Tue, Dec6, 2011
New Delhi : The Government has said that it will seek Indonesia’s cooperation for the accord of “special status” to Indian companies in the grant of coal blocks, a move aimed at bridging the widening demand-supply gap for the dry fuel at home.
The Ministry of Coal will “... impress upon the provisional government/regional government to allocate blocks under their special status (most favoured nation type) to Indian government coal companies...,” the Coal Ministry has said.
Seeking the allocation of coal blocks on a “nomination basis”, an official document of the Ministry has said it will be sending a team from the Coal Ministry and CIL to Indonesia to pursue the matter.
The decision to approach the Indonesian Government was taken at a meeting of an India-Indonesia Joint Working Group on Coal on November 24 and 25.
Seeking the allocation of large greenfield (new) coal concessions on a nomination basis, the Ministry will also impress upon the Indonesian Government the need for expeditious environmental and forest clearances, besides smooth land acquisition.
Coal India (CIL), which accounts for 81 per cent of domestic coal production, recently said that it has zeroed in on two overseas coal assets, including one in Indonesia, for acquisition and expects to begin a serious dialogue with the owners soon.
The PSU has put together a war-chest of Rs 6,000 crore for the acquisition of the mines.
At present, the country is faced with a coal demand-supply shortfall of 142 million tonnes, with domestic output likely to amount to 554 mt in the current fiscal.
Keywords: Special status, coal blocks, Indonesia, CIL, mines
Sourced Business Line
Showing posts with label Indonesia coal. Show all posts
Showing posts with label Indonesia coal. Show all posts
Tuesday, December 6, 2011
Monday, November 14, 2011
Update on coal reserves in Indonesia
Monday, 14 Nov 2011
The Jakarta Post reported that Indonesia's coal reserves with calorific values ranging from 3,000 to 3,800 kilocalories per kilogram amount to 10 billion tonnes. However, a domestic market for such coal does not yet exist.
The lowest calorific value currently used in the country is 4,200 kilocalories per kilogram. Coal with calorific values between 3,900 and 4,000 kilocalories per kilogram is mostly exported to India.
Data from the Energy and Mineral Resources Ministry shows that in 2011, the country's target is to produce 327 million tonnes of coal, comprising 35 million tonnes of low rank coal (3,800 kilocalories per kilogram to 4,500 kilocalories per kilogram); 198 million tonnes of medium rank coal (4,900 kilocalories per kilogram to 6,000 kilocalories per kilogram) and 94 million tonnes of high rank coal (5,700 kilocalories per kilogram to 6,000 kilocalories per kilogram).
In 2012, coal production is set for 332 million tonnes, comprising 29.3 million tonnes of low rank; 191.6 million tonnes of medium rank and 111.1 million tonnes of high rank.
In 2013, production is targeted at 337 million tonnes, comprising 29.7 million tonnes of low rank; 194.5 million tonnes of medium rank and 112.8 million tonnes of high rank.
Meanwhile, Bloomberg reported that Indonesia, the world's largest exporter of power station coal, cut the benchmark price for sales in November by 2.2%. The cost of coal with a gross energy value of 6,322 kilocalories was set at USD 116.65 per tonne as compared with USD 119.24 in October 2011.
(Sourced from www.thejakartapost.com)
The Jakarta Post reported that Indonesia's coal reserves with calorific values ranging from 3,000 to 3,800 kilocalories per kilogram amount to 10 billion tonnes. However, a domestic market for such coal does not yet exist.
The lowest calorific value currently used in the country is 4,200 kilocalories per kilogram. Coal with calorific values between 3,900 and 4,000 kilocalories per kilogram is mostly exported to India.
Data from the Energy and Mineral Resources Ministry shows that in 2011, the country's target is to produce 327 million tonnes of coal, comprising 35 million tonnes of low rank coal (3,800 kilocalories per kilogram to 4,500 kilocalories per kilogram); 198 million tonnes of medium rank coal (4,900 kilocalories per kilogram to 6,000 kilocalories per kilogram) and 94 million tonnes of high rank coal (5,700 kilocalories per kilogram to 6,000 kilocalories per kilogram).
