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Sunday, 20 June 10
OUR COAL: ITS DEVELOPMENT AND CONTROVERSIAL ISSUES
 Indonesia’s production of coal has been growing amazingly. In the mid 1980s, national coal production was less than 1 million tons per annum, whereas energy planners (in the fourth Five Year Development Plan: 1989-1994) pointed at 10 million tons as the national production target.
The current production has jumped dramatically, recorded as 237 million tons in 2008 (predicted to achieve 270 million tons this year), making Indonesia a world class producer and the largest exporter of coal around the globe. The skyrocketing growth of our coal production has also incited many controversial issues.
Coal is considered as the dirtiest among fossil fuels, making environmentalists oppose their wide use
as fuel.
However, the proposal for ceasing use of coal — power generation, for instance — would be challenged by power utilities demanding low cost fuel that coal may offer and by the government, which has the responsibility to provide electricity as well as have revenue from exploiting its energy resources.
Despite the world’s rising anxiety of global warming, IEA (International Energy Agency: World Energy Outlook 2009) statistics shows that the world consumption for coal, for the last decade, is still growing the fastest among primary energy sources.
The environmental problem associated with coal in Indonesia is not limited to green houses gases (GHG), but also damage and pollution since its exploitation, transportation and uses to post mining.
It is easy to find where many coal fields are not mined appropriately according to “good mining and environmental practices”, coal transportation is not considering safety standards and is damaging rivers, (public) roads and seashores.
The coal mining has polluted the land, water and air of especially Kalimantan, where more than 90 percent of Indonesia’s coal mining operations take place.
It is sad that many of the previous mining areas have been abandoned without being properly reclaimed, whereas thousands of hectares of the island’s tropical forests have been converted into desert.
The soaring exploitation, including its negative impact on the environment, has a strong correlation with the number of licensing/permits awarded.
The introduction of the 1999 Regional Autonomy Law, subsequently followed by the 1999 Fiscal Balancing Law between the Central and Regional Governments have — to some degree — impacted on the coal licensing regime, where larger authorities had been given to regional/local governments.
Under the new licensing regime by local governments, requirements for coal permits tend to be relaxed whereas monitoring has not been done properly.
As a result, the number of permits (Mining Authorization/KP) has been growing considerably (currently 462, of which 169 are producing), coal production increases, but also environmental problems and the issues of illegal mining exist.
The question of who really owns the KP licenses exists, which was defined as that it can be owned by Indonesian national/companies only.
While the largest part of coal in Indonesia are being produced by large companies (the holders of Coal Contract of Work/PKP2B), some coal is mined by small scale and illegal miners.
It is believed that a significant amount of coal has been produced by illegal miners (some 5 million tons annually) and part has gone to meet export demand.
Wherever in the world, illegal miners lack interest in responsible mining and mine rehabilitation practices. Illegal mining is a problem for potential investors, the environment and government revenues.
The government has introduced measures to crack down on problems, including arresting illegal miners.
However, it cannot be the only solution since illegal mining is actually rooted in underemployment, local poverty and weak law enforcement, while the number of people involved in these activities is quite significant.
An alternative to confrontation to illegal miners by the central government (who awards the large scale PKP2B mining license) should be a cooperative and more comprehensive approach.
“Despite the world’s anxiety of global warming, IEA statistics shows that the world consumption for coal is still growing the fastest among primary energy sources.”
Work together with local/rural governments and communities to reduce poverty, educate/assist the illegal miners to increase their awareness on good mining practices (including mine rehabilitation), provide transition period fiscal incentives to encourage illegal mining toward the regulated mining sector, among others.
It needs to maintain an appropriate balance between the soaring exports of coal (about three quarters of production on average) and the domestic growing demand for the same fuel.
Push for exports is still coming largely from the traditional East Asians (Japan is the largest), while the coal-hungry India and China are also increasing their demand for our coal.
The exports will be competed with by the Blue Print for Energy Management 2005-2025 pointing out that one third of Indonesia’s energy primary energy mix in 2025 is to be supplied by coal, (the current share is about 15 percent).
Even though it is often mentioned that our coal reserves are quite large (current proven reserves of 5.5 billion tons; estimated resources of 105 tones) and that our reserves for coal are much larger than that of oil and gas, we should watch their fast rate of exploitation cautiously.
It needs to recalculate the benefit of exploiting them, taking into account their damage to the environment and what is left post mining. Where have all the revenues from exploiting that coal gone? Is the escalating export not jeopardizing the domestic energy security in the near future?
We have ample experiences, for instance in exploiting the resources-rich Kalimantan. The forests, oil and gas reserves have been exploited for about four to five decades, but it seems that the island has not enjoyed the fruits of the excessive exploitation: the current regional economy remains weak, infrastructure is poor and energy supplies for local uses have not been secured.
