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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.
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Wednesday, 12 June 24
CHINA ACCOUNTS FOR 16.3% OF AUSTRALIA'S COAL EXPORTS, FOLLOWED BY INDIA 14.4% - BANCHERO COSTA
Global coal trade has really picked up pace in recent months, and is now fully back to pre-Covid levels says Banchero Costa in its latest report.
...
Wednesday, 12 June 24
LNG NEWBUILDING VALUES AT RECORD HIGH: 78 NEWBUILD ORDERS PLACED IN 2024, DOUBLING 2023 - VESON NAUTICAL
The number of LNG newbuilding orders have more than doubled from the same period last year where 34 orders were placed, compared to 78 in the first ...
Monday, 10 June 24
CHINA'S MAY COAL IMPORTS RISE 11% ON LOWER DOMESTIC OUTPUT - REUTERS
China’s imports of coal rose 11% in May from a year earlier, customs data and Reuters records showed on Friday, as lower domestic output this ...
Tuesday, 04 June 24
HOW DO WESTERN SANCTIONS ON RUSSIA IMPACT THE GLOBAL METALS, MINING AND COAL MARKETS - WOOD MACKENZIE
The geopolitical landscape for Russia, as a major supplier of various commodities, has undergone a dramatic transformation since the invasion of Uk ...
Friday, 22 March 24
CASE STUDY: DANGERS OF COAL CARGO - SKULD
Recently, a bulk cargo vessel carrying coal from South Africa to Singapore suffered a fatal accident, resulting in the deaths of three crew members ...
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Showing 21 to 25 news of total 6871 |
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- Edison Trading Spa - Italy
- New Zealand Coal & Carbon
- Altura Mining Limited, Indonesia
- Coal and Oil Company - UAE
- Ceylon Electricity Board - Sri Lanka
- Minerals Council of Australia
- CNBM International Corporation - China
- Directorate Of Revenue Intelligence - India
- Gujarat Mineral Development Corp Ltd - India
- GAC Shipping (India) Pvt Ltd
- Riau Bara Harum - Indonesia
- Central Electricity Authority - India
- Bayan Resources Tbk. - Indonesia
- PNOC Exploration Corporation - Philippines
- India Bulls Power Limited - India
- Therma Luzon, Inc, Philippines
- Petron Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Australian Coal Association
- ICICI Bank Limited - India
- Global Green Power PLC Corporation, Philippines
- VISA Power Limited - India
- Ministry of Transport, Egypt
- Borneo Indobara - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Thai Mozambique Logistica
- Chettinad Cement Corporation Ltd - India
- Maheswari Brothers Coal Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sindya Power Generating Company Private Ltd
- Malabar Cements Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- LBH Netherlands Bv - Netherlands
- Bukit Makmur.PT - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Independent Power Producers Association of India
- Ind-Barath Power Infra Limited - India
- Banpu Public Company Limited - Thailand
- Kohat Cement Company Ltd. - Pakistan
- Orica Mining Services - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Indian Energy Exchange, India
- PTC India Limited - India
- Star Paper Mills Limited - India
- Manunggal Multi Energi - Indonesia
- Kepco SPC Power Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Tata Chemicals Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Aditya Birla Group - India
- Merrill Lynch Commodities Europe
- Africa Commodities Group - South Africa
- Jaiprakash Power Ventures ltd
- Kartika Selabumi Mining - Indonesia
- Price Waterhouse Coopers - Russia
- Australian Commodity Traders Exchange
- Romanian Commodities Exchange
- The Treasury - Australian Government
- Sakthi Sugars Limited - India
- SMC Global Power, Philippines
- Anglo American - United Kingdom
- Makarim & Taira - Indonesia
- Barasentosa Lestari - Indonesia
- Energy Link Ltd, New Zealand
- Rio Tinto Coal - Australia
- Deloitte Consulting - India
- Renaissance Capital - South Africa
- Larsen & Toubro Limited - India
- Commonwealth Bank - Australia
- GMR Energy Limited - India
- Timah Investasi Mineral - Indoneisa
- Bukit Asam (Persero) Tbk - Indonesia
- Bukit Baiduri Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sree Jayajothi Cements Limited - India
- Karaikal Port Pvt Ltd - India
- Energy Development Corp, Philippines
- Siam City Cement - Thailand
- GN Power Mariveles Coal Plant, Philippines
- Alfred C Toepfer International GmbH - Germany
- Essar Steel Hazira Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Xindia Steels Limited - India
- Bhoruka Overseas - Indonesia
- SN Aboitiz Power Inc, Philippines
- PowerSource Philippines DevCo
- Parliament of New Zealand
- Asmin Koalindo Tuhup - Indonesia
- Eastern Coal Council - USA
- GVK Power & Infra Limited - India
- Sojitz Corporation - Japan
- Madhucon Powers Ltd - India
- Formosa Plastics Group - Taiwan
- Indika Energy - Indonesia
- Electricity Generating Authority of Thailand
- Trasteel International SA, Italy
- Billiton Holdings Pty Ltd - Australia
- Electricity Authority, New Zealand
- Sarangani Energy Corporation, Philippines
- Bhatia International Limited - India
- Agrawal Coal Company - India
- Cigading International Bulk Terminal - Indonesia
- Eastern Energy - Thailand
- Orica Australia Pty. Ltd.
