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INDONESIAN COAL SUPPLY | Komoro Coal Indonesian Coal Suppliers | Scoop.it

Energy demand has been growing at a remarkable rate into the 21st century, where most of the demand is being fulfilled by conventional fossil fuels. With high oil prices, Coal is the most important energy source for electricity generation and also forms an essential fuel for the production of steel and cement. Indonesia with 40 billion metric tons of coal reserves is still among the largest coal supplier in the world. Indonesia is among the top ten producers of coal having 237.4mt coal. http://www.komorocoal.com
According to information presented by the Indonesian Ministry of Energy, Indonesian coal reserves are estimated to last around 83 years if the current rate of production is to be continued. Indonesia comprises of 17500 island is the world’s 16th largest country. There are numerous smaller pockets of coal reserves on the islands of Sumatra, Java, and Kalimantan, Sulawesi and Papua but the three largest regions of Indonesian coal resources are:
South Sumatra South Kalimantan East Kalimantan.

Although Indonesia has long history of coal mining, the first commercial operation commenced in 1849 when NV Oost Barneo Maatschappij began mining in Pangaron, East Kalimantan. The discovery of oil in East Java in 1884 reduced interest in coal mining. By start of World War 2 Indonesia was largest supplier of oil in far East, producing 180,000 barrels a day and by 1960 this had risen to 400,000 barrels a day. The coal mining remained at small scale at that time about 2 million tons in 1941 and mainly supplied to shipping industry. As ships moved to oil fired engines, the industry declined to almost nothing producing 200,000 tons of coal by 1972. By 1973 oil impediment resulting from Yom Kippur war tripled oil prices and reignited interest in coal as fuel. The relaxing foreign investment and interest in an alternative led to slow and steady growth in Indonesian coal mining industry, initially though Rio Tinti Zinc and secondary of the Shell Company.
In 1980 and by 1983 five companies had obtained rights to 20 million tons of coal deposits. By 1990 industry was enjoying 30% growth a year and by 1995 Indonesia was supplying 30 millions coal a year. By the end of decade it had risen to 55 million. Indonesia became the world’s largest supplier of steaming coal in 2005 with 117 million tones. By 2009 this had risen to 176 million tones leading to 330 million tons in 2012.This was the real boom in Indonesian coal industry. Only 24% of coal is used in Indonesia internally and the rest is exported.
The value of coal to Indonesia was Rp 5.8 trillion in 2007 that increased by Rp 20.8 trillion in 2012. Although coal extraction increased only 52% in five years but revenue went up by 358%.
The most important buyer of Indonesian steam coal in the Pacific area is Japan with approximately 35 million tons. Other buyers are in particular Taiwan, South Korea and India. China with approximately 20 million tons per year is also an important buyer. For technical and viable reasons Indonesia has become a major supplier of coal to nations with larger coal deposits like china and India. The main export destination countries for Indonesian coal are China, India, Japan and Korea. Coal has a clear importance for Indonesia's state revenue as the product accounts for around 85 percent of mining revenue. http://www.komorocoal.com/
Indonesia allowed its miners to sell at prices well below the standards. This was possible because it costs Indonesian large miners between $30 to$55 to extract ton of coal and transport it to port. This makes it the cheapest steaming coal in the world and it’s the basic reason that Indonesia is largest coal supplier in the world. It is about price so in short Indonesia at this time has a strong competitive advantage through low cost open cut coak mining operations close to low cost transport facilities.

The merchandise boom of the 2000s generated significant profits for companies engaged in the export of coal. The rise in commodity prices was - to a large extent - triggered by accelerated economic growth in emerging and developing economies. But this profitable situation changed with the outbreak of the global financial crisis in 2008 when commodity prices went down fast. Indonesia was affected by these external factors as export of commodities particularly coal accounts for around 50 percent of total Indonesian exports, thus limiting the country's GDP growth in 2009 to 4.6 percent. From the latter half of 2009 until the beginning of 2011 a sharp rebounce in global coal prices occurred. However, reduced global economic activity has lessened demand for coal, thus resulting in a downward trend of coal prices starting from early 2011.
This means that - generally - profits in the coal industry will be limited in the near future. However, if we take it into longer term - when global economic activity is back on track - demand from China and India is forecast to make the coal business very profitable again.. These promising future perspectives are the main reason that in recent years many Indonesian companies have started planning to expanding into the nation's coal mining industry, considering the rising energy prices and growing shortage of energy sources, it will become more expensive to buy coal on the market in the future. For many Indonesian companies this is an incentive to start securing coal reserves now. A number of large companies such as Astra International, Semen Gresik (cement industry) and Perusahaan Listrik Negara (electricity) - last two of which are highly dependent on the supply of coal - are investing in coal mining in order to establish an entire value chain in mining and energy businesses while also securing future supplies, and thus guarding it against fluctuations in global coal prices. Currently, owning a coal mine has become a trend for the richer families and companies in Indonesia.
Despite global awareness to reduce dependency on fossil fuels, developments in renewable energy resources do not show an indication that dependency on fossil fuels (especially coal) will be reduced significantly in the expected future, thus coal remains a vital energy resource and Indonesia is expected being a major player in the coal mining sector.