It needs to promote the terms “resources balance, depletion, sustainability”, start internalizing the costs of environmental impact and enforce those concepts into workable policies for our coal mining development.
The writer is the senior energy planner and an economist with the National Development Planning Agency. The opinions expressed are his own.
Source: The Jakarta Post ( Hanan Nugroho)
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Tuesday, 13 July 10
FURTHER LOSSES FOR BALTIC DRY INDEX ON HIGH VESSEL SUPPLY
The dry bulk market can’t catch a breath, as it has now entered the 7th straight week of losses. The industry’s benchmark, the Baltic Dr ...
Sunday, 11 July 10
OVERALL NO OR NEGLIGIBLE IMPACT IN ARUTMIN MINE - BUMI
COALspot.com: Bumi denies the media reports on an impact of unusually rains on coal production in BUMI mines.
"Arutmin is being impacted by ...
Saturday, 10 July 10
FREIGHT MARKET SITUATION MAY CONTINUE FOR NEXT COUPLE OF WEEKS - VISTAAR
COALspot.com: The market continued to soften further with the cape and panamax index down by about 20 pct and closed at 2,102 and 1,944 points respe ...
Saturday, 10 July 10
STC OF INDIA TO ASSOCIATE WITH FUEL SUPPLIERS
COALspot.com: State Trading corporation of India, which is under Ministry of Commerce, has invited Expression of Interest from coal suppliers ...
Saturday, 10 July 10
SCOMI TO SELL STAKE IN INDONESIA OPS - THE STAR
The star online reported that, Scomi Marine Bhd will sell a stake in its marine logistics business in Indonesia to a large Indonesian company to dea ...
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- Oldendorff Carriers - Singapore
- Coastal Gujarat Power Limited - India
- Karbindo Abesyapradhi - Indoneisa
- PowerSource Philippines DevCo
- Planning Commission, India
- Toyota Tsusho Corporation, Japan
- Vizag Seaport Private Limited - India
- Bhoruka Overseas - Indonesia
- ASAPP Information Group - India
- Intertek Mineral Services - Indonesia
- Bukit Makmur.PT - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Parliament of New Zealand
- TNB Fuel Sdn Bhd - Malaysia
- Anglo American - United Kingdom
- Coal and Oil Company - UAE
- Sakthi Sugars Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Eastern Coal Council - USA
- Chettinad Cement Corporation Ltd - India
- Global Green Power PLC Corporation, Philippines
- Edison Trading Spa - Italy
- Coalindo Energy - Indonesia
- Indonesian Coal Mining Association
- Directorate Of Revenue Intelligence - India
- IEA Clean Coal Centre - UK
- Central Electricity Authority - India
- Krishnapatnam Port Company Ltd. - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Minerals Council of Australia
- ICICI Bank Limited - India
- Sinarmas Energy and Mining - Indonesia
- Makarim & Taira - Indonesia
- Sojitz Corporation - Japan
- Mintek Dendrill Indonesia
- Samtan Co., Ltd - South Korea
- Parry Sugars Refinery, India
- Leighton Contractors Pty Ltd - Australia
- Global Business Power Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Chamber of Mines of South Africa
- SN Aboitiz Power Inc, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Tata Chemicals Ltd - India
- Xindia Steels Limited - India
- Renaissance Capital - South Africa
- South Luzon Thermal Energy Corporation
- Kobexindo Tractors - Indoneisa
- Energy Development Corp, Philippines
- Barasentosa Lestari - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Africa Commodities Group - South Africa
- Bhushan Steel Limited - India
- Simpson Spence & Young - Indonesia
- Grasim Industreis Ltd - India
- Banpu Public Company Limited - Thailand
- Eastern Energy - Thailand
- PTC India Limited - India
- European Bulk Services B.V. - Netherlands
- CNBM International Corporation - China
- Vedanta Resources Plc - India
- International Coal Ventures Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- IHS Mccloskey Coal Group - USA
- VISA Power Limited - India
- White Energy Company Limited
- Ind-Barath Power Infra Limited - India
- CIMB Investment Bank - Malaysia
- London Commodity Brokers - England
- Timah Investasi Mineral - Indoneisa
- Pendopo Energi Batubara - Indonesia
- Mercator Lines Limited - India
- Thai Mozambique Logistica
- Kumho Petrochemical, South Korea
- Bukit Baiduri Energy - Indonesia
- Goldman Sachs - Singapore
- Madhucon Powers Ltd - India
- Rio Tinto Coal - Australia
- Maharashtra Electricity Regulatory Commission - India
- Siam City Cement PLC, Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Bangladesh Power Developement Board
- Bayan Resources Tbk. - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- OPG Power Generation Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- Star Paper Mills Limited - India