- Semirara Mining Corp, Philippines
- Singapore Mercantile Exchange
- Standard Chartered Bank - UAE
- Krishnapatnam Port Company Ltd. - India
- Bangladesh Power Developement Board
- Straits Asia Resources Limited - Singapore
- ASAPP Information Group - India
- Attock Cement Pakistan Limited
- Chamber of Mines of South Africa
- Lanco Infratech Ltd - India
- MS Steel International - UAE
- Indo Tambangraya Megah - Indonesia
- Kaltim Prima Coal - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- IHS Mccloskey Coal Group - USA
- Global Business Power Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Videocon Industries ltd - India
- Mintek Dendrill Indonesia
- Metalloyd Limited - United Kingdom
- Ambuja Cements Ltd - India
- Carbofer General Trading SA - India
- Baramulti Group, Indonesia
- Posco Energy - South Korea
- Kobexindo Tractors - Indoneisa
- Ministry of Mines - Canada
- Antam Resourcindo - Indonesia
- Uttam Galva Steels Limited - India
- Miang Besar Coal Terminal - Indonesia
- Bhushan Steel Limited - India
- Binh Thuan Hamico - Vietnam
- TeaM Sual Corporation - Philippines
- Leighton Contractors Pty Ltd - Australia
- Maharashtra Electricity Regulatory Commission - India
- McConnell Dowell - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Simpson Spence & Young - Indonesia
- Global Coal Blending Company Limited - Australia
- Goldman Sachs - Singapore
- London Commodity Brokers - England
- Vijayanagar Sugar Pvt Ltd - India
- Ministry of Finance - Indonesia
- The University of Queensland
- Savvy Resources Ltd - HongKong
- Iligan Light & Power Inc, Philippines
- Meralco Power Generation, Philippines
- Tamil Nadu electricity Board
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Samtan Co., Ltd - South Korea
- Port Waratah Coal Services - Australia
- Medco Energi Mining Internasional
- Dalmia Cement Bharat India
- Latin American Coal - Colombia
- Oldendorff Carriers - Singapore
- Petrochimia International Co. Ltd.- Taiwan
- Parry Sugars Refinery, India
- Rashtriya Ispat Nigam Limited - India
- Bulk Trading Sa - Switzerland
- OPG Power Generation Pvt Ltd - India
- Wood Mackenzie - Singapore
- The State Trading Corporation of India Ltd
- Sical Logistics Limited - India
- Georgia Ports Authority, United States
- Economic Council, Georgia
- Sinarmas Energy and Mining - Indonesia
- Salva Resources Pvt Ltd - India
- Indonesian Coal Mining Association
- Bahari Cakrawala Sebuku - Indonesia
- Wilmar Investment Holdings
- Jorong Barutama Greston.PT - Indonesia
- Grasim Industreis Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Pendopo Energi Batubara - Indonesia
- Gujarat Sidhee Cement - India
- Vizag Seaport Private Limited - India
- White Energy Company Limited
- Mjunction Services Limited - India
- Mercuria Energy - Indonesia
- Coastal Gujarat Power Limited - India
- Kumho Petrochemical, South Korea
- Coalindo Energy - Indonesia
- Intertek Mineral Services - Indonesia
- Planning Commission, India
- SMG Consultants - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Vedanta Resources Plc - India
- Karbindo Abesyapradhi - Indoneisa
- Central Java Power - Indonesia
- European Bulk Services B.V. - Netherlands
- Interocean Group of Companies - India
- Indogreen Group - Indonesia
- Thiess Contractors Indonesia
- Indian Oil Corporation Limited
- Jindal Steel & Power Ltd - India
- Siam City Cement PLC, Thailand
- CIMB Investment Bank - Malaysia
- Bharathi Cement Corporation - India
- South Luzon Thermal Energy Corporation
- Cement Manufacturers Association - India
- Marubeni Corporation - India
- IEA Clean Coal Centre - UK
- Kapuas Tunggal Persada - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Meenaskhi Energy Private Limited - India
- Aboitiz Power Corporation - Philippines
- Power Finance Corporation Ltd., India
- Mercator Lines Limited - India
- Directorate General of MIneral and Coal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- San Jose City I Power Corp, Philippines
- Heidelberg Cement - Germany
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