INDONESIA LOWER RANK COAL RESOURCES DEVELOPMENT POLICY GEOLOGICAL AGENCY MINISTRY OF ENERGY AND MINERAL RESOURCES 2006
INDONESIA LOWER RANK COAL RESOURCES DEVELOPMENT
POLICY
GEOLOGICAL AGENCYMINISTRY OF ENERGY AND MINERAL RESOURCES
2006
2
Outline Outline
Status of Energy Resources Status of Energy Resources
Current and Targeted Primary Energy MixCurrent and Targeted Primary Energy Mix
Coal Resources and ReservesCoal Resources and Reserves
National Energy PolicyNational Energy Policy
National Coal PolicyNational Coal Policy
Lower Rank Coal Utilization & ResearchLower Rank Coal Utilization & Research
3
FOSSIL ENERGY RESOURCES RESERVES PRODUCTION R/P (YEARS)
Oil 86.9 billion bbl 8.6
185.8
19,3
Wind 9,287 MW 0.5 MW
387 million bbl 22
Gas 384.7 TSCF 2.95 TSCF 62
Coal 57.8 billion Ton 132 Million Ton 146
NON FOSSIL ENERGY
RESOURCES EQUIVALENT UTILIZATION INSTALLED CAPACITY
Hydro 845 Million BOE 75,670 MW 6,851,000 MWh 4,200 MW
Biomass 49,810 MW 302.4 MW
Solar 4.8 kWh/m2/day 5 MW
Geothermal 219 Million BOE 27,000 MW 2,593,500 MWh 807 MW
Mini/Micro hydro 458.75 MW 458.75 MW 54 MW
Uranium 24.112 Tons* 3 GW
ENERGY RESOURCES IN INDONESIA(January 2005)
*) only in Kalan region, West Kalimantan
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INDONESIAN TERTIARY COALPALEOGENEPALEOGENE NEOGENENEOGENE
Formed within the intermountain and Formed within the intermountain and continental margin basins in continental margin basins in transgressivetransgressiveenvironment.environment.
Formed in back deep, deltaic and continental Formed in back deep, deltaic and continental margin basins in margin basins in regeressiveregeressive environmentenvironment
Relatively thinner, continuousRelatively thinner, continuous Varies in thickness but in general much Varies in thickness but in general much thicker than those of thicker than those of PaleogenePaleogene coal.coal.
Relatively higher in ash and Relatively higher in ash and sulphursulphur contentcontent Low ash and Low ash and sulphursulphur contentcontent
Low moisture and high calorific value.Low moisture and high calorific value. Mostly subMostly sub--bituminous coals and bituminous coals and ligniteslignites, , high moisture content and low calorific value.high moisture content and low calorific value.
Export commodity coalsExport commodity coals Domestic consumption and energy resources Domestic consumption and energy resources for power stationsfor power stations
1.1. Resources and ReservesResources and Reserves
2.2. QualityQuality
COAL RESOURCES, RESERVES AND QUALITY
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Indonesian National Standard for Classificationon Coal Resources and Reserves
Adopted from UN International FrameworkCalassification for Reserves/Resources – Solid Fuel Commodities
Indonesian National Standard for Classificationon Coal Resources and Reserves(Amandemen 1-SNI 13 -5014 -1998)
Adopted from UN International FrameworkClassification for Reserves/Resources – Solid Fuel Commodities
Indonesian National Standard for Classificationon Coal Resources and Reserves
Adopted from UN International FrameworkCalassification for Reserves/Resources – Solid Fuel Commodities
Indonesian National Standard for Classificationon Coal Resources and Reserves(Amendment 1-SNI 13 -5014 -1998)
Adopted from UN International FrameworkClassification for Reserves/Resources – Solid Fuel Commodities
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RESOURCE
HYPOTETIC
INFERRED
INDICATED
MEASURED
COALIN PLACE
RESERVES
FEASIBILITYSTUDY
PROVEN MARKETABLEPROVEN
RESERVES
GEO
LOG
ICA
L A
SSU
RA
NC
E
FEASIBILITYRESOURCES
ECONOMIC, MINING, UTILISATION, MARKETING, SOCIAL AND OTHER ASPECTS
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BASED ON CALORIFIC VALUE (Cal/gram, adb)
