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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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Tuesday, 13 October 09
INDIA INTERESTED IN AMERICAN COAL
UPI reported that, Coal India Ltd. in its global expansion efforts is now interested in coal properties in the United States.
The Business Standard ...
Tuesday, 13 October 09
RIVERSDALE MAY USE ZAMBEZI RIVER TO TRANSPORT MOZAMBIQUE COAL
Mining Weekly reported that, ASX-listed coal-miner Riversdale Mining would submit a feasibility study and an environmental-impact study (EIS) for it ...
Monday, 12 October 09
INDONESIAN COAL MINER SAYS PLANS IPO IN 2010
Reuters reported that, Indonesian coal miner PT Bhakti Energi Persada plans an initial public offering in the first quarter of 2010 to develop coal ...
Monday, 12 October 09
BISICHI MINING FINALIZES COAL SUPPLY CONTRACT FOR 2010-2012
Small Cap News reported that, Bisichi, the South Africa based coal mining group, has agreed a three year coal supply contract between its principal ...
Monday, 12 October 09
SHANDUKA BUYS SACMH RICHARDS BAY COAL ALLOCATION
* Shanduka Coal takes SACMH 500,000T export space
* RBCT must approve any change of ownership
Reuters reported that, South Africa's Shanduka Co ...
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- Global Coal Blending Company Limited - Australia
- Coastal Gujarat Power Limited - India
- Ministry of Mines - Canada
- Economic Council, Georgia
- Karaikal Port Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- Semirara Mining and Power Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indian Energy Exchange, India
- Vedanta Resources Plc - India
- Rashtriya Ispat Nigam Limited - India
- The Treasury - Australian Government
- Miang Besar Coal Terminal - Indonesia
- Coalindo Energy - Indonesia
- Romanian Commodities Exchange
- PNOC Exploration Corporation - Philippines
- Standard Chartered Bank - UAE
- India Bulls Power Limited - India
- Merrill Lynch Commodities Europe
- Bhoruka Overseas - Indonesia
- Bukit Baiduri Energy - Indonesia
- Star Paper Mills Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Wilmar Investment Holdings
- Uttam Galva Steels Limited - India
- White Energy Company Limited
- Agrawal Coal Company - India
- Siam City Cement PLC, Thailand
- Electricity Generating Authority of Thailand
- Ambuja Cements Ltd - India
- Larsen & Toubro Limited - India
- Directorate General of MIneral and Coal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Holcim Trading Pte Ltd - Singapore
- Sical Logistics Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Africa Commodities Group - South Africa
- Lanco Infratech Ltd - India
- Riau Bara Harum - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Edison Trading Spa - Italy
- Jaiprakash Power Ventures ltd
- Marubeni Corporation - India
- Sarangani Energy Corporation, Philippines
- Orica Mining Services - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Bulk Trading Sa - Switzerland
- SMC Global Power, Philippines
- LBH Netherlands Bv - Netherlands
- Independent Power Producers Association of India
- Savvy Resources Ltd - HongKong
- Neyveli Lignite Corporation Ltd, - India
- Oldendorff Carriers - Singapore
- ASAPP Information Group - India
- Indogreen Group - Indonesia
- Binh Thuan Hamico - Vietnam
- Dalmia Cement Bharat India
- Metalloyd Limited - United Kingdom
- Mintek Dendrill Indonesia
- Straits Asia Resources Limited - Singapore
- Jorong Barutama Greston.PT - Indonesia
- Price Waterhouse Coopers - Russia
- Minerals Council of Australia
- Global Business Power Corporation, Philippines
- Thai Mozambique Logistica
- Kaltim Prima Coal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Energy Link Ltd, New Zealand
- SMG Consultants - Indonesia
- Chettinad Cement Corporation Ltd - India
- The University of Queensland
- Mercator Lines Limited - India
- Planning Commission, India
- Eastern Energy - Thailand
- Singapore Mercantile Exchange
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Directorate Of Revenue Intelligence - India
- Energy Development Corp, Philippines
- Kideco Jaya Agung - Indonesia
- London Commodity Brokers - England
- Banpu Public Company Limited - Thailand
- Malabar Cements Ltd - India
- Antam Resourcindo - Indonesia
- Trasteel International SA, Italy
- Pendopo Energi Batubara - Indonesia
- IEA Clean Coal Centre - UK
- Bayan Resources Tbk. - Indonesia
- Renaissance Capital - South Africa
