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.
|
|
Wednesday, 28 July 21
IN THE PHILIPPINES, COAL’S DEMISE MAKES WAY FOR A RENEWABLE ENERGY BOOM - IEEFA
Imported gas lock-in could undermine the economic benefits of a clean energy transition
The Philippines’ energy sector is on t ...
Wednesday, 28 July 21
MARKET INSIGHT - INTERMODAL
Assessing the ship repair sector during this first half of the year, we continue to come across surprises and new restrictions which are trembling ...
Saturday, 24 July 21
UNDERSTANDING INDIA'S LATEST PEAK POWER DEMAND RECORD - IEEFA
Ramping up solar will be crucial as peak power demand hits during the day
At around noon on 7 July 2021, India’s instantaneous ...
Wednesday, 21 July 21
MARKET INSIGHT - INTERMODAL
Dry Buk Sales and Purchase activity has heated up during 2021, reaching record high levels during the first half of the year. The increased interes ...
Monday, 19 July 21
CHINA'S COAL OUTPUT UP 6.4 PCT IN H1 - XINHUA
China’s raw coal output climbed 6.4 percent year on year to 1.95 billion tonnes in the first six months of the year, official data showed.
...
|
|
|
Showing 516 to 520 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Electricity Authority, New Zealand
- Coastal Gujarat Power Limited - India
- Deloitte Consulting - India
- Cigading International Bulk Terminal - Indonesia
- South Luzon Thermal Energy Corporation
- Parry Sugars Refinery, India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Alfred C Toepfer International GmbH - Germany
- Indian Energy Exchange, India
- The Treasury - Australian Government
- Bhoruka Overseas - Indonesia
- White Energy Company Limited
- MS Steel International - UAE
- Kartika Selabumi Mining - Indonesia
- Ambuja Cements Ltd - India
- Semirara Mining Corp, Philippines
- Carbofer General Trading SA - India
- Sical Logistics Limited - India
- Karaikal Port Pvt Ltd - India
- Mintek Dendrill Indonesia
- Independent Power Producers Association of India
- Tamil Nadu electricity Board
- SMC Global Power, Philippines
- Romanian Commodities Exchange
- Maharashtra Electricity Regulatory Commission - India
- Maheswari Brothers Coal Limited - India
- CNBM International Corporation - China
- Borneo Indobara - Indonesia
- Formosa Plastics Group - Taiwan
- Gujarat Electricity Regulatory Commission - India
- Xindia Steels Limited - India
- PowerSource Philippines DevCo
- Bahari Cakrawala Sebuku - Indonesia
- Posco Energy - South Korea
- Rio Tinto Coal - Australia
- Ceylon Electricity Board - Sri Lanka
- Simpson Spence & Young - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Anglo American - United Kingdom
- Wood Mackenzie - Singapore
- Miang Besar Coal Terminal - Indonesia
- Renaissance Capital - South Africa
- PetroVietnam Power Coal Import and Supply Company
- VISA Power Limited - India
- Ind-Barath Power Infra Limited - India
- Petron Corporation, Philippines
- Indian Oil Corporation Limited
- Tata Chemicals Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Singapore Mercantile Exchange
- Bank of Tokyo Mitsubishi UFJ Ltd
- Energy Development Corp, Philippines
- Chettinad Cement Corporation Ltd - India
- Energy Link Ltd, New Zealand
- Latin American Coal - Colombia
- PNOC Exploration Corporation - Philippines
- Standard Chartered Bank - UAE
- Lanco Infratech Ltd - India
- GVK Power & Infra Limited - India
- Sarangani Energy Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Essar Steel Hazira Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- GN Power Mariveles Coal Plant, Philippines
- Sinarmas Energy and Mining - Indonesia
- Baramulti Group, Indonesia
- Bhatia International Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- CIMB Investment Bank - Malaysia
- Bulk Trading Sa - Switzerland
- Port Waratah Coal Services - Australia
- Eastern Coal Council - USA
- Riau Bara Harum - Indonesia
- ICICI Bank Limited - India
- LBH Netherlands Bv - Netherlands
- Thiess Contractors Indonesia
- ASAPP Information Group - India
- Commonwealth Bank - Australia
- Kobexindo Tractors - Indoneisa
- Ministry of Finance - Indonesia
- Binh Thuan Hamico - Vietnam
- India Bulls Power Limited - India
- Ministry of Mines - Canada
- Jorong Barutama Greston.PT - Indonesia
- Australian Commodity Traders Exchange
- Marubeni Corporation - India
- Larsen & Toubro Limited - India
- Cement Manufacturers Association - India
- Straits Asia Resources Limited - Singapore
- Dalmia Cement Bharat India