In 2012, coal production is set for 332 million tonnes, comprising 29.3 million tonnes of low rank; 191.6 million tonnes of medium rank and 111.1 million tonnes of high rank.
In 2013, production is targeted at 337 million tonnes, comprising 29.7 million tonnes of low rank; 194.5 million tonnes of medium rank and 112.8 million tonnes of high rank.
Meanwhile, Bloomberg reported that Indonesia, the world's largest exporter of power station coal, cut the benchmark price for sales in November by 2.2%. The cost of coal with a gross energy value of 6,322 kilocalories was set at USD 116.65 per tonne as compared with USD 119.24 in October 2011.
(Sourced from www.thejakartapost.com)
Friday, August 5, 2011
Vietnam imposes taxation travel on spark exports
Aug 5th, 2011
(MENAFN) The Vietnam Ministry of Finance (VMF) pronounced that in sequence to quell spark exports, a supervision would lift a spark trade taxation rate to 20 percent from 15 percent, reported Xinhua News.
The method combined that a preference came as Vietnam Coal and Mineral Industries Group (Vinacomin) had to import 9,500 tons of low peculiarity spark from Indonesia to supply energy thermo electric plants in a nation for a initial time, that done Vietnam a spark importer.
It also pronounced that by a subsequent year, Vietnam would have to import around 10 million tons of spark on a yearly basis, that would go adult to 100 million tons annually by 2020.
It is value observant that Vietnam forecasts a yearly exports to strech 2 million tons by a subsequent year, and 20 million tons by a year 2020.
(sourced VN Made)
(MENAFN) The Vietnam Ministry of Finance (VMF) pronounced that in sequence to quell spark exports, a supervision would lift a spark trade taxation rate to 20 percent from 15 percent, reported Xinhua News.
The method combined that a preference came as Vietnam Coal and Mineral Industries Group (Vinacomin) had to import 9,500 tons of low peculiarity spark from Indonesia to supply energy thermo electric plants in a nation for a initial time, that done Vietnam a spark importer.
It also pronounced that by a subsequent year, Vietnam would have to import around 10 million tons of spark on a yearly basis, that would go adult to 100 million tons annually by 2020.
It is value observant that Vietnam forecasts a yearly exports to strech 2 million tons by a subsequent year, and 20 million tons by a year 2020.
(sourced VN Made)
Friday, May 20, 2011
INDONESIAN COAL EXPORTS DROP 7.98 PERCENT IN APRIL
Thursday, 19 May 11
Indonesian coal exports dropped to 2.168 million tons in April, and up 7.13 percent on the year and 7.98 percent below March, according to our sources. Indonesia exports 24.99 million tons of coal in April.
Our sources further said that, first four months export of 98.87 million tons put full year volumes on pace to exceed 296 million tons well above 2010 exports.
Indian buyers have reduced Indonesian coal imports in April 2011 to 6.28 million tons from 7.70 million tons m-o-m. However, Chinese returned to Indonesia after silent about almost first three months of this year and brought 35.99 percent more coal in April from March imports.
The next few months being summer months in India and china the demand for power, steel and cement increases thereby the movement in coal may be witnessed resulting in higher consumption.
China has bought 6.10 million tons of Indonesian coal in April against its import of just 4.48 million tons in March. Chinese buyers are still in the market to conclude the deals to cover summer requirements.
Recently, Berau Coal, one of the country’s largest coal miners have signed a five-year deal with Huaneng Power International and a three-year contract with Zhushui Energy Resource Group, as quoted by local paper. According to paper, Berau will sell 1.5 million tons of coal annually to each company.
According to ICAP Shipping, China's total coal imports in the first quarter were some 27 percent down on a year ago at 32.3 Mt (2010: 44.4 Mt).
49.57 percent of total Indonesian coal exports in April goes to fuel hungry countries such as India and China.
