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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, 12 October 09
INDONESIA TO CUT ROYALTIES TO BOOST LOW QUALITY COAL
Reuters reported that, Indonesia, the world's biggest exporter of thermal coal, plans to cut royalties paid by producers holding certain contracts ...
Monday, 12 October 09
SAMPUR COAL POWER PLANT AGREEMENT
Sunday Observer reported that, The construction work of the Sri Lanka-India joint venture coal power plant which costs US dollars 500 million will c ...
Saturday, 10 October 09
SHORT PERIOD RATES FOR SUPRAMAX WAS AROUND US$ 17,000 PER DAY FOR VESSELS OPENING FAR EAST / SE ASIA - CAPT. REDDY
COALspot.com (Singapore): The BDI again firmed up this week by almost 14 pct to 2,695 points. The cape size index moved up quite sharply by 25 pct t ...
Saturday, 10 October 09
COAL PRICES TIPPED TO SURGE BY 40% AS GLOBAL DEMAND RECOVERS NEXT YEAR
Power-station coal prices may climb by more than 40 percent in 2010 from current levels as a global economic recovery boosts demand from power plant ...
Saturday, 10 October 09
PT BUMI RESOURCES TO EXPECT 2010 ELECTRIC AND COAL PRICE UP TO US$ 100/T
Indonesia coal producer, PT Bumi Resources recently stated that the revival of the global economy pushes up the demand from power plants and steel m ...
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- Sarangani Energy Corporation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Directorate Of Revenue Intelligence - India
- Tamil Nadu electricity Board
- SN Aboitiz Power Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Bharathi Cement Corporation - India
- Chamber of Mines of South Africa
- Baramulti Group, Indonesia
- Banpu Public Company Limited - Thailand
- Grasim Industreis Ltd - India
- Anglo American - United Kingdom
- Indian Energy Exchange, India
- Bukit Asam (Persero) Tbk - Indonesia
- Orica Mining Services - Indonesia
- Simpson Spence & Young - Indonesia
- White Energy Company Limited
- Videocon Industries ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Romanian Commodities Exchange
- Singapore Mercantile Exchange
- IEA Clean Coal Centre - UK
- Chettinad Cement Corporation Ltd - India
- Semirara Mining and Power Corporation, Philippines
- SMG Consultants - Indonesia
- Uttam Galva Steels Limited - India
- The University of Queensland
- Coastal Gujarat Power Limited - India
- Bulk Trading Sa - Switzerland
- Siam City Cement PLC, Thailand
- Meralco Power Generation, Philippines
- Power Finance Corporation Ltd., India
- Iligan Light & Power Inc, Philippines
- Indogreen Group - Indonesia
- London Commodity Brokers - England
- Central Electricity Authority - India
- Globalindo Alam Lestari - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Kobexindo Tractors - Indoneisa
- Bukit Makmur.PT - Indonesia
- India Bulls Power Limited - India
- Metalloyd Limited - United Kingdom
- Lanco Infratech Ltd - India
- Economic Council, Georgia
- Krishnapatnam Port Company Ltd. - India
- Standard Chartered Bank - UAE
- Energy Link Ltd, New Zealand
- Bhoruka Overseas - Indonesia
- Ministry of Finance - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Parry Sugars Refinery, India
- LBH Netherlands Bv - Netherlands
- Offshore Bulk Terminal Pte Ltd, Singapore
- Price Waterhouse Coopers - Russia
- Carbofer General Trading SA - India
- OPG Power Generation Pvt Ltd - India
- Energy Development Corp, Philippines
- Star Paper Mills Limited - India
- Thai Mozambique Logistica
- Thiess Contractors Indonesia
- Sojitz Corporation - Japan
- Australian Commodity Traders Exchange
- Wilmar Investment Holdings
- The Treasury - Australian Government
- Riau Bara Harum - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Manunggal Multi Energi - Indonesia
- McConnell Dowell - Australia
- Renaissance Capital - South Africa
- Ambuja Cements Ltd - India
- Semirara Mining Corp, Philippines
- Kaltim Prima Coal - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Barasentosa Lestari - Indonesia
- Xindia Steels Limited - India
- San Jose City I Power Corp, Philippines
- Larsen & Toubro Limited - India
- Kideco Jaya Agung - Indonesia
- Mercuria Energy - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Parliament of New Zealand
- Goldman Sachs - Singapore
- Global Business Power Corporation, Philippines
- New Zealand Coal & Carbon
- GN Power Mariveles Coal Plant, Philippines
- Coal and Oil Company - UAE
- Sical Logistics Limited - India
- Australian Coal Association
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Salva Resources Pvt Ltd - India
