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Malaysia Needs Coals For Electricity Generation

Malaysia has coal mining sector operating in several sites. Most of them are used or consumed by power generating plants and the remaining supply goes to cement, iron, and steel sectors. Malaysia tries to push the development of some region. However, the development requires electricity. Energy demand in Malaysia is rising. It is even set to use 40 million tonnes of coal a year by 2020. Malaysia in in their momentum of economy. Thus, it pushes up energy demand which keeps on rising year by year.

It is known that about 45% of Nalaysian peninsula’s energy supply comes from coal. Indeed, it’s going to increase in the following years. Malaysia also uses natural gas as their energy resources. However, it keeps depleting and Malaysia needs steady supply of energy source. Malaysia alsa has a plan to develop a modern power system with smart and sustainable concept. However, that type of transformation cannot be done in an instant. It needs long process and requires much money. Malaysia is now focusing on delivering only the most high-efficiency power plants.

Until now, Malaysian power plant imports tons of coals from Indonesia. Even though Malaysia has their own coal mining sites, they are not as large as Indonesia’s. Thus, it can’t fulfill high demand of coal for their power plants. As of 2017, Malaysia imports 10 million tons of coal from Indonesia. Malaysia has steam power plant with installed capacity of 3.100 MW. It needs 10 million tons of coal supply per year. It must be hard for Malaysia alone to fulfill the needs. Thus, importing coal from Indonesia is the best solution. Besides, Indonesia is their neighbor so the partnership is benefiting each other.

To install 3.100 MW capacity, it needs four units of power generators. Thus, coal is in high demand. Coal imported from Indonesia usually delivered by ships. The coals then being stored in Manjung coal terminal. Malaysia has signed contract with several distributors from Indonesia. Coal purchase contract signed by Malaysia lasts from three to five years in general.

There are reasons why coal is preferred as the main energy resources all over the world, such as :

a.The availability of coal is more stable than other energy resources like oil or natural gas. People also realize that the world’s oil reserve is decreasing. In addition, renewable energy is still in the process of development and not all countries in the world can do it since it requires high budget.

b.Coal has lower price than other energy resources. Thus, it helps developing countries to proceed development in many sectors without having much difficulty with budget. Coal is affordable for many countries in the world, especially Asia and Afrika. Economy is critical for many all countries. That’s why many countries still depend on coals.

c.It’s not hard to get coal since it’s widely spread throughout the world. There are many places filled with coals especially in U.S and Asia. Thus, there won’t be any sudden scarcity to coals.

Furthermore, Malaysia will continue building coal-fired power plant to fulfill electricity demand. Thus, Malaysia needs to import coals from its neighbor like Indonesia. Indonesia has large coal reserves which can easily export their coal to another country. Coal Investors is one of coal mining companies from Indonesia, located in South Kalimantan.

Coal Investors own their own coal mines in South Kalimantan. Thus, coals are mined and distributed from the site. If you are interested to buy coals from Coal Investors, you can contact the company or visit it directly to see coal mining process. Coal Investors is coal mining company available for long-term contract as what client wants.

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