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.
|
|
Thursday, 08 December 11
INDIA MAY SEE 41% ANNUAL GROWTH OF ITS COAL DEMAND DURING THE NEXT 5 YEARS - ICAP SHIPPING
India’s Ministry of Coal expects that India’s coal demand may face an annual 41% rise during the next 5 years, while its coal deficit is ...
Thursday, 08 December 11
HAREDA KRIDA GETS CONTRACT FROM BAYAN - INSIDER STORIES
Insider Stories reported that, coal miner PT Bayan Resources Tbk (BYAN), through its subsidiary dubbed PT Gunungbayan Pratamacoal (GPB), has signed ...
Thursday, 08 December 11
CAPESIZES LIFT DRY BULK MARKET - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
Capesize vessels yesterday helped lift the dry bulk market which had been falling since the start of the week on lower cargo demand. As a result the ...
Wednesday, 07 December 11
ABM INVESTAMA EYES RP6.3 TRIO REVENUE - INSIDER STORIES
Insider Stories reported that, an energy integrated company PT ABM Investama Tbk is eyeing a 1.5 folds increase in revenue this year from Rp4. ...
Tuesday, 06 December 11
DRY BULK MARKET ENDS RALLY, STARTS WEEK WITH FALL - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
After a series of increases which saw the dry bulk market’s benchmark, the Baltic Dry Index (BDI) increasing close to 1,900 points and rates o ...
|
|
|
Showing 4941 to 4945 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Medco Energi Mining Internasional
- Sinarmas Energy and Mining - Indonesia
- Heidelberg Cement - Germany
- Central Electricity Authority - India
- European Bulk Services B.V. - Netherlands
- Timah Investasi Mineral - Indoneisa
- Essar Steel Hazira Ltd - India
- Thiess Contractors Indonesia
- GN Power Mariveles Coal Plant, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Deloitte Consulting - India
- Banpu Public Company Limited - Thailand
- Tata Chemicals Ltd - India
- Coalindo Energy - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sojitz Corporation - Japan
- Maheswari Brothers Coal Limited - India
- Minerals Council of Australia
- Cement Manufacturers Association - India
- GVK Power & Infra Limited - India
- Petron Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Vedanta Resources Plc - India
- SN Aboitiz Power Inc, Philippines
- Georgia Ports Authority, United States
- Malabar Cements Ltd - India
- GAC Shipping (India) Pvt Ltd
- Formosa Plastics Group - Taiwan
- Orica Australia Pty. Ltd.
- Bank of Tokyo Mitsubishi UFJ Ltd
- Madhucon Powers Ltd - India
- Attock Cement Pakistan Limited
- IEA Clean Coal Centre - UK
- Maharashtra Electricity Regulatory Commission - India
- Edison Trading Spa - Italy
- Bayan Resources Tbk. - Indonesia
- Aboitiz Power Corporation - Philippines
- Agrawal Coal Company - India
- Kobexindo Tractors - Indoneisa
- Planning Commission, India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sakthi Sugars Limited - India
- Holcim Trading Pte Ltd - Singapore
- VISA Power Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Bulk Trading Sa - Switzerland
- Larsen & Toubro Limited - India
- SMC Global Power, Philippines
- Kepco SPC Power Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Aditya Birla Group - India
- Gujarat Sidhee Cement - India
- India Bulls Power Limited - India
- Merrill Lynch Commodities Europe
- Meralco Power Generation, Philippines
- London Commodity Brokers - England
- Bahari Cakrawala Sebuku - Indonesia
- The University of Queensland
- Chettinad Cement Corporation Ltd - India
- Salva Resources Pvt Ltd - India
- ASAPP Information Group - India
- Kapuas Tunggal Persada - Indonesia
- Energy Link Ltd, New Zealand
- Wilmar Investment Holdings
- Bukit Makmur.PT - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Samtan Co., Ltd - South Korea
- Asmin Koalindo Tuhup - Indonesia
- Indian Energy Exchange, India
- Coastal Gujarat Power Limited - India
- Carbofer General Trading SA - India
- Meenaskhi Energy Private Limited - India
- Therma Luzon, Inc, Philippines
- Directorate Of Revenue Intelligence - India
- Renaissance Capital - South Africa
- Eastern Energy - Thailand
- Global Green Power PLC Corporation, Philippines
- Grasim Industreis Ltd - India
- Romanian Commodities Exchange
- The State Trading Corporation of India Ltd
- Australian Coal Association
- Central Java Power - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Indika Energy - Indonesia
- Jindal Steel & Power Ltd - India
- Standard Chartered Bank - UAE
- Siam City Cement - Thailand
- OPG Power Generation Pvt Ltd - India
