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, 25 November 15
INDIA'S POWER GENERATORS FACE LOW, FALLING UTILISATION RATE - FITCH
COAlspot.com: Fitch Ratings says in a new report that the utilisation rate of India's thermal power generation capacity continued to decline in ...
Wednesday, 25 November 15
BIG CHINESE COPPER PROCESSORS DEFEND MARGINS THROUGH R&D, SAYS FITCH
Large Chinese copper processors are focusing on higher value-added products and investing in R&D to enhance their technical know-how to maintai ...
Wednesday, 25 November 15
BIMCO LAUNCHES ANTI-CORRUPTION CLAUSE FOR SHIPPING CONTRACTS WORLDWIDE
COALspot.com: BIMCO, is the world’s largest international shipping association, with 2,200 members in around 130 countries, has now launched ...
Wednesday, 25 November 15
TANKER MARKET INSIGHT - GEORGE VASTARDIS
We have already noticed obvious signs of activity mainly West of Suez, which are currently driving the clean MR market to higher levels. Over the p ...
Tuesday, 24 November 15
COAL SUPPLY PRESSURE PUTS INDONESIAN HBA IN FREE FALL
The coal industry is slowly recognizing that, the current coal price level is not a decrease in price, but a change in pricing to corresp ...
|
|
|
Showing 2691 to 2695 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- OPG Power Generation Pvt Ltd - India
- Thiess Contractors Indonesia
- Vedanta Resources Plc - India
- Electricity Authority, New Zealand
- Anglo American - United Kingdom
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Directorate Of Revenue Intelligence - India
- Bhushan Steel Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Cement Manufacturers Association - India
- Rashtriya Ispat Nigam Limited - India
- Electricity Generating Authority of Thailand
- Mercator Lines Limited - India
- Indian Oil Corporation Limited
- SN Aboitiz Power Inc, Philippines
- Kobexindo Tractors - Indoneisa
- Coalindo Energy - Indonesia
- Parry Sugars Refinery, India
- Semirara Mining and Power Corporation, Philippines
- Tamil Nadu electricity Board
- Semirara Mining Corp, Philippines
- Attock Cement Pakistan Limited
- Global Coal Blending Company Limited - Australia
- SMC Global Power, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Wilmar Investment Holdings
- Krishnapatnam Port Company Ltd. - India
- Eastern Coal Council - USA
- Australian Coal Association
- Asia Pacific Energy Resources Ventures Inc, Philippines
- The University of Queensland
- San Jose City I Power Corp, Philippines
- Xindia Steels Limited - India
- Agrawal Coal Company - India
- Barasentosa Lestari - Indonesia
- Orica Mining Services - Indonesia
- Jindal Steel & Power Ltd - India
- India Bulls Power Limited - India
- ASAPP Information Group - India
- Kideco Jaya Agung - Indonesia
- Sarangani Energy Corporation, Philippines
- Bhatia International Limited - India
- Ceylon Electricity Board - Sri Lanka
- Indogreen Group - Indonesia
- Eastern Energy - Thailand
- Indo Tambangraya Megah - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Alfred C Toepfer International GmbH - Germany
- International Coal Ventures Pvt Ltd - India
- Latin American Coal - Colombia
- Asmin Koalindo Tuhup - Indonesia
- Tata Chemicals Ltd - India
- Binh Thuan Hamico - Vietnam
- Marubeni Corporation - India
- Thai Mozambique Logistica
- Billiton Holdings Pty Ltd - Australia
- Bangladesh Power Developement Board
- Heidelberg Cement - Germany
- Interocean Group of Companies - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Manunggal Multi Energi - Indonesia
- PowerSource Philippines DevCo
- MS Steel International - UAE
- Singapore Mercantile Exchange
- Cigading International Bulk Terminal - Indonesia
- Goldman Sachs - Singapore
- Therma Luzon, Inc, Philippines
- Aboitiz Power Corporation - Philippines
- Kapuas Tunggal Persada - Indonesia
- PNOC Exploration Corporation - Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Coal and Oil Company - UAE
- Mercuria Energy - Indonesia
- Mintek Dendrill Indonesia
- McConnell Dowell - Australia
- Mjunction Services Limited - India
- New Zealand Coal & Carbon
- Holcim Trading Pte Ltd - Singapore
- Sical Logistics Limited - India
- Meenaskhi Energy Private Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Larsen & Toubro Limited - India
- GAC Shipping (India) Pvt Ltd
- Gujarat Mineral Development Corp Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Bukit Makmur.PT - Indonesia
- Vizag Seaport Private Limited - India
- Sinarmas Energy and Mining - Indonesia
- PTC India Limited - India
- Indika Energy - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Miang Besar Coal Terminal - Indonesia
- Lanco Infratech Ltd - India
- Baramulti Group, Indonesia
- Grasim Industreis Ltd - India
- Orica Australia Pty. Ltd.
