We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Tuesday, 06 September 11
INDONESIAS PROPOSED COAL EXPORT BAN MAY HAVE IMPACT ON THE INDIAN POWER SECTOR - DIPESH DIPU
.jpg) COALspot.com - This is a special interview about Indonesian proposed coal export ban by 2014, with Mr. Dipesh Dipu, Director of Deloitte Touche Tohmatsu, India.
The Indonesian government is currently in the process of drafting a new regulation that could ban the export of low-grade coal by January 12, 2014. This is likely to apply to coal below 5700 kcal/kg on air dried basis in value.
As of now Indonesia is producing around 150 million tons of coal with calorific value below 5700 GAD (according to chairman of Indonesian coal mining association). However by 2014, there are possibilities the total production of below 5700 GAD coal may reach more than 200 million per annum.
Will Indonesian coal export ban impact on the Indian fuel requirements?
The earlier grade of coal that was being considered for proposed ban has GCV of 5100 kcal/kg of less (adb), which can be comparable to 3800-4200 kcal/kg (arb) domestic coal available in India. This grade of coal has found favor in India primarily due to likely price advantage but economics of power generation based on such grade of imported coal may be a suspect. This considering that such grades of coal from Indonesia typically have high moisture content, which makes transportation cost per unit of energy generated higher. The quantum of the low grade of coal (<5100 kcal/kg adb) procured from Indonesia is likely to remain relatively low.
However, if the new definition of low grade coal is applied (<5700 kcal/kg adb), it may be reasonable to believe that such a ban may have impact on the Indian power sector as volumes in this grade of coal are expected to rise in the proportion of coal exports to India. Several of the acquisitions made by Indian power generation companies in Indonesia have been in coal blocks that will produce coal of this grade, and a blanket ban on the exports can jeopardize power plant development in India.
On the other hand, the domestic Indonesian market may not be prepared to consume all the coal mined of this grade in view of the power generation capacity addition plans in Indonesia. In such a case, the coal mine development is likely to be deferred. The Indonesian law makers may need to reconsider domestic market demand, investment climate in coal sector and impact of the legislation on the export revenues.
What is the alternative source for Indian power industry if the proposed coal export ban come into effect by 2014?
Indian power generation companies have been forced to look out for coal assets abroad due to the investment and regulatory environment within the country. India boasts of more than 110 billion tonnes of coal reserves, which largely fall within a 300 meters of depth. If the regulatory and investment environment is amended to allow greater participation of private sector Indian dependence on imports will be reduced.
However, for imports, India will continue to look at Indonesia, South Africa, Australia and newer destinations like Mozambique and Columbia. But these sources also have constraints, domestic demands in South Africa is likely to restrict quantum jump in exports out of South Africa. Indonesia has also proposed domestic market obligations. Mozambique may have infrastructure constraints for large volumes of coal being transported from Tete province to ports of Maputo, Ncala or Beira. Australian coal is of high quality but may have higher costs of mining and transport.
What would be the additional cost if Indian consumers switch their sourcing origin from Indonesia?
Indonesia has competitive advantage due to its geographical closeness. However, on a per tonne basis, assuming comparable quality, costs of transport may make marginal difference when compared with South Africa and Mozambique.
When compared to Australian coal, due to the high quality, cost of energy may well be comparable even though shipping costs are higher. Between Indonesian coal (5500 kcal/kg adb priced at USD 90 per tonne) and Australian coal (6500 kcal/kg adb priced at USD 120 per tonne), indicative variable cost difference of power generation may be about Indian Rupees 0.20 to 0.30 per kWh (electricity unit) in favor of Indonesian coal.
Will it affect Indian economy growth or this coal export ban is ignorable as India can easily identify alternative sources of fuel?
The magnitude of growth in power generation in India will necessarily mean that coal will remain the mainstay. Natural gas has had issues of availability. Nuclear plant development is facing socio-political challenge in view of the risks of technology failure. Development of hydel power has also faced issues of land acquisition, rehabilitation & resettlement apart from the technical issues of hydro-geological features. Renewable sources such as solar and wind generation are still projected to constitute a small portion of India power generation mix. Identifying an alternative source that can match coal in its accessibility, availability and affordability in the context of scale of capacity addition required in India is a challenge.
What is the Indian government's role on this issue, whether government has to come out with the solution such as easing Indian mining and environment law, open up mining for foreigners, G2G arrangement, etc…?
There is a need to look at domestic sources with pro-active and constructive approach and make all necessary legal and statutory amendments that make the resources available and mineable. Easing the regulations may not be one of such measures but making those regulations work in sync with each other in a time bound and predictable manner must certainly be.
There is certainly a case for opening the domestic coal sector for private participation, including independent miners, and for foreign participation so that newer technology and enhanced scale of operations are implemented in India. The regulation also needs to permit risk capital to come in for prospecting and exploration.
For imports the G2G relations can be leveraged to secure coal assets. India has good relationship with Indonesia and has also signed a tax treaty with Mozambique in 2010 which will facilitate investments. Government may also engage with these countries to ease exports to India and extend fiscal support to coal mining companies investing in mining and associated infrastructure development.
