We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 30 September 09
COKING COAL PRICES MAY TOUCH $200/TN IN 2010-11
Business Standard reported that, Driven by surge in imports of coking coal by China, growth in Japanese steel output and signs of recovery in the In ...
Wednesday, 30 September 09
PURNOMO BIDS 'GOODBYE' TO ENERGY MINISTRY
The Jakarta globe reported that, In what could be construed as a resignation speech from a government official — but perhaps wasn’t &mda ...
Tuesday, 29 September 09
MINING AND ENERGY DAY 2009
The Minister of Energy and Mineral Resources, Purnomo Yusgiantoro led the ceremony marking 2009 Mining and Energy Day celebrations, held at the Depa ...
Tuesday, 29 September 09
BUKIT ASAM REDUCES ITS SALES TARGET
Tempo Interactive reported that, PT Tambang Batubara Bukit Asam Tbk has decided to reduce its sales target this year from 14.5 million tons of coal ...
Monday, 28 September 09
INDONESIA UNLIKELY TO PASS NEW MINING RULES IN 2009
Reuters reported that, Indonesia is unlikely to complete final regulations attached to a new mining and coal law this year, an official said on Mond ...
|
|
|
Showing 6386 to 6390 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Indonesian Coal Mining Association
- Eastern Energy - Thailand
- Kepco SPC Power Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- GVK Power & Infra Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Therma Luzon, Inc, Philippines
- Chettinad Cement Corporation Ltd - India
- Xindia Steels Limited - India
- Wood Mackenzie - Singapore
- Carbofer General Trading SA - India
- Eastern Coal Council - USA
- Madhucon Powers Ltd - India
- Banpu Public Company Limited - Thailand
- Directorate General of MIneral and Coal - Indonesia
- Cigading International Bulk Terminal - Indonesia
- India Bulls Power Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Aboitiz Power Corporation - Philippines
- Metalloyd Limited - United Kingdom
- Central Java Power - Indonesia
- Kobexindo Tractors - Indoneisa
- Orica Mining Services - Indonesia
- Karaikal Port Pvt Ltd - India
- VISA Power Limited - India
- Bangladesh Power Developement Board
- Kaltim Prima Coal - Indonesia
- Semirara Mining Corp, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Essar Steel Hazira Ltd - India
- The State Trading Corporation of India Ltd
- Agrawal Coal Company - India
- Mercator Lines Limited - India
- Gujarat Electricity Regulatory Commission - India
- Kartika Selabumi Mining - Indonesia
- Petron Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Rio Tinto Coal - Australia
- TeaM Sual Corporation - Philippines
- Bhoruka Overseas - Indonesia
- Directorate Of Revenue Intelligence - India
- Thiess Contractors Indonesia
- Indian Energy Exchange, India
- Central Electricity Authority - India
- Formosa Plastics Group - Taiwan
- SMC Global Power, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Parliament of New Zealand
- Independent Power Producers Association of India
- Holcim Trading Pte Ltd - Singapore
- GMR Energy Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Leighton Contractors Pty Ltd - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Meenaskhi Energy Private Limited - India
- Global Business Power Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Toyota Tsusho Corporation, Japan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Rashtriya Ispat Nigam Limited - India
- CIMB Investment Bank - Malaysia
- Kideco Jaya Agung - Indonesia
- Sakthi Sugars Limited - India
- AsiaOL BioFuels Corp., Philippines
- Siam City Cement PLC, Thailand
- Orica Australia Pty. Ltd.
