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.
|
|
Monday, 08 January 24
KOSPO TO BUY 80000 MT OF INDONESIAN LOW CALORIFIC VALUE COAL FOR FEB 2024
Korea Southern Power Co., Ltd. (KOSPO), is inviting bids for the supply of Indonesian Low Calorific Value Coal from qualified suppliers for Korean ...
Monday, 08 January 24
SEABORNE TRADE REACHES 12.4BN TONNES - CLARKSONS
China will establish a back-up coal production system by 2027 to stabilise prices and secure coal supply, the state planner said on Wednesday, even ...
Monday, 08 January 24
CAPESIZES START THE NEW YEAR ON POSITIVE NOTE - BALTIC EXCHANGE
Capesize
This week the capsize market has been marked by a mix of activities and challenges. Despite a slow start following the Christmas and N ...
Friday, 05 January 24
MORGAN STANLEY SEES LOWER OIL PRICES IN 2024 ON OVERSUPPLY CONCERNS - REUTERS
Morgan Stanley sees Brent crude prices anchored near $80 per barrel in the first half in 2024 before declining towards the end of the year as it ex ...
Friday, 05 January 24
INDIA'S COAL OUTPUT RISES NEARLY 11 PC IN DEC TO 92.87 MT - PTI
India’s coal production increased by 10.75 per cent to 92.87 million tonne in December 2023 as compared to the year-ago period, an official s ...
|
|
|
Showing 56 to 60 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- IHS Mccloskey Coal Group - USA
- Power Finance Corporation Ltd., India
- Iligan Light & Power Inc, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Meralco Power Generation, Philippines
- London Commodity Brokers - England
- Petrochimia International Co. Ltd.- Taiwan
- India Bulls Power Limited - India
- Manunggal Multi Energi - Indonesia
- AsiaOL BioFuels Corp., Philippines
- TeaM Sual Corporation - Philippines
- Barasentosa Lestari - Indonesia
- Edison Trading Spa - Italy
- Antam Resourcindo - Indonesia
- Heidelberg Cement - Germany
- Cement Manufacturers Association - India
- Indo Tambangraya Megah - Indonesia
- Videocon Industries ltd - India
- Leighton Contractors Pty Ltd - Australia
- Energy Development Corp, Philippines
- GVK Power & Infra Limited - India
- Latin American Coal - Colombia
- Mjunction Services Limited - India
- Port Waratah Coal Services - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Oldendorff Carriers - Singapore
- PNOC Exploration Corporation - Philippines
- Singapore Mercantile Exchange
- Attock Cement Pakistan Limited
- Vijayanagar Sugar Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Aditya Birla Group - India
- PowerSource Philippines DevCo
- Semirara Mining and Power Corporation, Philippines
- Indonesian Coal Mining Association
- Coastal Gujarat Power Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Meenaskhi Energy Private Limited - India
- Romanian Commodities Exchange
- Toyota Tsusho Corporation, Japan
- Sakthi Sugars Limited - India
- Billiton Holdings Pty Ltd - Australia
- Price Waterhouse Coopers - Russia
- Bulk Trading Sa - Switzerland
- Dalmia Cement Bharat India
- Savvy Resources Ltd - HongKong
- Chamber of Mines of South Africa
- Mercator Lines Limited - India
- Coal and Oil Company - UAE
- Wood Mackenzie - Singapore
- Coalindo Energy - Indonesia
- Star Paper Mills Limited - India
- Xindia Steels Limited - India
- Global Green Power PLC Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Eastern Coal Council - USA
- Karbindo Abesyapradhi - Indoneisa
- Ministry of Transport, Egypt
- Independent Power Producers Association of India
- Vizag Seaport Private Limited - India
- Electricity Generating Authority of Thailand
- Planning Commission, India
- Kartika Selabumi Mining - Indonesia
- Aboitiz Power Corporation - Philippines
- Sojitz Corporation - Japan
- GMR Energy Limited - India
- Riau Bara Harum - Indonesia
- Posco Energy - South Korea
- Directorate General of MIneral and Coal - Indonesia
- Mercuria Energy - Indonesia
- VISA Power Limited - India
- Renaissance Capital - South Africa
- The State Trading Corporation of India Ltd
- Altura Mining Limited, Indonesia
- Metalloyd Limited - United Kingdom
- Wilmar Investment Holdings
- Bukit Makmur.PT - Indonesia
- Banpu Public Company Limited - Thailand
- Sinarmas Energy and Mining - Indonesia
- Thiess Contractors Indonesia
- SN Aboitiz Power Inc, Philippines
- The University of Queensland
- European Bulk Services B.V. - Netherlands
- Indian Oil Corporation Limited
- Carbofer General Trading SA - India
- Maharashtra Electricity Regulatory Commission - India
- Eastern Energy - Thailand
- IEA Clean Coal Centre - UK
- McConnell Dowell - Australia
- Gujarat Sidhee Cement - India
- Jaiprakash Power Ventures ltd
- Bhushan Steel Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Asmin Koalindo Tuhup - Indonesia
- Kideco Jaya Agung - Indonesia
- Thai Mozambique Logistica
- Madhucon Powers Ltd - India
- Commonwealth Bank - Australia
- Orica Mining Services - Indonesia
- Bhatia International Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Central Electricity Authority - India
- Kohat Cement Company Ltd. - Pakistan
- Bayan Resources Tbk. - Indonesia
- ICICI Bank Limited - India
- GN Power Mariveles Coal Plant, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Bharathi Cement Corporation - India
- Interocean Group of Companies - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Siam City Cement PLC, Thailand
- Sindya Power Generating Company Private Ltd
- Ambuja Cements Ltd - India
- Simpson Spence & Young - Indonesia
- Essar Steel Hazira Ltd - India
- Orica Australia Pty. Ltd.