About Dipesh Dipu
Dipesh Dipu works as Director with Deloitte Touche Tohmatsu India Pvt. Ltd in the Energy and Resources consulting practice of the firm and anchors the Firm’s initiative in the mining and metals sectors.
He is a mining engineering graduate from Indian School of Mines and is a Chartered Financial Analyst (CFA). He has also done executive program in business management from Indian Institute of Management Calcutta. Dipesh has recently been awarded the Abheraj Baldota Gold Medal for the Young Mining Engineer of the Year 2007 by the Mining Engineers’ Association of India in recognition of his contributions in the improvement of mining industry in India.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Friday, 27 August 21
THE ECONOMICS OF INDONESIA’S DIESEL POWER PLANT TO GAS CONVERSION PLAN ARE PROBLEMATIC - IEEFA
Deploying new small-scale LNG is an uphill battle for PGN
Indonesian gas is currently in a precarious position, where the government needs to ...
Thursday, 26 August 21
INDIA IMPORTED 17.06 MLN TONNES OF LPG IN 2020; UP 11.5% Y-O-Y
Global LPG trade remained fairly positive in 2020, despite the global economic impact from COVID-19, and surged strongly in the first half of 2021. ...
Thursday, 26 August 21
MARKET INSIGHT - INTERMODAL
24th of August 2021, the Baltic Dry Index reached 4,201, a YTD high and the highest since May 2010.
Cape 5TC daily average @ 51,472
...
Tuesday, 24 August 21
COAL PRICE RALLY TO PRESSURE CHINESE POWER GENCOS’ MARGINS FITCH RATINGS
Fitch Ratings expects the pressure on Chinese power generation companies’ (gencos) profit from the recent coal price surge to weaken their cr ...
Tuesday, 24 August 21
TIGHT POWER SUPPLY IN CHINA AMID STRONG DEMAND, HIGH COAL PRICES - FITCH RATINGS
China experienced tight power supply in 1H21 on stronger than expected power demand as economic activity continued to recover, Fitch Ratings says i ...
|
|
|
Showing 496 to 500 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- PTC India Limited - India
- Cigading International Bulk Terminal - Indonesia
- Interocean Group of Companies - India
- Ceylon Electricity Board - Sri Lanka
- Agrawal Coal Company - India
- Leighton Contractors Pty Ltd - Australia
- Central Electricity Authority - India
- Samtan Co., Ltd - South Korea
- Independent Power Producers Association of India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- London Commodity Brokers - England
- Ministry of Transport, Egypt
- Sree Jayajothi Cements Limited - India
- Goldman Sachs - Singapore
- Altura Mining Limited, Indonesia
- Thai Mozambique Logistica
- Gujarat Sidhee Cement - India
- SMC Global Power, Philippines
- GVK Power & Infra Limited - India
- Pendopo Energi Batubara - Indonesia
- Kepco SPC Power Corporation, Philippines
- Rio Tinto Coal - Australia
- Global Green Power PLC Corporation, Philippines
- Bhoruka Overseas - Indonesia
- Mjunction Services Limited - India
- Star Paper Mills Limited - India
- Indo Tambangraya Megah - Indonesia
- SMG Consultants - Indonesia
- Ind-Barath Power Infra Limited - India
- Semirara Mining and Power Corporation, Philippines
- Indika Energy - Indonesia
- Ministry of Mines - Canada
- Aboitiz Power Corporation - Philippines
- Krishnapatnam Port Company Ltd. - India
- Energy Link Ltd, New Zealand
- Therma Luzon, Inc, Philippines
- Globalindo Alam Lestari - Indonesia
- Makarim & Taira - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Savvy Resources Ltd - HongKong
- Xindia Steels Limited - India
- Cement Manufacturers Association - India
- CNBM International Corporation - China
- White Energy Company Limited
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- PNOC Exploration Corporation - Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Sindya Power Generating Company Private Ltd
- Jindal Steel & Power Ltd - India
- Mercuria Energy - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Gujarat Electricity Regulatory Commission - India
- CIMB Investment Bank - Malaysia
- Commonwealth Bank - Australia
- Grasim Industreis Ltd - India
- South Luzon Thermal Energy Corporation
- The Treasury - Australian Government
- Malabar Cements Ltd - India
- Sakthi Sugars Limited - India
- Heidelberg Cement - Germany
- Kohat Cement Company Ltd. - Pakistan
- Wood Mackenzie - Singapore
- Sojitz Corporation - Japan
- Coalindo Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- Kapuas Tunggal Persada - Indonesia
- Chettinad Cement Corporation Ltd - India
- Port Waratah Coal Services - Australia
- Directorate General of MIneral and Coal - Indonesia
- Merrill Lynch Commodities Europe
- Singapore Mercantile Exchange
- Indian Oil Corporation Limited
- San Jose City I Power Corp, Philippines
- Essar Steel Hazira Ltd - India
- Indonesian Coal Mining Association
- ICICI Bank Limited - India
- Iligan Light & Power Inc, Philippines
- The University of Queensland
- IEA Clean Coal Centre - UK
- Chamber of Mines of South Africa
- LBH Netherlands Bv - Netherlands
- SN Aboitiz Power Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- Deloitte Consulting - India
- Maharashtra Electricity Regulatory Commission - India
- OPG Power Generation Pvt Ltd - India
- Dalmia Cement Bharat India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indian Energy Exchange, India
- Videocon Industries ltd - India
- Edison Trading Spa - Italy
- PowerSource Philippines DevCo
- GMR Energy Limited - India
- Simpson Spence & Young - Indonesia
- Renaissance Capital - South Africa
- Trasteel International SA, Italy
- India Bulls Power Limited - India
- Global Coal Blending Company Limited - Australia
- Aditya Birla Group - India
- Ambuja Cements Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Orica Australia Pty. Ltd.
