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Wednesday, 22 June 11
BOOMING INDONESIAN COAL EXPORTS - BLEEDING INDIAN POWER INDUSTRY
 COALspot.com - Indonesia shipped 28.962 Million tons of coal in May 2011, up by 15.86 percent compared to April export of about 24.995 million tons, Indonesian coal industry sources said. 56.30 percent up year-to year.
China's Indonesian coal imports have jumped up drastically in May by 2.105 MMt compared to its April imports. Chinese coal imports from Indonesia in May was higher than India's imports from Indonesia. India has imported 6.368 million tons in May where’s China has imported about 8.21 MMt which was 1.841 million MT higher.
India has lost its largest Indonesian coal importer status to China first time in the last five months. India was the largest Indonesian coal importer since January 2011 followed by China and other Asian countries. China is expected to import more coal in this month and coming months to increase energy supplies to prevent a worsening of its summer power shortage in seven years.
According to analyst, China faces a power shortfall, and that may extend to 40GW this northern summer, surpassing its 2004 power shortfall. China’s benchmark power-station coal prices rose to the highest since October 2008 as summer electricity demand increased in the world’s fastest-growing major economy, as quoted by Bloomberg its report early this week.
According to Indian coal minister, Indian coal imports may be at 250 million tons per annum by 2016. Coal imports is unavoidable option for Indian utilities due to non availability of economically viable coal from domestic mines. However, according to Indian UMPPs, due to Indonesian government regulation that forces all coal producers must sell coal at government declared monthly prices, would cost them at least US$ 30 per ton higher than they previously budgeted.
"Implementation of this proposed new rule by the Indonesian government ( I.e., the law mandates all coal producers to sell coal at government declared prices) will adversely impact all existing and future imported coal-based power plants in India, including UMPPs," Ashok Khurana, the Director General of the Association of Power Producers, said as reported by an Indian paper.
“When Indian companies invest in Indonesia, they tend to have the intent to sell coal at cost, so that Indonesian business unit remained at no or negligible profits. Taking a holistic view, however, the cash flows in an integrated Indonesian coal mining and Indian power generation unit after this regulation will continue to be similar, except that income taxes will be paid in Indonesia, and the cash flows will need to be brought on the books on Indian power project after paying taxes in Indonesia through appropriate and innovative business structuring,” said Dipesh Dipu, director, at Deloitte, mydigitalfc reported.
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Indonesia has introduced bench mark pricing mechanism for its coal since February 2010, and it has implemented for the domestic supplies as well export market. The pricing was done on very transparent way using four internationally acceptable coal indices to generate monthly Indonesian coal reference prices for about 62 types of coal including 8 types of bench mark qualities.
The regulation also requires miners to report sales volumes, prices, and buyers every month to the government, allowing it to ensure that the rules are being followed. Violations can lead to revocation of mining permits. The price benchmark aims to prevent firms selling coal to affiliates at low prices to avoid taxes that hurts Indonesia's efforts to collect revenues from its massive commodity exports.
Ministry of Energy and Mineral Resources of Indonesia has set the June 2011 Indonesian Coal Reference Price for thermal coal at US$ 119.03 per ton per ton, which was 1.20 percent higher than May 2011 price of US$ US$ 117.61. Assessment basis of coal price reference was calculated considering coal with GCV (GAR) 6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur (arb) 0.8%, Ash Content (arb) 15.00% and delivery free on Board (FOB) Vessel basis and applicable for spot contract, delivery between 1 – 30 June 2011.
Indonesian bituminous coal of 5,500 kcal/kg NAR was offered at between $ 108 - 110 a ton, FOB vessel basis this week, slightly up from last week price, traders said.
According to Indian power industry sources opined that Indian UMPPs ( ultra-mega power project) suddenly caught in between as the concept of UMPP was implemented 4 to 5 years back. The large scale industrial houses in India have bided and secured UMPP licenses based on the open market prices /long term coal contracts from Indonesian producers (I.e., pre regulated Indonesian market). Now that Indonesian coal reference price mechanism is in place all the UMPP's are seeking Indian government’s assistance in revising the Power Tariff of UMPP.
Now, the bankers who have funded the projects are bit worried about the rising Indonesian coal costs versus the power sales price which was pegged at pre-regulation prices, Indian banking industry sources said. Now, we need to see whether Indian Government allows the UMPPs to revise the power sale prices based on Indonesian coal reference price mechanism.
As such India cement and steel industries were used to buy coal from South Africa and Australia on index base pricing mechanism since last four to five years. in view of the attractive profit margin levels, entire Indonesian coal producers migrated to Index based pricing for coal contracts . “Where's still many of the Indian utilities and private consumers are still procuring the coal on firm delivered basis. This concept is creating lot of confusion in the Indian trade circles” an Indian trader commented.
77.12 percent of total coal exports in May goes to China, India, South Korea, Japan and Taiwan respectively.
