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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.
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Wednesday, 17 April 19
ONCE AGAIN WE FACED WITH THE SITUATION OF THE DRY BALTIC INDEX BEING BELOW 1,000 POINTS - INTERMODAL
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Wednesday, 17 April 19
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Showing 1416 to 1420 news of total 6871 |
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- Cigading International Bulk Terminal - Indonesia
- Jaiprakash Power Ventures ltd
- Xindia Steels Limited - India
- SN Aboitiz Power Inc, Philippines
- Global Business Power Corporation, Philippines
- SMG Consultants - Indonesia
- Commonwealth Bank - Australia
- Mercuria Energy - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- LBH Netherlands Bv - Netherlands
- Romanian Commodities Exchange
- Bank of Tokyo Mitsubishi UFJ Ltd
- Altura Mining Limited, Indonesia
- Billiton Holdings Pty Ltd - Australia
- Timah Investasi Mineral - Indoneisa
- Bulk Trading Sa - Switzerland
- Electricity Authority, New Zealand
- Antam Resourcindo - Indonesia
- Manunggal Multi Energi - Indonesia
- Planning Commission, India
- Maheswari Brothers Coal Limited - India
- Trasteel International SA, Italy
- Makarim & Taira - Indonesia
- Posco Energy - South Korea
- Metalloyd Limited - United Kingdom
- Attock Cement Pakistan Limited
- Kohat Cement Company Ltd. - Pakistan
- Thai Mozambique Logistica
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Karaikal Port Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ministry of Finance - Indonesia
- Kepco SPC Power Corporation, Philippines
- Energy Link Ltd, New Zealand
- Indian Oil Corporation Limited
- GMR Energy Limited - India
- Indogreen Group - Indonesia
- Gujarat Sidhee Cement - India
- Vizag Seaport Private Limited - India
- Chettinad Cement Corporation Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Meralco Power Generation, Philippines
- Minerals Council of Australia
- Malabar Cements Ltd - India
- Latin American Coal - Colombia
- Ministry of Mines - Canada
- Offshore Bulk Terminal Pte Ltd, Singapore
- Baramulti Group, Indonesia
- Toyota Tsusho Corporation, Japan
- Pendopo Energi Batubara - Indonesia
- Mercator Lines Limited - India
- Semirara Mining Corp, Philippines
- Standard Chartered Bank - UAE
- Goldman Sachs - Singapore
- Siam City Cement - Thailand
- Sarangani Energy Corporation, Philippines
- SMC Global Power, Philippines
- Jindal Steel & Power Ltd - India
- PNOC Exploration Corporation - Philippines
- Star Paper Mills Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Thiess Contractors Indonesia
- Salva Resources Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Australian Commodity Traders Exchange
- Central Electricity Authority - India
- Maharashtra Electricity Regulatory Commission - India
- Coalindo Energy - Indonesia
- Singapore Mercantile Exchange
- The University of Queensland
- TeaM Sual Corporation - Philippines
- Jorong Barutama Greston.PT - Indonesia
- Videocon Industries ltd - India
- Intertek Mineral Services - Indonesia
- Power Finance Corporation Ltd., India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Formosa Plastics Group - Taiwan
- Savvy Resources Ltd - HongKong
- Alfred C Toepfer International GmbH - Germany
- Siam City Cement PLC, Thailand
- Chamber of Mines of South Africa
- Port Waratah Coal Services - Australia
- International Coal Ventures Pvt Ltd - India
- GAC Shipping (India) Pvt Ltd
- Merrill Lynch Commodities Europe
- Orica Mining Services - Indonesia
- Vedanta Resources Plc - India
- Sree Jayajothi Cements Limited - India
- Grasim Industreis Ltd - India
- Bangladesh Power Developement Board
- Parliament of New Zealand
- Directorate General of MIneral and Coal - Indonesia
- Barasentosa Lestari - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Wood Mackenzie - Singapore
- CNBM International Corporation - China
- Kalimantan Lumbung Energi - Indonesia
