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.
|
|
Wednesday, 25 July 18
TANKER MARKET INSIGHT - DIMITRIS KOURTESIS
We are now into the second half of 2018, which so far has not been a fruitful year for tankers. With 2020 quickly approaching we need to consider t ...
Tuesday, 24 July 18
TANKER MARKET : IN TERMS OF TRADE, THE STEPS THAT WERE SLOWLY BEING TAKEN BY OPEC AND RUSSIA - GEORGE LAZARIDIS
Despite the fact that the tanker market still seems to be in the midst of a perfect storm, there are still strong indicators that better sailing da ...
Thursday, 19 July 18
VINACOMIN PRODUCES OVER 20 MLN TONNES OF RAW COAL FROM YEAR'S START - VNA
The Vietnam National Coal and Mineral Industries Group (Vinacomin) has produced over 20 million tonnes of raw coal and 19.3 million of clean coal f ...
Wednesday, 18 July 18
INDONESIA TO AUCTION 16 MINING SITES - JP
Indonesia will soon auction 16 mining sites as no proposal submissions have been submitted by state-owned enterprises (BUMN) and regional administr ...
Wednesday, 18 July 18
SHIPPING MARKET INSIGHT - VASILIS MOIRIS
The new regulations for Chinese flag restricting import of Tier I ships have dominated market sentiment during the past days as buyers have been tr ...
|
|
|
Showing 1666 to 1670 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- CNBM International Corporation - China
- Marubeni Corporation - India
- Medco Energi Mining Internasional
- Manunggal Multi Energi - Indonesia
- ICICI Bank Limited - India
- Standard Chartered Bank - UAE
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Chamber of Mines of South Africa
- Karaikal Port Pvt Ltd - India
- OPG Power Generation Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Bukit Asam (Persero) Tbk - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Petron Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Merrill Lynch Commodities Europe
- Xindia Steels Limited - India
- Energy Link Ltd, New Zealand
- Billiton Holdings Pty Ltd - Australia
- Australian Commodity Traders Exchange
- Aboitiz Power Corporation - Philippines
- Meenaskhi Energy Private Limited - India
- Ambuja Cements Ltd - India
- Indian Energy Exchange, India
- LBH Netherlands Bv - Netherlands
- South Luzon Thermal Energy Corporation
- Interocean Group of Companies - India
- PNOC Exploration Corporation - Philippines
- Parry Sugars Refinery, India
- Krishnapatnam Port Company Ltd. - India
- Indika Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Altura Mining Limited, Indonesia
- McConnell Dowell - Australia
- Sojitz Corporation - Japan
- Savvy Resources Ltd - HongKong
- Miang Besar Coal Terminal - Indonesia
- Lanco Infratech Ltd - India
- Price Waterhouse Coopers - Russia
- Maheswari Brothers Coal Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Bangladesh Power Developement Board
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sakthi Sugars Limited - India
- IEA Clean Coal Centre - UK
- Sindya Power Generating Company Private Ltd
- Semirara Mining Corp, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Kartika Selabumi Mining - Indonesia
- Uttam Galva Steels Limited - India
- Carbofer General Trading SA - India
- The University of Queensland
- Sarangani Energy Corporation, Philippines
- Cement Manufacturers Association - India
- Kumho Petrochemical, South Korea
- Deloitte Consulting - India
- Oldendorff Carriers - Singapore
- Minerals Council of Australia
- Tata Chemicals Ltd - India
- Goldman Sachs - Singapore
- Ministry of Mines - Canada
- PetroVietnam Power Coal Import and Supply Company
- Grasim Industreis Ltd - India
- GMR Energy Limited - India
- Sinarmas Energy and Mining - Indonesia
- Port Waratah Coal Services - Australia
- Rashtriya Ispat Nigam Limited - India
- Africa Commodities Group - South Africa
- Edison Trading Spa - Italy
- Ind-Barath Power Infra Limited - India
- Sree Jayajothi Cements Limited - India
- Indonesian Coal Mining Association
- Coalindo Energy - Indonesia
- International Coal Ventures Pvt Ltd - India
- Mjunction Services Limited - India
- Riau Bara Harum - Indonesia
- Borneo Indobara - Indonesia
- Posco Energy - South Korea
- Commonwealth Bank - Australia
- Holcim Trading Pte Ltd - Singapore
- The Treasury - Australian Government
- Bulk Trading Sa - Switzerland
- Gujarat Sidhee Cement - India
- Australian Coal Association
- Sical Logistics Limited - India
- Alfred C Toepfer International GmbH - Germany
- Siam City Cement PLC, Thailand
- Dalmia Cement Bharat India
- ASAPP Information Group - India
- Eastern Energy - Thailand
- Samtan Co., Ltd - South Korea
- Wilmar Investment Holdings
- AsiaOL BioFuels Corp., Philippines
- GVK Power & Infra Limited - India
- Kepco SPC Power Corporation, Philippines
- Vizag Seaport Private Limited - India
- Madhucon Powers Ltd - India
- Makarim & Taira - Indonesia
- Meralco Power Generation, Philippines
- Tamil Nadu electricity Board
- Georgia Ports Authority, United States
- Barasentosa Lestari - Indonesia
- Trasteel International SA, Italy
- Orica Australia Pty. Ltd.
