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, 18 October 19
SINGAPORE'S APEX TO LAUNCH LOW-SULFUR FUEL OIL CONTRACT AHEAD OF NEW SHIPPING RULES - REUTERS
Singapore-based Asia Pacific Exchange (APEX) will launch a low-sulfur fuel oil (LSFO) futures contract on Friday aimed at helping shipping and ener ...
Thursday, 17 October 19
INDIA READIES POLICY TO ATTRACT FOREIGN INVESTMENT IN COAL MINING - REUTERS
India expects to have formulated a policy within the next two weeks to attract foreign investment to its coal mining industry, the country’s ...
Wednesday, 16 October 19
INDIA CALLS FOR A RESET OF CLIMATE DEBATE ON COAL AS A FUEL - LIVEMINT
India on Tuesday called for a reset on climate debate on coal as a fuel, in the backdrop of India becoming one of the top renewable energy producer ...
Wednesday, 16 October 19
LESSONS LEARNT FROM CREW INJURED IN HEAVY WEATHER - UK P&I CLUB COMMENTS
KNOWLEDGE TO ELEVATE
Stuart Edmonston, Loss Prevention at UK P&I Club, discusses an incident in which crew were injured whilst on deck in ...
Wednesday, 16 October 19
SHIPPING MARKET INSIGHT - INTERMODAL
In perhaps the most interesting market conditions of the past years, the tanker and the dry bulk industry have created a positive sentiment with re ...
|
|
|
Showing 1311 to 1315 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Barasentosa Lestari - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Electricity Authority, New Zealand
- Africa Commodities Group - South Africa
- Global Business Power Corporation, Philippines
- Marubeni Corporation - India
- Heidelberg Cement - Germany
- Chamber of Mines of South Africa
- Binh Thuan Hamico - Vietnam
- Electricity Generating Authority of Thailand
- Bahari Cakrawala Sebuku - Indonesia
- European Bulk Services B.V. - Netherlands
- Meenaskhi Energy Private Limited - India
- Wilmar Investment Holdings
- Carbofer General Trading SA - India
- Karbindo Abesyapradhi - Indoneisa
- Sindya Power Generating Company Private Ltd
- Singapore Mercantile Exchange
- Coal and Oil Company - UAE
- Sree Jayajothi Cements Limited - India
- Renaissance Capital - South Africa
- Sinarmas Energy and Mining - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Indonesian Coal Mining Association
- Thiess Contractors Indonesia
- Interocean Group of Companies - India
- South Luzon Thermal Energy Corporation
- CNBM International Corporation - China
- Petron Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Agrawal Coal Company - India
- Global Coal Blending Company Limited - Australia
- SN Aboitiz Power Inc, Philippines
- Energy Link Ltd, New Zealand
- Maheswari Brothers Coal Limited - India
- Sojitz Corporation - Japan
- Bukit Asam (Persero) Tbk - Indonesia
- Makarim & Taira - Indonesia
- The University of Queensland
- Central Java Power - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Indian Energy Exchange, India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Mjunction Services Limited - India
- GAC Shipping (India) Pvt Ltd
- Banpu Public Company Limited - Thailand
- SMC Global Power, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Krishnapatnam Port Company Ltd. - India
- Latin American Coal - Colombia
- Ind-Barath Power Infra Limited - India
- Therma Luzon, Inc, Philippines
- TeaM Sual Corporation - Philippines
- Commonwealth Bank - Australia
- Eastern Coal Council - USA
- Energy Development Corp, Philippines
- IHS Mccloskey Coal Group - USA
- Merrill Lynch Commodities Europe
- Antam Resourcindo - Indonesia
- Baramulti Group, Indonesia
- Attock Cement Pakistan Limited
- Orica Mining Services - Indonesia
- Bukit Makmur.PT - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Independent Power Producers Association of India
- London Commodity Brokers - England
- Rashtriya Ispat Nigam Limited - India
- Mintek Dendrill Indonesia
- Aditya Birla Group - India
- Karaikal Port Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Xindia Steels Limited - India
- Sical Logistics Limited - India
- Economic Council, Georgia
- Iligan Light & Power Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- New Zealand Coal & Carbon
- Globalindo Alam Lestari - Indonesia
- Videocon Industries ltd - India
- Kartika Selabumi Mining - Indonesia
- VISA Power Limited - India
- Romanian Commodities Exchange
- Malabar Cements Ltd - India
- Chettinad Cement Corporation Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Salva Resources Pvt Ltd - India
