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.
|
|
Saturday, 10 February 18
OIL PRICE USD 100/BARREL BY END OF 2018! - SAROJ MOHAPATRA
All demand supplies calculations are going wrong in oil market at present. US production is increasing at a good pace and set to topple Saudi comfo ...
Friday, 09 February 18
COAL BUYERS SPOOKED BY INDONESIA'S NEW SHIPPING RULES - ASSOC
Buyers of Indonesian coal are holding back orders of the fuel after the government issued new shipping rules for coal and crude palm oil that would ...
Thursday, 08 February 18
ENHANCED PRODUCTION BY COAL INDIA LIMITED HELPS DECLINE IN COAL IMPORTS - UNION MINISTER OF RAILWAYS AND COAL
According to press release from PIB, as per the current import policy, coal is kept under Open General License (OGL) and consumers are free to impo ...
Thursday, 08 February 18
A NEW WEEK WITH A SOFT SENTIMENT AND DECREASING RATES IN BOTH HEMISPHERE FOR THE PANAMAXES, SAYS FEARNLEYS
Supramax
USG dropping remarkably due to lack of fresh enquiry both for fhaul and bhaul, Supras were fixed from USG to Spore-Japan range now aroun ...
Wednesday, 07 February 18
INDONESIAN COAL PRICE REFERENCE RISES TO HIT THIRTEEN-MONTH HIGH OF $100.69 A TON
COALspot.com: The Indonesian Coal Price Reference (HBA) rose 5.39 per cent in February 2018, the latest ministerial decree showed.
The benchma ...
|
|
|
Showing 1811 to 1815 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Semirara Mining and Power Corporation, Philippines
- Chamber of Mines of South Africa
- Tata Chemicals Ltd - India
- India Bulls Power Limited - India
- Anglo American - United Kingdom
- Kepco SPC Power Corporation, Philippines
- The Treasury - Australian Government
- The State Trading Corporation of India Ltd
- Interocean Group of Companies - India
- Agrawal Coal Company - India
- Ceylon Electricity Board - Sri Lanka
- Borneo Indobara - Indonesia
- Medco Energi Mining Internasional
- PowerSource Philippines DevCo
- Bhoruka Overseas - Indonesia
- Rio Tinto Coal - Australia
- Parry Sugars Refinery, India
- Electricity Authority, New Zealand
- Jindal Steel & Power Ltd - India
- Eastern Energy - Thailand
- Wood Mackenzie - Singapore
- Kartika Selabumi Mining - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- VISA Power Limited - India
- Thai Mozambique Logistica
- GMR Energy Limited - India
- Gujarat Sidhee Cement - India
- Orica Australia Pty. Ltd.
- Bukit Asam (Persero) Tbk - Indonesia
- PNOC Exploration Corporation - Philippines
- Xindia Steels Limited - India
- Central Java Power - Indonesia
- Uttam Galva Steels Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Latin American Coal - Colombia
- Chettinad Cement Corporation Ltd - India
- Karaikal Port Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Sindya Power Generating Company Private Ltd
- Kaltim Prima Coal - Indonesia
- ASAPP Information Group - India
- Binh Thuan Hamico - Vietnam
- Iligan Light & Power Inc, Philippines
- Electricity Generating Authority of Thailand
- TeaM Sual Corporation - Philippines
- Kumho Petrochemical, South Korea
- Merrill Lynch Commodities Europe
- AsiaOL BioFuels Corp., Philippines
- Bhushan Steel Limited - India
- Riau Bara Harum - Indonesia
- Coal and Oil Company - UAE
- GVK Power & Infra Limited - India
- Australian Commodity Traders Exchange
- Deloitte Consulting - India
- Port Waratah Coal Services - Australia
- Antam Resourcindo - Indonesia
- Energy Development Corp, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Oldendorff Carriers - Singapore
- CIMB Investment Bank - Malaysia
- Ind-Barath Power Infra Limited - India
- Power Finance Corporation Ltd., India
- Formosa Plastics Group - Taiwan
- Dalmia Cement Bharat India
- Heidelberg Cement - Germany
- Timah Investasi Mineral - Indoneisa
- Leighton Contractors Pty Ltd - Australia
- European Bulk Services B.V. - Netherlands
- Tamil Nadu electricity Board
- Wilmar Investment Holdings
- Ministry of Finance - Indonesia
- SN Aboitiz Power Inc, Philippines
- PTC India Limited - India
- Toyota Tsusho Corporation, Japan
- Semirara Mining Corp, Philippines
- Bukit Baiduri Energy - Indonesia
- Independent Power Producers Association of India
- Mercator Lines Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Billiton Holdings Pty Ltd - Australia
- Indonesian Coal Mining Association
- GN Power Mariveles Coal Plant, Philippines
- Sinarmas Energy and Mining - Indonesia
- Attock Cement Pakistan Limited
- Bulk Trading Sa - Switzerland
- Sojitz Corporation - Japan
- Indika Energy - Indonesia
- Salva Resources Pvt Ltd - India