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Indogreen Group - Indonesia
- Ministry of Finance - Indonesia
- Jindal Steel & Power Ltd - India
- Coastal Gujarat Power Limited - India
- Globalindo Alam Lestari - Indonesia
- Anglo American - United Kingdom
- European Bulk Services B.V. - Netherlands
- Videocon Industries ltd - India
- Bukit Baiduri Energy - Indonesia
- Baramulti Group, Indonesia
- Bhatia International Limited - India
- Orica Mining Services - Indonesia
- Mercator Lines Limited - India
- Attock Cement Pakistan Limited
- Electricity Authority, New Zealand
- Asmin Koalindo Tuhup - Indonesia
- Eastern Coal Council - USA
- Malabar Cements Ltd - India
- Salva Resources Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- The State Trading Corporation of India Ltd
- SMG Consultants - Indonesia
- White Energy Company Limited
- PowerSource Philippines DevCo
- Independent Power Producers Association of India
- Agrawal Coal Company - India
- Jaiprakash Power Ventures ltd
- Mintek Dendrill Indonesia
- IHS Mccloskey Coal Group - USA
- Star Paper Mills Limited - India
- Romanian Commodities Exchange
- GAC Shipping (India) Pvt Ltd
- Ceylon Electricity Board - Sri Lanka
- San Jose City I Power Corp, Philippines
- Siam City Cement - Thailand
- Ministry of Transport, Egypt
- Parliament of New Zealand
- Thai Mozambique Logistica
- Gujarat Mineral Development Corp Ltd - India
- Renaissance Capital - South Africa
- Binh Thuan Hamico - Vietnam
- Electricity Generating Authority of Thailand
- Antam Resourcindo - Indonesia
- Aditya Birla Group - India
- Neyveli Lignite Corporation Ltd, - India
- Power Finance Corporation Ltd., India
- Formosa Plastics Group - Taiwan
- Thiess Contractors Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Kapuas Tunggal Persada - Indonesia
- Indian Oil Corporation Limited
- Timah Investasi Mineral - Indoneisa
- Wood Mackenzie - Singapore
- Toyota Tsusho Corporation, Japan
- Rio Tinto Coal - Australia
- Metalloyd Limited - United Kingdom
- Mercuria Energy - Indonesia
- India Bulls Power Limited - India
- Banpu Public Company Limited - Thailand
- GN Power Mariveles Coal Plant, Philippines
- Kideco Jaya Agung - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Singapore Mercantile Exchange
- London Commodity Brokers - England
- Bahari Cakrawala Sebuku - Indonesia
- Iligan Light & Power Inc, Philippines
- Global Business Power Corporation, Philippines
- Planning Commission, India
- Leighton Contractors Pty Ltd - Australia
- Vedanta Resources Plc - India
- Directorate Of Revenue Intelligence - India
- SMC Global Power, Philippines
- Central Electricity Authority - India
- Kaltim Prima Coal - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Economic Council, Georgia
- Semirara Mining and Power Corporation, Philippines
- Coal and Oil Company - UAE
- Energy Development Corp, Philippines
- Bukit Makmur.PT - Indonesia
- New Zealand Coal & Carbon
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bhoruka Overseas - Indonesia
- Bharathi Cement Corporation - India
- Heidelberg Cement - Germany
- Central Java Power - Indonesia
- Latin American Coal - Colombia
- Larsen & Toubro Limited - India
- Global Coal Blending Company Limited - Australia
- Bayan Resources Tbk. - Indonesia
- Simpson Spence & Young - Indonesia
- Bhushan Steel Limited - India
- Indo Tambangraya Megah - Indonesia
- CIMB Investment Bank - Malaysia
- Intertek Mineral Services - Indonesia
- Global Green Power PLC Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- PTC India Limited - India
- Pendopo Energi Batubara - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- SN Aboitiz Power Inc, Philippines
- MS Steel International - UAE
- Kobexindo Tractors - Indoneisa
- VISA Power Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
|
| |
| |
|