Indonesian government has already successfully implemented monthly coal reference price for its coal. Coal ministry also fine tuning their coal reference prices on a monthly basis based on market condition.
Coal producers of Indonesia were asked to comply with the government declared coal price reference prior to concluding any coal sales agreement with its buyers.
Ministry of Energy and Mineral Resources of Indonesia has set the May 2011 Indonesian Coal Reference Price for thermal coal at US$ 117.61 per ton, which was 3.61 percent lesser than April 2011 price of US$ 122.02.
Assessment basis of coal price reference was calculated considering coal with GCV (GAR) 6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur (arb) 0.8%, Ash Content (arb) 15.00% and delivery free on Board (FOB) Vessel basis and applicable for spot contract, delivery between 1 - 31 May 2011.
Instead of dropping in HBA, Indonesian coal prices were still at stable position. small scale mines from Kalimantan were offering 6300 GAD coal between US$ 82 - 87 per MT and premium coal supplier's prices were already in high nineties or at three digits pricing, an international trader said.
According to market stakeholders, the prices may stand stable at this moment, but the prices and demands are expected to move stronger in coming months.(cs) (sourced coalspot)
If you believe an article violates your rights or the rights of others, please contact us.
Indonesian coal exports dropped to 2.168 million tons in April, and up 7.13 percent on the year and 7.98 percent below March, according to our sources. Indonesia exports 24.99 million tons of coal in April.
Our sources further said that, first four months export of 98.87 million tons put full year volumes on pace to exceed 296 million tons well above 2010 exports.
Indian buyers have reduced Indonesian coal imports in April 2011 to 6.28 million tons from 7.70 million tons m-o-m. However, Chinese returned to Indonesia after silent about almost first three months of this year and brought 35.99 percent more coal in April from March imports.
The next few months being summer months in India and china the demand for power, steel and cement increases thereby the movement in coal may be witnessed resulting in higher consumption.
China has bought 6.10 million tons of Indonesian coal in April against its import of just 4.48 million tons in March. Chinese buyers are still in the market to conclude the deals to cover summer requirements.
Recently, Berau Coal, one of the country’s largest coal miners have signed a five-year deal with Huaneng Power International and a three-year contract with Zhushui Energy Resource Group, as quoted by local paper. According to paper, Berau will sell 1.5 million tons of coal annually to each company.
According to ICAP Shipping, China's total coal imports in the first quarter were some 27 percent down on a year ago at 32.3 Mt (2010: 44.4 Mt).
49.57 percent of total Indonesian coal exports in April goes to fuel hungry countries such as India and China.
Indonesian government has already successfully implemented monthly coal reference price for its coal. Coal ministry also fine tuning their coal reference prices on a monthly basis based on market condition.
Coal producers of Indonesia were asked to comply with the government declared coal price reference prior to concluding any coal sales agreement with its buyers.
Ministry of Energy and Mineral Resources of Indonesia has set the May 2011 Indonesian Coal Reference Price for thermal coal at US$ 117.61 per ton, which was 3.61 percent lesser than April 2011 price of US$ 122.02.
Assessment basis of coal price reference was calculated considering coal with GCV (GAR) 6,322 kcal/kg, Total Moisture (arb) 8.00%, Total Sulphur (arb) 0.8%, Ash Content (arb) 15.00% and delivery free on Board (FOB) Vessel basis and applicable for spot contract, delivery between 1 - 31 May 2011.
Instead of dropping in HBA, Indonesian coal prices were still at stable position. small scale mines from Kalimantan were offering 6300 GAD coal between US$ 82 - 87 per MT and premium coal supplier's prices were already in high nineties or at three digits pricing, an international trader said.
According to market stakeholders, the prices may stand stable at this moment, but the prices and demands are expected to move stronger in coming months.(cs) (sourced coalspot)
If you believe an article violates your rights or the rights of others, please contact us.
