK Power & Infra Limited - India
- Orica Mining Services - Indonesia
- Lanco Infratech Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- The University of Queensland
- Asmin Koalindo Tuhup - Indonesia
- PowerSource Philippines DevCo
- Formosa Plastics Group - Taiwan
- Alfred C Toepfer International GmbH - Germany
- Kohat Cement Company Ltd. - Pakistan
- Holcim Trading Pte Ltd - Singapore
- Agrawal Coal Company - India
- Indo Tambangraya Megah - Indonesia
- Goldman Sachs - Singapore
- Tata Chemicals Ltd - India
- Samtan Co., Ltd - South Korea
- Meenaskhi Energy Private Limited - India
- Renaissance Capital - South Africa
- Power Finance Corporation Ltd., India
- Toyota Tsusho Corporation, Japan
- Independent Power Producers Association of India
- Ministry of Mines - Canada
- Sindya Power Generating Company Private Ltd
- Energy Development Corp, Philippines
- Simpson Spence & Young - Indonesia
- Star Paper Mills Limited - India
- Kapuas Tunggal Persada - Indonesia
- PTC India Limited - India
- White Energy Company Limited
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bangladesh Power Developement Board
- Trasteel International SA, Italy
- Parry Sugars Refinery, India
- Marubeni Corporation - India
- Therma Luzon, Inc, Philippines
- The State Trading Corporation of India Ltd
- CIMB Investment Bank - Malaysia
- Kalimantan Lumbung Energi - Indonesia
- Interocean Group of Companies - India
- Mercator Lines Limited - India
- IEA Clean Coal Centre - UK
- SMG Consultants - Indonesia
- Essar Steel Hazira Ltd - India
- Mintek Dendrill Indonesia
- Makarim & Taira - Indonesia
- Sree Jayajothi Cements Limited - India
- Thai Mozambique Logistica
- Madhucon Powers Ltd - India
- Timah Investasi Mineral - Indoneisa
- Vedanta Resources Plc - India
- Jorong Barutama Greston.PT - Indonesia
- Energy Link Ltd, New Zealand
- Intertek Mineral Services - Indonesia
- Indika Energy - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Indonesian Coal Mining Association
- Petron Corporation, Philippines
- Dalmia Cement Bharat India
- Deloitte Consulting - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Anglo American - United Kingdom
- Maharashtra Electricity Regulatory Commission - India
- Edison Trading Spa - Italy
- Straits Asia Resources Limited - Singapore
- London Commodity Brokers - England
- Directorate Of Revenue Intelligence - India
- GAC Shipping (India) Pvt Ltd
- Attock Cement Pakistan Limited
- Oldendorff Carriers - Singapore
- Global Business Power Corporation, Philippines
- Georgia Ports Authority, United States
- Sarangani Energy Corporation, Philippines
- Ministry of Transport, Egypt
- GN Power Mariveles Coal Plant, Philippines
- SMC Global Power, Philippines
- Electricity Authority, New Zealand
- Kepco SPC Power Corporation, Philippines
- Economic Council, Georgia
- Riau Bara Harum - Indonesia
- Manunggal Multi Energi - Indonesia
- Tamil Nadu electricity Board
- Sinarmas Energy and Mining - Indonesia
- Mjunction Services Limited - India
- Ambuja Cements Ltd - India
- GMR Energy Limited - India
- Aditya Birla Group - India
- PetroVietnam Power Coal Import and Supply Company
- Vijayanagar Sugar Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Globalindo Alam Lestari - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Directorate General of MIneral and Coal - Indonesia
- The Treasury - Australian Government
- Maheswari Brothers Coal Limited - India
- Indian Oil Corporation Limited
- Bahari Cakrawala Sebuku - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Latin American Coal - Colombia
- Standard Chartered Bank - UAE
- Carbofer General Trading SA - India
- LBH Netherlands Bv - Netherlands
- New Zealand Coal & Carbon
- Pipit Mutiara Jaya. PT, Indonesia
- Videocon Industries ltd - India
- Vizag Seaport Private Limited - India
- IHS Mccloskey Coal Group - USA
- Semirara Mining Corp, Philippines
- Gujarat Mineral Development Corp Ltd - India
- PNOC Exploration Corporation - Philippines
- Jaiprakash Power Ventures ltd
- Leighton Contractors Pty Ltd - Australia
- Aboitiz Power Corporation - Philippines
- Chettinad Cement Corporation Ltd - India
- McConnell Dowell - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indogreen Group - Indonesia
- Antam Resourcindo - Indonesia
- Bulk Trading Sa - Switzerland
- Kobexindo Tractors - Indoneisa
- OPG Power Generation Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Australian Coal Association
- Price Waterhouse Coopers - Russia
- Borneo Indobara - Indonesia
- Wood Mackenzie - Singapore
- Coal and Oil Company - UAE
- Eastern Energy - Thailand
- Neyveli Lignite Corporation Ltd, - India
- Port Waratah Coal Services - Australia
- Chamber of Mines of South Africa
- Romanian Commodities Exchange
- Singapore Mercantile Exchange
- Planning Commission, India
- Bhoruka Overseas - Indonesia
- Africa Commodities Group - South Africa
- Salva Resources Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Cement Manufacturers Association - India
- Australian Commodity Traders Exchange
- Wilmar Investment Holdings
- Savvy Resources Ltd - HongKong
- Parliament of New Zealand
- Larsen & Toubro Limited - India
- Mercuria Energy - Indonesia
- Kumho Petrochemical, South Korea
- Posco Energy - South Korea
- Coastal Gujarat Power Limited - India
- TeaM Sual Corporation - Philippines
- Siam City Cement PLC, Thailand
- Global Coal Blending Company Limited - Australia
- Indian Energy Exchange, India
- Jindal Steel & Power Ltd - India
- Rio Tinto Coal - Australia
- Iligan Light & Power Inc, Philippines
- Binh Thuan Hamico - Vietnam
- Krishnapatnam Port Company Ltd. - India
- South Luzon Thermal Energy Corporation
- Siam City Cement - Thailand
- Altura Mining Limited, Indonesia
- Billiton Holdings Pty Ltd - Australia
- Central Electricity Authority - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Minerals Council of Australia
- Rashtriya Ispat Nigam Limited - India
- Metalloyd Limited - United Kingdom
- Gujarat Electricity Regulatory Commission - India
- Karbindo Abesyapradhi - Indoneisa
- Bukit Baiduri Energy - Indonesia
- Meralco Power Generation, Philippines
- Kideco Jaya Agung - Indonesia
- Bhushan Steel Limited - India
- San Jose City I Power Corp, Philippines
- European Bulk Services B.V. - Netherlands
- Sojitz Corporation - Japan
- Medco Energi Mining Internasional
- Pendopo Energi Batubara - Indonesia
- Bukit Makmur.PT - Indonesia
- Bhatia International Limited - India
- Barasentosa Lestari - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Global Green Power PLC Corporation, Philippines
- Ministry of Finance - Indonesia
- Sical Logistics Limited - India
- CNBM International Corporation - China
- Ind-Barath Power Infra Limited - India
- Bharathi Cement Corporation - India
- Malabar Cements Ltd - India
- Xindia Steels Limited - India
- Sakthi Sugars Limited - India
- Ceylon Electricity Board - Sri Lanka
- India Bulls Power Limited - India
- ICICI Bank Limited - India
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