COALspot.com keeps you connected across the coal world
  • SEPTEMBER 2020 INDONESIAN COAL PRICE REFERENCE FOR EXPORTS AND DOMESTIC BUYERS INCLUDING POWER PRODUCERS FIXED AT US$ 49.42 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, 05 September 20
INDIA WON'T KICK ITS COAL HABIT SO EASILY - HINDU BUSINESS LINE
India has traditionally considered itself lucky to have been endowed with abundant coal reserves, which it has sought to use to meet its energy nee ...


Saturday, 05 September 20
FINANCING COMPLETE FOR 900MW FIFTH PHASE OF MASSIVE DUBAI SOLAR PARK: ARABIAN BUSINESS
Saudi-based ACWA Power on Thursday announced it has completed the signing of all financing agreements for the fifth phase of the Mohammed bin Rashi ...


Saturday, 05 September 20
POLISH COAL DEMAND EXPECTED TO FALL BY 7 MLN TONNES NEXT YEAR: MINISTER - REUTERS
Poland’s demand for coal is expected to fall by around 7 million tonnes next year, or more than 10% of annual hard coal production, after a d ...


Saturday, 05 September 20
PAKISTAN'S NEW 27-YEAR POWER PLAN RISKS LOCKING IN LONG-TERM OVERCAPACITY, LEAVING IMPORTED COAL AND LNG PLANTS STRANDED - IEEFA
Wind and solar, the country’s cheapest source of new generation, also overlooked   Pakistan risks locking itself into building m ...


Friday, 04 September 20
IN A DEEPENING DEBT HOLE OF $34 BILLION, INDONESIA’S PLN MUST STOP DIGGING - IEEFA
The utility has added IDR100 trillion in debt annually for the last five years Utilities globally started changing the way they do business ye ...


   2 3 4 5 6   
Showing 16 to 20 news of total 6093
News by Category
Popular News
 
Total Members : 27,094
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

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