Vishal Uberoi, Director, KTP Exports – Indonesia, gives us a glimpse into the Indonesian coal mining industry and the challenges therein.
Tell us more about your distribution system for mined materials.
The Indonesian coal production in 2021-22 was approximately 600mmt. We distribute coal majorly through sea channels to all the top countries which import coal from Indonesia like China, India, Thailand, and Vietnam. The Indonesian domestic consumption of coal is increasing every year-on-year.
Tell us about the gap in demand and supply of raw materials for the cement industry and your role in bridging that gap.
There has been a significant increase in the demand for coal in Asian markets especially in the last in last 2 years. The demand for Indonesian coal has increased in Europe as well.
Steel and cement, two sectors that rely heavily on coal, grew in 2022. Average monthly cement production increased year over year by 11 per cent in India and we anticipate that thermal coal usage in the non-power industry climb by 7 per cent and met coal by 2 per cent. There is a consensus that coal consumption through 2023 will hit record levels due to gas shortages and uncertainties about supplies due to the Ukraine War.
Owing to this increase, the prices have increased drastically and seem to continue being on a relatively higher side in subsequent 2 quarters as well.
Indonesian miners are putting focused efforts in bridging this gap; however due to logistical constraints and harsh weather conditions, the current production rate in Indonesia alone cannot meet the pace of growth in market demand.
What is the role of technology and automation in bringing efficiency to your processes?
Like most other industries, technology has played a vital role in coal mining industry as well. The Coal Mapping technology enables us to find the approximate reserves of a particular mine which also helps us ascertain the costing of cargo to the stage of loading the vessels.
This technology also helps in tracking the cargo movement from the mine to the jetty and then from the jetty to the mother vessel. This has further assisted the industry to track the wastage that occurs during the transit and helps us control shortage of materials.
With the help of chemicals, we can also prevent combustion of cargo which is vital during loading of cargo on Mother Vessels.