- Ambuja Cements Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- VISA Power Limited - India
- Sical Logistics Limited - India
- The State Trading Corporation of India Ltd
- Larsen & Toubro Limited - India
- Eastern Energy - Thailand
- The Treasury - Australian Government
- Africa Commodities Group - South Africa
- Simpson Spence & Young - Indonesia
- Parry Sugars Refinery, India
- CIMB Investment Bank - Malaysia
- TNB Fuel Sdn Bhd - Malaysia
- Global Green Power PLC Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Eastern Coal Council - USA
- Samtan Co., Ltd - South Korea
- Indonesian Coal Mining Association
- India Bulls Power Limited - India
- Madhucon Powers Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Bukit Baiduri Energy - Indonesia
- Riau Bara Harum - Indonesia
- GVK Power & Infra Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- Anglo American - United Kingdom
- Kideco Jaya Agung - Indonesia
- Australian Coal Association
- Essar Steel Hazira Ltd - India
- White Energy Company Limited
- Renaissance Capital - South Africa
- Straits Asia Resources Limited - Singapore
- Indo Tambangraya Megah - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- IEA Clean Coal Centre - UK
- Meenaskhi Energy Private Limited - India
- IHS Mccloskey Coal Group - USA
- Bhushan Steel Limited - India
- Binh Thuan Hamico - Vietnam
- Mintek Dendrill Indonesia
- Sojitz Corporation - Japan
- Wilmar Investment Holdings
- Therma Luzon, Inc, Philippines
- Marubeni Corporation - India
- Kumho Petrochemical, South Korea
- Kobexindo Tractors - Indoneisa
- ICICI Bank Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Holcim Trading Pte Ltd - Singapore
- Borneo Indobara - Indonesia
- Cement Manufacturers Association - India
- Bhatia International Limited - India
- Sakthi Sugars Limited - India
- Economic Council, Georgia
- South Luzon Thermal Energy Corporation
- Medco Energi Mining Internasional
- Neyveli Lignite Corporation Ltd, - India
- ASAPP Information Group - India
- Edison Trading Spa - Italy
- Kartika Selabumi Mining - Indonesia
- Bhoruka Overseas - Indonesia
- Lanco Infratech Ltd - India
- London Commodity Brokers - England
- Banpu Public Company Limited - Thailand
- Petron Corporation, Philippines
- Agrawal Coal Company - India
- Leighton Contractors Pty Ltd - Australia
- European Bulk Services B.V. - Netherlands
- Carbofer General Trading SA - India
- Bayan Resources Tbk. - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- PowerSource Philippines DevCo
- New Zealand Coal & Carbon
- Krishnapatnam Port Company Ltd. - India
- Sinarmas Energy and Mining - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- AsiaOL BioFuels Corp., Philippines
- Interocean Group of Companies - India
- Heidelberg Cement - Germany
- Energy Development Corp, Philippines
- Oldendorff Carriers - Singapore
- Aditya Birla Group - India
- Aboitiz Power Corporation - Philippines
- Electricity Generating Authority of Thailand
- Tamil Nadu electricity Board
- Uttam Galva Steels Limited - India
- Ind-Barath Power Infra Limited - India
- Mjunction Services Limited - India
- Indika Energy - Indonesia
- PTC India Limited - India
- San Jose City I Power Corp, Philippines
- MS Steel International - UAE
- Deloitte Consulting - India
- Global Coal Blending Company Limited - Australia
- Indian Energy Exchange, India
- Ministry of Transport, Egypt
- Georgia Ports Authority, United States
- Vijayanagar Sugar Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- Orica Australia Pty. Ltd.
- Bharathi Cement Corporation - India
- Iligan Light & Power Inc, Philippines
- Tata Chemicals Ltd - India
- Globalindo Alam Lestari - Indonesia
- Dalmia Cement Bharat India
- Independent Power Producers Association of India
- Ceylon Electricity Board - Sri Lanka
- Coal and Oil Company - UAE
- McConnell Dowell - Australia
- Central Java Power - Indonesia
- Bukit Makmur.PT - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Price Waterhouse Coopers - Russia
- Rio Tinto Coal - Australia
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