Indonesia coal mine

November 23, 2011 by · Leave a Comment 

Coal is primarily used as a solid fuel to produce electricity and heat through combustion.  When coal is used for electricity generation, it is usually pulverized and then burned in a furnace with a boiler.  The furnace heat converts boiler water to steam, which is then used to spin turbines which turn generators and create electricity.  The thermodynamic efficiency of this process has been improved over time.  “Standard” steam turbines have topped out with some of the most advanced reaching about 35% thermodynamic efficiency for the entire process, which means 65% of the coal energy is waste heat released into the surrounding environment.  Old coal power plants, especially “grandfathered” plants, are significantly less efficient and produce higher levels of waste heat.

Supply from Company CV. Logam Persada

Jl.Kurnia no.118 Martapura South KalimantanIndonesia

FOB Price:

US $ 79/Metric Ton (5800/5600Kcal)

US$ 92/Metric Ton (6300/6100 Kcal)

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CIFSouth China

US $ 103/Metric Ton (5800/5600Kcal)

US $ 116/Metric Ton (6300/6100 Kcal)



Minimum Order Quantity:

100.000 Metric Ton/Metric Tons

Supply Ability:

500.000 Metric Ton/Metric Tons per Month

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In a country long renowned for the resource wealth,Indonesiahas burst on the coal scene in a big way over the past decade. Today, the country is the world’s largest exporter of thermal coal sending more than 265 million tonnes (MT) abroad in 2010. With typically lower grade coal and lower transport and labour costs,Indonesiahas become a popular source for emerging markets likeChinaandIndia, while also acting as a major supplier forJapan,South KoreaandTaiwan.

Nationally, Indonesia produced 325 million tonnes of thermal coal in 2010, a 14.8 percent increase over the previous year. Projections peg 2011 production levels of thermal coal between 335 and 350 million tonnes. Total resources exceed 4.3 billionmetric tons, putting it fourth in the world, but with lagging electrical grids and production facilities 72 percent of all thermal coal produced is exported.

Endowed primarily with thermal coal, the country typically exports a lower quality coal than available in other coal beds, such asAustralia. However, 66 percent of national reserves have a calorific value (adb) between 5100-6100, with 20 percent below 5100 and 14 percent between 6100-7100.

In the past three years, foreign investment has streamed into the country, most notably fromChinaandIndiaas the expanding economies seek to electrify their countries. However, international companies continue to bemoan the introduction ofIndonesia’s 2009 Mineral and Coal Mining Law.

New mining law

In 1998, political and financial turmoil led to the end of President Suharto’s 32-year reign ushering in an age of political reform. From these reforms, mining was affected in two key ways. The first was the political and fiscal autonomy reforms embedded within larger political decentralization which increased power for regional and provincial governments to inform some mining regulations and made regional governments the primary recipient of resource rents. The second is Law No.4 of 2009 on Mineral and Coal Mining which implemented a mining permit system that grants greater autonomy for regional actors to negotiate the terms mining permits.

More recently, Law No.4 of 2009 on Mineral and Coal Mining instated mining permits which grant greater autonomy for regional actors to negotiate the terms mining permits. While the new law carries much uncertainty around coal mining regulations (specifically mining zone regulatory overlap with the Forestry Law 41/1999), the law also provided some controversial provisions which ostensible enables regional governments to renegotiate operation permits after 10 years and potentially allow the Federal government to restrict exports to meet national demand. Further, within nine years of the commencement of commercial operations, foreign companies must divest 20 percent of ownership to Indonesian nationals.

In the wake of much of this uncertainty, Indonesia’s government said it will audit over 8,000 existing mining permits to make sure they are in line with environmental and mining law. Despite the significant level of regulatory risk arising from the 2009 law and its implementing regulations, new investment continues at a fevered pace. Resource research and consulting firm Wood Mackenzie said they expect thatIndonesia would make up 39 percent of global increases in coal exports by 2015. The Indonesian government also suggested that by 2020, annual production could top 500 MT with 60 percent destined for export and 130 MT coming fromGreenfield projects.