The coal export information within this article is provided by coalspot.com on an "as is" and "as available” basis. All details about, given in good faith, without guarantee. While every care has been taken to ensure the accuracy of information furnished in this article. COALspot.com shall be obliged if errors / omissions are brought to its notice for carrying out corrections in this article.
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Thursday, 11 March 10
THE INDIAN MARKET WAS A BIT QUIET BUT STILL FIRM - FEARNLEYS AS
Handy - Atlantic activity has kept its firm tendency throughout the week for handies, with Atlantic RV´s fixed in the USD.16000 region. With s ...
Thursday, 11 March 10
COAL PRICES SET TO RISE AMID CONFUSION OVER QUARTERLY SYSTEM
Trading room reported that, Coal prices are tipped to rise in coming months amid constrained supply and ongoing Chinese demand, and analysts are con ...
Wednesday, 10 March 10
PROTECTED FORESTS NOW UP FOR GRABS FOR MINING
The Jakarta Post reported that, the government has just issued two new regulations on forests, which could allow protected forests to be used for co ...
Tuesday, 09 March 10
REGULATION NO.23 OF 2010 CONCERNING IMPLEMENTATION OF NEW MINING LAW, PROVIDES MORE CLARITY ON OBTAINING A IUP
COALspot.com: Indonesian government has recently issued another regulation related to Law number 4 of 2009 concerning mineral and coal mining. Two r ...
Tuesday, 09 March 10
MINING LAW OPTIMIZES SECTOR
Law No. 4 / 2009 on Mineral and Coal Mining have given a new direction for the future of mining in Indonesia, including Domestic Market Obligation, ...
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- AsiaOL BioFuels Corp., Philippines
- Bukit Makmur.PT - Indonesia
- Bhoruka Overseas - Indonesia
- Tata Chemicals Ltd - India
- Chamber of Mines of South Africa
- Indo Tambangraya Megah - Indonesia
- ASAPP Information Group - India
- Star Paper Mills Limited - India
- Sarangani Energy Corporation, Philippines
- Cement Manufacturers Association - India
- Videocon Industries ltd - India
- San Jose City I Power Corp, Philippines
- Sakthi Sugars Limited - India
- Bhatia International Limited - India
- International Coal Ventures Pvt Ltd - India
- Aditya Birla Group - India
- Sical Logistics Limited - India
- Meralco Power Generation, Philippines
- MS Steel International - UAE
- Latin American Coal - Colombia
- GAC Shipping (India) Pvt Ltd
- Orica Australia Pty. Ltd.
- Power Finance Corporation Ltd., India
- Indogreen Group - Indonesia
- Bangladesh Power Developement Board
- Marubeni Corporation - India
- SN Aboitiz Power Inc, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kobexindo Tractors - Indoneisa
- Ministry of Transport, Egypt
- Alfred C Toepfer International GmbH - Germany
- Indian Oil Corporation Limited
- Port Waratah Coal Services - Australia
- Malabar Cements Ltd - India
- Jindal Steel & Power Ltd - India
- Mjunction Services Limited - India
- Makarim & Taira - Indonesia
- Wilmar Investment Holdings
- Bukit Baiduri Energy - Indonesia
- Georgia Ports Authority, United States
- Standard Chartered Bank - UAE
- Interocean Group of Companies - India
- Sindya Power Generating Company Private Ltd
- Jorong Barutama Greston.PT - Indonesia
- Kartika Selabumi Mining - Indonesia
- Thai Mozambique Logistica
- South Luzon Thermal Energy Corporation
- Maheswari Brothers Coal Limited - India
- Rio Tinto Coal - Australia
- Electricity Authority, New Zealand
- Minerals Council of Australia
- TNB Fuel Sdn Bhd - Malaysia
- Bulk Trading Sa - Switzerland
- PowerSource Philippines DevCo
- India Bulls Power Limited - India
- Attock Cement Pakistan Limited
- Sree Jayajothi Cements Limited - India
- Anglo American - United Kingdom
- Gujarat Sidhee Cement - India
- Grasim Industreis Ltd - India
- Medco Energi Mining Internasional
- Sojitz Corporation - Japan
- Australian Coal Association
- Central Electricity Authority - India
- Oldendorff Carriers - Singapore
- Africa Commodities Group - South Africa
- Miang Besar Coal Terminal - Indonesia
- Agrawal Coal Company - India
- Mercuria Energy - Indonesia
- Timah Investasi Mineral - Indoneisa
- Larsen & Toubro Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Billiton Holdings Pty Ltd - Australia
- Independent Power Producers Association of India
- Kaltim Prima Coal - Indonesia
- Globalindo Alam Lestari - Indonesia
- Electricity Generating Authority of Thailand
- Kumho Petrochemical, South Korea
- LBH Netherlands Bv - Netherlands
- Tamil Nadu electricity Board
- Price Waterhouse Coopers - Russia
- ICICI Bank Limited - India
- PTC India Limited - India
- Siam City Cement PLC, Thailand
