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, 03 February 10
RECOVERY IN INDONESIAN MINING SECTOR EXPECTED TO BOOST SALES, UNITED TRACTORS SAYS
PT United Tractors, the country’s biggest supplier of heavy equipment, said on Tuesday that it expected sales to increase 15 percent this year ...
Tuesday, 02 February 10
THAI BANPU SAYS HIGHER COSTS TO HIT COAL PROFITS
Thailand's top coal miner, expects profits from its coal business in 2010 to be lower than last year due to higher costs, but its chief executive i ...
Monday, 01 February 10
CIL PLANS TO INVEST IN OVERSEAS COAL MINES
Over the next 10 years, CIL expects to import from these mines at least 500 million tonnes of thermal coal, a variety used by power plants
The bo ...
Sunday, 31 January 10
AUSTRALIA NEWCASTLE THERMAL COAL FALLS 0.7 PERCENT TO $ 98.53
Power-station coal prices at Australia’s Newcastle port, a benchmark for Asia, declined 0.7 percent, falling for the first time in four weeks. ...
Sunday, 31 January 10
NTPC TO IMPORT COAL
NTPC Ltd plans to import coal directly, starting next fiscal.
“We plan to import 15-16 million tonnes of coal directly from next year,&rdqu ...
|
|
|
Showing 6036 to 6040 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Alfred C Toepfer International GmbH - Germany
- Economic Council, Georgia
- Mintek Dendrill Indonesia
- AsiaOL BioFuels Corp., Philippines
- Ministry of Finance - Indonesia
- GMR Energy Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Planning Commission, India
- Global Green Power PLC Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Sindya Power Generating Company Private Ltd
- Neyveli Lignite Corporation Ltd, - India
- Jorong Barutama Greston.PT - Indonesia
- Kobexindo Tractors - Indoneisa
- European Bulk Services B.V. - Netherlands
- Maharashtra Electricity Regulatory Commission - India
- Thai Mozambique Logistica
- Petron Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Samtan Co., Ltd - South Korea
- Simpson Spence & Young - Indonesia
- Malabar Cements Ltd - India
- Port Waratah Coal Services - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Bayan Resources Tbk. - Indonesia
- Latin American Coal - Colombia
- Madhucon Powers Ltd - India
- Singapore Mercantile Exchange
- Sarangani Energy Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Bhatia International Limited - India
- MS Steel International - UAE
- SN Aboitiz Power Inc, Philippines
- Jaiprakash Power Ventures ltd
- Semirara Mining Corp, Philippines
- Anglo American - United Kingdom
- GVK Power & Infra Limited - India
- Romanian Commodities Exchange
- Heidelberg Cement - Germany
- Lanco Infratech Ltd - India
- Eastern Coal Council - USA
- Ministry of Transport, Egypt
- The Treasury - Australian Government
- Price Waterhouse Coopers - Russia
- Directorate General of MIneral and Coal - Indonesia
- Bulk Trading Sa - Switzerland
- Ambuja Cements Ltd - India
- Commonwealth Bank - Australia
- OPG Power Generation Pvt Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Sojitz Corporation - Japan
- Indonesian Coal Mining Association
- Barasentosa Lestari - Indonesia
- ICICI Bank Limited - India
- Binh Thuan Hamico - Vietnam
- International Coal Ventures Pvt Ltd - India
- Wilmar Investment Holdings
- Cement Manufacturers Association - India
- Dalmia Cement Bharat India
- Chamber of Mines of South Africa
- Karaikal Port Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Energy Link Ltd, New Zealand
- Miang Besar Coal Terminal - Indonesia
- Deloitte Consulting - India
- Australian Coal Association
- ASAPP Information Group - India
- Baramulti Group, Indonesia
- Ministry of Mines - Canada
- Karbindo Abesyapradhi - Indoneisa
- Vijayanagar Sugar Pvt Ltd - India
- Goldman Sachs - Singapore
- Borneo Indobara - Indonesia
- IHS Mccloskey Coal Group - USA
- Rashtriya Ispat Nigam Limited - India
- Banpu Public Company Limited - Thailand
- Chettinad Cement Corporation Ltd - India
- Electricity Generating Authority of Thailand
- Videocon Industries ltd - India
- Kepco SPC Power Corporation, Philippines
- Sakthi Sugars Limited - India
- Minerals Council of Australia
- Sree Jayajothi Cements Limited - India
- Parry Sugars Refinery, India
- Holcim Trading Pte Ltd - Singapore
- Bangladesh Power Developement Board
- India Bulls Power Limited - India
- South Luzon Thermal Energy Corporation
- IEA Clean Coal Centre - UK
- The State Trading Corporation of India Ltd
