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Saturday, 31 October 09
PRODUCERS BENEFIT FROM COAL'S TIGHT SUPPLY AND STRONG DEMAND
 The Jakarta Post reported that, The outlook for Indonesian coal producers appears promising with strong volume growth coming from both the domestic and export markets.
Despite the delayed completion of the 10,000 megawatts (MW) coal-fired steam power plant (PLTU) program, we expect to see additional electricity capacity starting in the fourth quarter of 2009. PLTU Labuan (2x300 MW) was scheduled to operate its first unit in September 2009 and the second unit by December 2009.
PLTU Rembang (2x315 MW) and Indramayu (2x330 MW) should start to operate by January 2010. As nine out of 10 projects in Java-Bali are now in their construction stages, there should be a total add-on capacity of 6,830 MW by the end of 2010. Six PLTU projects (total capacity162 MW) outside the Java-Bali region have already started the construction stage in the fourth quarter of this year with an additional 5 to follow suit.
The Government of Indonesia has finally approved the coal volume required for the domestic market obligation (DMO) at 75 million tons per year starting from 2010, 10.3 percent higher year-on-year from 68 million tons of domestic consumption estimated for 2009.
The volume set for the DMO would amount to 30 percent of the 2010 total estimate for coal production at 250 million tons or up 8.7 percent year-on-year from the 2009 estimate of 230 million tons (chart 1). PLN itself has signed 20-year coal supply contracts, effective once the PLTUs are operational, amounting to 30m tons per year of low-rank coal.
We foresee that the implementation of the DMO has limited the flexibility for coal producers to aggressively penetrate the export market. On top of that, the government has recently revealed its intention to apply a restriction on export quotas at 150 million tons per year starting from 2010.
The regulations would also require each coal producer to allocate 25 percent of their total coal production for the domestic market, or to face penalties in the form of restrictions on their exports.
We see, however, that this last regulation might not be necessary due to the anticipated increase in the volume of coal production going forward, exceeding the domestic demand requirements.
On a more positive note, the government seems willing to accommodate Indonesian coal producers' wishes for minor interventions in regulating the sales price for coal under the DMO provisions. The sales price will be with reference to the international market price to avoid high spreads between export and domestic pricing.
Based on the Newcastle Index, the year-to-date coal price has averaged US$70.7 per ton. Despite a downward trend since the fourth quarter of 2008, coal prices have been relatively steady throughout 2009.
We believe that the price of coal has found its new equilibrium at current levels, supported by stronger demand for higher energy needs mostly in the South East Asian region. Hence, we now expect the coal price to average US$75/t in 2010.
Government also plans to cut the royalty tax rate (DPHB) on low calorific value coal. The proposed DPHB rate is 9 percent for coal with CV<5,000kcal/kg (vis-*-vis 13.5 percent previously) and 7.5 percent for CV<4,500kcal/kg.
We see that upon implementation, lower royalty rates will mean incentives towards growth expectations in the sector.
Stronger domestic demand starting from 2010 paired with recovery of global demand will provide higher volume support for demand for both thermal and coking coal. In our view India will provide the highest growth in thermal coal demand, boosting imports by about 18% to 40m tons beginning this year, in line with the government's plan to double coal-fired electricity generation capacity by 2017.
Indonesia has also made preparations to start the 10,000 MW program phase II which is scheduled to start in 2012 and to operate by 2014.
We estimate coal-fired power plants will take around 48 percent from the total portion of 9,963 MW. Furthermore, coal supply may not grow at the same pace as demand due to export restrictions set on major coal exporters, such as Vietnam and China to secure their domestic needs.
Supported by the fact that the China government has decided to reduce its export quota by 50 percent from 40 million tons to 20 million tons.
As one of the world's major coal exporters, Indonesia will certainly have the upper hand in the tightening supply of coal.
Source:The Jakarta Post
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Monday, 09 November 09
SAM'S SEAFOOD HOLDINGS SET TO COMMENCE DRILLING AT INDONESIAN COAL PROJECT
Proactive Investors reported that, Sam's Seafood Holdings is preparing to kick off diamond drilling at the company's Indonesian coal project after ...
Saturday, 07 November 09
THE STEAM COAL MOVEMENT FROM INDONESIA TO INDIA REMAINED QUITE STRONG - CAPT. REDDY
COALspot.com (Singapore): The BDI continued rising this week and was up by 290 points up by almost 9 pct and the index closed at 3,393 points.
