We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Tuesday, 06 September 11
INDONESIAS PROPOSED COAL EXPORT BAN MAY HAVE IMPACT ON THE INDIAN POWER SECTOR - DIPESH DIPU
.jpg) COALspot.com - This is a special interview about Indonesian proposed coal export ban by 2014, with Mr. Dipesh Dipu, Director of Deloitte Touche Tohmatsu, India.
The Indonesian government is currently in the process of drafting a new regulation that could ban the export of low-grade coal by January 12, 2014. This is likely to apply to coal below 5700 kcal/kg on air dried basis in value.
As of now Indonesia is producing around 150 million tons of coal with calorific value below 5700 GAD (according to chairman of Indonesian coal mining association). However by 2014, there are possibilities the total production of below 5700 GAD coal may reach more than 200 million per annum.
Will Indonesian coal export ban impact on the Indian fuel requirements?
The earlier grade of coal that was being considered for proposed ban has GCV of 5100 kcal/kg of less (adb), which can be comparable to 3800-4200 kcal/kg (arb) domestic coal available in India. This grade of coal has found favor in India primarily due to likely price advantage but economics of power generation based on such grade of imported coal may be a suspect. This considering that such grades of coal from Indonesia typically have high moisture content, which makes transportation cost per unit of energy generated higher. The quantum of the low grade of coal (<5100 kcal/kg adb) procured from Indonesia is likely to remain relatively low.
However, if the new definition of low grade coal is applied (<5700 kcal/kg adb), it may be reasonable to believe that such a ban may have impact on the Indian power sector as volumes in this grade of coal are expected to rise in the proportion of coal exports to India. Several of the acquisitions made by Indian power generation companies in Indonesia have been in coal blocks that will produce coal of this grade, and a blanket ban on the exports can jeopardize power plant development in India.
On the other hand, the domestic Indonesian market may not be prepared to consume all the coal mined of this grade in view of the power generation capacity addition plans in Indonesia. In such a case, the coal mine development is likely to be deferred. The Indonesian law makers may need to reconsider domestic market demand, investment climate in coal sector and impact of the legislation on the export revenues.
What is the alternative source for Indian power industry if the proposed coal export ban come into effect by 2014?
Indian power generation companies have been forced to look out for coal assets abroad due to the investment and regulatory environment within the country. India boasts of more than 110 billion tonnes of coal reserves, which largely fall within a 300 meters of depth. If the regulatory and investment environment is amended to allow greater participation of private sector Indian dependence on imports will be reduced.
However, for imports, India will continue to look at Indonesia, South Africa, Australia and newer destinations like Mozambique and Columbia. But these sources also have constraints, domestic demands in South Africa is likely to restrict quantum jump in exports out of South Africa. Indonesia has also proposed domestic market obligations. Mozambique may have infrastructure constraints for large volumes of coal being transported from Tete province to ports of Maputo, Ncala or Beira. Australian coal is of high quality but may have higher costs of mining and transport.
What would be the additional cost if Indian consumers switch their sourcing origin from Indonesia?
Indonesia has competitive advantage due to its geographical closeness. However, on a per tonne basis, assuming comparable quality, costs of transport may make marginal difference when compared with South Africa and Mozambique.
When compared to Australian coal, due to the high quality, cost of energy may well be comparable even though shipping costs are higher. Between Indonesian coal (5500 kcal/kg adb priced at USD 90 per tonne) and Australian coal (6500 kcal/kg adb priced at USD 120 per tonne), indicative variable cost difference of power generation may be about Indian Rupees 0.20 to 0.30 per kWh (electricity unit) in favor of Indonesian coal.
Will it affect Indian economy growth or this coal export ban is ignorable as India can easily identify alternative sources of fuel?
The magnitude of growth in power generation in India will necessarily mean that coal will remain the mainstay. Natural gas has had issues of availability. Nuclear plant development is facing socio-political challenge in view of the risks of technology failure. Development of hydel power has also faced issues of land acquisition, rehabilitation & resettlement apart from the technical issues of hydro-geological features. Renewable sources such as solar and wind generation are still projected to constitute a small portion of India power generation mix. Identifying an alternative source that can match coal in its accessibility, availability and affordability in the context of scale of capacity addition required in India is a challenge.
What is the Indian government's role on this issue, whether government has to come out with the solution such as easing Indian mining and environment law, open up mining for foreigners, G2G arrangement, etc…?
There is a need to look at domestic sources with pro-active and constructive approach and make all necessary legal and statutory amendments that make the resources available and mineable. Easing the regulations may not be one of such measures but making those regulations work in sync with each other in a time bound and predictable manner must certainly be.
There is certainly a case for opening the domestic coal sector for private participation, including independent miners, and for foreign participation so that newer technology and enhanced scale of operations are implemented in India. The regulation also needs to permit risk capital to come in for prospecting and exploration.
For imports the G2G relations can be leveraged to secure coal assets. India has good relationship with Indonesia and has also signed a tax treaty with Mozambique in 2010 which will facilitate investments. Government may also engage with these countries to ease exports to India and extend fiscal support to coal mining companies investing in mining and associated infrastructure development.