The biggest wildcard arising from continued coal mining expansion are linked to political concerns. Indonesiais steeped in a history of political and civil unrest related to its resource extraction sector, most notably internal conflicts around gas production in the provinceof Aceh, and gold and copper mining in Irian Jaya (West Papua). Political concerns have also made the news of late with Indian producers reacting to the Indonesian government claim that it will benchmark coal prices with international indices based on Australian, South African and others.

Regardless of the political risk,Indonesiaappears set to become a major swing player in thermal coal markets in the coming years. The scramble to secure resources has led to increasing action in the country by bothChinaandIndiawho seek to ensure their stake inIndonesia’s rapidly expanding industry.

The emergence of the supercritical turbine concept envisions running a boiler at extremely high temperatures and pressures with projected efficiencies of 46%, with further theorized increases in temperature and pressure perhaps resulting in even higher efficiencies.  Other efficient ways to use coal are combined cycle power plants, combined heat and power congeneration, and a MHD topping cycle.

Until today, approximately 40% of the world electricity production uses coal.

Indonesiais the largest coal producer countries in Asia afterChinaandIndia.  Though there are more than 80 companies inIndonesiadoing the coal mining business actively, one would have to learn the Indonesian culture well before a solid deal is to be sealed.

According to the 2010 BP Statistical Energy Survey,Indonesiahad end 2009 coal reserves of 4328 million tonnes, 0.52% of the world total.

Indonesiahad 2009 coal production of 252.47 million tonnes, 4.55% of the world total. The world’s major producers areChina, theUSA,India,Australia,Russia,IndonesiaandSouth Africa.

Indonesiahad 2009 coal consumption of 30.47 million tonnes oil equivalent, 0.92% of the world total.

Indonesian coal production has increased in recent years, andIndonesiais currently the world’s third largest exporter of steaming coal (afterAustraliaandChina). According to the 2008 BP Statistical Energy Survey,Indonesiahad end 2007 coal reserves of 4328 million tonnes.Indonesiais one of the leading exporters of sub-bituminous coal which represents the bulk of Indonesian coal production. According to the 2008 BP Statistical Energy Survey,Indonesiahad 2007 coal production of 174.83 million tonnes, and consumption of 27.8 million tonnes oil equivalent. Most ofIndonesia’s coal reserves are situated in Sumatra in the south, with the balance located in Kalimantan, West Java, andSulawesi. Coal quality varies, with lower grade lignite (59%), sub bituminous (27%) and high grade bituminous and anthracite (14%).

Indonesiaadopted a National Coal Policy in January 2004, which seeks to promote the development of the country’s coal resources to meet domestic requirements and to increase coal exports. The state-owned PT Tambang Bukit Asam is one of the five largest coal producers inIndonesia. Almost a quarter (22%) of its production is exported to international markets, including Japan, Taiwan, Malaysia, Pakistan, Spain, France and Germany. The company has mineable reserves of approximately 7.3 billion tons or 17% of the total coal reserves inIndonesia.

Kaltim Prima Coal, located in northeastKalimantan, has one of the world’s largest open pit mining operations. Kaltim Prima Coal is 100 per cent owned by PT Bumi Resources Tbk.

Australian copper producer Straits Resources subsidiary Straits Asia Resources owns and operates the Sebuku Coal Mine inIndonesia.

Project incharge




Name: Rebecca Ye

Position: Director

Mobile: 0411 630 852

Oversea: +61 411 630 852

Staff Code: 003



Name: Gavin Michael Holland

Position: Project Manager

Mobile: 0468 373 988

Oversea: +61 468 373 988

Staff Code:001





Ucer International Pty Ltd

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(02) 9736 1554
(02) 9736 1554
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Rebeca H. Ye & Carson Deng 

Company Contact Details

Ucer International Pty Ltd

Ph: (02) 8068 1178
Fax: (02) 8068 1178
Address: 808/368 Sussex ST, Sydney, NSW 2000

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