B ...
Friday, 06 November 09
COAL INDIA ABANDONS PLAN TO BUY ASSET IN AUSTRALIA
Coal India’s efforts to acquire a mid-sized virgin thermal coal block from a private party in Australia have drawn a blank.
The effort was ...
Friday, 06 November 09
NEW ASSETS WILL INCREASE COKING AND THERMAL COAL PRODUCTION
Coal and metals processing company Coal of Africa Limited (CoAL) aims to produce 10-million tons a year of coking coal and two-million tons a year o ...
Friday, 06 November 09
NTPC TO APPOINT MERCHANT BANKER FOR S AFRICA COAL MINE
State-run power producer NTPC, which is eyeing coal mines in South Africa to meet the gap in domestic fuel supply, will appoint a merchant banker ne ...
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- Siam City Cement PLC, Thailand
- Mercuria Energy - Indonesia
- Sree Jayajothi Cements Limited - India
- Semirara Mining Corp, Philippines
- Kohat Cement Company Ltd. - Pakistan
- GMR Energy Limited - India
- Standard Chartered Bank - UAE
- Star Paper Mills Limited - India
- Thai Mozambique Logistica
- Sojitz Corporation - Japan
- Coalindo Energy - Indonesia
- Salva Resources Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- The University of Queensland
- PTC India Limited - India
- Coastal Gujarat Power Limited - India
- Billiton Holdings Pty Ltd - Australia
- Pendopo Energi Batubara - Indonesia
- Straits Asia Resources Limited - Singapore
- Chamber of Mines of South Africa
- Bangladesh Power Developement Board
- Ministry of Transport, Egypt
- Bank of Tokyo Mitsubishi UFJ Ltd
- Global Business Power Corporation, Philippines
- Indian Energy Exchange, India
- Coal and Oil Company - UAE
- Bayan Resources Tbk. - Indonesia
- Timah Investasi Mineral - Indoneisa
- Cement Manufacturers Association - India
- Asmin Koalindo Tuhup - Indonesia
- Indika Energy - Indonesia
- Marubeni Corporation - India
- Economic Council, Georgia
- GN Power Mariveles Coal Plant, Philippines
- Dalmia Cement Bharat India
- Bhoruka Overseas - Indonesia
- PowerSource Philippines DevCo
- Manunggal Multi Energi - Indonesia
- Bhatia International Limited - India
- Eastern Coal Council - USA
- Globalindo Alam Lestari - Indonesia
- SMC Global Power, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Kapuas Tunggal Persada - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Lanco Infratech Ltd - India
- Kartika Selabumi Mining - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- CNBM International Corporation - China
- Therma Luzon, Inc, Philippines
- Bhushan Steel Limited - India
- Sakthi Sugars Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mercator Lines Limited - India
- Kideco Jaya Agung - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- The Treasury - Australian Government
- Neyveli Lignite Corporation Ltd, - India
- Ind-Barath Power Infra Limited - India
- Kepco SPC Power Corporation, Philippines
- Antam Resourcindo - Indonesia
- Independent Power Producers Association of India
- Makarim & Taira - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Mjunction Services Limited - India
- Rio Tinto Coal - Australia
- San Jose City I Power Corp, Philippines
- Oldendorff Carriers - Singapore
- Vizag Seaport Private Limited - India
- McConnell Dowell - Australia
- VISA Power Limited - India
- Essar Steel Hazira Ltd - India
- GVK Power & Infra Limited - India
- Maheswari Brothers Coal Limited - India
- Meralco Power Generation, Philippines
- Goldman Sachs - Singapore
- Aboitiz Power Corporation - Philippines
- CIMB Investment Bank - Malaysia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- OPG Power Generation Pvt Ltd - India
- ICICI Bank Limited - India
- MS Steel International - UAE
- Merrill Lynch Commodities Europe
- The State Trading Corporation of India Ltd
- Central Electricity Authority - India
- Global Green Power PLC Corporation, Philippines
- Energy Development Corp, Philippines
- Chettinad Cement Corporation Ltd - India
- Formosa Plastics Group - Taiwan
- Jaiprakash Power Ventures ltd
- Attock Cement Pakistan Limited
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Orica Mining Services - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- SMG Consultants - Indonesia
- Bukit Makmur.PT - Indonesia
- Tamil Nadu electricity Board