- Meralco Power Generation, Philippines
- Kideco Jaya Agung - Indonesia
- Manunggal Multi Energi - Indonesia
- Australian Coal Association
- Intertek Mineral Services - Indonesia
- Star Paper Mills Limited - India
- Banpu Public Company Limited - Thailand
- SMG Consultants - Indonesia
- South Luzon Thermal Energy Corporation
- Bharathi Cement Corporation - India
- Ministry of Transport, Egypt
- Karbindo Abesyapradhi - Indoneisa
- Grasim Industreis Ltd - India
- Bayan Resources Tbk. - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Makarim & Taira - Indonesia
- Global Green Power PLC Corporation, Philippines
- Madhucon Powers Ltd - India
- Indo Tambangraya Megah - Indonesia
- Ambuja Cements Ltd - India
- The University of Queensland
- Baramulti Group, Indonesia
- Globalindo Alam Lestari - Indonesia
- Africa Commodities Group - South Africa
- Directorate Of Revenue Intelligence - India
- Orica Mining Services - Indonesia
- GAC Shipping (India) Pvt Ltd
- Aditya Birla Group - India
- Petron Corporation, Philippines
- Eastern Coal Council - USA
- Posco Energy - South Korea
- Energy Link Ltd, New Zealand
- Siam City Cement - Thailand
- Essar Steel Hazira Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- ICICI Bank Limited - India
- New Zealand Coal & Carbon
- Altura Mining Limited, Indonesia
- Siam City Cement PLC, Thailand
- Edison Trading Spa - Italy
- SMC Global Power, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Vedanta Resources Plc - India
- Lanco Infratech Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Mercuria Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Commonwealth Bank - Australia
- Mjunction Services Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Planning Commission, India
- Holcim Trading Pte Ltd - Singapore
- Thiess Contractors Indonesia
- International Coal Ventures Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- Savvy Resources Ltd - HongKong
- Bhatia International Limited - India
- Coastal Gujarat Power Limited - India
- Malabar Cements Ltd - India
- Pendopo Energi Batubara - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Bukit Makmur.PT - Indonesia
- Marubeni Corporation - India
- Sical Logistics Limited - India
- Standard Chartered Bank - UAE
- Minerals Council of Australia
- CNBM International Corporation - China
- Therma Luzon, Inc, Philippines
- Trasteel International SA, Italy
- Indian Energy Exchange, India
- Indogreen Group - Indonesia
- IHS Mccloskey Coal Group - USA
- Samtan Co., Ltd - South Korea
- Barasentosa Lestari - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- OPG Power Generation Pvt Ltd - India
- Central Electricity Authority - India
- Georgia Ports Authority, United States
- Goldman Sachs - Singapore
- Bangladesh Power Developement Board
- Krishnapatnam Port Company Ltd. - India
- Videocon Industries ltd - India
- Price Waterhouse Coopers - Russia
- Parliament of New Zealand
- Indian Oil Corporation Limited
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Coalindo Energy - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Global Coal Blending Company Limited - Australia
- Directorate General of MIneral and Coal - Indonesia
- LBH Netherlands Bv - Netherlands
- Jaiprakash Power Ventures ltd
- Ministry of Mines - Canada
- IEA Clean Coal Centre - UK
- Metalloyd Limited - United Kingdom
- Kobexindo Tractors - Indoneisa
- Gujarat Electricity Regulatory Commission - India
- Cement Manufacturers Association - India
- Rashtriya Ispat Nigam Limited - India
- Sakthi Sugars Limited - India
- White Energy Company Limited
- Miang Besar Coal Terminal - Indonesia
- MS Steel International - UAE
- London Commodity Brokers - England
- Asmin Koalindo Tuhup - Indonesia
- Sree Jayajothi Cements Limited - India
- Cigading International Bulk Terminal - Indonesia
- Simpson Spence & Young - Indonesia
- Romanian Commodities Exchange
- Sarangani Energy Corporation, Philippines
- Global Business Power Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Renaissance Capital - South Africa
- Larsen & Toubro Limited - India
- Maheswari Brothers Coal Limited - India
- Straits Asia Resources Limited - Singapore
- Neyveli Lignite Corporation Ltd, - India
- Alfred C Toepfer International GmbH - Germany
- Mintek Dendrill Indonesia
- Vizag Seaport Private Limited - India
- Meenaskhi Energy Private Limited - India
- Economic Council, Georgia
- Singapore Mercantile Exchange
- McConnell Dowell - Australia
- Carbofer General Trading SA - India
- Aboitiz Power Corporation - Philippines
|
| |
| |
|
