Background
Geography & History
KAL Energy's coal concessions are located in East Kalimantan on the island of Kalimantan, Indonesia. East Kalimantan is a major coal producer and contains world-class deposits such as the KPC Sangatta Mine, producing 45 Mt per annum. The nearby opencast mines of Gunung Bayan and PT Trubaindo (Banpu) produce 5 Mt per annum respectively.
Maps
East Kalimantan
Indonesia
Press Coverage
Coal Exports
This region has been an active coal exporter since the 1990s, and in 2004 Indonesia passed Australia as the largest exporter of thermal coal.
(Source: Abare Economics, June 2006.)
"To date booming exports from the world's No.1 thermal coal exporter, Indonesia, have filled the gap left by China with other exporters including Australia and South Africa struggling to overcome infrastructure constraints. Russia also has boosted its production and exports into Europe but lost ground in Asian markets."
(Source: AME Mineral Economics, 2006.)
Government Policy
The Indonesian government's desire to attract foreign direct investment to develop the countries vast energy resources has yielded significant improvements in the regulatory and taxation environment.
(Source: The Jakarta Post, 20 November 2006)
Kalimantan Location
Kalimantan's location relative to key end customers like Japan, Korea, India and China, provides structural support for long-term cost advantage over other traditional exporters, such as Australia.
Growth
Regional growth, including China and India, provides underpinning for regional energy demand growth.
Coal-To-Liquid (CTL) technologies and applications, i.e. converting coal to liquid hydrocarbon fuels such as diesel, provide further long term demand potential.