- TeaM Sual Corporation - Philippines
- Indonesian Coal Mining Association
- Carbofer General Trading SA - India
- South Luzon Thermal Energy Corporation
- Videocon Industries ltd - India
- Africa Commodities Group - South Africa
- GAC Shipping (India) Pvt Ltd
- Indogreen Group - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Singapore Mercantile Exchange
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Rashtriya Ispat Nigam Limited - India
- Xindia Steels Limited - India
- Jindal Steel & Power Ltd - India
- Gujarat Sidhee Cement - India
- Siam City Cement - Thailand
- Malabar Cements Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Deloitte Consulting - India
- Edison Trading Spa - Italy
- Intertek Mineral Services - Indonesia
- Wood Mackenzie - Singapore
- Latin American Coal - Colombia
- Indo Tambangraya Megah - Indonesia
- Trasteel International SA, Italy
- London Commodity Brokers - England
- Kobexindo Tractors - Indoneisa
- Bharathi Cement Corporation - India
- Karaikal Port Pvt Ltd - India
- Central Java Power - Indonesia
- Mintek Dendrill Indonesia
- Minerals Council of Australia
- Australian Coal Association
- Sarangani Energy Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Renaissance Capital - South Africa
- White Energy Company Limited
- Tata Chemicals Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Sinarmas Energy and Mining - Indonesia
- Vedanta Resources Plc - India
- Agrawal Coal Company - India
- Riau Bara Harum - Indonesia
- Grasim Industreis Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Sical Logistics Limited - India
- PNOC Exploration Corporation - Philippines
- Madhucon Powers Ltd - India
- Samtan Co., Ltd - South Korea
- Australian Commodity Traders Exchange
- Planning Commission, India
- Binh Thuan Hamico - Vietnam
- Electricity Authority, New Zealand
- Interocean Group of Companies - India
- Heidelberg Cement - Germany
- Gujarat Electricity Regulatory Commission - India
- Thiess Contractors Indonesia
- Anglo American - United Kingdom
- Power Finance Corporation Ltd., India
- Simpson Spence & Young - Indonesia
- Altura Mining Limited, Indonesia
- Meenaskhi Energy Private Limited - India
- Wilmar Investment Holdings
- Kumho Petrochemical, South Korea
- Ministry of Finance - Indonesia
- Iligan Light & Power Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Georgia Ports Authority, United States
- Global Coal Blending Company Limited - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Cigading International Bulk Terminal - Indonesia
- Parliament of New Zealand
- Sindya Power Generating Company Private Ltd
- Ambuja Cements Ltd - India
- SN Aboitiz Power Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- Medco Energi Mining Internasional
- Semirara Mining and Power Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- Port Waratah Coal Services - Australia
- Jorong Barutama Greston.PT - Indonesia
- Energy Link Ltd, New Zealand
- Parry Sugars Refinery, India
- Kaltim Prima Coal - Indonesia
- Romanian Commodities Exchange
- Miang Besar Coal Terminal - Indonesia
- Ministry of Mines - Canada
- Barasentosa Lestari - Indonesia
- India Bulls Power Limited - India
- Electricity Generating Authority of Thailand
- ASAPP Information Group - India
- Petrochimia International Co. Ltd.- Taiwan
- Directorate Of Revenue Intelligence - India
- Posco Energy - South Korea
- IHS Mccloskey Coal Group - USA
- Aditya Birla Group - India
- LBH Netherlands Bv - Netherlands
- Bulk Trading Sa - Switzerland
- Orica Australia Pty. Ltd.
- Borneo Indobara - Indonesia
- Uttam Galva Steels Limited - India
- Price Waterhouse Coopers - Russia
- European Bulk Services B.V. - Netherlands
- Larsen & Toubro Limited - India
- Commonwealth Bank - Australia
- Baramulti Group, Indonesia
- New Zealand Coal & Carbon
- Petron Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Banpu Public Company Limited - Thailand
- Bukit Baiduri Energy - Indonesia
- IEA Clean Coal Centre - UK
- AsiaOL BioFuels Corp., Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Indian Oil Corporation Limited
- Ceylon Electricity Board - Sri Lanka
- Toyota Tsusho Corporation, Japan
- Metalloyd Limited - United Kingdom
- Eastern Energy - Thailand
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