Coal sector: Key takeaways from 3rd Indonesian Coal Conference Day 2 - Mandiri Sekuritas

 On the 2nd day, most of the topics were about optimization of mining operations and demand prospects
 Coal demand remains robust since it still considered the cheapest and the safest energy for generating electricity. As German government has decided to shut down 7 nuclear reactors pending a safety review in light of recent disaster in Japan, which likely to be followed by other European countries, therefore coal demand will increase in coming years.
 With technology support in advanced countries, like Carbon capture and storage (CCS), a means of mitigating the contribution of fossil fuel emission to global warming in, coal outlook would remain bright despite the leakage risk is the main concern. CCS applied to modern conventional power plant could reduce CO2 emissions to the atmosphere by approximately 80-90% compared to a plant without CCS.
 APBI expects coal gasification is the most attractive value added business opportunity currently especially developed countries that concern with CO2 emissions.
 Based on our discussion with several mining practitioners, we had some confirmation that overland conveyor (OLC) project in Adaro would still offer better or more efficient operational cost in overall compared to the overburden conveyor project (OPCC) regarding the fuel consumption amid fuel price hike. Beside that, due to higher acid contents in OB, it will require more maintenance cost.
 APBI has confirmed its objection towards the discourse regarding the low rank export ban in 2014 due to lack of proven technology to upgrade coal quality at moment.