OCCUPATIONAL HEALTH AND SAFETY K3

understanding of the importance of safety and health issues in doing the work,  Implement safety campaign by putting the slogan and making K3 brochures to be placed at work sites,  Perform weekly safety talk among the employees in accordance with the schedule and topics prepared by the committee of safety and health division,  Perform safety meeting committee with representatives of all contractors.  Perform planned inspections daily, weekly and monthly, which are intended to eliminate unsafe conditions at work,  Implement the existing standard safety operating procedure,  Conduct safety and health training and installing traffic signs and other warning signs. X. COAL MINING INDUSTRY Coal plays a very important role for centuries, not only serves as power generator, but also an essential fuel for steel and cement productions, and other industrial activities as well. Coal is a carbon energy natural resource which is widely used and mined using the method of open mining surface-open-cut and underground. Coal is generally considered as the cheapest fossil fuel based on the heat it contains and since fuel costs are the largest cost component, hence coal is widely used as an energy source for electricity generation. Other advantages include relatively stable supply of coal from various geographic locations, easy and safe storage, and easy transportation. The aforesaid factors has made the power generation industry depends on coal, particularly specially set utilities in energy importing countries. In general the coal industry is divided into two major segments, namely thermal coal and coking coal which are parts of bituminous and sub-bituminous coal categories. Coking coal and thermal coal markets relatively have no significant relationship with one another. However, substitution might occur in the use of certain types of thermal coal with low quality coking coal. The level of change experienced by the coal, from peat to become anthracite, has an important relation and might be cited as the quality of coal. Low quality coal such as young coal and sub-bituminous is usually softer with fragile material and colored dull black like the ground. Young coal has higher humidity and low carbon content so that the energy content is also low. High quality coal is generally harder and stronger and often colored shiny black like glass. Higher quality coal has lower humidity and produces more energy. Anthracite is the best quality coal thus has higher carbon content and energy with lower humidity level. 1. Thermal Coal is also known as steaming coal, the type of coal that is widely used in electricity generation. In addition, thermal coal can also be used in direct heating process, space and water heating, heating process and cement production. All black coal except those classified as coking coal is part of thermal coal. In general, all types of coal can be used as thermal coal, but not all of the coal can be used for coking purpose. 2. Coaking coal is the type of coal that can be used to produce coke as a reductant in the production of iron and steel type. Coking coal is used to produce metallurgical coke, which is an important raw material in the production of pig iron in blast furnaces. Besides, coke is also used in casting and smelting processes of various metals. Generally in coal industry, coking coal is divided into 6 six categories based on the characteristics of the coal ash content, coke strength and fluidity, and the volatility of the material; those are:  Premium hard coking  Standard hard coking  Semi-hard coking  Semi-soft coking  Low-volatile Pulverized Coal Injection PCI  High volatile PCI coal. In general, the premium coal is the largest content “base load” of hard coking in the mixture of coking coal in large steel factories, between 15 and 40 of the total mixture, or up to 50 in the a merchant coke plant mixture. Lower quality coking coal such as semi-soft coking coal is usually used as coking mixed component or as PCI coal. PCI coal is generally incorporated into the blast furnace to obtain the necessary carbon in the iron making process and sometimes might replace the hard coking coal. Thermal coal demand is expected to remain strong due to the relatively abundant supply, cost advantage and reliable supply compared to other energy sources. It is estimated that average import demand growth rate is lower than that occurred ten years earlier because of the maturity of the developing countries. However, the continued capacity expansion of coal fired steam power plant in China and India will ensure strong prospect of thermal coal demand. At country level, coal exporters from Indonesia are superior in terms of ocean freight costs when performing deliveries to Asia, compared to its main competitor countries. This is important because most of the additional demand for thermal coal traded globally will be driven by developing countries in Asia, particularly China and India. And it is estimated that world’s shipping rates will rise due to rising shipping costs. It enhances the competitiveness of coal exporters in Indonesia and in Asia over other exporters from Australia and South Africa. Among other world’s major exporters, only Colombia and Australia whose exports are expected to increase significantly. Thermal coal exports from both countries are expected to be significantly affected by two major obstacles that affect the worlds thermal coal exports, which are the domestic demand and infrastructure constraints. In Australia, the latest deal on a new system for access to Newcastle port, which uses long-term contracts, would support the large expansion of exports from Hunter Valley. As a result, the standard of thermal coal contract prices are expected to increase in the short term, which would also be supported by higher production costs arising from increased stripping ratio and lower mining levels. Indonesia is expected to remain as the largest thermal coal exporter in the years to come. However, the position of Indonesia as the largest thermal coal exporter in the world might someday be competed by Australia, depends on the domestic demand for coal in Indonesia. The growth of Indonesias thermal coal exports will be affected by the “fast track program” of the Government of Indonesia which has set policies to increase the share of coal in its combined energy approximately from 11 to 33 in 2025. The Government of Indonesia is also trying to achieve the reserve margin capacity at least at 30 which is now estimated at about 15. PT State Electricity Company PLN, as a State Owned Company plans to install the capacity of a coal-fired steam power generation of 9GW with additional 1GW from independent power generation. This will increase the domestic capacity of coal fired power generation for 10GW and slow down the growth of export tonnage. The proposed bituminous coal project in Indonesia and other parts of the world, which is currently in the due diligence stage and submission, has been delayed for several months due to the difficulty in trying to get project funding. Coal Quality Parameters Sour ce: - Website of Chemical engineer ing - Website of Uni ver sit y of Kentucky

1. Energy content

Energy content, referred to as specific energy or calorific value, usually measured as the heat that is released after full combustion, expressed as the amount of heat usually measured in kilo calories per unit weight of coal in kilograms or ‘kcalkg’. Standard of bituminous thermal coal of Australia is the coal of Hunter Valley with an energy content of 6,322 kcalkg gar. The export thermal coal has an energy content which is significantly higher than export thermal coal of Indonesia including bituminous and sub- bituminous coal.

2. Ash

The ash content of thermal coal traded internationally, particularly from South Africa, Australia and China, is relatively high 10 to 15 and adding a substantial disposal costs for coal customers, especially in densely populated countries with high or increasing environmental awareness such as Hong Kong, Taiwan, Japan, and Eastern Europe. The customers’ pressure on suppliers to reduce the ash content will continue and will likely be used as a bargaining point by buyers and suppliers of sub- bituminous who try to enter the market.

3. Sulfur

In order that the power generation plant could delay the installation of flue gas desulohuritization unit FGD, coal producers are constantly pressured to supply low- sulfur coal. Only if the power producers to install FGD units, as most Western European companies do, then only the high-sulfur coal can be bought if the price is competitive. In general, high-sulfur coal will become less competitive compared with low-sulfur coal in the power generation. This is due to the characteristics of high-sulfur coal that would cause a greater penalty price than the low- sulfur coal to compensate higher sulfur dioxide SO2 emission. In other words, high-sulfur coal would be avoided in the market where there are no FGD units installed and tighter environmental restrictions on SO2