- Star Paper Mills Limited - India
- Siam City Cement - Thailand
- Barasentosa Lestari - Indonesia
- SN Aboitiz Power Inc, Philippines
- Salva Resources Pvt Ltd - India
- Bhushan Steel Limited - India
- Sree Jayajothi Cements Limited - India
- Vedanta Resources Plc - India
- Vizag Seaport Private Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Global Green Power PLC Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- GMR Energy Limited - India
- Eastern Energy - Thailand
- Malabar Cements Ltd - India
- Mjunction Services Limited - India
- OPG Power Generation Pvt Ltd - India
- Heidelberg Cement - Germany
- Videocon Industries ltd - India
- Bukit Baiduri Energy - Indonesia
- Mercuria Energy - Indonesia
- Bayan Resources Tbk. - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Edison Trading Spa - Italy
- Pendopo Energi Batubara - Indonesia
- Jaiprakash Power Ventures ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Thai Mozambique Logistica
- Samtan Co., Ltd - South Korea
- IHS Mccloskey Coal Group - USA
- Globalindo Alam Lestari - Indonesia
- Interocean Group of Companies - India
- Kaltim Prima Coal - Indonesia
- Aditya Birla Group - India
- McConnell Dowell - Australia
- Altura Mining Limited, Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- Parliament of New Zealand
- Makarim & Taira - Indonesia
- Banpu Public Company Limited - Thailand
- San Jose City I Power Corp, Philippines
- Sindya Power Generating Company Private Ltd
- London Commodity Brokers - England
- Directorate Of Revenue Intelligence - India
- Central Java Power - Indonesia
- Savvy Resources Ltd - HongKong
- Uttam Galva Steels Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Oldendorff Carriers - Singapore
- Sojitz Corporation - Japan
- Jindal Steel & Power Ltd - India
- SMG Consultants - Indonesia
- Trasteel International SA, Italy
- Iligan Light & Power Inc, Philippines
- The State Trading Corporation of India Ltd
- Orica Mining Services - Indonesia
- Attock Cement Pakistan Limited
- Medco Energi Mining Internasional
- Therma Luzon, Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- Indogreen Group - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Minerals Council of Australia
- Meenaskhi Energy Private Limited - India
- Antam Resourcindo - Indonesia
- Power Finance Corporation Ltd., India
- Global Business Power Corporation, Philippines
- Africa Commodities Group - South Africa
- Meralco Power Generation, Philippines
- Wilmar Investment Holdings
- Holcim Trading Pte Ltd - Singapore
- Madhucon Powers Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Electricity Generating Authority of Thailand
- Bangladesh Power Developement Board
- PTC India Limited - India
- Orica Australia Pty. Ltd.
- Global Coal Blending Company Limited - Australia
- Indika Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Kideco Jaya Agung - Indonesia
- Grasim Industreis Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sakthi Sugars Limited - India
- Rashtriya Ispat Nigam Limited - India
- Ministry of Transport, Egypt
- Metalloyd Limited - United Kingdom
- Planning Commission, India
- AsiaOL BioFuels Corp., Philippines
- Directorate General of MIneral and Coal - Indonesia
- Bharathi Cement Corporation - India
- Pipit Mutiara Jaya. PT, Indonesia
- Kumho Petrochemical, South Korea
- Toyota Tsusho Corporation, Japan
- Agrawal Coal Company - India
- Bukit Makmur.PT - Indonesia
- Central Electricity Authority - India
- Gujarat Sidhee Cement - India
- Indonesian Coal Mining Association
- The University of Queensland
- Semirara Mining and Power Corporation, Philippines
- Coal and Oil Company - UAE
- Aboitiz Power Corporation - Philippines
- Chamber of Mines of South Africa
- New Zealand Coal & Carbon
- Goldman Sachs - Singapore
- GAC Shipping (India) Pvt Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Mercator Lines Limited - India
- Australian Coal Association
- Timah Investasi Mineral - Indoneisa
- International Coal Ventures Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Siam City Cement PLC, Thailand
- Intertek Mineral Services - Indonesia
- Price Waterhouse Coopers - Russia
- Merrill Lynch Commodities Europe
- Kapuas Tunggal Persada - Indonesia
- TeaM Sual Corporation - Philippines
- IEA Clean Coal Centre - UK
- Indo Tambangraya Megah - Indonesia
- Georgia Ports Authority, United States
- Economic Council, Georgia
- Coalindo Energy - Indonesia
|
| |
| |
|
