Report on Coal Mine Development and Transport Infrastructure in … of Coal... · 2020. 10. 8. ·...
Transcript of Report on Coal Mine Development and Transport Infrastructure in … of Coal... · 2020. 10. 8. ·...
Report on Coal Mine Development
and Transport Infrastructure in
Kalimantan
JOGMEC
Summary
Indonesia is the world's largest coal exporter in 2018 and the second-largest coal trade
partner for Japan after Australia. In 2018, Indonesian coal accounted for 15% (28.9 million
tons) of total coal imports in Japan.
Japan mainly imports steam coal from Indonesia and relatively high calorific value
bituminous coal among Indonesian coal. The high calorific value bituminous coal is reserved
and mined in Kalimantan Island. The production and export of high-grade bituminous coal
in the conventional coal mines in the coastal areas are decreasing due to resource constraints.
And in the future, the supply source of the high-grade bituminous coal will move to the inland
Kalimantan Island.
Transport infrastructure developments are indispensable for coal mine developments and
the stable operations in inland areas of Kalimantan Island. Many coal mines in inland
Kalimantan use coal transportation systems with barges. It is costly to operate barges because
the rivers are narrow and shallow in the upstream. Furthermore, it is impossible to operate
barges in the dry season in some areas due to the shallow water depth. In addition to these
existing issues, new mines far from the rivers need long-haul road accesses to the closest river
as the coal production shifts to inland Kalimantan.
The Indonesian government has recognized the issues in the coal transports for long years.
The developments of infrastructures such as roads, ports, or rails have been planned but have
not progressed yet.
Stable and economical coal transportations in the inland area are the key to coal resource
developments in inland Kalimantan. The resilient coal transportations make coal mine
developments possible, and Japan would enjoy coal supply from Indonesia.
The main objective of this study is to provide Japanese companies with useful information
that supports decision-making in investments into coal resources in Kalimantan. This study
investigated the current status of infrastructure developments, the factors that hindered the
infrastructure developments, and the coal transportation costs in inland Kalimantan.
This study describes the problems in coal transportation in the inland Kalimantan as
quantitatively as possible.
The Indonesian government aims to preserve coal resources to meet future domestic coal
demand, and the BAPPENAS announced that the upper limit of coal production should be
400 million tons in the "Mid-term National Development Plan." It said that Indonesia would
export the coal that leftover. Among the several coal export forecasts, DEN, which forecasts
the smallest amount of coal export, shows that coal production and domestic coal consumption
will be the same in 2046, and the net coal exports will become 0. (Fig. 1)
Fig. 1 Indonesian Coal Consumption and Export Outlook
Inland Kalimantan Island, ultra-high calorific coal exists in the following four regions (Fig. 2)
1 The northern area of upstream Barito River: The northeastern part of the Barito River, a
region with many mining areas that have not yet started their mining operations.
2 East Kalimantan/Central Kalimantan border: The border between East Kalimantan and
Central Kalimantan, the eastern part of the upper Barito River
3 Eastern area of Kapuas River: The region between the Kapuas River and the Barito River.
4 Lower Kedang Pahu River: The area where the Kedang Pahu River joins the Mahakam River.
These four areas have the potential to be developed in the future.
There are many mining concessions (IUPs) that have not started production in both East
Kalimantan Province and Central Kalimantan Province.
The government of East Kalimantan would not grant new concessions because it likes to have
existing inactive IUPs developed first. Mining companies should find a candidate from
existing IUPs. In Central Kalimantan province, mining companies should participate in a
bidding to have a new IUP, but it is not necessary to participate in it if they acquire an existing
IUP.
Fig. 2 Distribution of coal
Mines located around upstream of the Barito River use barges for coal transportation through
the Barito River and are subject to water depth restrictions on barge transportation. Only
small barges can go down the Barito River even in the rainy season, and in the dry season,
barges can go down the river only when the water depth increases after rainfall. (Fig. 3)
The downstream of the Barito River, which has a large transport capacity, would not be a
constraint for coal transports.
Fig.3 Daily Water level at Muara Teweh (2018-2019)
Mines in the upstream of the Mahakam River use the Mahakam River for coal transports.
Mines can use barges even in the dry season. But there are restrictions on the sizes of barges
due to the shallow water depth. (Fig. 4) In some Jettys, mines should reduce the load in the
dry season due to the shallower water depth than the rainy season (e.g. Barges from Kedap
Sayaaq Jetty reduces the load in the dry season). (Fig. 5)
Fig.4 Barge loadage by seasons
Max. Ave. Min. Max. Ave. Min.