- Makarim & Taira - Indonesia
- Power Finance Corporation Ltd., India
- Kobexindo Tractors - Indoneisa
- Indian Oil Corporation Limited
- Latin American Coal - Colombia
- Siam City Cement - Thailand
- Electricity Authority, New Zealand
- Semirara Mining Corp, Philippines
- ICICI Bank Limited - India
- Formosa Plastics Group - Taiwan
- Georgia Ports Authority, United States
- South Luzon Thermal Energy Corporation
- Australian Coal Association
- SN Aboitiz Power Inc, Philippines
- European Bulk Services B.V. - Netherlands
- Parliament of New Zealand
- OPG Power Generation Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- GVK Power & Infra Limited - India
- Eastern Coal Council - USA
- Global Green Power PLC Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Jindal Steel & Power Ltd - India
- Australian Commodity Traders Exchange
- VISA Power Limited - India
- Bangladesh Power Developement Board
- Barasentosa Lestari - Indonesia
- CNBM International Corporation - China
- Commonwealth Bank - Australia
- Grasim Industreis Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- New Zealand Coal & Carbon
- Madhucon Powers Ltd - India
- Port Waratah Coal Services - Australia
- PowerSource Philippines DevCo
- Thiess Contractors Indonesia
- Ministry of Finance - Indonesia
- Timah Investasi Mineral - Indoneisa
- Simpson Spence & Young - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Attock Cement Pakistan Limited
- Central Java Power - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Iligan Light & Power Inc, Philippines
- Intertek Mineral Services - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Posco Energy - South Korea
- Bhatia International Limited - India
- Goldman Sachs - Singapore
- Coal and Oil Company - UAE
- McConnell Dowell - Australia
- Heidelberg Cement - Germany
- Bukit Makmur.PT - Indonesia
- Cement Manufacturers Association - India
- Vizag Seaport Private Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Aboitiz Power Corporation - Philippines
- Borneo Indobara - Indonesia
- Anglo American - United Kingdom
- Central Electricity Authority - India
- Carbofer General Trading SA - India
- Vijayanagar Sugar Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Krishnapatnam Port Company Ltd. - India
- Salva Resources Pvt Ltd - India
- Orica Australia Pty. Ltd.
- Bhushan Steel Limited - India
- The State Trading Corporation of India Ltd
- Altura Mining Limited, Indonesia
- Rio Tinto Coal - Australia
- Toyota Tsusho Corporation, Japan
- GAC Shipping (India) Pvt Ltd
- Mjunction Services Limited - India
- Sinarmas Energy and Mining - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Alfred C Toepfer International GmbH - Germany
- Samtan Co., Ltd - South Korea
- Gujarat Sidhee Cement - India
- PTC India Limited - India
- AsiaOL BioFuels Corp., Philippines
- Parry Sugars Refinery, India
- Kalimantan Lumbung Energi - Indonesia
- CIMB Investment Bank - Malaysia
- Indonesian Coal Mining Association
- Asmin Koalindo Tuhup - Indonesia
- Indika Energy - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Chamber of Mines of South Africa
- Xindia Steels Limited - India
- Baramulti Group, Indonesia
- Petron Corporation, Philippines
- Sojitz Corporation - Japan
- Billiton Holdings Pty Ltd - Australia
- Mercuria Energy - Indonesia
- Ministry of Transport, Egypt
- Ind-Barath Power Infra Limited - India
- Globalindo Alam Lestari - Indonesia
- Kartika Selabumi Mining - Indonesia
- Interocean Group of Companies - India
- Sakthi Sugars Limited - India
- Therma Luzon, Inc, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Meralco Power Generation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Maheswari Brothers Coal Limited - India
- Meenaskhi Energy Private Limited - India
- Kumho Petrochemical, South Korea
- Aditya Birla Group - India
- Medco Energi Mining Internasional
- Kepco SPC Power Corporation, Philippines
- Videocon Industries ltd - India
- MS Steel International - UAE
- Cigading International Bulk Terminal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Tamil Nadu electricity Board
- Tata Chemicals Ltd - India
- Bharathi Cement Corporation - India
- Deloitte Consulting - India
- TeaM Sual Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- Manunggal Multi Energi - Indonesia
- Indo Tambangraya Megah - Indonesia
- GMR Energy Limited - India
- International Coal Ventures Pvt Ltd - India
- Wood Mackenzie - Singapore
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