- Rio Tinto Coal - Australia
- Miang Besar Coal Terminal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Manunggal Multi Energi - Indonesia
- PowerSource Philippines DevCo
- Binh Thuan Hamico - Vietnam
- Cigading International Bulk Terminal - Indonesia
- Wood Mackenzie - Singapore
- Vizag Seaport Private Limited - India
- Goldman Sachs - Singapore
- Barasentosa Lestari - Indonesia
- Trasteel International SA, Italy
- Makarim & Taira - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Posco Energy - South Korea
- McConnell Dowell - Australia
- CIMB Investment Bank - Malaysia
- Toyota Tsusho Corporation, Japan
- South Luzon Thermal Energy Corporation
- Baramulti Group, Indonesia
- Sarangani Energy Corporation, Philippines
- Parliament of New Zealand
- Videocon Industries ltd - India
- Port Waratah Coal Services - Australia
- Ministry of Mines - Canada
- Electricity Authority, New Zealand
- Global Coal Blending Company Limited - Australia
- Independent Power Producers Association of India
- Bhoruka Overseas - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Interocean Group of Companies - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Power Finance Corporation Ltd., India
- Kumho Petrochemical, South Korea
- Ambuja Cements Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Coal and Oil Company - UAE
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Eastern Coal Council - USA
- Semirara Mining Corp, Philippines
- Ministry of Transport, Egypt
- Dalmia Cement Bharat India
- GMR Energy Limited - India
- Bhatia International Limited - India
- New Zealand Coal & Carbon
- Ministry of Finance - Indonesia
- Orica Mining Services - Indonesia
- Indonesian Coal Mining Association
- White Energy Company Limited
- Mintek Dendrill Indonesia
- TeaM Sual Corporation - Philippines
- Karbindo Abesyapradhi - Indoneisa
- Savvy Resources Ltd - HongKong
- Economic Council, Georgia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- SMG Consultants - Indonesia
- AsiaOL BioFuels Corp., Philippines
- PetroVietnam Power Coal Import and Supply Company
- Xindia Steels Limited - India
- Ind-Barath Power Infra Limited - India
- Antam Resourcindo - Indonesia
- Singapore Mercantile Exchange
- Altura Mining Limited, Indonesia
- Riau Bara Harum - Indonesia
- Anglo American - United Kingdom
- Simpson Spence & Young - Indonesia
- Pendopo Energi Batubara - Indonesia
- CNBM International Corporation - China
- IHS Mccloskey Coal Group - USA
- Bukit Asam (Persero) Tbk - Indonesia
- Marubeni Corporation - India
- Australian Commodity Traders Exchange
- Mjunction Services Limited - India
- Ceylon Electricity Board - Sri Lanka
- LBH Netherlands Bv - Netherlands
- Parry Sugars Refinery, India
- ICICI Bank Limited - India
- San Jose City I Power Corp, Philippines
- Globalindo Alam Lestari - Indonesia
- Lanco Infratech Ltd - India
- Commonwealth Bank - Australia
- Iligan Light & Power Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Africa Commodities Group - South Africa
- Kaltim Prima Coal - Indonesia
- Kideco Jaya Agung - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Bharathi Cement Corporation - India
- Mercator Lines Limited - India
- Indian Oil Corporation Limited
- Star Paper Mills Limited - India
- Sindya Power Generating Company Private Ltd
- Kartika Selabumi Mining - Indonesia
- Tamil Nadu electricity Board
- Bangladesh Power Developement Board
- Global Business Power Corporation, Philippines
- Bhushan Steel Limited - India
- Borneo Indobara - Indonesia
- International Coal Ventures Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Semirara Mining and Power Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Energy Development Corp, Philippines
- Bukit Baiduri Energy - Indonesia
- The Treasury - Australian Government
- Price Waterhouse Coopers - Russia
- Pipit Mutiara Jaya. PT, Indonesia
- Indo Tambangraya Megah - Indonesia
- Jaiprakash Power Ventures ltd
- Mercuria Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- PTC India Limited - India
- Electricity Generating Authority of Thailand
- Latin American Coal - Colombia
- Indogreen Group - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- MS Steel International - UAE
- Gujarat Electricity Regulatory Commission - India
- Oldendorff Carriers - Singapore
- Chamber of Mines of South Africa
- Intertek Mineral Services - Indonesia
- Sical Logistics Limited - India
- Thai Mozambique Logistica
- Siam City Cement PLC, Thailand
- Uttam Galva Steels Limited - India
|
| |
| |
|
