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.
|
|
Tuesday, 20 July 10
DRY BULK SHIPPING MARKET FINDING SOME SUPPORT, AS OWNERS TAKE CAPE SIZES OFF THE MARKET
With the Baltic Dry Index finally having reached bottom, at least according to market analysts, the dry bulk industry is looking to begin its long r ...
Monday, 19 July 10
INDONESIA EXPORTS 24.49 MILLION TONNES OF COAL IN JUNE 2010
COALspot.com: Indonesia, the world largest coal exporter, exported 141.249 million tons of coal in the first half of this year. In June 2010, Indone ...
Monday, 19 July 10
CHINA ONCE AGAIN DOMINATING SHIPPING FREIGHT RATES, WHILE OVERSUPPLY OF TONNAGE RAISES CONCERN
The ending of the week brought a cheerful note among dry bulk ship owners, as the sinking benchmark of the industry, the Baltic Dry Index (BDI) fina ...
Saturday, 17 July 10
THE DRY BULK MARKET CONTINUED THE DOWNWARD TREND - VISTAAR
COALspot.com: The indices continued the downward trend this week also with BDI at 1,720 points and cape size index at 1676 points and the charter ra ...
Saturday, 17 July 10
BULLISH OUTLOOK FOR COKING COAL - MINING MX & HELLENIC SHIPPING
Mining Mx reported that, the coking coal market has better long-term fundamentals than the iron ore market, according to a recent research rep ...
|
|
|
Showing 5716 to 5720 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Energy Development Corp, Philippines
- ICICI Bank Limited - India
- CNBM International Corporation - China
- Toyota Tsusho Corporation, Japan
- Petrochimia International Co. Ltd.- Taiwan
- Grasim Industreis Ltd - India
- IHS Mccloskey Coal Group - USA
- Holcim Trading Pte Ltd - Singapore
- CIMB Investment Bank - Malaysia
- Kideco Jaya Agung - Indonesia
- Madhucon Powers Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Renaissance Capital - South Africa
- Merrill Lynch Commodities Europe
- Chettinad Cement Corporation Ltd - India
- Bukit Makmur.PT - Indonesia
- Meralco Power Generation, Philippines
- Sindya Power Generating Company Private Ltd
- PTC India Limited - India
- PNOC Exploration Corporation - Philippines
- PowerSource Philippines DevCo
- Kartika Selabumi Mining - Indonesia
- Rio Tinto Coal - Australia
- AsiaOL BioFuels Corp., Philippines
- Chamber of Mines of South Africa
- TNB Fuel Sdn Bhd - Malaysia
- MS Steel International - UAE
- Bangladesh Power Developement Board
- Thai Mozambique Logistica
- Indogreen Group - Indonesia
- Samtan Co., Ltd - South Korea
- Wood Mackenzie - Singapore
- Economic Council, Georgia
- Directorate Of Revenue Intelligence - India
- LBH Netherlands Bv - Netherlands
- Vizag Seaport Private Limited - India
- Miang Besar Coal Terminal - Indonesia
- Indonesian Coal Mining Association
- Jorong Barutama Greston.PT - Indonesia
- Commonwealth Bank - Australia
- Jaiprakash Power Ventures ltd
- Coal and Oil Company - UAE
- Orica Australia Pty. Ltd.
- Ambuja Cements Ltd - India
- Semirara Mining Corp, Philippines
- Sical Logistics Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Pendopo Energi Batubara - Indonesia
- Bulk Trading Sa - Switzerland
- Bhatia International Limited - India
- Siam City Cement - Thailand
- Sree Jayajothi Cements Limited - India
- Coalindo Energy - Indonesia
- Banpu Public Company Limited - Thailand
- Tata Chemicals Ltd - India
- Global Green Power PLC Corporation, Philippines
- Cement Manufacturers Association - India
- Bharathi Cement Corporation - India
- Billiton Holdings Pty Ltd - Australia
- Bhoruka Overseas - Indonesia
- Anglo American - United Kingdom
- San Jose City I Power Corp, Philippines
- The State Trading Corporation of India Ltd
- India Bulls Power Limited - India
- Trasteel International SA, Italy
- White Energy Company Limited
- Kapuas Tunggal Persada - Indonesia
- Alfred C Toepfer International GmbH - Germany
- SMG Consultants - Indonesia
- Straits Asia Resources Limited - Singapore
- Baramulti Group, Indonesia
- Mjunction Services Limited - India
- TeaM Sual Corporation - Philippines
- Wilmar Investment Holdings
- Heidelberg Cement - Germany
- The Treasury - Australian Government
- GMR Energy Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Minerals Council of Australia
- Xindia Steels Limited - India
- Ministry of Transport, Egypt
- Price Waterhouse Coopers - Russia
- Gujarat Electricity Regulatory Commission - India
- Intertek Mineral Services - Indonesia
- Larsen & Toubro Limited - India
- Sojitz Corporation - Japan
- Kumho Petrochemical, South Korea
- Planning Commission, India