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Coal Consumption

Coal Consumption | Komoro Coal Indonesian Coal Suppliers | Scoop.it

Coal is the largest source of energy for the generation of electricity worldwide. Coal is extracted from the ground by coal mining. Since 1983 the world top coal producer has been China. In 2011 China produced 3,520 millions of tons of coal – 49.5% of 7,695 millions tones world coal production. In 2011 other large producers were United States (993 millions tones), India (589), European Union (576) and Australia (416). In 2010 the largest exporters were Australia with 328 million tons (27.1% of world coal export) and Indonesia with 316 million tons (26.1%), while the largest importers were Japan with 207 million tons (17.5% of world coal import), China with 195 million tons (16.6%) and South Korea with 126 million tons (10.7%).
Peat, Lignite, Sub-bituminous coal, Bituminous coal , Steam ,Anthracite and Graphite are different types of coal. http://www.komorocoal.com
There are different uses of coal worldwide now days. Coal is primarily used as a solid fuel to produce electricity and heat through combustion. World coal consumption was about 7.25 billion tonnes in 2010 and is expected to increase 48% to 9.05 billion tonnes by 2030. China produced 3.47 billion tones in 2011. India produced about 578 million tonnes in 2011. 68.7% of China's electricity comes from coal. The USA consumed about 13% of the world total in 2010
At least 40% of the world's electricity comes from coal, and in 2012, about one-third of the United States' electricity came from
The total known deposits recoverable by current technologies, including highly polluting, low-energy content types of coal (i.e., lignite, bituminous), is sufficient for many years. However, consumption is increasing and maximal production could be reached within decades.
coking coal is used in making steel using the conventional route. Petroleum coke is the solid residue obtained in oil refining, which resembles coke, but contains too many impurities to be useful in metallurgical applications. http://www.komorocoal.com
Coal gasification can be used to produce syngas, a mixture of carbon monoxide (CO) and hydrogen (H2) gas. This syngas can then be converted into transportation fuels, such as gasoline and diesel, through the Fischer-Tropsch process. This technology is currently used by the Sasol chemical company of South Africa to make motor vehicle fuels from coal and natural gas.
Coal can also be converted into synthetic fuels equivalent to gasoline or diesel by several different processes. Refined coal is the product of a coal-upgrading technology that removes moisture and certain pollutants from lower-rank coals such as sub-bituminous and lignite (brown) coals. Coal is used extensively as feedstock to produce chemicals using processes which require substantial quantities of water. As of 2013 much of the coal to chemical production was in the People's Republic of China.

