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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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Tuesday, 25 September 18
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Tuesday, 18 September 18
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Showing 1611 to 1615 news of total 6871 |
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- Vijayanagar Sugar Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Africa Commodities Group - South Africa
- Borneo Indobara - Indonesia
- LBH Netherlands Bv - Netherlands
- Bank of Tokyo Mitsubishi UFJ Ltd
- PNOC Exploration Corporation - Philippines
- Power Finance Corporation Ltd., India
- Commonwealth Bank - Australia
- Electricity Authority, New Zealand
- Rashtriya Ispat Nigam Limited - India
- Ministry of Finance - Indonesia
- Wood Mackenzie - Singapore
- Baramulti Group, Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Bhoruka Overseas - Indonesia
- Coal and Oil Company - UAE
- Australian Commodity Traders Exchange
- Petrochimia International Co. Ltd.- Taiwan
- Energy Link Ltd, New Zealand
- Grasim Industreis Ltd - India
- Energy Development Corp, Philippines
- Manunggal Multi Energi - Indonesia
- Kumho Petrochemical, South Korea
- India Bulls Power Limited - India
- The Treasury - Australian Government
- TNB Fuel Sdn Bhd - Malaysia
- Indonesian Coal Mining Association
- Pendopo Energi Batubara - Indonesia
- Edison Trading Spa - Italy
- Kobexindo Tractors - Indoneisa
- London Commodity Brokers - England
- Karaikal Port Pvt Ltd - India
- Vedanta Resources Plc - India
- Cigading International Bulk Terminal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Directorate Of Revenue Intelligence - India
- Mintek Dendrill Indonesia
- The University of Queensland
- Ind-Barath Power Infra Limited - India
- Economic Council, Georgia
- Leighton Contractors Pty Ltd - Australia
- Indian Energy Exchange, India
- Barasentosa Lestari - Indonesia
- Ambuja Cements Ltd - India
- International Coal Ventures Pvt Ltd - India
- Thai Mozambique Logistica
- Orica Mining Services - Indonesia
- Uttam Galva Steels Limited - India
- OPG Power Generation Pvt Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Videocon Industries ltd - India
- Indo Tambangraya Megah - Indonesia
- TeaM Sual Corporation - Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Offshore Bulk Terminal Pte Ltd, Singapore
- Aboitiz Power Corporation - Philippines
- Electricity Generating Authority of Thailand
- Jorong Barutama Greston.PT - Indonesia
- Romanian Commodities Exchange
- Sree Jayajothi Cements Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Merrill Lynch Commodities Europe
- Bayan Resources Tbk. - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Gujarat Sidhee Cement - India
- McConnell Dowell - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- MS Steel International - UAE
- CNBM International Corporation - China
- Minerals Council of Australia
- Kideco Jaya Agung - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Global Business Power Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Sarangani Energy Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- IEA Clean Coal Centre - UK
- Mjunction Services Limited - India
- Siam City Cement PLC, Thailand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ministry of Mines - Canada
- Goldman Sachs - Singapore
- Sinarmas Energy and Mining - Indonesia
- Trasteel International SA, Italy
- Intertek Mineral Services - Indonesia
- Wilmar Investment Holdings
- Coastal Gujarat Power Limited - India
- Salva Resources Pvt Ltd - India
- Georgia Ports Authority, United States
- Miang Besar Coal Terminal - Indonesia
- SMC Global Power, Philippines
- Aditya Birla Group - India
- Thiess Contractors Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Interocean Group of Companies - India
- Kapuas Tunggal Persada - Indonesia
- Standard Chartered Bank - UAE
- Renaissance Capital - South Africa
- Oldendorff Carriers - Singapore
- PetroVietnam Power Coal Import and Supply Company
- Savvy Resources Ltd - HongKong
