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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, 20 November 11
THE FREIGHT MARKETS EXPECTED TO BE FIRM NEXT WEEK - VISTAAR
COALspot.com - The market continued to move up with all sectors gaining except for handy size.
The BDI was up by 3.26 pct and closed at 1895 poin ...
Friday, 18 November 11
MMTC SEEKS 1.365 MMT OF IMPORTED COAL
COALspot.com - India's MMTC, the largest trading company of India and a major trading company of Asia, has issued a term supply tender for 1.365Mt ...
Friday, 18 November 11
KPC, ARUTMIN OUTPUT REACHED 47.1 MIO TONS - INSIDER STORIES
PT Kaltim Prima Coal (KPC) and PT Arutmin Indonesia, reported 47.1 million tons of coal production in 9M 2011, according to Indiser Stories.
Insi ...
Friday, 18 November 11
THE ATLANTIC SUPRAMAX MARKET EXPERIENCED A STEADY AND FIRM TENDENCY
Handy
The Atlantic Supramax market experienced a steady and firm tendency this week. Especially the North Atlantic and Mediterranean position ...
Friday, 18 November 11
BERAU COAL 9M PROFIT SOARS 194.46% - INSIDER STORIES
Insider Stories reported that, PT Berau Coal Energy Tbk (BRAU), which is 84.7% owned by Bumi Plc, reported a 194.46% jump in net profit by end of Se ...
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- Makarim & Taira - Indonesia
- Aditya Birla Group - India
- OPG Power Generation Pvt Ltd - India
- Standard Chartered Bank - UAE
- Sojitz Corporation - Japan
- Ministry of Mines - Canada
- Neyveli Lignite Corporation Ltd, - India
- Sindya Power Generating Company Private Ltd
- Mercuria Energy - Indonesia
- Star Paper Mills Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ministry of Finance - Indonesia
- IEA Clean Coal Centre - UK
- Semirara Mining Corp, Philippines
- McConnell Dowell - Australia
- Dalmia Cement Bharat India
- Semirara Mining and Power Corporation, Philippines
- Bulk Trading Sa - Switzerland
- Africa Commodities Group - South Africa
- Bukit Makmur.PT - Indonesia
- Altura Mining Limited, Indonesia
- Savvy Resources Ltd - HongKong
- Aboitiz Power Corporation - Philippines
- Bhushan Steel Limited - India
- Madhucon Powers Ltd - India
- Mercator Lines Limited - India
- Straits Asia Resources Limited - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Global Green Power PLC Corporation, Philippines
- Interocean Group of Companies - India
- Lanco Infratech Ltd - India
- Thai Mozambique Logistica
- Grasim Industreis Ltd - India
- Sarangani Energy Corporation, Philippines
- Latin American Coal - Colombia
- New Zealand Coal & Carbon
- CIMB Investment Bank - Malaysia
- Petron Corporation, Philippines
- SMC Global Power, Philippines
- Indo Tambangraya Megah - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Asmin Koalindo Tuhup - Indonesia
- Therma Luzon, Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- White Energy Company Limited
- Coal and Oil Company - UAE
- Kalimantan Lumbung Energi - Indonesia
- European Bulk Services B.V. - Netherlands
- Miang Besar Coal Terminal - Indonesia
- Trasteel International SA, Italy
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Binh Thuan Hamico - Vietnam
- Vizag Seaport Private Limited - India
- Independent Power Producers Association of India
- Gujarat Mineral Development Corp Ltd - India
- Intertek Mineral Services - Indonesia
- ASAPP Information Group - India
- Port Waratah Coal Services - Australia
- Heidelberg Cement - Germany
- ICICI Bank Limited - India
- Alfred C Toepfer International GmbH - Germany
- Oldendorff Carriers - Singapore
- IHS Mccloskey Coal Group - USA
- Kumho Petrochemical, South Korea
- Posco Energy - South Korea
- Simpson Spence & Young - Indonesia
- Chamber of Mines of South Africa
- Economic Council, Georgia
- Australian Commodity Traders Exchange
- Minerals Council of Australia
- Bukit Baiduri Energy - Indonesia
- Vedanta Resources Plc - India
- Vijayanagar Sugar Pvt Ltd - India
- VISA Power Limited - India
- Sical Logistics Limited - India
- Global Business Power Corporation, Philippines
- Antam Resourcindo - Indonesia
- Singapore Mercantile Exchange
- Bharathi Cement Corporation - India
- GMR Energy Limited - India
- Rio Tinto Coal - Australia
- Pendopo Energi Batubara - Indonesia
- Renaissance Capital - South Africa
- Kobexindo Tractors - Indoneisa
- Orica Australia Pty. Ltd.