- ICICI Bank Limited - India
- CNBM International Corporation - China
- Indo Tambangraya Megah - Indonesia
- Interocean Group of Companies - India
- Pipit Mutiara Jaya. PT, Indonesia
- Samtan Co., Ltd - South Korea
- Bhatia International Limited - India
- Electricity Authority, New Zealand
- Bukit Baiduri Energy - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Commonwealth Bank - Australia
- Electricity Generating Authority of Thailand
- Vedanta Resources Plc - India
- Cement Manufacturers Association - India
- TeaM Sual Corporation - Philippines
- Port Waratah Coal Services - Australia
- Maharashtra Electricity Regulatory Commission - India
- GVK Power & Infra Limited - India
- Marubeni Corporation - India
- Georgia Ports Authority, United States
- Miang Besar Coal Terminal - Indonesia
- Merrill Lynch Commodities Europe
- Ind-Barath Power Infra Limited - India
- Medco Energi Mining Internasional
- Alfred C Toepfer International GmbH - Germany
- Rio Tinto Coal - Australia
- International Coal Ventures Pvt Ltd - India
- Borneo Indobara - Indonesia
- Karaikal Port Pvt Ltd - India
- Oldendorff Carriers - Singapore
- Sindya Power Generating Company Private Ltd
- Bahari Cakrawala Sebuku - Indonesia
- Edison Trading Spa - Italy
- Heidelberg Cement - Germany
- Mjunction Services Limited - India
- Gujarat Sidhee Cement - India
- Essar Steel Hazira Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Meenaskhi Energy Private Limited - India
- Vizag Seaport Private Limited - India
- Sakthi Sugars Limited - India
- Jorong Barutama Greston.PT - Indonesia
- European Bulk Services B.V. - Netherlands
- GMR Energy Limited - India
- MS Steel International - UAE
- Central Java Power - Indonesia
- Attock Cement Pakistan Limited
- Independent Power Producers Association of India
- GAC Shipping (India) Pvt Ltd
- Coalindo Energy - Indonesia
- Timah Investasi Mineral - Indoneisa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Siam City Cement - Thailand
- Ministry of Mines - Canada
- Kartika Selabumi Mining - Indonesia
- Agrawal Coal Company - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Antam Resourcindo - Indonesia
- Indonesian Coal Mining Association
- Africa Commodities Group - South Africa
- Kumho Petrochemical, South Korea
- Sinarmas Energy and Mining - Indonesia
- Orica Australia Pty. Ltd.
- Savvy Resources Ltd - HongKong
- Therma Luzon, Inc, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Trasteel International SA, Italy
- Makarim & Taira - Indonesia
- PNOC Exploration Corporation - Philippines
- Global Green Power PLC Corporation, Philippines
- PowerSource Philippines DevCo
- Posco Energy - South Korea
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- ASAPP Information Group - India
- South Luzon Thermal Energy Corporation
- Holcim Trading Pte Ltd - Singapore
- Straits Asia Resources Limited - Singapore
- Latin American Coal - Colombia
- Bangladesh Power Developement Board
- Binh Thuan Hamico - Vietnam
- Pendopo Energi Batubara - Indonesia
- Dalmia Cement Bharat India
- Aboitiz Power Corporation - Philippines
- Bayan Resources Tbk. - Indonesia
- Mercator Lines Limited - India
- Formosa Plastics Group - Taiwan
- Mintek Dendrill Indonesia
- Indian Oil Corporation Limited
- Jaiprakash Power Ventures ltd
- Wood Mackenzie - Singapore
- Gujarat Electricity Regulatory Commission - India
- SMC Global Power, Philippines
- Jindal Steel & Power Ltd - India
- Cigading International Bulk Terminal - Indonesia
- IHS Mccloskey Coal Group - USA
- Tata Chemicals Ltd - India
- Eastern Energy - Thailand
- Vijayanagar Sugar Pvt Ltd - India
- Bhushan Steel Limited - India
- Ministry of Transport, Egypt
- Indika Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Eastern Coal Council - USA
- Bank of Tokyo Mitsubishi UFJ Ltd
- Maheswari Brothers Coal Limited - India
- Malabar Cements Ltd - India
- Minerals Council of Australia
- Toyota Tsusho Corporation, Japan
- Planning Commission, India
- Aditya Birla Group - India
- Rashtriya Ispat Nigam Limited - India
- PTC India Limited - India
- Kapuas Tunggal Persada - Indonesia
- Intertek Mineral Services - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Sree Jayajothi Cements Limited - India
- Madhucon Powers Ltd - India
- Altura Mining Limited, Indonesia
- Deloitte Consulting - India
- The State Trading Corporation of India Ltd
- CIMB Investment Bank - Malaysia
- VISA Power Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Kepco SPC Power Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Petron Corporation, Philippines
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