- Global Green Power PLC Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- SMG Consultants - Indonesia
- Bharathi Cement Corporation - India
- Deloitte Consulting - India
- Gujarat Mineral Development Corp Ltd - India
- The University of Queensland
- Krishnapatnam Port Company Ltd. - India
- Orica Mining Services - Indonesia
- Ind-Barath Power Infra Limited - India
- Directorate General of MIneral and Coal - Indonesia
- PNOC Exploration Corporation - Philippines
- Trasteel International SA, Italy
- Antam Resourcindo - Indonesia
- IEA Clean Coal Centre - UK
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Savvy Resources Ltd - HongKong
- Vedanta Resources Plc - India
- Siam City Cement - Thailand
- Chettinad Cement Corporation Ltd - India
- Energy Development Corp, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Eastern Energy - Thailand
- Posco Energy - South Korea
- Bukit Asam (Persero) Tbk - Indonesia
- Economic Council, Georgia
- Semirara Mining and Power Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- SMC Global Power, Philippines
- Indonesian Coal Mining Association
- European Bulk Services B.V. - Netherlands
- GN Power Mariveles Coal Plant, Philippines
- Romanian Commodities Exchange
- CIMB Investment Bank - Malaysia
- Sinarmas Energy and Mining - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Straits Asia Resources Limited - Singapore
- Renaissance Capital - South Africa
- Karbindo Abesyapradhi - Indoneisa
- Ceylon Electricity Board - Sri Lanka
- Ambuja Cements Ltd - India
- Indika Energy - Indonesia
- Intertek Mineral Services - Indonesia
- Mercator Lines Limited - India
- Xindia Steels Limited - India
- Merrill Lynch Commodities Europe
- GVK Power & Infra Limited - India
- McConnell Dowell - Australia
- PetroVietnam Power Coal Import and Supply Company
- Petron Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Bahari Cakrawala Sebuku - Indonesia
- Jaiprakash Power Ventures ltd
- Global Business Power Corporation, Philippines
- Altura Mining Limited, Indonesia
- Samtan Co., Ltd - South Korea
- Salva Resources Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Central Java Power - Indonesia
- Indian Energy Exchange, India
- Borneo Indobara - Indonesia
- Wood Mackenzie - Singapore
- Singapore Mercantile Exchange
- Meenaskhi Energy Private Limited - India
- Gujarat Electricity Regulatory Commission - India
- Edison Trading Spa - Italy
- Lanco Infratech Ltd - India
- Carbofer General Trading SA - India
- Ministry of Finance - Indonesia
- Uttam Galva Steels Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Coastal Gujarat Power Limited - India
- Bayan Resources Tbk. - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ministry of Mines - Canada
- Banpu Public Company Limited - Thailand
- Thiess Contractors Indonesia
- Leighton Contractors Pty Ltd - Australia
- CNBM International Corporation - China
- Pipit Mutiara Jaya. PT, Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Coal and Oil Company - UAE
- Parliament of New Zealand
- Riau Bara Harum - Indonesia
- Aboitiz Power Corporation - Philippines
- Barasentosa Lestari - Indonesia
- Energy Link Ltd, New Zealand
- Heidelberg Cement - Germany
- VISA Power Limited - India
- Iligan Light & Power Inc, Philippines
- Planning Commission, India
- Therma Luzon, Inc, Philippines
- White Energy Company Limited
- Commonwealth Bank - Australia
- TeaM Sual Corporation - Philippines
- Coalindo Energy - Indonesia
- Essar Steel Hazira Ltd - India
- The State Trading Corporation of India Ltd
- London Commodity Brokers - England
- Parry Sugars Refinery, India
- Petrochimia International Co. Ltd.- Taiwan
- New Zealand Coal & Carbon
- Maharashtra Electricity Regulatory Commission - India
- Australian Commodity Traders Exchange
- Manunggal Multi Energi - Indonesia
- Binh Thuan Hamico - Vietnam
- Bhushan Steel Limited - India
- Toyota Tsusho Corporation, Japan
- Formosa Plastics Group - Taiwan
- GMR Energy Limited - India
- Madhucon Powers Ltd - India
- The Treasury - Australian Government
- Simpson Spence & Young - Indonesia
- Eastern Coal Council - USA
- Kideco Jaya Agung - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Metalloyd Limited - United Kingdom
- Semirara Mining Corp, Philippines
- Karaikal Port Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Holcim Trading Pte Ltd - Singapore
- IHS Mccloskey Coal Group - USA
- Global Coal Blending Company Limited - Australia
- Rashtriya Ispat Nigam Limited - India
- Goldman Sachs - Singapore
- OPG Power Generation Pvt Ltd - India
- Mintek Dendrill Indonesia
- Dalmia Cement Bharat India
- Vizag Seaport Private Limited - India
- Baramulti Group, Indonesia
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