- Merrill Lynch Commodities Europe
- Siam City Cement PLC, Thailand
- Siam City Cement - Thailand
- Vedanta Resources Plc - India
- TeaM Sual Corporation - Philippines
- New Zealand Coal & Carbon
- Posco Energy - South Korea
- San Jose City I Power Corp, Philippines
- PNOC Exploration Corporation - Philippines
- Indian Energy Exchange, India
- Rio Tinto Coal - Australia
- Central Electricity Authority - India
- Oldendorff Carriers - Singapore
- Marubeni Corporation - India
- SMG Consultants - Indonesia
- Maheswari Brothers Coal Limited - India
- Wood Mackenzie - Singapore
- Manunggal Multi Energi - Indonesia
- Xindia Steels Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Star Paper Mills Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- GAC Shipping (India) Pvt Ltd
- Interocean Group of Companies - India
- Tata Chemicals Ltd - India
- VISA Power Limited - India
- Coal and Oil Company - UAE
- Energy Development Corp, Philippines
- Indika Energy - Indonesia
- Orica Mining Services - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Global Business Power Corporation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Trasteel International SA, Italy
- Billiton Holdings Pty Ltd - Australia
- Orica Australia Pty. Ltd.
- Medco Energi Mining Internasional
- Mercuria Energy - Indonesia
- Grasim Industreis Ltd - India
- PTC India Limited - India
- Antam Resourcindo - Indonesia
- SMC Global Power, Philippines
- Coalindo Energy - Indonesia
- Kideco Jaya Agung - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bukit Makmur.PT - Indonesia
- Standard Chartered Bank - UAE
- Africa Commodities Group - South Africa
- Vizag Seaport Private Limited - India
- Global Coal Blending Company Limited - Australia
- Central Java Power - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Sical Logistics Limited - India
- Kapuas Tunggal Persada - Indonesia
- Eastern Energy - Thailand
- Power Finance Corporation Ltd., India
- Indogreen Group - Indonesia
- Bukit Baiduri Energy - Indonesia
- CNBM International Corporation - China
- Straits Asia Resources Limited - Singapore
- Makarim & Taira - Indonesia
- Kaltim Prima Coal - Indonesia
- Indo Tambangraya Megah - Indonesia
- Savvy Resources Ltd - HongKong
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Timah Investasi Mineral - Indoneisa
- Jindal Steel & Power Ltd - India
- Formosa Plastics Group - Taiwan
- Independent Power Producers Association of India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- PowerSource Philippines DevCo
- Mjunction Services Limited - India
- Indian Oil Corporation Limited
- Australian Commodity Traders Exchange
- Attock Cement Pakistan Limited
- Meenaskhi Energy Private Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Gujarat Sidhee Cement - India
- White Energy Company Limited
- Meralco Power Generation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Electricity Authority, New Zealand
- Thiess Contractors Indonesia
- Aditya Birla Group - India
- Iligan Light & Power Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Globalindo Alam Lestari - Indonesia
- Therma Luzon, Inc, Philippines
- Agrawal Coal Company - India
- Intertek Mineral Services - Indonesia
- Riau Bara Harum - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Cigading International Bulk Terminal - Indonesia
- Tamil Nadu electricity Board
- London Commodity Brokers - England
- The University of Queensland
- Larsen & Toubro Limited - India
- Bhoruka Overseas - Indonesia
- Georgia Ports Authority, United States
- Krishnapatnam Port Company Ltd. - India
- Ind-Barath Power Infra Limited - India
- Mercator Lines Limited - India
- Renaissance Capital - South Africa
- Carbofer General Trading SA - India
- McConnell Dowell - Australia
- Parliament of New Zealand
- Bhushan Steel Limited - India
- Edison Trading Spa - Italy
- Aboitiz Power Corporation - Philippines
- Altura Mining Limited, Indonesia
- Bharathi Cement Corporation - India
- Essar Steel Hazira Ltd - India
- Uttam Galva Steels Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Toyota Tsusho Corporation, Japan
- Kumho Petrochemical, South Korea
- Directorate Of Revenue Intelligence - India
- Sinarmas Energy and Mining - Indonesia
- Pendopo Energi Batubara - Indonesia
- Metalloyd Limited - United Kingdom
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kalimantan Lumbung Energi - Indonesia
- Coastal Gujarat Power Limited - India
|
| |
| |
|