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Coal Production

Coal Production | Komoro Coal Indonesian Coal Suppliers | Scoop.it

Coal has an important role to play in meeting the demand for a secure energy supply. Coal is abundant and widespread. Coal is the most abundant and economical of fossil fuels. At current production levels coal will be available for at least the next 118 years - compared to 46 years for oil and 59 years for gas. A large number of suppliers are active in the international coal market, ensuring competitive behavior and competent functioning. Coal is also an affordable source of energy. Coal prices have historically been lower and more stable than oil and gas prices and it is likely to remain the most affordable fuel for power generation in many developed and industrializing countries for several decades.http://www.komorocoal.com
Of the three fossil fuels, coal has the most widely distributed reserves; coal is mined in over 100 countries, and on all continents except Antarctica. The largest reserves are found in the United States, Russia, China, Australia and India.
China is currently the top producer of coal. Coal production in China is focused mainly in the eastern provinces of Anhui, Guizhou, Hebei, Heilongjiang, Henan, Inner Mongolia, Liaoning, Shandong, and Shaanxi.
In the past 50 years, coal has represented the country’s primary energy consumption. All types of coal have been explored, mostly low sulfur, low to medium ash content, and medium to high thermal value.
Coal production in the United States occurs in several states, the major ones being Wyoming, West Virginia, Kentucky, Pennsylvania, and Illinois. Most of the coal fields in these states are bituminous coal, except for Wyoming which has mostly sub-bituminous deposits. In general, most of the coal from the Western states is low grade, sub-bituminous and lignite. There are very few anthracite deposits, the main ones being in Pennsylvania, West Virginia and Alabama. Wyoming produces the most coal of any state, however Montana has the most coal reserves.
Coal is mined in every state in Australia and it plays a major role in the country’s economy. According to the Australian Coal Association, coal is the country’s largest single export with markets in China, Japan, Korea and Taiwan. Coal is also used to generate more than 80% of Australia’s electricity. The coal industry employs 130,000 people.
The majority of Australia’s coal is thermal or coking coal. There are also bituminous deposits in Western Australia and lignite deposits in Victoria. Australia's oldest deposits of black coal, found in New South Wales and Queensland, were formed between 180 and 225 million years ago. Younger black coals mined in Queensland, South Australia and Tasmania are between 140 and 180 million years old. Victoria's lignite deposits are young by comparison, formed less than 45 million years ago.
India has a long history of commercial coal mining, starting from 1774 and covering nearly 220 years. The majority of the coal reserves are in the states of Jharkhand, Chhattisgarh, Orissa, Assam, West Bengal, Maharashtra, and Andhra Pradesh. There are also lignite deposits in Jammu & Kashmir, Rajasthan, Gujarat, and Tamil Nadu. The coal deposits in southern India are in sedimentary rocks of older Gondwana formations. Those in the north and north-eastern mountainous regions of the country are younger Tertiary formations.
India's coal is characterized by high ash contents, but it has a low sulphur content low iron content in ash, low chlorine content, and low trace element concentration. Coal is the dominant energy source in India, accounting for more than half of the country's requirements. 70% of the country’s coal production is used for power generation, with the remainder being used by heavy industry and public use.
More than 75% of South Africa's primary energy needs are provided by coal. In addition to the extensive use of coal in the domestic economy, about 28% of the country’s production is exported, mainly through the Richards Bay Coal Terminal, making South Africa one of the top coal exporting countries in the world.
South Africa's coal is obtained from collieries that range from among the largest in the world to small-scale producers. About 51% of South African coal mining is done underground and about 49% is produced by open-cast methods. The major use of coal in South Africa is for power generation and the petrochemical industries. Some is also used in the metallurgical industry.
By international standards, South Africa's coal deposits are relatively shallow with thick seams, which make them easier and, usually, cheaper to mine. At the present production rate, there should be more than 50 years of coal supply left. The result of the beneficiation of South African coals is the generation of approximately 60 million tones a year of discard coal, which is estimated to have already accumulated to more than 1 billion tones.

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Types of coal

Types of coal | Komoro Coal Indonesian Coal Suppliers | Scoop.it

Coal is a fossil fuel. The energy we get from coal today comes from the energy that plants absorbed from the sun millions of years ago. All living plants store solar energy through a process known as photosynthesis. When plants die, this energy is usually released as the plants decompose. Under conditions favorable to coal formation, the decaying process is interrupted, preventing the release of the stored solar energy. The energy is locked into the coal.
Coal formation began during the Carboniferous Period - known as the first coal age - which spanned 360 million to 290 million years ago.
Coal is used primarily as an energy source, either for heat or electricity. It was once heavily used to heat homes and power locomotives and factories. Bituminous coal is also used to produce coke for making steel and other industrial process heating.
Coal is a complex resource and can vary in composition even within the same deposit. Generally, there are different types or ranking levels of coal, each with differences in energy output as a result of increased pressurization, heat, and time.
Anthracite: http://www.komorocoal.com/

This is the highest ranked, hardest, oldest, and least common type of coal. It possesses a high energy content, high percentage of carbon (85%) and relatively little moisture or volatiles. Anthracite produces nearly 15,000 Btu's per pound. This type of coal is what you might burn in your home. There are 7.3 billion tons of anthracite reserves in the United States, mainly in Pennsylvania.
This is the second rank of coal, softer and younger than anthracite, and containing a lower percentage of carbon (45-85%) and therefore more moisture and volatiles. Bituminous coal is the most plentiful type of coal in the United States. It is mainly found in the eastern and middle parts of the North American continent. Bituminous coal is primarily used to generate electricity and to make coke for the steel industry. Bituminous coal has a heat value of 10,500 to 15,500 Btu's per pound.