About Dipesh Dipu
Dipesh Dipu works as Director with Deloitte Touche Tohmatsu India Pvt. Ltd in the Energy and Resources consulting practice of the firm and anchors the Firm’s initiative in the mining and metals sectors.
He is a mining engineering graduate from Indian School of Mines and is a Chartered Financial Analyst (CFA). He has also done executive program in business management from Indian Institute of Management Calcutta. Dipesh has recently been awarded the Abheraj Baldota Gold Medal for the Young Mining Engineer of the Year 2007 by the Mining Engineers’ Association of India in recognition of his contributions in the improvement of mining industry in India.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Thursday, 29 July 10
BALTIC INDEXES ARE POSITIVE SINCE A FEW DAYS
Handy
Baltic indexes are positive since a few days which could mean that markets have bottomed out (as we correctly predicted in our report of las ...
Wednesday, 28 July 10
INDONESIA'S MERUKH SECURES US$200 MLN INVESTMENT FROM SAN MIGUEL
Trading Market Reported that, Indonesian mining company Merukh Enterprises said it has secured an investment commitment of US$200 million from the P ...
Wednesday, 28 July 10
RIZAL RISJAD MAY OWN 10% BERAU ENERGY
Rizal Risjad, son of Indonesian tycoon Ibrahim Risjad, might own 10% stakes in PT Berau Coal Energy Tbk (BRAU), parent company of Indonesia's fifth ...
Wednesday, 28 July 10
UNUSUAL RAINS TO HIT COAL EXPORTS
COALspot.com: Heavy rains in South and East Kalimantan have compelled coal exporters to delay or cancel coal exports. PT Bayan and PT. TIA hav ...
Tuesday, 27 July 10
INDIA HAS IMPORTED 1.5 MILLION TONS OF COAL LAST WEEK
COALspot.com: Coal imports in Indian ports have reached over 1.5 million tons for the week ended 25 July 2010. According to port agents, aroun ...
|
|
|
Showing 5691 to 5695 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Directorate General of MIneral and Coal - Indonesia
- Posco Energy - South Korea
- Indika Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Kobexindo Tractors - Indoneisa
- Altura Mining Limited, Indonesia
- Essar Steel Hazira Ltd - India
- Indogreen Group - Indonesia
- MS Steel International - UAE
- Vizag Seaport Private Limited - India
- Globalindo Alam Lestari - Indonesia
- Borneo Indobara - Indonesia
- South Luzon Thermal Energy Corporation
- Straits Asia Resources Limited - Singapore
- Bhatia International Limited - India
- VISA Power Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- GAC Shipping (India) Pvt Ltd
- The State Trading Corporation of India Ltd
- Dalmia Cement Bharat India
- PetroVietnam Power Coal Import and Supply Company
- Bank of Tokyo Mitsubishi UFJ Ltd
- Wilmar Investment Holdings
- Formosa Plastics Group - Taiwan
- Aditya Birla Group - India
- Ministry of Finance - Indonesia
- Videocon Industries ltd - India
- Energy Link Ltd, New Zealand
- Madhucon Powers Ltd - India
- Sindya Power Generating Company Private Ltd
- SMG Consultants - Indonesia
- European Bulk Services B.V. - Netherlands
- ICICI Bank Limited - India
- Therma Luzon, Inc, Philippines
- Parliament of New Zealand
- Maheswari Brothers Coal Limited - India
- Ministry of Mines - Canada
- Indo Tambangraya Megah - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Bangladesh Power Developement Board
- Jorong Barutama Greston.PT - Indonesia
- Chettinad Cement Corporation Ltd - India
- Vedanta Resources Plc - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bulk Trading Sa - Switzerland
- Tata Chemicals Ltd - India
- Gujarat Sidhee Cement - India
- GVK Power & Infra Limited - India
- Merrill Lynch Commodities Europe
- Indonesian Coal Mining Association
- SN Aboitiz Power Inc, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Indian Oil Corporation Limited
- OPG Power Generation Pvt Ltd - India
- Central Electricity Authority - India
- Karbindo Abesyapradhi - Indoneisa
- Sinarmas Energy and Mining - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Rashtriya Ispat Nigam Limited - India
- Attock Cement Pakistan Limited
- Georgia Ports Authority, United States
- PTC India Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Kaltim Prima Coal - Indonesia
- Coal and Oil Company - UAE
- LBH Netherlands Bv - Netherlands
- Manunggal Multi Energi - Indonesia
- Ind-Barath Power Infra Limited - India
- Meralco Power Generation, Philippines
- Electricity Generating Authority of Thailand
- Timah Investasi Mineral - Indoneisa
- Sojitz Corporation - Japan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Siam City Cement - Thailand
- Thai Mozambique Logistica
- Larsen & Toubro Limited - India
- Indian Energy Exchange, India
- Goldman Sachs - Singapore
- Port Waratah Coal Services - Australia
- Chamber of Mines of South Africa