- Neyveli Lignite Corporation Ltd, - India
- Oldendorff Carriers - Singapore
- Kartika Selabumi Mining - Indonesia
- Vedanta Resources Plc - India
- Pipit Mutiara Jaya. PT, Indonesia
- Medco Energi Mining Internasional
- Australian Commodity Traders Exchange
- AsiaOL BioFuels Corp., Philippines
- Minerals Council of Australia
- Banpu Public Company Limited - Thailand
- Straits Asia Resources Limited - Singapore
- Maheswari Brothers Coal Limited - India
- Lanco Infratech Ltd - India
- Marubeni Corporation - India
- Baramulti Group, Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- New Zealand Coal & Carbon
- Tata Chemicals Ltd - India
- Siam City Cement PLC, Thailand
- Mercator Lines Limited - India
- Semirara Mining Corp, Philippines
- Kobexindo Tractors - Indoneisa
- Bhushan Steel Limited - India
- Meenaskhi Energy Private Limited - India
- Energy Development Corp, Philippines
- Kaltim Prima Coal - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Larsen & Toubro Limited - India
- Tamil Nadu electricity Board
- Directorate Of Revenue Intelligence - India
- Parry Sugars Refinery, India
- International Coal Ventures Pvt Ltd - India
- Meralco Power Generation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Bhatia International Limited - India
- VISA Power Limited - India
- European Bulk Services B.V. - Netherlands
- Planning Commission, India
- Attock Cement Pakistan Limited
- Alfred C Toepfer International GmbH - Germany
- Borneo Indobara - Indonesia
- Intertek Mineral Services - Indonesia
- Electricity Generating Authority of Thailand
- Salva Resources Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Bangladesh Power Developement Board
- Uttam Galva Steels Limited - India
- Carbofer General Trading SA - India
- Toyota Tsusho Corporation, Japan
- TNB Fuel Sdn Bhd - Malaysia
- TeaM Sual Corporation - Philippines
- Global Business Power Corporation, Philippines
- Orica Mining Services - Indonesia
- Central Java Power - Indonesia
- Barasentosa Lestari - Indonesia
- Electricity Authority, New Zealand
- Ministry of Finance - Indonesia
- Timah Investasi Mineral - Indoneisa
- IHS Mccloskey Coal Group - USA
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Anglo American - United Kingdom
- Australian Coal Association
- Coastal Gujarat Power Limited - India
- Eastern Coal Council - USA
- Bukit Makmur.PT - Indonesia
- Jaiprakash Power Ventures ltd
- Sarangani Energy Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Wilmar Investment Holdings
- MS Steel International - UAE
- Metalloyd Limited - United Kingdom
- Karaikal Port Pvt Ltd - India
- Parliament of New Zealand
- Petron Corporation, Philippines
- Posco Energy - South Korea
- Power Finance Corporation Ltd., India
- ASAPP Information Group - India
- Kalimantan Lumbung Energi - Indonesia
- Vizag Seaport Private Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Siam City Cement - Thailand
- GN Power Mariveles Coal Plant, Philippines
- Economic Council, Georgia
- Riau Bara Harum - Indonesia
- Latin American Coal - Colombia
- Africa Commodities Group - South Africa
- Georgia Ports Authority, United States
- Asmin Koalindo Tuhup - Indonesia
- Mintek Dendrill Indonesia
- Rashtriya Ispat Nigam Limited - India
- McConnell Dowell - Australia
- Antam Resourcindo - Indonesia
- Madhucon Powers Ltd - India
- Eastern Energy - Thailand
- Bulk Trading Sa - Switzerland
- Gujarat Mineral Development Corp Ltd - India
- Coal and Oil Company - UAE
- Thiess Contractors Indonesia
- Formosa Plastics Group - Taiwan
- Kideco Jaya Agung - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indogreen Group - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Karbindo Abesyapradhi - Indoneisa
- Romanian Commodities Exchange
- Standard Chartered Bank - UAE
- Bayan Resources Tbk. - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Price Waterhouse Coopers - Russia
- Binh Thuan Hamico - Vietnam
- Kumho Petrochemical, South Korea
- Bharathi Cement Corporation - India
- Sical Logistics Limited - India
- The State Trading Corporation of India Ltd
|
| |
| |
|
