Until the coal arrives
About the uses and demand for coal in Japan
Coal is an energy source that is easy to provide stably and is economically efficient. It can be mined for a longer period of time than other fossil fuels such as oil, and because it is found in more dispersed regions, a stable supply can be expected. Additionally, the price is lower and more stable than crude oil or LNG gas, and it is possible to generate electricity at a lower cost than thermal power generation using LNG gas.
Renewable energy in Japan is in a difficult situation to control due to price issues and instability in power generation. Under these circumstances, Japan, which lacks energy Resources that can be stably supplied, needs to utilize coal with these characteristics to a certain extent.
Source: Ministry of Economy, Trade and Industry Resources
Idemitsu Kosan’s coal business
We have built an integrated supply chain in Australia, from mine operations to logistics, sales, and after-sales services, to provide a stable supply of coal to our customers.
Until the coal arrives
Mine operations in Australia
Our company operates mines in Australia, which is rich in coal Resources. From fiscal 2023 onwards, we will not increase production through new coal mine development or large-scale investments, and will concentrate our production activities at Boggabri Mine.
Boggabri Mine produces high-grade coal, is highly competitive as a mine, and serves as a supply source for Japan.
| Operating mine | state | Production volume (million tons/year) * | Interest (%) |
|---|---|---|---|
| Bogabrai | new south wales | 4.6 | 80 |
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The production volume of the mine is equivalent to the interest. (2022)
Sourcing from the Asia-Pacific market
We source extensively not only from Australian mines but also from the Asia-Pacific market. We have established bases in Indonesia (Jakarta) and China (Beijing) to ensure stable procurement of purchased coal and to develop new supply sources.
Transportation/coal storage
Coal that is procured and mined at mines is transported and shipped by train, ship, etc. If it comes from Australia, it will take about 15 days to be transported to Japan.
Coal unloaded in Japan is transported to coal storage sites. The coal storage area of our group's coal storage yard (Idemitsu Bulk Terminal) is approximately 80,000 square meters, which is equivalent to an area the size of 1.7 Tokyo Dome, and can store approximately 350,000 tons of coal. We deliver coal directly to customers who have import terminals, and transport coal via bulk terminals to customers without transport terminals, achieving a stable supply.
sale
In addition to power plants and steel mills, we provide a stable supply of coal to customers in many fields such as cement, chemicals, pulp and paper, gypsum, non-ferrous metals, and food.
In addition to direct sales to customers, we also sell by proposing optimal logistics using our group's bulk terminals.
In-house use
Our Refinery operates coal boilers for power generation and power. We use coal as our own fuel and have accumulated know-how to meet the needs of our customers.
Research and Development
At Coal & Environment Research Laboratory, Japan's only private research institute specializing in coal, we support our coal business and our customers' technical issues.