- SMC Global Power, Philippines
- Toyota Tsusho Corporation, Japan
- Mjunction Services Limited - India
- Mercator Lines Limited - India
- Eastern Energy - Thailand
- Directorate Of Revenue Intelligence - India
- Jindal Steel & Power Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Renaissance Capital - South Africa
- Kideco Jaya Agung - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- GMR Energy Limited - India
- Samtan Co., Ltd - South Korea
- Siam City Cement PLC, Thailand
- Binh Thuan Hamico - Vietnam
- Krishnapatnam Port Company Ltd. - India
- Commonwealth Bank - Australia
- Oldendorff Carriers - Singapore
- Kapuas Tunggal Persada - Indonesia
- The University of Queensland
- McConnell Dowell - Australia
- Edison Trading Spa - Italy
- Asmin Koalindo Tuhup - Indonesia
- Coalindo Energy - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Energy Development Corp, Philippines
- Star Paper Mills Limited - India
- Standard Chartered Bank - UAE
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Planning Commission, India
- Lanco Infratech Ltd - India
- Karaikal Port Pvt Ltd - India
- Wood Mackenzie - Singapore
- Leighton Contractors Pty Ltd - Australia
- Aboitiz Power Corporation - Philippines
- Trasteel International SA, Italy
- Bukit Makmur.PT - Indonesia
- Bhoruka Overseas - Indonesia
- The Treasury - Australian Government
- Meenaskhi Energy Private Limited - India
- Central Java Power - Indonesia
- IEA Clean Coal Centre - UK
- Sical Logistics Limited - India
- Agrawal Coal Company - India
- Singapore Mercantile Exchange
- Grasim Industreis Ltd - India
- India Bulls Power Limited - India
- San Jose City I Power Corp, Philippines
- CNBM International Corporation - China
- Deloitte Consulting - India
- Riau Bara Harum - Indonesia
- Salva Resources Pvt Ltd - India
- Ambuja Cements Ltd - India
- Xindia Steels Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Petron Corporation, Philippines
- Kumho Petrochemical, South Korea
- CIMB Investment Bank - Malaysia
- Semirara Mining and Power Corporation, Philippines
- Bhushan Steel Limited - India
- Cement Manufacturers Association - India
- Antam Resourcindo - Indonesia
- Australian Coal Association
- Iligan Light & Power Inc, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Electricity Authority, New Zealand
- Bukit Baiduri Energy - Indonesia
- Sree Jayajothi Cements Limited - India
- IHS Mccloskey Coal Group - USA
- Kalimantan Lumbung Energi - Indonesia
- PNOC Exploration Corporation - Philippines
- Marubeni Corporation - India
- Sarangani Energy Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Kohat Cement Company Ltd. - Pakistan
- Thiess Contractors Indonesia
- Savvy Resources Ltd - HongKong
- Barasentosa Lestari - Indonesia
- Latin American Coal - Colombia
- Medco Energi Mining Internasional
- Orica Mining Services - Indonesia
- Power Finance Corporation Ltd., India
- TNB Fuel Sdn Bhd - Malaysia
- Ceylon Electricity Board - Sri Lanka
- Kartika Selabumi Mining - Indonesia
- Rio Tinto Coal - Australia
- Simpson Spence & Young - Indonesia
- Tamil Nadu electricity Board
- Africa Commodities Group - South Africa
- London Commodity Brokers - England
- Metalloyd Limited - United Kingdom
- Gujarat Mineral Development Corp Ltd - India
- Independent Power Producers Association of India
- New Zealand Coal & Carbon
- Vijayanagar Sugar Pvt Ltd - India
- PowerSource Philippines DevCo
- Jaiprakash Power Ventures ltd
- Orica Australia Pty. Ltd.
- Holcim Trading Pte Ltd - Singapore
- Interocean Group of Companies - India
- Global Green Power PLC Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Semirara Mining Corp, Philippines
- Makarim & Taira - Indonesia
- Eastern Coal Council - USA
- Sakthi Sugars Limited - India
- ASAPP Information Group - India
- International Coal Ventures Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- Anglo American - United Kingdom
- Romanian Commodities Exchange
- Alfred C Toepfer International GmbH - Germany
- Mercuria Energy - Indonesia
- Global Business Power Corporation, Philippines
- Price Waterhouse Coopers - Russia
- TeaM Sual Corporation - Philippines
- Parry Sugars Refinery, India
- Banpu Public Company Limited - Thailand
- Malabar Cements Ltd - India
- Minerals Council of Australia
- Kepco SPC Power Corporation, Philippines
- Ministry of Transport, Egypt
- Mintek Dendrill Indonesia
- Bharathi Cement Corporation - India
- Heidelberg Cement - Germany
- Coastal Gujarat Power Limited - India
- Bayan Resources Tbk. - Indonesia
- Baramulti Group, Indonesia
- Uttam Galva Steels Limited - India
- White Energy Company Limited
- Bahari Cakrawala Sebuku - Indonesia
- Australian Commodity Traders Exchange
- Carbofer General Trading SA - India
- Economic Council, Georgia
|
| |
| |
|
