EKONOMI MINERAL

Tugas 3

DOSEN PENGAMPU

Supriyadi Ph.D

DISUSUN OLEH

Zulfikri Hakim Akbar (11180980000029)

PROGRAM STUDI TEKNIK PERTAMBANGAN

FAKULTAS SAINS DAN TEKNOLOGI

UIN SYARIF HIDAYATULLAH JAKARTA

2020
 Ringkasan Ekonomi Mineral
‘World Steam Coal Marketing’
Market Competition

Market competition is controlled by coal quality, distance to marketing centers,

transportation and handling facilities. Many countries produce coal steam for local
consumption. After the local market, the remainder of the local production is brought for
export for foreign exchange.

Comparative studies of central market distance are an important approach to investigating

market competition. The proximity to the north aisa market gives Indonesian coal a strong
competitive advantage over Australian and South African coals. The distance between the
coal source and the market destination is shown in table 1 (Wilson, 1980).

Table 1. Ocean Coal Trade Routes (Nautical miles)

Sources Destination Cape route Canal

Route

1. Canada (west West Europe 15, 400

coast) (ARA)⁎) Japan 4,800
West Eusrope 3,600
2. USA (east Japan 16,000
coast) West Europe Japan
3. USA (west West Europe Japan 13,800
coast) 4,750
4. Rep South West Europe Japan 7,200
8,700
Africa
5. Australia 13,700
3,600

During the last 10 years, infrastructure development in Indonesia has increased

significantly. Two large coal terminals have been completed by both coal production in
Kalimantan, namely, Kaltim prima coal and Adaro, therefore, the large panama (approx.
 65.00 dwt) and capsize (120,000 - 140,000 dwt) vessels are capable of delivering coal to
export.

International coal trade accounts for about 10 percent of commonly used coal production
and sea transport. In 1990, imports of coal steam in the world reached 210 million tonnes.
From this figure, 165 million tonnes were moved using marine trade.

Prospects for Indonesian coal in the world market

The prospect for Indonesian coal is mainly influenced by sea transportation costs. The sea
transportation cost analysis is carried out using a linear program to estimate the market
distribution for the Indonesian coal market share abroad with minimum transportation costs.
Linear programming (lp) is a mathematical optimization technique to find the maximum or
minimum value of several performance criteria expressed as linear functions. the technique
requires linear constraints (side conditions) and non-negative variable values. The application
of linear programs has included the analysis of industrial crops, organizations, individual
industries and the national economy (Henderson, 1955; Taha, 1976; Wright, 1981).

In this analysis, the programs are run for different coal destinations and under specified
capacities the cost of the transporter for transportation is illustrated in Figure 1 below:

Figure 1. Requirement cost for transportation

 The minimum total transportation cost function (Z) is stated liniear programming formula below.

m n
Minimize Z = ∑ ∑ Cij X ij………………………………………………………………(1)
i=1 j=1

Where, X ij = the number of units to be distributed. Subject to be constraints,

n
i. Supply : ∑ X ij = Si for i = 1,2,3 ……………………………………………………(2)
j=1

m
ii. Demand : ∑ X ij = dj for i = 1,2,3 …………………………………………………...(3)
i=1

iii. Non negative : X ij ≥ 0 for all i dan j …………………………………………………...(4)

In the LP simulation, three types of ships have been applied, namely, the handy size,
panamx, and capesize. As a result, the distribution pattern of world coal is controlled by the
type of ship, export capacity and the amount of coal demanded. From the coal trade record,
the tonnage of Australian steaming coal exports to Europe was quite high during the 1980-
1990 period. this high level is due to being well established in the insfastructured in
Australian coal mines. The Asian market absorbs about 40 percent of the world's coal export
capacity. The export capacity of Indonesia, China and Australia is higher than that of
consumers. Therefore, lp analysis is used fully for marketing strategy.

Large ships tend to carry bulk materials such as coal at relatively low prices. In shipping,
increasing shipping capacity can increase competitive advantage or be able to compete in
exporting. Seen in the table below.
 Further analysis shows that Australia will lose its market share when Indonesia and China
increase their export capacity. If Australia cannot compete in exporting coal, then Indonesia
can only export one third of the demand, that is, one third of the 88 million tonnes of coal.

It is clear that large export capacities, high demand for coal and large ship sizes are the
key factors in testing competitive advantage.