- Semirara Mining Corp, Philippines
- Attock Cement Pakistan Limited
- Parry Sugars Refinery, India
- Siam City Cement - Thailand
- San Jose City I Power Corp, Philippines
- Planning Commission, India
- Jindal Steel & Power Ltd - India
- PowerSource Philippines DevCo
- Port Waratah Coal Services - Australia
- European Bulk Services B.V. - Netherlands
- Maharashtra Electricity Regulatory Commission - India
- ICICI Bank Limited - India
- Sindya Power Generating Company Private Ltd
- GVK Power & Infra Limited - India
- Rio Tinto Coal - Australia
- Coalindo Energy - Indonesia
- SMG Consultants - Indonesia
- Carbofer General Trading SA - India
- Metalloyd Limited - United Kingdom
- White Energy Company Limited
- New Zealand Coal & Carbon
- Antam Resourcindo - Indonesia
- Larsen & Toubro Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Central Java Power - Indonesia
- Global Green Power PLC Corporation, Philippines
- Ministry of Transport, Egypt
- Madhucon Powers Ltd - India
- GAC Shipping (India) Pvt Ltd
- Banpu Public Company Limited - Thailand
- South Luzon Thermal Energy Corporation
- Sical Logistics Limited - India
- Iligan Light & Power Inc, Philippines
- Semirara Mining and Power Corporation, Philippines
- Tata Chemicals Ltd - India
- Agrawal Coal Company - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Eastern Energy - Thailand
- Lanco Infratech Ltd - India
- Cement Manufacturers Association - India
- Pipit Mutiara Jaya. PT, Indonesia
- Jaiprakash Power Ventures ltd
- IHS Mccloskey Coal Group - USA
- Simpson Spence & Young - Indonesia
- Price Waterhouse Coopers - Russia
- Indika Energy - Indonesia
- Timah Investasi Mineral - Indoneisa
- Eastern Coal Council - USA
- Globalindo Alam Lestari - Indonesia
- Latin American Coal - Colombia
- Medco Energi Mining Internasional
- Mercuria Energy - Indonesia
- Bharathi Cement Corporation - India
- Kaltim Prima Coal - Indonesia
- Tamil Nadu electricity Board
- Kohat Cement Company Ltd. - Pakistan
- Altura Mining Limited, Indonesia
- Petron Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- VISA Power Limited - India
- Holcim Trading Pte Ltd - Singapore
- Krishnapatnam Port Company Ltd. - India
- Bangladesh Power Developement Board
- Bukit Baiduri Energy - Indonesia
- ASAPP Information Group - India
- GN Power Mariveles Coal Plant, Philippines
- Bulk Trading Sa - Switzerland
- Mercator Lines Limited - India
- Global Coal Blending Company Limited - Australia
- Bukit Makmur.PT - Indonesia
- Dalmia Cement Bharat India
- Riau Bara Harum - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Essar Steel Hazira Ltd - India
- Marubeni Corporation - India
- Anglo American - United Kingdom
- CIMB Investment Bank - Malaysia
- Sojitz Corporation - Japan
- Indogreen Group - Indonesia
- Meenaskhi Energy Private Limited - India
- AsiaOL BioFuels Corp., Philippines
- Bhatia International Limited - India
- PTC India Limited - India
- Formosa Plastics Group - Taiwan
- Independent Power Producers Association of India
- The State Trading Corporation of India Ltd
- Bhushan Steel Limited - India
- Ceylon Electricity Board - Sri Lanka
- Kepco SPC Power Corporation, Philippines
- Star Paper Mills Limited - India
- Malabar Cements Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Xindia Steels Limited - India
- Orica Australia Pty. Ltd.
- Meralco Power Generation, Philippines
- Parliament of New Zealand
- Chamber of Mines of South Africa
- Samtan Co., Ltd - South Korea
- Indian Oil Corporation Limited
- SN Aboitiz Power Inc, Philippines
- Posco Energy - South Korea
- Vizag Seaport Private Limited - India
- Singapore Mercantile Exchange
- Deloitte Consulting - India
- Therma Luzon, Inc, Philippines
- Heidelberg Cement - Germany
- Australian Coal Association
- Binh Thuan Hamico - Vietnam
- Toyota Tsusho Corporation, Japan
- Sakthi Sugars Limited - India
- GMR Energy Limited - India
- Makarim & Taira - Indonesia
- Central Electricity Authority - India
- Bahari Cakrawala Sebuku - Indonesia
- Maheswari Brothers Coal Limited - India
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