- SMG Consultants - Indonesia
- Agrawal Coal Company - India
- Indonesian Coal Mining Association
- Manunggal Multi Energi - Indonesia
- Formosa Plastics Group - Taiwan
- Petrochimia International Co. Ltd.- Taiwan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Mjunction Services Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Baramulti Group, Indonesia
- Kideco Jaya Agung - Indonesia
- London Commodity Brokers - England
- PetroVietnam Power Coal Import and Supply Company
- Xindia Steels Limited - India
- Romanian Commodities Exchange
- Indogreen Group - Indonesia
- Jaiprakash Power Ventures ltd
- Parliament of New Zealand
- The State Trading Corporation of India Ltd
- Bayan Resources Tbk. - Indonesia
- Bhoruka Overseas - Indonesia
- Videocon Industries ltd - India
- Energy Development Corp, Philippines
- Cigading International Bulk Terminal - Indonesia
- TeaM Sual Corporation - Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Deloitte Consulting - India
- Kartika Selabumi Mining - Indonesia
- Indian Oil Corporation Limited
- SN Aboitiz Power Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- MS Steel International - UAE
- Coastal Gujarat Power Limited - India
- Ministry of Transport, Egypt
- Riau Bara Harum - Indonesia
- Electricity Authority, New Zealand
- Mintek Dendrill Indonesia
- Borneo Indobara - Indonesia
- Goldman Sachs - Singapore
- Maheswari Brothers Coal Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Eastern Energy - Thailand
- Tamil Nadu electricity Board
- Banpu Public Company Limited - Thailand
- Carbofer General Trading SA - India
- PowerSource Philippines DevCo
- Globalindo Alam Lestari - Indonesia
- Directorate Of Revenue Intelligence - India
- Essar Steel Hazira Ltd - India
- Central Java Power - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Directorate General of MIneral and Coal - Indonesia
- Attock Cement Pakistan Limited
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Malabar Cements Ltd - India
- Bangladesh Power Developement Board
- Ambuja Cements Ltd - India
- Electricity Generating Authority of Thailand
- San Jose City I Power Corp, Philippines
- Barasentosa Lestari - Indonesia
- India Bulls Power Limited - India
- Indika Energy - Indonesia
- International Coal Ventures Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- Australian Coal Association
- Maharashtra Electricity Regulatory Commission - India
- Wilmar Investment Holdings
- Leighton Contractors Pty Ltd - Australia
- Energy Link Ltd, New Zealand
- Timah Investasi Mineral - Indoneisa
- Larsen & Toubro Limited - India
- Sakthi Sugars Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Chettinad Cement Corporation Ltd - India
- Bhatia International Limited - India
- Gujarat Sidhee Cement - India
- Power Finance Corporation Ltd., India
- Coalindo Energy - Indonesia
- CNBM International Corporation - China
- Jindal Steel & Power Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Price Waterhouse Coopers - Russia
- Wood Mackenzie - Singapore
- Central Electricity Authority - India
- Gujarat Electricity Regulatory Commission - India
- Edison Trading Spa - Italy
- Rashtriya Ispat Nigam Limited - India
- Cement Manufacturers Association - India
- The Treasury - Australian Government
- Commonwealth Bank - Australia
- Siam City Cement - Thailand
- Sinarmas Energy and Mining - Indonesia
- Thiess Contractors Indonesia
- Indian Energy Exchange, India
- Georgia Ports Authority, United States
- Marubeni Corporation - India
- Karaikal Port Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Sree Jayajothi Cements Limited - India
- Meralco Power Generation, Philippines
- Salva Resources Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Medco Energi Mining Internasional
- GVK Power & Infra Limited - India
- Toyota Tsusho Corporation, Japan
- Kaltim Prima Coal - Indonesia
- Merrill Lynch Commodities Europe
- GN Power Mariveles Coal Plant, Philippines
- Orica Mining Services - Indonesia
- Ind-Barath Power Infra Limited - India
- Metalloyd Limited - United Kingdom
- Samtan Co., Ltd - South Korea
- Tata Chemicals Ltd - India
- Parry Sugars Refinery, India
- Anglo American - United Kingdom
- TNB Fuel Sdn Bhd - Malaysia
- Siam City Cement PLC, Thailand
- Planning Commission, India
- PTC India Limited - India
- LBH Netherlands Bv - Netherlands
- Eastern Coal Council - USA
- Jorong Barutama Greston.PT - Indonesia
- The University of Queensland
- Iligan Light & Power Inc, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Pipit Mutiara Jaya. PT, Indonesia
- Global Coal Blending Company Limited - Australia
- South Luzon Thermal Energy Corporation
- Uttam Galva Steels Limited - India
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