[Government Regulation No. 13, Year 2000 and No. 45/ 2004]
Low Calorie : < 5100
Medium Calorie : 5100 – 6100
High Calorie : 6100 - 7100
Very High Calorie : > 7100
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INDONESIAN COAL RESOURCES AND RESERVESINDONESIAN COAL RESOURCES AND RESERVES(CGR, by December 2005)(CGR, by December 2005)
QUALITYQUALITYNoNo ISLANDISLAND
CALORYCALORY CRITERIACRITERIA
1. JAWA Low - Medium < 6100 19,24 0,00
High - Very High >6100 2,97 0,00
2. SUMATERA Low - Medium < 6100 26.872,5 2.636,62
High - Very High >6100 1.780,66 134,11
3. KALIMANTAN Low - Medium < 6100 25.375,69 2.769,01
High - Very High > 6100 6.844,44 1.219,1
4. SULAWESI Low - Medium < 6100 218,42 0,06
5. MALUKU Low < 5100 2,13 0,00
6. PAPUA Low - Medium < 6100 120,35 0,00
High - Very High >6100 30,91 0,00
TOTAL 61.273,99 6.758,90
High - Very High >6100 14,68 0,00
RESOURCES RESOURCES
( M Ton)( M Ton)RESERVESRESERVES
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Coal Resources and ReservesCoal Resources and Reserves2004 and 20052004 and 2005
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2004 2005
R eso urces
R eserves
Mill
ion
Ton
s
13
INDONESIAN COAL RESOURCES AND RESERVESINDONESIAN COAL RESOURCES AND RESERVES
0.00
2,770.73
3,988.11
0.06 0.00 0.00
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
4,000.00
M T
anne
s
1
RESERVES
JawaSumatraKalimantanSulawesiMalukuPapua
14.2
28653.2
32220.1
233.1 2.1 151.3
0.0
5000.0
10000.0
15000.0
20000.0
25000.0
30000.0
35000.0
M T
onne
s
1
RECOURCES
JawaSumatraKalimantanSulawesiMalukuPapua
RESOURCES
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COAL RESOURCES CATEGORY OF INDONESIACOAL RESOURCES CATEGORY OF INDONESIA
6%
56%21%
17% HypotheticInferredIndicatedMeasured
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INDONESIAN COAL RESOURCES INDONESIAN COAL RESOURCES ( Based on calorific value )( Based on calorific value )
1% 24%13%
62%
Low CaloryMedium CaloryHigh CaloryVery High Calory
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INDONESIAN COAL RESOURCES AND RESERVES INDONESIAN COAL RESOURCES AND RESERVES (CGR, by December 2005)(CGR, by December 2005)[ Amendment I[ Amendment I--SNI 13SNI 13--5041450414--1998 ]1998 ]
Low Calory <5100 0 0.82 0 0 0.82 01 Medium Calory 5100 - 6100 5.47 4.87 0 0 10.34 0
High Calory 6100 - 7100 0 2.97 0 0 2.97 05.470 8.660 0 0 14.130 0
Low Calory <5100 326.55 8829.35 2306.77 1720.75 13183.42 2426.00Medium Calory 5100 - 6100 408.96 3491.59 9225.61 562.91 13682.38 210.62
2 High Calory 6100 - 7100 33.70 959.56 442.00 303.71 1738.97 120.11Very High Calory > 7100 0 27.32 0 14.37 41.69 14.00
769.21 13307.82 11974.38 2601.74 28646.46 2770.73Low Calory <5100 0 1056.72 13.76 690.82 1761.30 536.33
Medium Calory 5100 - 6100 2285.84 15720.23 428.05 5180.28 23658.46 2232.683 High Calory 6100 - 7100 659.19 3588.58 224.89 1740.90 6268.06 1109.18
Very High Calory > 7100 90.11 430.08 5.80 104.90 630.88 109.923035.13 20795.60 672.50 7716.90 32318.71 3988.11
Low Calory <5100 0 1.98 0 0 1.98 04 Medium Calory 5100 - 6100 0 131.03 32.31 53.10 216.44 0.06
High Calory 6100 - 7100 0 13.90 0.78 0 14.68 00 146.91 33.09 53.10 233.10 0.06
5 Maluku Low Calory <5100 0 2.13 0 0 2.13 00 2.13 0 0 2.13 0
Medium Calory 5100 - 6100 89.40 30.95 0 0 120.35 06 High Calory 6100 - 7100 0 5.38 0 0 5.38 0
Very High Calory > 7100 0 25.53 0 0 25.53 089.40 61.86 0 0 151.26 0
10,371.74
Resources ( M Tonnes )
Criteria (Cal/gr, adb)Class
Reserves ( M Tonnes )MeasuredIndicatedInferredHypothetic Total
61,365.86 6,758.90
Total
TOTAL 3,899.22 34,320.97 12,679.98
Kalimantan
Sulawesi
Papua
Total
Total
Jawa
Sumatera
No. ProvinceQuality
Total
Total
Total
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KALIMANTAN AND SUMATERA COAL RESOURCESKALIMANTAN AND SUMATERA COAL RESOURCES( Based on Calorific Value )( Based on Calorific Value )