- Simpson Spence & Young - Indonesia
- Baramulti Group, Indonesia
- Grasim Industreis Ltd - India
- Ind-Barath Power Infra Limited - India
- ASAPP Information Group - India
- Parry Sugars Refinery, India
- Minerals Council of Australia
- Global Coal Blending Company Limited - Australia
- Sree Jayajothi Cements Limited - India
- European Bulk Services B.V. - Netherlands
- PowerSource Philippines DevCo
- Cement Manufacturers Association - India
- Bharathi Cement Corporation - India
- Pipit Mutiara Jaya. PT, Indonesia
- The Treasury - Australian Government
- San Jose City I Power Corp, Philippines
- Lanco Infratech Ltd - India
- Kumho Petrochemical, South Korea
- Bhushan Steel Limited - India
- Pendopo Energi Batubara - Indonesia
- Bayan Resources Tbk. - Indonesia
- Wilmar Investment Holdings
- Heidelberg Cement - Germany
- Aditya Birla Group - India
- Coalindo Energy - Indonesia
- Ministry of Transport, Egypt
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Tata Chemicals Ltd - India
- CNBM International Corporation - China
- Riau Bara Harum - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- McConnell Dowell - Australia
- Vijayanagar Sugar Pvt Ltd - India
- Romanian Commodities Exchange
- Sarangani Energy Corporation, Philippines
- ICICI Bank Limited - India
- Interocean Group of Companies - India
- Ceylon Electricity Board - Sri Lanka
- Altura Mining Limited, Indonesia
- London Commodity Brokers - England
- Indian Oil Corporation Limited
- Indo Tambangraya Megah - Indonesia
- Maheswari Brothers Coal Limited - India
- Ministry of Finance - Indonesia
- IHS Mccloskey Coal Group - USA
- Chamber of Mines of South Africa
- Commonwealth Bank - Australia
- Borneo Indobara - Indonesia
- Georgia Ports Authority, United States
- Bulk Trading Sa - Switzerland
- Jaiprakash Power Ventures ltd
- Mjunction Services Limited - India
- Mintek Dendrill Indonesia
- Vedanta Resources Plc - India
- Standard Chartered Bank - UAE
- Ministry of Mines - Canada
- Timah Investasi Mineral - Indoneisa
- Barasentosa Lestari - Indonesia
- Salva Resources Pvt Ltd - India
- White Energy Company Limited
- Uttam Galva Steels Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Sindya Power Generating Company Private Ltd
- Manunggal Multi Energi - Indonesia
- Coastal Gujarat Power Limited - India
- Iligan Light & Power Inc, Philippines
- Antam Resourcindo - Indonesia
- Oldendorff Carriers - Singapore
- Kalimantan Lumbung Energi - Indonesia
- Price Waterhouse Coopers - Russia
- Intertek Mineral Services - Indonesia
- Gujarat Sidhee Cement - India
- Makarim & Taira - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Africa Commodities Group - South Africa
- Larsen & Toubro Limited - India
- Global Green Power PLC Corporation, Philippines
- Merrill Lynch Commodities Europe
- Globalindo Alam Lestari - Indonesia
- Star Paper Mills Limited - India
- Electricity Generating Authority of Thailand
- Samtan Co., Ltd - South Korea
- Gujarat Mineral Development Corp Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- GAC Shipping (India) Pvt Ltd
- Malabar Cements Ltd - India
- PTC India Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Siam City Cement - Thailand
- PNOC Exploration Corporation - Philippines
- Semirara Mining and Power Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Ambuja Cements Ltd - India
- Savvy Resources Ltd - HongKong
- Port Waratah Coal Services - Australia
- SN Aboitiz Power Inc, Philippines
- SMG Consultants - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Energy Link Ltd, New Zealand
- Bukit Baiduri Energy - Indonesia
- Economic Council, Georgia
- The University of Queensland
- OPG Power Generation Pvt Ltd - India
- Posco Energy - South Korea
- Binh Thuan Hamico - Vietnam
- Mercuria Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Edison Trading Spa - Italy
- Bhatia International Limited - India
- Meralco Power Generation, Philippines
- Deloitte Consulting - India
- Marubeni Corporation - India
- Krishnapatnam Port Company Ltd. - India
- Alfred C Toepfer International GmbH - Germany
- Attock Cement Pakistan Limited
- Neyveli Lignite Corporation Ltd, - India
- Vizag Seaport Private Limited - India
- Power Finance Corporation Ltd., India
- MS Steel International - UAE
- Miang Besar Coal Terminal - Indonesia
- Electricity Authority, New Zealand
- New Zealand Coal & Carbon
- Sical Logistics Limited - India
- Dalmia Cement Bharat India
- Kapuas Tunggal Persada - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Australian Commodity Traders Exchange
- Thai Mozambique Logistica
- International Coal Ventures Pvt Ltd - India
- Tamil Nadu electricity Board
- Trasteel International SA, Italy
- Indika Energy - Indonesia
- Videocon Industries ltd - India
- Goldman Sachs - Singapore
- Singapore Mercantile Exchange
- Straits Asia Resources Limited - Singapore
- Indogreen Group - Indonesia
- Jindal Steel & Power Ltd - India
- Planning Commission, India
- Anglo American - United Kingdom
- IEA Clean Coal Centre - UK
- Energy Development Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Sojitz Corporation - Japan
- Australian Coal Association
- Latin American Coal - Colombia
- Medco Energi Mining Internasional
- Renaissance Capital - South Africa
- South Luzon Thermal Energy Corporation
- Coal and Oil Company - UAE
- Sinarmas Energy and Mining - Indonesia
|
| |
| |
|
