Indonesia’s Adaro Energy expects 2011 coal production up 5 million tons from last year to 46-48 million tons, and then to nearly 50 million in 2012, while Bayan Resources is aiming to more than double its output to as much as 25 million tonnes by 2013. Indonesia is expected to make up 39 percent of the global increase in coal exports, with Adaro and top miner Bumi Resources becoming two of the top three exporters by 2015.
Australia will follow closely behind in terms of growth. India will surpass Japan as the leading buyer of Indonesian coal this year, the country’s coal association told Reuters, and India’s demand will continue to surge as electricity demand is expected to rise 56 percent by 2017.
China will now face stiff competition from India for Indonesian coal. Coal India, the world’s top coal miner, is in talks to buy up to 40 percent of Golden Energy Mines in Indonesia, where Chinese firms have struggled to buy mines.
“This year we’re expecting more than 45 percent of our production will go to India and China. I’m fairly confident that these two countries will lead demand in the future,” said Berau’s Natalina.
Executives at the conference said on Monday that top coal consumer China should see import demand more than double in the next four years and India would be close behind as both snap up supplies to feed rapidly growing power industries.
While India and China’s power needs are well known, the conference heard other fast-growing nations in the region are also planning sizable coal demand increases, likely a reflection of the high price of diesel, unreliability of hydro and start-up costs of nuclear.
Vietnam’s Tan Tao Energy Corp sees coal demand in the country increasing to more than 100 million tons by 2025, and will likely look to Australia, Indonesia as well as Russia and Colombia. For South Korea’s East West Power (EWP), the higher price of coal means it is looking to increase imports from the United States to diversify its supply from Indonesia and Australia. South Korea also has a long-term plan to reduce coal use in its energy mix.
Shayne Heffernan
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals. Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.
Minggu, 05 Juni 2011
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