13,183.4
1,761.3
13,689.1
23,614.4
1,739.0
6,213.6
41.7 630.9
0.0
5,000.0
10,000.0
15,000.0
20,000.0
25,000.0
M T
onne
s
Low Calory MediumCalory
High Calory Very HighCalory
SumatraKalimantan
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Total Moisture of Indonesian CoalTotal Moisture of Indonesian Coal
62.5
57.5
52.5
47.5
42.5
37.5
32.5
27.5
22.5
17.5
12.5
7.5
2.5
30
20
10
0
(%)
TOTAL MOISTURE (%)N=240
I. 10% II. 45%
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Low Rank Coal in Low Rank Coal in KalimantanKalimantan
Arutmin (Mulia, Asam2, Arutmin (Mulia, Asam2, SaronggaSarongga))AdaroAdaroKidekoKideko JayaJaya AgungAgungMeruwaiMeruwai CoalCoalMantiminMantimin CoalCoalDelmaDelma Mining CorpMining CorpBaraBara PramuliaPramulia AbadiAbadiMulti Multi TambangTambang JayaJayaEtc.Etc.Total Resources of Total Resources of 4.,121.68 Mil. Tons4.,121.68 Mil. Tons
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LOW RANK COALIN SUMATRA
PT. BA (Arahan, Banko,
Muara Tiga Besar, Suban Jerji, Banjarsari)
•Pendopo Energy Batubara•Mifa Bersaudara
•Astaka Dodol•Benakat Energy
•Hulubalang Inti Bumi•Trimatra Coal Perkasa
•Etc.
• Total Resources of
9,103.86 Mil Tons
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GENERAL COAL PROPERTIES OF GENERAL COAL PROPERTIES OF INDONESIAINDONESIA
Total Moisture Total Moisture : 10 : 10 –– 45 %45 %Volatile Matter Volatile Matter : 25 : 25 –– 45 %45 %Fixed Carbon Fixed Carbon : 30 : 30 –– 50 %50 %Ash Ash : < 10 %: < 10 %Total Sulfur Total Sulfur : < 2 %: < 2 %Maceral : Maceral :
Vitrinite > 80 %Vitrinite > 80 %Inertinite < 3 %Inertinite < 3 %Liptinite 3 Liptinite 3 –– 30 %30 %
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National Energy PolicyNational Energy PolicySUPPLY SIDE :SUPPLY SIDE :
Increase energy supply capabilityIncrease energy supply capabilityOptimiseOptimise energy productionenergy productionEnergy conservationEnergy conservation
DEMAND SIDE :DEMAND SIDE :Energy EfficiencyEnergy EfficiencyDiversification of energy use including increasing share of reneDiversification of energy use including increasing share of renewable energywable energy
PROMOTE ENERGY PRICE TO MEET ITS ECONOMIC VALUE*)PROMOTE ENERGY PRICE TO MEET ITS ECONOMIC VALUE*)ENVIRONMENTAL POTECTION:ENVIRONMENTAL POTECTION:
Macro level : sustainable developmentMacro level : sustainable developmentMicro level : internalization of externality Micro level : internalization of externality
*) subsidy will be provided for those low-income people
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Current and Targeted Primary National Energy Mix
Oil still dominates Indonesia’s energy mix, but the role of coal and gas and NREswill be increased (Presidential Decree No 5/2006)
PRIMARY ENERGY MIX 2004
54.4%
Gas
26.5%
Coal
14.1%Hydro3.4%Geothermal
1.4%Other NRE
0.2%
Coal Liquefaction2% Geothermal
5% Biofuel5%
Other NREs5%
Oil20%
Coal33%
Gas30%
Presidential Decree No 5/2006 on National Energy Policy
PRIMARY ENERGY MIX 2025
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Strategic Role of Coal Strategic Role of Coal
• Important source of national and local revenues• Primary energy resources for electricity and industry• Convertible to oil and gas form (coal liquefaction, coal
gasification)• Absorb considerable number of manpower• Agent of development for local region
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National Coal PolicyNational Coal Policy
Management Policy
Supply Policy Utilization Policy Development Policy
• Diversification • Price• Lignite• Coal Briquette• Coal Bed Methane
• R & D• Training• Organization• Data/Information• Coal Technology Center
