Milindo + Commodities
- In Indonesia the coal layers are directly located under the earth’s surface so that the coal can be mined in open pits
Steam Coal
ORGAKOM offers primarily steam coal from Indonesia and has concluded long term cooperation and supply agreements with 12 coal mines there.
Meanwhile, Indonesia has become next to Australia the world’s most important exporter of steam coal. In 2010 alone 340 million tons of steam coal were mined.
The total resources are estimated at approximately 60 billion tons; whereas at present only the mining of approximately 7 billion tons is authorized and developed. With the current production level, however, the volumes authorized for mining will suffice for the next 20 years.
- The coal mined in the coal pits is processed in "stock piles" and then crushed to the size complying t the customers’ specifications
Low sulfur content
Steam coal from Indonesia has a very low content of ash and sulfur. The sulfur content is clearly below 1%.
The largest share of the mined coal is of low calorific range with a calorific value between 5,500 and 6,000 kcal/kg. In the high calorific range coal between 6,100 and 6,700 kcal/kg is mined.
Indonesia produces primarily steam coal. Due to scarce resources, Coking coal for coke production is of minor importance.
Coal exporter Indonesia
- The current inexpensive freight tariffs make the use of Indonesian coal also very interesting for Europe
Indonesian steam coal exports are primarily directed towards the Pacific market; only a low amount of tonnages is exported to Europe and America. In those countries Indonesia is used as "Swing-Supplier", i.e. coal supplies depend on attractive price and market situations.
The most important buyer of Indonesian steam coal in the Pacific area is Japan with approximately 35 million tons. Other buyers are in particular Taiwan, South Korea and India. China with approximately 20 million tons per year is also an important buyer. Another future increase of the supplies is expected for the People’s Republic of China.
- Kalimantan offers a multitude of storage sites in direct vicinity to the coast so that the mined coal can easily be transported to the sea ports
Shipment of the coal
The export and port capacities have permanently increased in the past years. The larger ports – which allow for a loading of Panamax and Capesize vessels with a capacity of 50,000 or more than 80,000 tons, respectively – are concentrated on the East coast of Kalimantan. The ports reach loading capacities of more than 100 million tons per year.
In addition to this, there are a multitude of smaller coal loading ports which allow for a loading of the so called "handysize bulk carriers" up to 50,000 tons. In addition to this there are also offshore loading capacities. In these cases the coal is transported by means of smaller bulk carriers on rivers so that it must then be reloaded to larger vessels.
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