BINA INSAN SUKSES MANDIRI 31 220,500 7,500 7,113 5,500 39 281,700 7,500 7,223 5,300
HARINDO WAHANA 3 16,050 5,500 5,350 5,250 5 26,754 5,400 5,351 5,254
KEDAP SAYAAQ 1 7,500 7,500 7,500 7,500 6 40,600 7,500 6,767 5,300
BUMI DHARMA KENCANA 7 38,700 7,500 5,529 5,200
sub-total 35 244,050 7,500 6,973 5,250 57 387,754 7,500 6,803 5,200
TRUBAINDO COAL MINING 80 615,132 9,200 7,689 4,000 141 1,076,280 9,200 7,633 4,000
GUNUNG BARA UTAMA 21 146,338 8,500 6,968 2,904 36 269,600 7,500 7,489 7,100
TEGUH SINAR ABADI 42 307,400 8,000 7,319 4,500 34 254,100 8,000 7,474 5,700
sub-total 143 1,068,870 9,200 7,475 2,904 211 1,599,980 9,200 7,583 4,000
JEMBAYAN MUARA BARA 84 693,600 10,500 8,257 7,500 69 582,606 10,020 8,444 5,306
MAHAKAM SUMBER JAYA 58 435,000 7,700 7,500 7,000 72 511,900 7,700 7,110 6,250
MULTI HARAPAN UATAMA 42 336,150 10,500 8,004 7,350 83 609,580 8,350 7,344 5,200
KAYAN PUTRA UTAMA COAL 31 262,450 10,000 8,466 7,500 16 134,050 10,000 8,378 7,000
KITADIN CORPORATION 15 112,190 8,000 7,479 7,280 20 149,360 7,700 7,468 7,280
MAHAKAM COAL TERMINAL 12 86,100 7,500 7,175 5,300 21 156,300 7,500 7,443 7,000
SEGERA HERO SAKTI 10 70,000 7,000 7,000 7,000 22 160,000 7,500 7,273 5,000
TANITO HARUM 5 38,500 7,700 7,700 7,700 11 75,500 7,500 6,864 6,000
GERBANG DAYA MANDIRI 4 31,000 8,000 7,750 7,500 3 22,300 7,500 7,433 7,300
KUTAI BARA ABADI 1 7,500 7,500 7,500 7,500 3 22,500 7,500 7,500 7,500
INSANI BARA PERKASA 1 5,000 5,000 5,000 5,000 2 12,800 7,500 6,400 5,300
PRIMA MITRA JAYA MANDIRI 1 3,000 3,000 3,000 3,000
RENCANA MULIA BARATAMA 3 22,500 7,500 7,500 7,500
ALAM PERMAI ARTHA UTAMA 1 5,500 5,500 5,500 5,500
BUKIT MENJANGAN LESATRI 1 5,500 5,500 5,500 5,500
KSU KARYA DESA 8 59,500 7,500 7,438 7,000
BERKAT CAHAYA DELIMA 7 52,500 7,500 7,500 7,500
KIMCO ARMINDO 3 22,500 7,500 7,500 7,500
sub-total 269 2,113,990 10,500 7,859 3,000 340 2,571,396 10,020 7,563 5,000
ANUGERAH BARA KALTIM 71 550,900 8,000 7,759 5,500 121 897,300 7,500 7,416 5,300
ALAM JAYA BARA PRATAMA 58 409,940 7,650 7,068 5,130 78 570,500 7,500 7,314 5,000
INDO PERKASA 40 293,399 10,500 7,335 2,500 83 579,200 10,500 6,978 2,500
MEGA PRIMA PERSADA 13 97,350 7,850 7,488 7,300 19 132,850 7,510 6,992 5,000
BARA KUMALA SAKTI 18 96,300 7,600 5,350 3,400 44 286,100 7,800 6,502 2,800
STS MUARA BERAU 3 22,500 7,500 7,500 7,500
TRANSISI ENERGY SATU NAMA 1 5,200 5,200 5,200 5,200
BUKIT BAIDURI ENERGI 11 82,500 7,500 7,500 7,500
sub-total 204 1,475,589 10,500 7,233 2,500 356 2,548,450 10,500 7,159 2,500
Northern area 147 831,017 7,600 5,653 1,702 157 830,362 7,550 5,289 225
Southern Area 311 1,905,748 9,500 6,128 1,963 318 2,074,241 9,500 6,523 100
sub-total 458 2,736,765 9,500 5,975 1,702 475 2,904,603 9,500 6,115 100
BANGUN OLAH SARANA SUKSES 10 35,000 3,500 3,500 3,500 9 28,240 3,373 3,138 2,747
GUNUNG BAYAN PRATAMA COAL 8 27,700 3,800 3,463 3,200
sub-total 18 62,700 3,800 3,483 3,200 9 28,240 3,373 3,138 2,747
BAYAN RESOURCES 262 1,713,950 8,000 6,542 3,100 327 1,953,158 8,000 5,973 3,100
FAJAR SAKTI PRIMA 58 350,595 8,500 6,045 550 8 60,450 8,250 7,556 5,200
sub-total 320 2,064,545 8,500 6,452 550 335 2,013,608 8,250 3,100
1,447 9,766,509 6,749 1,783 12,054,032 6,761
Belayan River
Kedang Kepala
River
Total
Uppermost
upstream
midstream
downstream
Mahakam
Delta
Kedang
Pahu River
Area Jetty
High-water-level season(Apr. 2018) Low-water-level season(Oct. 2018)
No.Total
transport(ton)
Loadage(ton/barge)No.