- Medco Energi Mining Internasional
- Bharathi Cement Corporation - India
- Directorate General of MIneral and Coal - Indonesia
- Aboitiz Power Corporation - Philippines
- Riau Bara Harum - Indonesia
- Indogreen Group - Indonesia
- Antam Resourcindo - Indonesia
- GVK Power & Infra Limited - India
- Meenaskhi Energy Private Limited - India
- Commonwealth Bank - Australia
- McConnell Dowell - Australia
- Gujarat Sidhee Cement - India
- Petron Corporation, Philippines
- Orica Mining Services - Indonesia
- Independent Power Producers Association of India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Tamil Nadu electricity Board
- PNOC Exploration Corporation - Philippines
- GAC Shipping (India) Pvt Ltd
- Jaiprakash Power Ventures ltd
- Dalmia Cement Bharat India
- Sindya Power Generating Company Private Ltd
- Merrill Lynch Commodities Europe
- Billiton Holdings Pty Ltd - Australia
- Kartika Selabumi Mining - Indonesia
- Power Finance Corporation Ltd., India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Mercuria Energy - Indonesia
- Romanian Commodities Exchange
- Iligan Light & Power Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Agrawal Coal Company - India
- Australian Commodity Traders Exchange
- Posco Energy - South Korea
- San Jose City I Power Corp, Philippines
- Interocean Group of Companies - India
- Port Waratah Coal Services - Australia
- Meralco Power Generation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Malabar Cements Ltd - India
- Uttam Galva Steels Limited - India
- Karaikal Port Pvt Ltd - India
- Indika Energy - Indonesia
- Metalloyd Limited - United Kingdom
- Aditya Birla Group - India
- Kapuas Tunggal Persada - Indonesia
- SMG Consultants - Indonesia
- Deloitte Consulting - India
- Bulk Trading Sa - Switzerland
- Sarangani Energy Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Indian Energy Exchange, India
- The Treasury - Australian Government
- Vijayanagar Sugar Pvt Ltd - India
- Electricity Authority, New Zealand
- Globalindo Alam Lestari - Indonesia
- SMC Global Power, Philippines
- New Zealand Coal & Carbon
- Therma Luzon, Inc, Philippines
- India Bulls Power Limited - India
- Ministry of Mines - Canada
- Bhatia International Limited - India
- The State Trading Corporation of India Ltd
- Wood Mackenzie - Singapore
- Cement Manufacturers Association - India
- Formosa Plastics Group - Taiwan
- Singapore Mercantile Exchange
- Kohat Cement Company Ltd. - Pakistan
- Bukit Asam (Persero) Tbk - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Cigading International Bulk Terminal - Indonesia
- Maheswari Brothers Coal Limited - India
- Semirara Mining Corp, Philippines
- Latin American Coal - Colombia
- Siam City Cement - Thailand
- Attock Cement Pakistan Limited
- Borneo Indobara - Indonesia
- Mjunction Services Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Kaltim Prima Coal - Indonesia
- Kideco Jaya Agung - Indonesia
- Heidelberg Cement - Germany
- Miang Besar Coal Terminal - Indonesia
- Central Java Power - Indonesia
- TeaM Sual Corporation - Philippines
- GMR Energy Limited - India
- Salva Resources Pvt Ltd - India
- Ambuja Cements Ltd - India
- Kepco SPC Power Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- LBH Netherlands Bv - Netherlands
- Petrochimia International Co. Ltd.- Taiwan
- Binh Thuan Hamico - Vietnam
- Indian Oil Corporation Limited
- Essar Steel Hazira Ltd - India
- Orica Australia Pty. Ltd.
- Videocon Industries ltd - India
- Thiess Contractors Indonesia
- Jindal Steel & Power Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Energy Link Ltd, New Zealand
- Sical Logistics Limited - India
- Georgia Ports Authority, United States
- Electricity Generating Authority of Thailand
- Trasteel International SA, Italy
- Ministry of Transport, Egypt
- Bank of Tokyo Mitsubishi UFJ Ltd
- Carbofer General Trading SA - India
- Marubeni Corporation - India
- AsiaOL BioFuels Corp., Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Altura Mining Limited, Indonesia
- The University of Queensland
- Sree Jayajothi Cements Limited - India
- Economic Council, Georgia
- Australian Coal Association
- GN Power Mariveles Coal Plant, Philippines
- Standard Chartered Bank - UAE
- Larsen & Toubro Limited - India
- Ministry of Finance - Indonesia
- MS Steel International - UAE
- PetroVietnam Power Coal Import and Supply Company
- Gujarat Electricity Regulatory Commission - India
- Pipit Mutiara Jaya. PT, Indonesia
- Wilmar Investment Holdings
- Baramulti Group, Indonesia
- Straits Asia Resources Limited - Singapore
- Lanco Infratech Ltd - India
- Holcim Trading Pte Ltd - Singapore
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