- Aditya Birla Group - India
- Merrill Lynch Commodities Europe
- Jorong Barutama Greston.PT - Indonesia
- IHS Mccloskey Coal Group - USA
- Parliament of New Zealand
- Uttam Galva Steels Limited - India
- Deloitte Consulting - India
- Central Electricity Authority - India
- Maheswari Brothers Coal Limited - India
- Ambuja Cements Ltd - India
- LBH Netherlands Bv - Netherlands
- Meralco Power Generation, Philippines
- GMR Energy Limited - India
- Videocon Industries ltd - India
- Indonesian Coal Mining Association
- Edison Trading Spa - Italy
- Siam City Cement - Thailand
- Energy Development Corp, Philippines
- IEA Clean Coal Centre - UK
- White Energy Company Limited
- Directorate General of MIneral and Coal - Indonesia
- Minerals Council of Australia
- Vijayanagar Sugar Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Gujarat Sidhee Cement - India
- Straits Asia Resources Limited - Singapore
- Siam City Cement PLC, Thailand
- Pendopo Energi Batubara - Indonesia
- London Commodity Brokers - England
- Banpu Public Company Limited - Thailand
- The Treasury - Australian Government
- Commonwealth Bank - Australia
- Riau Bara Harum - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Rio Tinto Coal - Australia
- GN Power Mariveles Coal Plant, Philippines
- Timah Investasi Mineral - Indoneisa
- Madhucon Powers Ltd - India
- Dalmia Cement Bharat India
- Posco Energy - South Korea
- Africa Commodities Group - South Africa
- Australian Commodity Traders Exchange
- Jaiprakash Power Ventures ltd
- Ind-Barath Power Infra Limited - India
- Iligan Light & Power Inc, Philippines
- Indian Energy Exchange, India
- Bayan Resources Tbk. - Indonesia
- Malabar Cements Ltd - India
- CIMB Investment Bank - Malaysia
- Sojitz Corporation - Japan
- Romanian Commodities Exchange
- Neyveli Lignite Corporation Ltd, - India
- Kumho Petrochemical, South Korea
- CNBM International Corporation - China
- Ministry of Mines - Canada
- Sindya Power Generating Company Private Ltd
- Savvy Resources Ltd - HongKong
- Global Green Power PLC Corporation, Philippines
- Antam Resourcindo - Indonesia
- Georgia Ports Authority, United States
- Formosa Plastics Group - Taiwan
- South Luzon Thermal Energy Corporation
- Kartika Selabumi Mining - Indonesia
- Samtan Co., Ltd - South Korea
- Port Waratah Coal Services - Australia
- European Bulk Services B.V. - Netherlands
- The State Trading Corporation of India Ltd
- ICICI Bank Limited - India
- Trasteel International SA, Italy
- Standard Chartered Bank - UAE
- PetroVietnam Power Coal Import and Supply Company
- Central Java Power - Indonesia
- Star Paper Mills Limited - India
- Gujarat Electricity Regulatory Commission - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- VISA Power Limited - India
- Energy Link Ltd, New Zealand
- Petron Corporation, Philippines
- Planning Commission, India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- GVK Power & Infra Limited - India
- Makarim & Taira - Indonesia
- Independent Power Producers Association of India
- Kaltim Prima Coal - Indonesia
- Oldendorff Carriers - Singapore
- Chamber of Mines of South Africa
- Kepco SPC Power Corporation, Philippines
- Renaissance Capital - South Africa
- Economic Council, Georgia
- Power Finance Corporation Ltd., India
- Carbofer General Trading SA - India
- Chettinad Cement Corporation Ltd - India
- Wood Mackenzie - Singapore
- Salva Resources Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Bhoruka Overseas - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Global Business Power Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Globalindo Alam Lestari - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Bukit Baiduri Energy - Indonesia
- SMG Consultants - Indonesia
- Bulk Trading Sa - Switzerland
- Price Waterhouse Coopers - Russia
- Coastal Gujarat Power Limited - India
- Borneo Indobara - Indonesia
- Essar Steel Hazira Ltd - India
- Medco Energi Mining Internasional
- Sakthi Sugars Limited - India
- Bharathi Cement Corporation - India
- TeaM Sual Corporation - Philippines
- Karaikal Port Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- Ministry of Transport, Egypt
- Toyota Tsusho Corporation, Japan
- Ministry of Finance - Indonesia
- Intertek Mineral Services - Indonesia
- Simpson Spence & Young - Indonesia
- Sree Jayajothi Cements Limited - India
|
| |
| |
|