• UUD 45 (Basic Constitution of 1945)
• Regional Autonomy Policy • National Energy Policy
• Investment Climate• Intensification of Exploration
& Production• Conservation• Environment
NATIONAL COAL POLICY
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Coal Resources Coal Resources DevelopmentDevelopment PolicyPolicy
Objective Objective : Repositioning coal as a strategic : Repositioning coal as a strategic commodity and therefore shall be managed by taking commodity and therefore shall be managed by taking into account its benefit as a national source of into account its benefit as a national source of energy, export commodity and a prime mover of energy, export commodity and a prime mover of economy, community and regional developmenteconomy, community and regional developmentImplementation in upstream sectorImplementation in upstream sector ::Building data bank and inventory system of Coal Resources Building data bank and inventory system of Coal Resources and promoting coal exploration and exploitationand promoting coal exploration and exploitation
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Activities ofActivities of Centre of Geo Resources (CGR), Centre of Geo Resources (CGR), Geological Agency Geological Agency
(www. (www. dim.esdm.go.iddim.esdm.go.id) :) :
•• Target: Inferred ResourcesTarget: Inferred Resources•• Inventory in Inventory in BasinalBasinal Framework and Regency/Provincial BasisFramework and Regency/Provincial Basis•• Coal Resources and Quality Data BankCoal Resources and Quality Data Bank•• Publishing regularly the Status of Coal ResourcesPublishing regularly the Status of Coal Resources•• Publishing GIS data of the resources of coal in Indonesia throPublishing GIS data of the resources of coal in Indonesia through webugh web•• Coordinator in Coordinator in AseanAsean Database for Mineral and Coal (ASOMM)Database for Mineral and Coal (ASOMM)•• Developing standard in Classification of Coal Resources and ReseDeveloping standard in Classification of Coal Resources and Reservesrves•• Developing Reporting Standard for Coal Resources and Reserves Developing Reporting Standard for Coal Resources and Reserves
EstimationEstimation•• Proposing Standard competency for Coal GeologistProposing Standard competency for Coal Geologist•• R&D on Coal R&D on Coal CharacterisationCharacterisation
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Exploration Activities by Exploration Activities by CGRCGR
Reconnaissance Survey : Reconnaissance Survey : Remote and Marginal AreasRemote and Marginal AreasGeological MappingGeological MappingCoal seam MappingCoal seam MappingHypothetical Resources targetHypothetical Resources target
Prospecting : Prospecting : Systematically in a basinal areasSystematically in a basinal areasScout DrillingScout DrillingInferred Resources TargetInferred Resources Target
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Lower Rank Coal Lower Rank Coal UtilisationUtilisation & Research& Research
Remote Lower Rank Coal Field Remote Lower Rank Coal Field Coal Coal CharacterisationCharacterisation R&DR&DLiquifactionLiquifaction, , infrastrutureinfrastruture facilities, facilities, moisture reduction, moisture reduction, InsituInsitu Coal Gasification,Coal Gasification,Low rank Coal for CBM Low rank Coal for CBM ProspectionProspection –– Microbial Methane PropagationMicrobial Methane Propagation
Close to Shore lower Rank Coal FieldClose to Shore lower Rank Coal FieldMoisture ReductionMoisture ReductionCoal Coal CharacterisationCharacterisation R&DR&D
Close to Consumer Lower Rank Coal FieldClose to Consumer Lower Rank Coal FieldCoal Coal CharacterisationCharacterisation R&DR&DMine Mouth Power Plant Mine Mouth Power Plant –– Boiler heat Boiler heat efficencyefficency