Eid Mubarak
  • MAY 2021 INDONESIAN COAL PRICE REFERENCE FOR EXPORTS FIXED AT US$ 89.74 A TON

Submit Your Articles
We welcome article submissions from experts in the areas of coal, mining, shipping, etc.

To Submit your article please click here.

International Energy Events


WTI Crude Oil

BRENT Crude Oil

Search News
Latest CoalNews Headlines
Tuesday, 06 September 11
INDONESIAS PROPOSED COAL EXPORT BAN MAY HAVE IMPACT ON THE INDIAN POWER SECTOR - DIPESH DIPU


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.

Recent News

Saturday, 08 May 21
LNG-TO-POWER INVESTORS IN THE PHILIPPINES RISK EXPOSURE TO $14 BILLION IN STRANDED ASSETS - IEEFA
High regulatory and financial uncertainty in the Philippines market   The race to develop liquified natural gas (LNG) facilities in th ...


Saturday, 08 May 21
THE COAL-TO-RENEWABLES TRANSITION TAKES OFF - IEEFA
Pre-Biden changes underscore coming 10-year wave of coal plant retirements   The traditional S-curve growth exhibited by disruptive te ...


Friday, 07 May 21
CHINA'S TOTAL COAL IMPORTS FOR 2020 REACHED A VOLUME OF 304 MILLION TONS - ASSOCARBONI
Our benchmarks, manufacturing Countries like China, Germany, Japan, India, South Korea and Taiwan will continue to use a mix of coal and nuclear to ...


Friday, 07 May 21
SEABORNE WORLD COAL TRADE CLOSED 2020 IN NEGATIVE - ASSOCARBONI
Coal confirmed its leadership as leading fuel for electricity generation also in 2020, accounting for 38% of overall production. For the first time ...


Friday, 07 May 21
INDONESIA'S THERMAL COAL EXPORTS IN 2020 DECREASED BY 13%; INDIA REMAINED THE TOP DESTINATION FOR INDONESIAN COAL - ASSOCARBONI
An increase in seaborne trade is forecast for 2022, driven by markets in Southeast Asia, where growing demand for coal from Bangladesh, the Philipp ...


