GOVERMENTPOLICY TO DEVELOP LOW RANK COAL Clean Coal Day 2013 International Symposium Change for Clean Coal Business & Sustainable Coal Supply Japan Coal Energy Center (JCOAL) Tokyo, on September 5 th, 2013 By Gultom Gushka Deputy Directors Of Coal Business Enterprises Divisions of Productions and dmarketing Supervisions i of fcoal DIRECTORATE GENERAL OF MINERAL AND COAL MINISTRY OF ENERGY AND MINERAL RESOURCES REPUBLIC OF INDONESIA
THE STRATEGIC ISSUES Majority of coal resources and reserves consist of lignite to subbituminous (low rank to medium) almost more than 90 % from all resources and reserve. A number of coal reserve located at remote areas, lack of detail explorations, infrastructure, mining support, investment to developed this potency. It cause of hight cost for mining operations. Limitation of Coal Hauling by Truck or Train and Port Facility (Jetty or Berth Port). Some local governments has stipulated of ban for being used the public roads for coal hauling. We suggest for the company has own a special coal hauling. There are big opportunity for development of low rank and medium rank of coal such chas : minemo mouth thpower erplant, liquifaction, ifaction gassifications, ubc, blending facility, drying etc.. The government will support and guarantee of security supplay for development of low rank to medium coal including of the certainty of price a long way to the project.
POLICY DIRECTION OF COAL MINING REGULATION SUPPORT LAW NO.4. YEAR 2009 1. ARTICLE 170 2. ARTICLE 103 MATERIAL SUPPLY ASSURANCES TECHNOLOGY SUPPORT DOWN & UP STREAM INTEGRATION ENERGY SUPPORT - Finance Minister Gov reg 1 dan 62/2008 Fiscal policy -BKPM - Ministry of Industry -Ministry i of Workforce Gov Reg NO :23. Year 2010 Article 34, 26, 93-96 Draft of Mineral and Coal Added Value INFRASTRUKTUR HUMAN RESOURCES COMPETENCY Other regulations: 1. Minister of General Works 2. Ministry of Transportation 3. Local governments
COAL ADDED VALUE 1. Developing low rank coal as a part of application of value added of coal, for instance: - coal liquefaction - upgrading brown coal (UBC) - coal in-situ gasification - coal bed methane - coal to synthetic gas/ to ethanol - mine mouth power plant - coking coal to coke - blending facility - coal drying COAL 2. Coal briquette for small and middle scale industries DIRECT USE LOW RANK COAL KONVERSI UPGRADING CWM Power Plant Industry LIQUEFACTION GASIFICATION COKES ACTIVE CARBON High Rank Coal Gas Liquid Chemical Feedstock Clean Coal Technology
ISSUES COAL INVESTMENT OPPORTUNITIES 1 Domestic market Exploration and exploitation obligation, lack off Underground coal mining transportation Coal infrastructure (stock pile, blending facilities, coal terminal, transportation) G & G Survey Coal gasification 2 Value added and environment Smelter & Refinery Upgrading g Brown Coal Coal liquefaction Coal gasification Clean Coal Technology CBM
THE WAY FORWARD AND OPPORTUNITY 1.To develop coal mining in line with the principles p at environmentally sustainable development and good mining practises (environment, safety, economics and social aspect considerations) 2.To effectively encourage the increase of state income and investment through national and international cooperation 3.To develop coal as energy (not only commodity) for instrance, in 2025 coal contribution into energy mix about 35% (including coal liquefaction) 4.Especially in Sumatra Island, the coal resource & resererve is low to medium quality and at the remote location from barging point, so it will be economical when end user close to the mining i area and the productions level in large scale.
MASTERPLAN FOR ACCELERATION AND EXPANSION OF INDONESIA ECONOMIC DEVELOPMENT (MP3EI) Sumatera Corridor Central of Production and Manufacture of National Natural and Energy Resources" Kalimantan Corridor Central of Production and Manufacture of National Mining and Energy Resources" Sulawesi Corridor ' Central of Production and Manufacture of National Agriculture, Plantation, Fishery, and Nickel Mining'' Papua Maluku Corridor Central of Development of National Food, Fishery, Energy, and Mining Java Corridor Supporting the Bali - Nusa Tenggara Corridor National Service ' Gate of Tourism and and Industry" Supporting Provider of National Food and Agriculture'' Basically MP3EI is based on these strategic initiatives: Main strategy of MP3EI: Encourage a large scale investment realization in 22 main Economic potential development through economic activities economic corridor Synchronization of national action plan to revitalize the real Strengthening the national connectivity sector performance The development of center of excellence in 6 (six) economic corridors Source: Coordinating Ministry for Economic Affairs, 2011 Strengthening th i national human resources capability and science and technology 7
ROLE OF MINING IN THE MASTER PLAN OF ACCELERATION AND EXTENTION OF INDONESIA ECONOMIC DEVELOPMENT MINING ACTIVITIES Exploration and Exploitation Mining Facilities Smelter Coal Processing Facilities (Gasification and Upgrading etc) INFRASTRUCTURE Road Railway Port ELECTRICITY Coal Based Power Plant Mine Mouth Coal Based Power Plant for low rank to medium coal Renewable Energy Power Plant OTHER INDUSTRY Steel Industry Cement Industry Pulp & Paper
INVESTMENT OPPORTUNITIES o Mining infrastructure developments o Added Value of Coal (to development of processing) o Cooperation in underground coal mining development o Utilization of law rank coal (LRC) Coal liquafaction Coal gasification Mine-mouth power plant MEMR d C l li f ti d ifi ti b i i (S th MEMR proposed Coal liquefaction and gasification business in (South Kalimantan, East Kalimantan, Central Kalimantan, Jambi, Bengkulu, South Sumatra, West Sumatra, Riau, NAD) as a one of business sector to obtain income tax facilities in certain field and business. Incentive for underground mining development
CLOSING REMARK There are some strategic issues that need to be covered in the mineral and coal subsector, for instance: priority to need domestic needs, added value of mineral and coal, renegotiation, etc. The foreign investment tis one of fthe crucial lfactors for developing mining industry. There is a need to increase international cooperation to develop mining investment, technology and manpower development. In The Future development of low rank and medium coal is very important to increase domestic demand for coal. Regarding this matter we need investment from Japan especially in term of technology and financial support.
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Curriculum Vitae Name : Ir Gultom Gushka Msi Place & Date Of Birth : Padang, June 28 th, 1963 Addres : Jln Prof Dr Soepomo No.10 Tebet Jakarta Selatan Phone : (+6221)8161977351/ 81294838899 Email Current Position Qualifications Work Experience, : gultomguska@gmail.com : Deputy Directors in Business and Development Of Coal Enterprises Divisions of Productions and Marketing Coal Supervisions at Directorate General of Mineral and Coal Ministry of Energy and Mineral Resources Indonesia since April 2012. : 1990, Graduate from Mining Faculty, Bandung Institute Of Technology (ITB) 2002, Graduate from Administrations of Int l Business, Indonesia University 2003, Cessam - Cesmat Fountainebleau- Paris Perancis : 1991, in The Directorate General of General Mining 2001, in The Directorate General of Geology and Mineral Resources 2002, in The Directorate General of Mineral, Coal and Geothermal 2003, in The Directorate General of Mineral and Coal until now