- Lanco Infratech Ltd - India
- Borneo Indobara - Indonesia
- Mintek Dendrill Indonesia
- The Treasury - Australian Government
- Uttam Galva Steels Limited - India
- Goldman Sachs - Singapore
- Sarangani Energy Corporation, Philippines
- Parliament of New Zealand
- Australian Commodity Traders Exchange
- Alfred C Toepfer International GmbH - Germany
- Directorate Of Revenue Intelligence - India
- SMG Consultants - Indonesia
- Therma Luzon, Inc, Philippines
- Medco Energi Mining Internasional
- Electricity Authority, New Zealand
- Makarim & Taira - Indonesia
- OPG Power Generation Pvt Ltd - India
- Ministry of Finance - Indonesia
- Petron Corporation, Philippines
- Rio Tinto Coal - Australia
- Agrawal Coal Company - India
- Global Business Power Corporation, Philippines
- Trasteel International SA, Italy
- Ministry of Mines - Canada
- Tata Chemicals Ltd - India
- Parry Sugars Refinery, India
- PTC India Limited - India
- Central Java Power - Indonesia
- Baramulti Group, Indonesia
- Ind-Barath Power Infra Limited - India
- Straits Asia Resources Limited - Singapore
- Tamil Nadu electricity Board
- Jindal Steel & Power Ltd - India
- New Zealand Coal & Carbon
- Larsen & Toubro Limited - India
- Kobexindo Tractors - Indoneisa
- Karaikal Port Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Grasim Industreis Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Kapuas Tunggal Persada - Indonesia
- Timah Investasi Mineral - Indoneisa
- Indogreen Group - Indonesia
- Maheswari Brothers Coal Limited - India
- White Energy Company Limited
- Australian Coal Association
- Bukit Asam (Persero) Tbk - Indonesia
- Kumho Petrochemical, South Korea
- Indika Energy - Indonesia
- Vedanta Resources Plc - India
- Salva Resources Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- South Luzon Thermal Energy Corporation
- Bangladesh Power Developement Board
- Globalindo Alam Lestari - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Siam City Cement - Thailand
- Economic Council, Georgia
- Malabar Cements Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- SMC Global Power, Philippines
- ASAPP Information Group - India
- Marubeni Corporation - India
- Holcim Trading Pte Ltd - Singapore
- Neyveli Lignite Corporation Ltd, - India
- Pendopo Energi Batubara - Indonesia
- MS Steel International - UAE
- GAC Shipping (India) Pvt Ltd
- Africa Commodities Group - South Africa
- Intertek Mineral Services - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Kepco SPC Power Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Sree Jayajothi Cements Limited - India
- Standard Chartered Bank - UAE
- CIMB Investment Bank - Malaysia
- Gujarat Electricity Regulatory Commission - India
- Minerals Council of Australia
- Georgia Ports Authority, United States
- Chettinad Cement Corporation Ltd - India
- Indian Energy Exchange, India
- Bukit Baiduri Energy - Indonesia
- CNBM International Corporation - China
- Gujarat Mineral Development Corp Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Energy Link Ltd, New Zealand
- Semirara Mining Corp, Philippines
- Kaltim Prima Coal - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Binh Thuan Hamico - Vietnam
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sical Logistics Limited - India
- Deloitte Consulting - India
- Merrill Lynch Commodities Europe
- San Jose City I Power Corp, Philippines
- Anglo American - United Kingdom
- Kalimantan Lumbung Energi - Indonesia
- Global Coal Blending Company Limited - Australia
- Samtan Co., Ltd - South Korea
- Asia Pacific Energy Resources Ventures Inc, Philippines
|
| |
| |
|