   1 2 3 4 5   
Showing 6 to 10 news of total 6289
News by Category
Popular News
 
Total Members : 27,417
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

  • Pinang Coal Indonesia
  • KEPCO - South Korea
  • Global Green Power PLC Corporation, Philippines
  • Dr Ramakrishna Prasad Power Pvt Ltd - India
  • Siam City Cement PLC, Thailand
  • Kartika Selabumi Mining - Indonesia
  • White Energy Company Limited
  • Siam City Cement - Thailand
  • Alfred C Toepfer International GmbH - Germany
  • Eastern Coal Council - USA
  • Jatenergy - Australia
  • Idemitsu - Japan
  • Sree Jayajothi Cements Limited - India
  • Mjunction Services Limited - India
  • PTC India Limited - India
  • Dong Bac Coal Mineral Investment Coporation - Vietnam
  • Energy Development Corp, Philippines
  • Clarksons - UK
  • BRS Brokers - Singapore
  • Bhatia International Limited - India
  • EIA - United States
  • LBH Netherlands Bv - Netherlands
  • Inco-Indonesia
  • Humpuss - Indonesia
  • CNBM International Corporation - China
  • U S Energy Resources
  • Medco Energi Mining Internasional
  • Tata Power - India
  • Kohat Cement Company Ltd. - Pakistan
  • India Bulls Power Limited - India
  • PLN Batubara - Indonesia
  • Thiess Contractors Indonesia
  • ING Bank NV - Singapore
  • Bangladesh Power Developement Board
  • World Bank
  • Directorate Of Revenue Intelligence - India
  • TRAFIGURA, South Korea
  • Offshore Bulk Terminal Pte Ltd, Singapore
  • Qatrana Cement - Jordan
  • IOL Indonesia
  • Berau Coal - Indonesia
  • Indogreen Group - Indonesia
  • Jaiprakash Power Ventures ltd
  • Permata Bank - Indonesia
  • Mechel - Russia
  • Africa Commodities Group - South Africa
  • Ambuja Cements Ltd - India
  • Holcim Trading Pte Ltd - Singapore
  • Renaissance Capital - South Africa
  • Malco - India
  • Vijayanagar Sugar Pvt Ltd - India
  • bp singapore
  • ANZ Bank - Australia
  • IMC Shipping - Singapore
  • Bukit Asam (Persero) Tbk - Indonesia
  • Australian Coal Association
  • Xindia Steels Limited - India
  • Commonwealth Bank - Australia
  • Coastal Gujarat Power Limited - India
  • CoalTek, United States
  • Truba Alam Manunggal Engineering.Tbk - Indonesia
  • Wood Mackenzie - Singapore
  • Orica Australia Pty. Ltd.
  • Sakthi Sugars Limited - India
  • EMO - The Netherlands
  • SN Aboitiz Power Inc, Philippines
  • Sical Logistics Limited - India
  • Neyveli Lignite Corporation Ltd, - India
  • Toyota Tsusho Corporation, Japan
  • Rio Tinto Coal - Australia
  • Madhucon Powers Ltd - India
  • Coal and Oil Company - UAE
  • Indorama - Singapore
  • Aboitiz Power Corporation - Philippines
  • ICICI Bank Limited - India
  • Carbofer General Trading SA - India
  • AsiaOL BioFuels Corp., Philippines
  • Adaro Indonesia
  • Petron Corporation, Philippines
  • SMG Consultants - Indonesia
  • International Coal Ventures Pvt Ltd - India
  • NALCO India
  • Salva Resources Pvt Ltd - India
  • Moodys - Singapore
  • Cargill India Pvt Ltd
  • Indonesian Coal Mining Association
  • Miang Besar Coal Terminal - Indonesia
  • Bukit Makmur.PT - Indonesia
  • RBS Sempra - UK
  • Adani Power Ltd - India
  • Bhushan Steel Limited - India
  • Bayan Resources Tbk. - Indonesia
  • Sucofindo - Indonesia
  • MS Steel International - UAE
  • Sojitz Corporation - Japan
  • Bhoruka Overseas - Indonesia
  • European Bulk Services B.V. - Netherlands
  • Posco Energy - South Korea
  • Ministry of Finance - Indonesia
  • Shree Cement - India
  • Shenhua Group - China
  • Interocean Group of Companies - India
  • Parry Sugars Refinery, India
  • Marubeni Corporation - India
  • New Zealand Coal & Carbon
  • Central Java Power - Indonesia
  • Lafarge - France
  • PNOC Exploration Corporation - Philippines
  • Eastern Energy - Thailand
  • Asian Development Bank
  • Kalimantan Lumbung Energi - Indonesia
  • MEC Coal - Indonesia
  • Kaltim Prima Coal - Indonesia