Tuesday, March 15, 2011
Steam coal price increase as Japan shuts nuclear plants
Tuesday, 15 Mar 2011
International steam coal prices have been quick to firm on expectations that earthquake hit Japan will need more imported thermal coal for power generation to replace nuclear plants shut down as a safety precaution.
Coal traders say Newcastle swaps prices firmed as early as last Friday despite the fact that it is impossible yet to predict how much extra power coal Japan might need and because physical supplies were already under strain pre quake.
One reported market assessment from Friday put a price of USD 128.25 per tonne on Q2 swaps, marking an overnight USD 2.35 per tonne improvement and Newc Cal-12 at USD 124 per tonne up by USD 1.25 per tonne.
Reports quoting London banking sources claimed the Japanese disaster had “propped up” what had been a bearish short-term coal market, although medium-term outlook had been bullish.
Other reports said that on news of the earthquake and Japanese infrastructure damage, the 2Q API2 swap price climbed by USD 1.75 pert tonne to USD 122.25 pert tonne. Japanese sources have told coalportal.com the country will be forced to bring back online mothballed coal-fired power stations as soon as they possibly can to meet power demand but this process is expected to take some months. The Japanese government has implemented a series of rolling blackouts across the country to conserve power. This has seen the business centre of Tokyo all but shut down and public transport working only intermittently.(sourced:coalportal)
Coal traders say Newcastle swaps prices firmed as early as last Friday despite the fact that it is impossible yet to predict how much extra power coal Japan might need and because physical supplies were already under strain pre quake.
One reported market assessment from Friday put a price of USD 128.25 per tonne on Q2 swaps, marking an overnight USD 2.35 per tonne improvement and Newc Cal-12 at USD 124 per tonne up by USD 1.25 per tonne.
Reports quoting London banking sources claimed the Japanese disaster had “propped up” what had been a bearish short-term coal market, although medium-term outlook had been bullish.
Other reports said that on news of the earthquake and Japanese infrastructure damage, the 2Q API2 swap price climbed by USD 1.75 pert tonne to USD 122.25 pert tonne. Japanese sources have told coalportal.com the country will be forced to bring back online mothballed coal-fired power stations as soon as they possibly can to meet power demand but this process is expected to take some months. The Japanese government has implemented a series of rolling blackouts across the country to conserve power. This has seen the business centre of Tokyo all but shut down and public transport working only intermittently.(sourced:coalportal)
Thursday, February 3, 2011
INDONESIA may miss coal export target in 2011
Feb2, 2011
Indonesian Trade ministry has instructed independent surveyors temporarily not to issue pre-shipment survey report (LS) to the companies which were holding Production Operation IUP (special) for hauling and sale vide letter 15/ DAGLU.3.4/1/2011. The companies that were not holding Production Operation IUP (special) for hauling and sale also would not allowed coal sales between provinces or countries.
According to traders, Indonesian coal trading activities have almost entered in to uncertain situation since early January 2011. As per Regulation 23 of 2010 (regarding the Implementation of Mineral and Coal Mining Business Activities) , a party wishing to buy and sell (trade) minerals or coal must be obtained Production Operation IUP for hauling and sale. The specific purpose Production Operation IUPs are granted by application to the relevant authority. In the case of hauling or sale occurs within an inter-Province or countries, then the minister has to sign the license.
However, In an absence of Ministerial decree related to IUP OP KPP, the trade department has instructed surveyors not to conduct LS for the coal shipments except shipments from IUP OP holder (mine owners). Hence Independent surveyors who were authorized to conduct LS, have stopped issuing LS report for the shippers who does not have valid IUP OP KPP as per regulation 23/2010 article 36 and 37 and letter 15/ DAGLU.3.4/1/2011 issued by Trade department. As quoted by the jakarta post last week, Supriatna Suhala, executive director of the Indonesian Coal Mining Association (APBI), has said “It will create a negative impression for coal mining investors in the future”.
Chairman of the Indonesian Coal Mining Association also said to media that, around 70 ocean going vessels are stuck at coal loading ports around Indonesia because surveyors checking shipments won’t allow the exports before traders obtain fresh licenses from the Energy and Mineral Resources Ministry. “More shipments will be halted as a lot more ships are entering the ports.” He further added.