- McConnell Dowell - Australia
- Global Business Power Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- Deloitte Consulting - India
- Siam City Cement PLC, Thailand
- Manunggal Multi Energi - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Sinarmas Energy and Mining - Indonesia
- Indo Tambangraya Megah - Indonesia
- International Coal Ventures Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Riau Bara Harum - Indonesia
- Savvy Resources Ltd - HongKong
- Power Finance Corporation Ltd., India
- Ceylon Electricity Board - Sri Lanka
- Indian Oil Corporation Limited
- Mercator Lines Limited - India
- Africa Commodities Group - South Africa
- Barasentosa Lestari - Indonesia
- Formosa Plastics Group - Taiwan
- Ministry of Mines - Canada
- Ind-Barath Power Infra Limited - India
- Thiess Contractors Indonesia
- Meenaskhi Energy Private Limited - India
- Tamil Nadu electricity Board
- Latin American Coal - Colombia
- Malabar Cements Ltd - India
- Timah Investasi Mineral - Indoneisa
- Agrawal Coal Company - India
- Antam Resourcindo - Indonesia
- Uttam Galva Steels Limited - India
- Ministry of Finance - Indonesia
- Medco Energi Mining Internasional
- Central Java Power - Indonesia
- Kobexindo Tractors - Indoneisa
- Essar Steel Hazira Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bayan Resources Tbk. - Indonesia
- Singapore Mercantile Exchange
- Binh Thuan Hamico - Vietnam
- Videocon Industries ltd - India
- Australian Commodity Traders Exchange
- Kalimantan Lumbung Energi - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Makarim & Taira - Indonesia
- SN Aboitiz Power Inc, Philippines
- SMC Global Power, Philippines
- Aditya Birla Group - India
- Bahari Cakrawala Sebuku - Indonesia
- Globalindo Alam Lestari - Indonesia
- Kaltim Prima Coal - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Kepco SPC Power Corporation, Philippines
- Edison Trading Spa - Italy
- Gujarat Sidhee Cement - India
- Vedanta Resources Plc - India
- Petron Corporation, Philippines
- Star Paper Mills Limited - India
- New Zealand Coal & Carbon
- Leighton Contractors Pty Ltd - Australia
- Karbindo Abesyapradhi - Indoneisa
- Posco Energy - South Korea
- Aboitiz Power Corporation - Philippines
- Romanian Commodities Exchange
- Krishnapatnam Port Company Ltd. - India
- Maharashtra Electricity Regulatory Commission - India
- Orica Mining Services - Indonesia
- Salva Resources Pvt Ltd - India
- Mercuria Energy - Indonesia
- Australian Coal Association
- Pipit Mutiara Jaya. PT, Indonesia
- Eastern Coal Council - USA
- Coastal Gujarat Power Limited - India
- Central Electricity Authority - India
- Electricity Authority, New Zealand
- Karaikal Port Pvt Ltd - India
- Parliament of New Zealand
- Asmin Koalindo Tuhup - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Bhushan Steel Limited - India
- Independent Power Producers Association of India
- London Commodity Brokers - England
- Sakthi Sugars Limited - India
- Attock Cement Pakistan Limited
- Jindal Steel & Power Ltd - India
- GVK Power & Infra Limited - India
- Indian Energy Exchange, India
- IEA Clean Coal Centre - UK
- Bukit Baiduri Energy - Indonesia
- Carbofer General Trading SA - India
- Sarangani Energy Corporation, Philippines
- Goldman Sachs - Singapore
- Georgia Ports Authority, United States
- Metalloyd Limited - United Kingdom
- GAC Shipping (India) Pvt Ltd
- Maheswari Brothers Coal Limited - India
- The University of Queensland
- ASAPP Information Group - India
- Mintek Dendrill Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- South Luzon Thermal Energy Corporation
- Cigading International Bulk Terminal - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Marubeni Corporation - India
- Energy Link Ltd, New Zealand
- GN Power Mariveles Coal Plant, Philippines
- Oldendorff Carriers - Singapore
- European Bulk Services B.V. - Netherlands
- Interocean Group of Companies - India
- Lanco Infratech Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Port Waratah Coal Services - Australia
- Iligan Light & Power Inc, Philippines
- Indika Energy - Indonesia
- Altura Mining Limited, Indonesia
- Eastern Energy - Thailand
- Standard Chartered Bank - UAE
- Electricity Generating Authority of Thailand
- Parry Sugars Refinery, India
- PetroVietnam Power Coal Import and Supply Company
- VISA Power Limited - India
- OPG Power Generation Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Borneo Indobara - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dalmia Cement Bharat India
|
| |
| |
|