  • Thermax Limited - India
  • Glencore India Pvt. Ltd
  • Essar Steel Hazira Ltd - India
  • Vale Mozambique
  • Attock Cement Pakistan Limited
  • San Jose City I Power Corp, Philippines
  • Central Electricity Authority - India
  • Asia Pacific Energy Resources Ventures Inc, Philippines
  • Bangkok Bank PCL
  • Bank of America
  • Aditya Birla Group - India
  • Petrosea - Indonesia
  • GB Group - China
  • Karaikal Port Pvt Ltd - India
  • Gujarat Sidhee Cement - India
  • Total Coal South Africa
  • PetroVietnam
  • London Commodity Brokers - England
  • The India Cements Ltd
  • GNFC Limited - India
  • Anglo American - United Kingdom
  • Mintek Dendrill Indonesia
  • Cement Manufacturers Association - India
  • Goldman Sachs - Singapore
  • Formosa Plastics Group - Taiwan
  • Meralco Power Generation, Philippines
  • Kideco Jaya Agung - Indonesia
  • Binh Thuan Hamico - Vietnam
  • SASOL - South Africa
  • Independent Power Producers Association of India
  • Gresik Semen - Indonesia
  • Power Finance Corporation Ltd., India
  • ASAPP Information Group - India
  • GHCL Limited - India
  • Geoservices-GeoAssay Lab
  • CIMB Investment Bank - Malaysia
  • Heidelberg Cement - Germany
  • Electricity Generating Authority of Thailand
  • Mercator Lines Limited - India
  • Oldendorff Carriers - Singapore
  • Indonesia Power. PT
  • Indian Oil Corporation Limited
  • Wilmar Investment Holdings
  • Parliament of New Zealand
  • Romanian Commodities Exchange
  • KPCL - India
  • Savvy Resources Ltd - HongKong
  • Therma Luzon, Inc, Philippines
  • Filglen & Citicon Mining (HK) Ltd - Hong Kong
  • Panama Canal Authority
  • Coaltrans Conferences
  • UBS Singapore
  • Britmindo - Indonesia
  • Latin American Coal - Colombia
  • Chamber of Mines of South Africa
  • Thailand Anthracite
  • Vitol - Bahrain
  • OPG Power Generation Pvt Ltd - India
  • Agrawal Coal Company - India
  • SGS (Thailand) Limited
  • World Coal - UK
  • BNP Paribas - Singapore
  • Kepco SPC Power Corporation, Philippines
  • VISA Power Limited - India
  • Semirara Mining and Power Corporation, Philippines
  • Bahari Cakrawala Sebuku - Indonesia
  • Sindya Power Generating Company Private Ltd
  • Bank of Tokyo Mitsubishi UFJ Ltd
  • IHS Mccloskey Coal Group - USA
  • Maharashtra Electricity Regulatory Commission - India
  • Sarangani Energy Corporation, Philippines
  • Ind-Barath Power Infra Limited - India
  • OCBC - Singapore
  • KOWEPO - South Korea
  • Peabody Energy - USA
  • CCIC - Indonesia
  • Russian Coal LLC
  • TANGEDCO India
  • TNPL - India
  • GN Power Mariveles Coal Plant, Philippines
  • The State Trading Corporation of India Ltd
  • Edison Trading Spa - Italy
  • TeaM Sual Corporation - Philippines
  • SUEK AG - Indonesia
  • Arutmin Indonesia
  • Intertek Mineral Services - Indonesia
  • Directorate General of MIneral and Coal - Indonesia
  • Rashtriya Ispat Nigam Limited - India
  • Altura Mining Limited, Indonesia
  • Maheswari Brothers Coal Limited - India
  • Thai Mozambique Logistica
  • Coalindo Energy - Indonesia
  • KPMG - USA
  • GVK Power & Infra Limited - India
  • Global Coal Blending Company Limited - Australia
  • Tata Chemicals Ltd - India
  • Freeport Indonesia
  • Asmin Koalindo Tuhup - Indonesia
  • McKinsey & Co - India
  • Bulk Trading Sa - Switzerland
  • Krishnapatnam Port Company Ltd. - India
  • Cemex - Philippines
  • Bukit Baiduri Energy - Indonesia
  • PLN - Indonesia
  • Trasteel International SA, Italy
  • Kobexindo Tractors - Indoneisa
  • Malabar Cements Ltd - India
  • Cardiff University - UK
  • Ceylon Electricity Board - Sri Lanka
  • Mitsui
  • Asia Cement - Taiwan
  • Planning Commission, India
  • Meenaskhi Energy Private Limited - India
  • Surastha Cement
  • Core Mineral Indonesia
  • Coal Orbis AG
  • Antam Resourcindo - Indonesia
  • Reliance Power - India
  • Maruti Cements - India
  • Thomson Reuters GRC