Some traders have already declared force majeure and meantime others just postponed shipments until they obtain IUP OP K PP said a trader from South Kalimantan. Force majeure is a legal clause that allows producers to miss deliveries because of circumstances beyond their control. According to media reports, Indonesian may lose 3.5 million tons of exports in January 2011“Indonesia, the world’s largest thermal coal exporter may miss the export target in 2011 in case the license matter settled soon”, said market players. They further sais that, license application are pending issuance for more than 4-5 months. Department of Mines are still not clear when the Ministry is going to issue this license. Some coal suppliers were saying that, Minister of mines will delegate some of his authority to director general of mines to settle this issue.
Due to Egypt crisis oil prices are expected to rise from current level and coal will also expected to follow oil prices if Egyptian crisis continues as well as a new cyclone thread to coal bearing areas in Australia.
Delay in issuing new trading permits for Indonesian trading companies, export coal prices may pushed up further meantime domestic coal prices might fall significantly due to excess of availability of coal in the domestic market.
State owned electricity company, PLN may be happy to see the falling of domestic coal prices in coming weeks as PLN has requested coal suppliers to supply coal below January 2011 HBA price. January 2011 HBA ( Indonesian coal reference price) has jumped more than 8 percent early January 2011 compare to December 2010 HBA.
As quoted by The Jakarta Globe on 13 January 2011, PLN chairman Dahlan Iskan said, “We are in a dilemma now. The increasing price of coal is a real problem."
PLN’s director of primary energy, Nur Pamudji also said, PLN would demand producers honor the coal price stated in an Energy Ministry decree. “The decree says that the price of coal in 2011 depends on 2010’s fourth-quarter average,” according to paper report.
However at that time, Supriatna Suhala, APBI’s executive director was said that, the average price in December was $103.4 per metric ton, but coal companies had no choice but to increase their prices. “International coal prices keep increasing, so we have to sell according to global prices”
If you believe an article violates your rights or the rights of others, please contact us.
Indonesian Trade ministry has instructed independent surveyors temporarily not to issue pre-shipment survey report (LS) to the companies which were holding Production Operation IUP (special) for hauling and sale vide letter 15/ DAGLU.3.4/1/2011. The companies that were not holding Production Operation IUP (special) for hauling and sale also would not allowed coal sales between provinces or countries.
According to traders, Indonesian coal trading activities have almost entered in to uncertain situation since early January 2011. As per Regulation 23 of 2010 (regarding the Implementation of Mineral and Coal Mining Business Activities) , a party wishing to buy and sell (trade) minerals or coal must be obtained Production Operation IUP for hauling and sale. The specific purpose Production Operation IUPs are granted by application to the relevant authority. In the case of hauling or sale occurs within an inter-Province or countries, then the minister has to sign the license.
However, In an absence of Ministerial decree related to IUP OP KPP, the trade department has instructed surveyors not to conduct LS for the coal shipments except shipments from IUP OP holder (mine owners). Hence Independent surveyors who were authorized to conduct LS, have stopped issuing LS report for the shippers who does not have valid IUP OP KPP as per regulation 23/2010 article 36 and 37 and letter 15/ DAGLU.3.4/1/2011 issued by Trade department. As quoted by the jakarta post last week, Supriatna Suhala, executive director of the Indonesian Coal Mining Association (APBI), has said “It will create a negative impression for coal mining investors in the future”.
Chairman of the Indonesian Coal Mining Association also said to media that, around 70 ocean going vessels are stuck at coal loading ports around Indonesia because surveyors checking shipments won’t allow the exports before traders obtain fresh licenses from the Energy and Mineral Resources Ministry. “More shipments will be halted as a lot more ships are entering the ports.” He further added.