Totaltransport
(ton)
Loadage(ton/barge)
Fig. 5 Barge loadage by seasons at Kedap Sayaaq Jetty
Hulu Mahakam Bridge, old Mahakam Bridge, and Mahkota Bridge are close to Samarinda city.
There is a 4-hour per day time slot for passage under the bridge, and tugboat assistance is
required. Under certain assumptions*, the utilization rate of the transportation capacity under
the bridges is 65% as of October 2018. There would be room for additional transportation
capacity under the bridges.
* Assumed that it is possible to reduce the transit time under the bridge to 200 seconds/barge
from 300 seconds/barge, which is the actual average transit time.
Fig. 6 Transit loads by points of the Mahakam River
Coal mine developments in the upstream Barito River have constraints on coal transportation.
Some coal mines have plans to transport coal from Central Kalimantan across the border to
East Kalimantan and Mahakam River. It is up to whether the Governor of Central Kalimantan
permits coal transportation to East Kalimantan province. The Governor of Central
Kalimantan did not want the coal produced in the province transported through the other
provinces. No mine has carried the coal produced in Central Kalimantan via East Kalimantan.
With the same intention, the Central Kalimantan Government is planning to dredge the
shallow part of the Barito River so that the coal produced in the Central Kalimantan, which
currently goes down the Barito River in South Kalimantan, can pass through the Barito River
in Central Kalimantan.
There are the following restrictions on coal transportation.
The water depth of the Barito River in the upstream area (Fig.7) of Talio limits
the loading capacities of the barges up to 4,000 tons. The water depth decreases
in the upstream of Talio during the dry season and makes barges' traffic more
difficult. Barge transportations stop for five months in a year. Mines transport coal
by barges when the water level rises due to temporary rainfall in the dry season.
Mines construct intermediate stockpiles in the downstream area of Talio, where
the Barito River can accept barges over 8,000 tons load capacities, to mitigate the
obstacles in coal transports due to decreases in water level in the dry season.
However, mines cannot completely resolve the problems.
Mines have two critical measures to resolve the issues.
1. Some mines have plans to transport coal from Central Kalimantan to East
Kalimantan via the Mahakam River. Some plan land transportation to the
Bunyut Jetty on the Mahakam River, and another has a railway construction
across the border between the two provinces to Bara Tabang coal mine.
2. The other measure is to transport coal by means other than barges to the area
downstream of Talio.
Regarding the former measure, the coal transportation cost via the Mahakam
River is US$7.2/ton lower than the transportation cost through the Barito River.
While having economic advantages, this measure has a critical issue, a policy of
the Central Kalimantan Government. To transport coal from Central Kalimantan
to East Kalimantan by trucks, mines must obtain a road construction permit from
the Central Kalimantan Governor. But the Central Kalimantan Government has
not issued a construction permit, and mines have not transported coal produced
in the state via East Kalimantan.
Upon the latter measure, there have been some infrastructure development plans
at a standstill that would facilitate coal transportation from the upstream of the
Barito River to the downstream. We could not find any direct answer in the
interviews as to the reason for the issues. It is probably because the governments
lack funds, and the private sector hesitates to invest in the plans due to the
uncertain returns.
Fig. 7 Coal mining concessions in the upstream of the Barito River