Steam Coal
Coal: Its History
Coal was created millions of years ago. Coal is a fossil fuel and is the altered remains of prehistoric vegetation that originally accumulated in swamps and peat bogs. The energy we get from coal today comes from the energy that plants absorbed from the sun millions of years ago. All living plants store solar energy through a process known as photosynthesis. When plants die, this energy is usually released as the plants decay. Under conditions favourable to coal formation, the decaying process is interrupted, preventing the release of the stored solar energy. The energy is locked into the coal.
The quality of each coal deposit is determined by temperature and pressure and by the length of time in formation, which is referred to as its "organic maturity". Initially the peat is converted into lignite or "brown coal" these are coal types with low organic maturity. In comparison to other coals, lignite is quite soft and its colour can range from dark black to various shades of brown. Over many more millions of years, the continuing effects of
temperature and pressure produces further change in the lignite, progressively increasing its organic maturity and transforming it into the range known as "sub-bituminous" coals. Further chemical and physical changes occur until these coals became harder and blacker, forming the "bituminous" or "hard coals". Under the right conditions, the progressive increase in the organic maturity can continue, finally forming anthracite.
COAL: Its Use
Coal Burning has existed for centuries, and its use as a fuel has been recorded since the 1100s. It powered the Industrial Revolution, changing the course of first Britain, and then the world, in the process. In the US, the first
coal-fired power plant – Pearl Street Station – opened on the shores of the lower East River in New York City in September 1882.1 Shortly thereafter, coal became the staple diet for power plants across the world.
Coal has many important uses worldwide. The most significant uses are in electricity generation, steel production, cement manufacturing and as a liquid fuel. Around 6.1 billion tonnes of hard coal were used worldwide last year and 1 billion tonnes of brown coal. Since 2000, global coal consumption has grown faster than any other fuel. The five largest coal users - China, USA, India, Russia and Japan - account for 77% of total global coal use. Different types of coal have different uses. Steam coal - also known as thermal coal - is mainly used in power generation. Coking coal - also known as metallurgical coal - is mainly used in steel production.
The biggest market for coal is Asia, which currently accounts for over 65% of global coal consumption; although China is responsible for a significant proportion of this. Many countries do not have natural energy resources
sufficient to cover their energy needs, and therefore need to import energy to help meet their requirements. Japan, Chinese Taipei and Korea, for example, import significant quantities of steam
ANP Minerals: Background
Side activity of ANP is also trading steam/thermal coal. We have good relationship with fews owners for steam coal in South Kalimantan near Banjarmasin town. For now, we are able to deliver from 50,000MT to 350,000MT per month. Coal is mined by two methods: surface or 'opencast' miningunderground or 'deep' mining. The choice of mining method is largelydetermined by the geology of the coal deposit. Underground mining currently accounts for a bigger share of world coal production than opencast; although inseveral important coal producing countries surface mining is more common.For our mines in Indonesia, surface mining seems to be the most economical method of coal extraction using open cut mining methods. Opencast coal mining recovers a greater proportion of the coal deposit than underground methods, as more of the coal seams in the strata may be exploited.
Price Adjustment: Calculation Method
a) Gross Caloric Value: Quality Based on Coal Grade GCV 6300-6100
If the actual Gross Calorific Value (GCV) on an ADB Basis of a shipment of coal as determined by the Inspection Company is greater or less than the Seller’s Guaranteed Specification for NCV and still greater than the rejection limit of GCV 6100, the Base Price of that shipment of coal shall be adjusted in accordance with the following formula:
Adjusted FOB Barge Price = US$XX.00 X Actual GCV (ADB)
6300 Kcal/Kg (ADB)
However Buyer reserves the right to reject or re-negotiate the price of the Coal if GCV (ADB) is below 6100 Kcal/Kg.
Price Adjustment: Moisture & Ash Content
Total Moisture:
If the total moisture (ARB) exceeds 16% but is below 18%, then the weight as mentioned in Certificate of Weight for the purpose of billing shall be adjusted as follows:
Weight for invoice purpose =(100-Actual TM/(100-16)) X BL weight =
Adjusted Weight
If Total Moisture exceeds 18%, buyer shall reserve the right to reject cargo or re-negotiate the price.
Ash Content :
If the actual Ash Content (ADB) is above 16%, a penalty of USD 0.02 PMT for every 1% increase up to 18%, will be deducted from FOB Barge price, or fraction pro rata.
Delivery: Coal Transportation
The way that coal is transported to where it will be used depends on the distance to be covered. Coal is generally transported by conveyor or truck over short distances. Trains and barges are used for longer distances within domestic markets, or alternatively coal can be mixed with water to form a coal slurry and transported through a pipeline. Ships are commonly used for international transportation, in sizes ranging from Handymax (40-60,000 DWT), Panamax (about 60-80,000 DWT) to large Capesize vessels (about 80,000+ DWT). Around 700 million tonnes (Mt) of coal was traded internationally in 2003 and around 90% of this was seaborne trade. Coal transportation can be very expensive – in some instances it accounts for up to 50% of the delivered cost of coal.
South Kalimantan: Jetty Vessel
Batu Licin:
============Jetty : TCM - LAC - KEDECO - Power City - Batu licin (((( tangjung pemancingan )))
Binuang:
============Anchorage Mother Vessel IN TABONEO
Sungai Danau:
============Jetty : KGS - ABIDIN - DSJ - sungai danau ((( muara satui )))
Asam Asam:
==============Jetty : CENKO - DTBS - KSO ((( muara satui TABONEO )))
*To View Mines: All cost / expense survey / ticket / hotel are handled by buyer
Coal: Wider Community
Coal mining generally takes place in rural areas where mining and the associated industries are usually one of, if not, the largest employers in the area. Not only does coal mining directly employ millions worldwide, it generates income and employment in other regional industries that are dependent on coal mining. These industries provide goods and services into coal mining, such as fuel, electricity, and equipment, or are dependent on expenditure from employees of coal mines. Large-scale coal mines provide a significant source of local income in the form of wages, community programs and inputs into production in the local economy.
Details Products Specifications:
Payment Terms
Buyer’s Issue DLC within 5 (Five) working days upon signing contract to Seller’s bank. Seller’s bank issue a 2% P/B to buyer’s bank. Failing to deliver by the Seller, the buyer can call for the 2% P/B. Failing to
Perform by the buyer, the buyer will make a payment of 5%(Penalty) base on One Shipment Value in cash to the Seller within 24 hours. All signing of contract will be held at AN PARADIGM SDN BHD head office in Selangor Malaysia.
*REMARKS: The SELLER will invite the BUYER to do a site visit to the mines upon signing of the contract and after the authentication of the DLC by the Seller’s bank. The buyer will bare all cost for the site inspection and the Sucofindo/SGS test.