Some traders have already declared force majeure and meantime others just postponed shipments until they obtain IUP OP K PP said a trader from South Kalimantan. Force majeure is a legal clause that allows producers to miss deliveries because of circumstances beyond their control. According to media reports, Indonesian may lose 3.5 million tons of exports in January 2011“Indonesia, the world’s largest thermal coal exporter may miss the export target in 2011 in case the license matter settled soon”, said market players. They further sais that, license application are pending issuance for more than 4-5 months. Department of Mines are still not clear when the Ministry is going to issue this license. Some coal suppliers were saying that, Minister of mines will delegate some of his authority to director general of mines to settle this issue.
Due to Egypt crisis oil prices are expected to rise from current level and coal will also expected to follow oil prices if Egyptian crisis continues as well as a new cyclone thread to coal bearing areas in Australia.
Delay in issuing new trading permits for Indonesian trading companies, export coal prices may pushed up further meantime domestic coal prices might fall significantly due to excess of availability of coal in the domestic market.
State owned electricity company, PLN may be happy to see the falling of domestic coal prices in coming weeks as PLN has requested coal suppliers to supply coal below January 2011 HBA price. January 2011 HBA ( Indonesian coal reference price) has jumped more than 8 percent early January 2011 compare to December 2010 HBA.
As quoted by The Jakarta Globe on 13 January 2011, PLN chairman Dahlan Iskan said, “We are in a dilemma now. The increasing price of coal is a real problem."
PLN’s director of primary energy, Nur Pamudji also said, PLN would demand producers honor the coal price stated in an Energy Ministry decree. “The decree says that the price of coal in 2011 depends on 2010’s fourth-quarter average,” according to paper report.
However at that time, Supriatna Suhala, APBI’s executive director was said that, the average price in December was $103.4 per metric ton, but coal companies had no choice but to increase their prices. “International coal prices keep increasing, so we have to sell according to global prices”
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Thursday, January 27, 2011
India close to resuming thermal coal buying - traders
Thursday, 27 January 2011
Indian traders and end-users are close to resuming thermal coal prompt buying after a hiatus of several months, some of India's largest traders said. Coal prices have dropped to around $115.00 a tonne FOB South Africa's Richards Bay from $130.00 in early January and this, combined with plumetting freight rates, has brought an acceptable delivered cost within sight, they said. Indian and Chinese spot buying has been a key price-affecting factor for the past few years because the growth of these markets absorbed what would have been a rising global surplus and left the market finely balanced.
Indian traders and end-users are close to resuming thermal coal prompt buying after a hiatus of several months, some of India's largest traders said. Coal prices have dropped to around $115.00 a tonne FOB South Africa's Richards Bay from $130.00 in early January and this, combined with plumetting freight rates, has brought an acceptable delivered cost within sight, they said. Indian and Chinese spot buying has been a key price-affecting factor for the past few years because the growth of these markets absorbed what would have been a rising global surplus and left the market finely balanced.
The timing of any rise or fall in demand from India or China can have significant price implications in the international coal spot market."End-users in India were never going to pay $130 plus freight for South African coal but they are close to buying again and they also know they can get Indonesian coal a bit cheaper," said a source at one of India's biggest trade importers.
This spot buying dried up in November and only the severe European weather which boosted coal demand and the disastrous Australian floods pushed prices sharply higher."There was some selling but on a very small scale when prices were high and that's finished now, there are enquiries instead, especially for Indonesian coal," said an Asia-based trader supplying the Indian market.
The price correction since mid-January has not yet been sufficient to draw out Indian buying - end-users have relied on stockpiles instead of fresh imports."Coal prices need to fall another few dollars, maybe $5 would be enough if freights keep going down but consumers are now ready to buy," another major Indian coal trader said."The appetite is there, particularly among the cement companies who prefer South African coal," said an India-based trader for a European firm.
Demand for imported thermal coal in India has not changed despite the lack of recent buying and comments from the Coal Minister suggesting high prices could curb imports, traders said. India's coal deficit will deepen in the next fiscal year to 104 million tonnes, an increase of nearly 24 percent. (Source: Reuters)
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