- CIMB Investment Bank - Malaysia
- GVK Power & Infra Limited - India
- India Bulls Power Limited - India
- Savvy Resources Ltd - HongKong
- ICICI Bank Limited - India
- The Treasury - Australian Government
- Price Waterhouse Coopers - Russia
- Bukit Baiduri Energy - Indonesia
- Port Waratah Coal Services - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Coastal Gujarat Power Limited - India
- International Coal Ventures Pvt Ltd - India
- Goldman Sachs - Singapore
- Jaiprakash Power Ventures ltd
- Cement Manufacturers Association - India
- Wood Mackenzie - Singapore
- Vedanta Resources Plc - India
- Indika Energy - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Altura Mining Limited, Indonesia
- Sarangani Energy Corporation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Siam City Cement - Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Mineral Development Corp Ltd - India
- Anglo American - United Kingdom
- Borneo Indobara - Indonesia
- Central Electricity Authority - India
- Mercuria Energy - Indonesia
- Larsen & Toubro Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Bangladesh Power Developement Board
- Toyota Tsusho Corporation, Japan
- Jindal Steel & Power Ltd - India
- PowerSource Philippines DevCo
- Maharashtra Electricity Regulatory Commission - India
- Eastern Energy - Thailand
- Planning Commission, India
- Tamil Nadu electricity Board
- Power Finance Corporation Ltd., India
- White Energy Company Limited
- Indogreen Group - Indonesia
- San Jose City I Power Corp, Philippines
- Gujarat Sidhee Cement - India
- Intertek Mineral Services - Indonesia
- Ministry of Transport, Egypt
- PNOC Exploration Corporation - Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kobexindo Tractors - Indoneisa
- Lanco Infratech Ltd - India
- Bharathi Cement Corporation - India
- Riau Bara Harum - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- Essar Steel Hazira Ltd - India
- Bulk Trading Sa - Switzerland
- Uttam Galva Steels Limited - India
- Ambuja Cements Ltd - India
- Parry Sugars Refinery, India
- Semirara Mining Corp, Philippines
- McConnell Dowell - Australia
- Manunggal Multi Energi - Indonesia
- Ministry of Mines - Canada
- Coalindo Energy - Indonesia
- Standard Chartered Bank - UAE
- Sakthi Sugars Limited - India
- Holcim Trading Pte Ltd - Singapore
- Cigading International Bulk Terminal - Indonesia
- Aboitiz Power Corporation - Philippines
- Oldendorff Carriers - Singapore
- Ministry of Finance - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- ASAPP Information Group - India
- Parliament of New Zealand
- SMG Consultants - Indonesia
- Kideco Jaya Agung - Indonesia
- IEA Clean Coal Centre - UK
- LBH Netherlands Bv - Netherlands
- Vizag Seaport Private Limited - India
- Bhoruka Overseas - Indonesia
- Siam City Cement PLC, Thailand
- Global Green Power PLC Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Indian Oil Corporation Limited
- Tata Chemicals Ltd - India
- Mercator Lines Limited - India
- Medco Energi Mining Internasional
- Deloitte Consulting - India
- Madhucon Powers Ltd - India
- MS Steel International - UAE
- Billiton Holdings Pty Ltd - Australia
- Minerals Council of Australia
- Posco Energy - South Korea
- PetroVietnam Power Coal Import and Supply Company
- Trasteel International SA, Italy
- OPG Power Generation Pvt Ltd - India
- Meralco Power Generation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Samtan Co., Ltd - South Korea
- PTC India Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Australian Coal Association
- Vijayanagar Sugar Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- GMR Energy Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Thai Mozambique Logistica
- Bhatia International Limited - India
- Kepco SPC Power Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Directorate Of Revenue Intelligence - India
- Bhushan Steel Limited - India
- Edison Trading Spa - Italy
- Kumho Petrochemical, South Korea
- Dalmia Cement Bharat India
- Kaltim Prima Coal - Indonesia
- Metalloyd Limited - United Kingdom
- Star Paper Mills Limited - India
- Grasim Industreis Ltd - India
- Orica Australia Pty. Ltd.
- The State Trading Corporation of India Ltd
- Rio Tinto Coal - Australia
- Formosa Plastics Group - Taiwan
- Australian Commodity Traders Exchange
- TNB Fuel Sdn Bhd - Malaysia
- Georgia Ports Authority, United States
- AsiaOL BioFuels Corp., Philippines
- Directorate General of MIneral and Coal - Indonesia
|
| |
| |
|