  • PowerSource Philippines DevCo
  • Kumho Petrochemical, South Korea
  • JPMorgan - India
  • Makarim & Taira - Indonesia
  • Kapuas Tunggal Persada - Indonesia
  • Bharathi Cement Corporation - India
  • APGENCO India
  • Energy Link Ltd, New Zealand
  • Ministry of Transport, Egypt
  • Kobe Steel Ltd - Japan
  • Metalloyd Limited - United Kingdom
  • IBC Asia (S) Pte Ltd
  • Maybank - Singapore
  • Vedanta Resources Plc - India
  • Cosco
  • Barclays Capital - USA
  • Leighton Contractors Pty Ltd - Australia
  • Borneo Indobara - Indonesia
  • Riau Bara Harum - Indonesia
  • JPower - Japan
  • Iligan Light & Power Inc, Philippines
  • Enel Italy
  • Pipit Mutiara Jaya. PT, Indonesia
  • Maersk Broker
  • Minerals Council of Australia
  • Noble Europe Ltd - UK
  • Standard Chartered Bank - UAE
  • Coeclerici Indonesia
  • Semirara Mining Corp, Philippines
  • Sinarmas Energy and Mining - Indonesia
  • Mitra SK Pvt Ltd - India
  • NTPC Limited - India
  • Dalmia Cement Bharat India
  • Pendopo Energi Batubara - Indonesia
  • CESC Limited - India
  • Lanco Infratech Ltd - India
  • Port Waratah Coal Services - Australia
  • Tamil Nadu electricity Board
  • Credit Suisse - India
  • Barasentosa Lestari - Indonesia
  • Runge Indonesia
  • Jindal Steel & Power Ltd - India
  • SMC Global Power, Philippines
  • Electricity Authority, New Zealand
  • Argus Media - Singapore
  • Ernst & Young Pvt. Ltd.
  • TNB Fuel Sdn Bhd - Malaysia
  • Vizag Seaport Private Limited - India
  • Manunggal Multi Energi - Indonesia
  • Timah Investasi Mineral - Indoneisa
  • Infraline Energy - India
  • Karbindo Abesyapradhi - Indoneisa
  • Samtan Co., Ltd - South Korea
  • Grasim Industreis Ltd - India
  • Xstrata Coal
  • ACC Limited - India
  • GMR Energy Limited - India
  • Inspectorate - India
  • DBS Bank - Singapore
  • GAC Shipping (India) Pvt Ltd
  • J M Baxi & Co - India
  • Star Paper Mills Limited - India
  • SRK Consulting
  • Merrill Lynch Bank
  • Mercuria Energy - Indonesia
  • Indian School of Mines
  • Coal India Limited
  • Global Business Power Corporation, Philippines
  • TGV SRAAC LIMITED, India
  • South Luzon Thermal Energy Corporation
  • Uttam Galva Steels Limited - India
  • Japan Coal Energy Center
  • Chettinad Cement Corporation Ltd - India
  • Singapore Mercantile Exchange
  • McConnell Dowell - Australia
  • Indian Energy Exchange, India
  • Ministry of Mines - Canada
  • Banpu Public Company Limited - Thailand
  • Price Waterhouse Coopers - Russia
  • Orica Mining Services - Indonesia
  • Larsen & Toubro Limited - India
  • IEA Clean Coal Centre - UK
  • Rudhra Energy - India
  • Deloitte Consulting - India
  • HSBC - Hong Kong
  • Indika Energy - Indonesia
  • Thriveni
  • Mitsubishi Corporation
  • Billiton Holdings Pty Ltd - Australia
  • PetroVietnam Power Coal Import and Supply Company
  • Australian Commodity Traders Exchange
  • Fearnleys - India
  • Samsung - South Korea
  • Videocon Industries ltd - India
  • Platts
  • Baramulti Group, Indonesia
  • Platou - Singapore
  • Globalindo Alam Lestari - Indonesia
  • The Treasury - Australian Government
  • Deutsche Bank - India
  • Gujarat Electricity Regulatory Commission - India
  • Gupta Coal India Ltd
  • Ince & co LLP
  • globalCOAL - UK
  • Petrochimia International Co. Ltd.- Taiwan
  • ETA - Dubai
  • Indo Tambangraya Megah - Indonesia
  • WorleyParsons
  • Tanito Harum - Indonesia
  • Merrill Lynch Commodities Europe
  • Straits Asia Resources Limited - Singapore
  • UOB Asia (HK) Ltd
  • Jorong Barutama Greston.PT - Indonesia
  • Gujarat Mineral Development Corp Ltd - India
  • Simpson Spence & Young - Indonesia
  • Economic Council, Georgia
  • Georgia Ports Authority, United States
  • Arch Coal - USA
  • Bank of China, Malaysia
  • The University of Queensland
  • Cebu Energy, Philippines
  • Cigading International Bulk Terminal - Indonesia