This is the third rank of coal, possessing 35-45% carbon and more moisture than bituminous coal. Sub bituminous coal is used primarily for electricity generation and possesses an average "as-received" energy content of 17-18 million BTU /ton. This coal is found in the western states and Alaska. It is a clean burning coal.

Lignite: http://www.komorocoal.com
This is the softest, youngest, and wettest rank of coal, often referred to as "brown coal" with a carbon content of only 25-35% and correspondingly lower energy content. Lignite is used almost exclusively for electricity generation and possesses an average "as-received" energy content of 13 million BTU /ton.
Sub-bituminous coal
Its properties range from those of lignite to those of bituminous coal, is used primarily as fuel for steam-electric power generation and is an important source of light aromatic hydrocarbons for the chemical synthesis industry.
It is considered to be a precursor of coal, has industrial importance as a fuel in some regions, for example, Ireland and Finland. In its dehydrated form, peat is a highly effective absorbent for fuel and oil spills on land and water. It is also used as a conditioner for soil to make it more able to hold on to and slowly release water.
It is technically the highest rank, is difficult to ignite and is not commonly used as fuel — it is mostly used in pencils and, when powdered, as a lubricant.
Steam coal
It is a grade between bituminous coal and anthracite, once widely used as a fuel for steam locomotives. In this specialized use, it is sometimes known as "sea-coal" in the US. Small steam coal (dry small steam nuts or DSSN) was used as a fuel for domestic water heating.

Coal has many important uses worldwide. Since 2000, global coal consumption has grown faster than any other fuel. The five largest coal users - China, USA, India, Russia and Japan account for 76% of total global coal use.
The biggest market for coal is Asia, which currently accounts for over 67% of global coal consumption; although China is responsible for a significant proportion of this. Many countries do not have natural energy resources sufficient to cover their energy needs, and therefore need to import energy to help meet their requirements. Japan, Chinese Taipei and Korea, for example, import significant quantities of steam coal for electricity generation and coking coal for steel production.

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Indonesian steam coal supplier, High, Medium & Low Calorie Coal supply

Komoro Indonesian Coal supply chain company sees the opportunity to bridge the gap between buyer & seller in coal supply, coal exclusive off-take, and coal mine acquisition. We are committed to providing excellent service, building upon existing relationship and forming lasting and mutually beneficial partnership
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Indonesian Coal: Lignite

Indonesian Coal: Lignite | Komoro Coal Indonesian Coal Suppliers | Scoop.it

Lignite is blackish brown in (http://komorocoal.com) color having 25 to 35 % carbon content. It is usually formed from naturally compressed peat.  Peat is measured the lowest level of coal due to its low heat content. It is mined in Bulgaria, Kosovo Greece, Germany, Poland, Serbia, Russia, United states, Canada, India, Australia and many other parts of Europe. According to coal classification Lignite is in between peat and sub bituminous coal and first by product as a result of coalification.




Lignite can be divided into two types.

The first is xyloid lignite or fossil wood.The second form is the solid lignite or perfect lignite.


It has been expected that nearly half of the world’s total proven coal reserves are made up of lignite and sub bituminous coal. Many lignite beds lie close to the surface and are of great thickness. It requires special care in storing, is uneconomical to transport over long distances, and is subject to spontaneous combustion. Schemes for increasing the use of lignite have received attention in Australia, New Zealand, Canada, the United States, and elsewhere. The fuel is used primarily by local utilities and industries and by domestic consumers close to the mine sites.




Use of Lignite


Lignite is used in power generation.The Lignite Energy Council reports that 79 percent of lignite is used to generate electricity.13.5 percent is used to generate synthetic natural gas and 7.5 percent is used to create fertilizer products like anhydrous ammonia and ammonium sulfate. A small percentage is used as home heating fuel, as standalone fertilizer and as oil well drilling mud.Reaction with quaternary amine forms a product called amine-treated lignite (ATL), which is used in drilling mud to reduce fluid loss during drilling.


Mining of lignite


Germany was the world’s top lignite producer in 2012, the World Coal Association states. Altogether, the country put out 185 million metric tons (MT) of the fuel that year; a quarter of its electricity comes from lignite-fired power plants. Trailing behind in second place, Russia produced 78 million MT, while Australia and the US mined 73 and 72 million MT, respectively.

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