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Friday, 12 August 11
COAL MINERS WILL ALLOW TO CONSTRUCT MINE MOUTH POWER PLANT
 COALspot.com - The government is set to draft a regulation to enable construction of steam-fired power plants (PLTU) by coal mining companies for the domestic markets to use the benefit of low rank coal. This move may be the solution of the government plan to ban low rank coal export with effect from 2014.
Director General of Mineral and Coal of the Ministry of Energy and Mineral Resources Thamrin Sihite said, the domestic market obligation (DMO) ration is 24-25% only, which is still low. Driving up a DMO simultaneously no export of the low rank coal is required, the government is preparing a policy allowing coal entrepreneurs to build a PLTU.
“That will be really where it will stand in the time ahead, and the DMO and its electrification ratio can be boosted while the low rank coal can be tapped domestically,” he said in Jakarta, Thursday (11/8).
If the coal entrepreneurs may build a PLTU, Thamrin pointed out, the low rank coal used to be exported is accessible for fuel to generate power generators. “If the domestic consumption is in place, such low rank coal needs no export,” he said.
However, the PLTU construction by coal mining entrepreneurs is only one of the government solutions. The government considers several things involved in the low rank coal export ban.
Thamrin said the government is still calculating the state revenues from the coal royalties if the low rank coal is banned from export. The coal export by now generates greater revenues for the state.
“But we must also take into account domestically. How this coal can be used at home to shoot up the electrification ratio or other needs. That’s would be better than export,” he clarified.
The government, as Thamrin continued, still considers the investments incurred by entrepreneurs and agreed upon contracts. Others considered are the environment, conservation and the regional governments.
He said if mining companies cease to produce due to such an export ban, the government revenues will be diminished. “Still having a lot of considerations to decide to what extent export is permitted and banned,” he said.
This government plan gains support from the Indonesian Coal Mining Association (ICMA). According to ICMA’s Executive Director Suhala Supriatna, an obligation to build a PLTU is a better choice than upgrading low rank coal as technology to build PLTUs is more proven than upgrading.
However, he calls certainty of power purchase by PT PLN to build PLTUs. Most of coal entrepreneurs are committed to buildsmall-scale power generators. Some of them in Kalimantan, such as Berau Coal and KPC, have even erected 15 mw PLTUs. “The only thing that matters for us is, PLN is willing to buy power,” he said.
Such PLTUs, he said, can be built only in small size. One reason being that power consumption in Sumatera and Kalimantan is not considerable, let alone no inter-city power interconnection grid in there.
To contact the reporter responsible on this story: Efendi at efendi@coalspot.com.
Translation - WB
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Wednesday, 17 August 11
TAVESCO KILLARA ENERGY TO ACQUIRE COAL CONCESSIONS IN EAST KALIMANTAN
COALspot.com - Killara Resources Limited, an Australian listed company has formed PT Tavesco Killara Energy (TKE), a joint company with PT Tavesco I ...
Wednesday, 17 August 11
BUMI'S H1 UNDERLYING OPERATING PROFIT $62 MILLION
COALspot.com - Bumi PLC , posted underlying first-half operating profit of $62 million and production at PT Bumi Resources and PT Berau increased to ...
Wednesday, 17 August 11
SHIP OWNERS COULD FACE PAIN ON THE BACK OF GLOOMY ECONOMYS PREDICTIONS - HELLENIC SHIPPING
The latest market turmoil, coupled with the renewed risk of a global recession could very well signal more troubled times for ship owners of all shi ...
Tuesday, 16 August 11
CHALLENGER ENTERED INTO CSPA WITH PELANGI KERTANEGARA TO ACQUIRE 100% STAKE
COALspot.com - Challenger Deep Resources Corp., through its wholly owned subsidiary, P.T. Bestindo Energy, has exercised its option to purchase an a ...
Monday, 15 August 11
ADARO ENERGYS NET INCOME MORE THAN DOUBLES IN FIRST HALF 2011
COALspot.com - Indonesian’s second largest coal producer, Adaro Energy, booked net profit US$ 268 million in the first half 2011, rose two-fol ...
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