Uranium is ready to support Indonesia’s future energy needs. [Coal Asia magazine Vol. 69 ]

Uranium is ready to support Indonesia’s future energy needs.

Introduction.

The Jakarta Post article on “Nuclear power remains uncharted territory for RI” (10 May 2016) reported “that the Energy and Mineral resources Minister, Sudirman Said, who serves as the National Energy Council (DEN) chairman, said that it would propose to the President the possibility of developing nuclear energy if the government failed to meet its renewable energy goal by 2025”. I understand that it typically takes about 10 years to develop a nuclear power plant, including the land acquisition, design, environmental approvals, construction etc. However this is likely to take longer for Indonesia to initially prepare comprehensive legislation to precede planning and construction. Furthermore, there is some discussion by the Indonesian Coal Mining Association that by 2035 the extraction of Indonesian coal reserves will become exhausted or simply more expensive. Therefore the ministerial discussion with the President on the development of the Indonesian nuclear industry is timely for securing Indonesia’s long term power needs.

This article takes a brief look at Indonesia’s uranium exploration industry, wherein most of the material is derived from public sources and some discussions with the BATAN mineral exploration team.

Nuclear fuel options.

In the same Jakarta post article (10 May 2016) minister Saleh Husin recommends that the country start developing thorium based nuclear power plants to make use of the abundant thorium resources in the Banka Belitung Islands. A quick on-line review of such reactors indicates that the thorium is first stimulated by a radioactive seed of uranium / plutonium so that the thorium becomes an unstable isotope, and thus useable as an energy source. It would seem there have been a number of significant trials using thorium, but I interpret the operative part of the ministers recommendation of “start developing” is that Indonesia may need to conduct a significant amount of academic and technical research, wherein the outcome is not assured.

Uranium fueled plants may be preferable for Indonesia, following China’s lead of applying such fuel sources to many of its nuclear power plants. Wikipedia states that – “As of March 2016, the People’s Republic of China has 33 nuclear reactors operating with a capacity of 28.8 GW and 22 under construction with a capacity of 22.1 GW.  Additional reactors are planned, providing 58 GW of capacity by 2020. The new nuclear safety plan states that beyond 2016 only Generation III plants will be started, and until then only a very few Generation II+ plants will be built.” Clearly the Japan earthquake and tsunami indicates their reactors should have been places on the west coast of Japan – away from the plate tectonic boundary. Similarly the north coast of Java may provide a relatively protected tectonic environment, as most building designs can be engineered to withstand modest earthquakes. Indeed Jakarta is preparing to construct a 100 story building in the midst of a high population density part of the city.

Indonesian nuclear fuel resources.

The above news item states “the Industry Ministry shows that there are potentially 170,000 tons of thorium reserves in Banka, Belitung”. Perhaps we can forgive the Industry Ministry for their unclear distinction between resources and reserves. The 2015 Integrated Report by PT. Timah (Persero) Tbk simply mentions (page 154) that minerals associated with tin includes zircon, ilmenite, monazite and rare earth minerals (REE). The public report does not quantify nor place a value on such associated minerals. However there is certainly much more monazite mineral (containing thorium & some uranium) in other deposits around Indonesia. The center for geological resource indicates a hypothetical resource of 1.5 billion tones of monazite throughout Indonesia. A pilot plant of monazite processing on Banka Island was to be commissioned in mid 2015. The present value of thorium is very high because the demand for the refined metal is very low, however the price is likely to drop very significantly once thorium reactors move into production.

Uranium exploration is undertaken only by the Centre for Development of Nuclear Ore and Geology of the National Nuclear Energy Agency (BATAN) of Indonesia.  Exploration commenced in the 1960’s with regional surveys to develop an inventory, and was expanded with various drilling and detailed surveys from 2000 onwards. There are a number of public records giving slightly different figures for Indonesia’s uranium resources. The OECD report of 2014 tabulates Indonesia’s inferred resources (at USD 130 – 260 /kgU) at 2,444tonnes insitu uranium oxide and suggests a mining recovery factor of 75% from an underground metamorphic rock source. A 2012 BATAN presentation mentions there are a number of indicated and speculated uranium resources around Indonesia, including a potential resources of 3,800 ton (U308) in West Kalimantan. The Indonesian embassy in Vienna remarks “It appears that Indonesia has two established mines, both in West Kaliamantan uranium district. The first, Remaja-Hitam ore body is a uranium vein in fine grained metamorphic rock and is thought to contain between 5,000 and 10,000 tons of uranium oxide with a grade range between 0.10 and 0.30 %U3O8. Also, known as the Edo-Remaja prospect, this reserve is reportedly capable of providing Indonesia with a supply of yellowcake sufficient to meet domestic needs for planned reactors. The second mine, Rirang –Thanah Merah ore body is also a uranium vein in fine grained metamorphic rock, and is thought to contain less than 500 tons Uranium oxide and have a grade range of between 0.30 and 1.00 %U3O8. The aforementioned mines are currently thought to be dormant.” Note that this potential productivity is consistent with a 2013 BATAN publication (Agus Sumaryanto) wherein a research and development program had completed a pilot plant for Uranium Oxide ore with a feed capacity of 2 tons of ore/day at Kalan (West Kalimantan). Note that fissionable uranium isotope 235 typically comprises only about 0.7% of uranium oxide, and that the first stage of enrichment (not available in Indonesia) requires this 235 isotope to reach about 5-6%.

Various BATAN reference indicate there is significant exploration potential in many parts of Indonesia for thorium and uranium. One BATAN press release indicates that until 2016 there may be 77,000 tons of uranium resources and 133,000 tons of thorium scattered across various deposits in Indonesia. Indeed BATAN has conducted follow up surveys and some drilling at a number of sites. BATAN has prepared a map to outline enormous areas of Indonesia for prospective radioactive mineral exploration. Some BATAN publications acknowledge that it is beyond their financial capability to thoroughly explore and develop such vast areas, and BATAN may considered some form of cooperation with investors.

Nuclear Regulations.

Law number 10/1997 is the principal law pertaining to nuclear energy. This law clearly is designed to promote the exploration and development of uranium, as expressed by the considerations for developing the law, as includes “their use for national development & a prosperous society”, “improve the prosperity and competitiveness of the nation”, “nuclear energy is done properly and carefully, and is intended for peaceful purposes and profits as much as possible for the welfare and prosperity of the people”. The Government established an Executive Agency to carry out various tasks, including “exploration and exploitation of nuclear minerals”. This agency is developed under a supervisory board that reports directly to the President. The executive agency – “in carrying out general investigations, exploration and exploitation of nuclear minerals may cooperate with SOE’s, cooperatives, private entities”. The explanation notes accompanying the law makes it clear that nuclear material must be owned and controlled by the state. The explanation also provides a guide, based on the International Atomic Energy Agency (IAEA) to the degree of radiation that defines a typical radioactive substance as “Radioactive material is any substance that emits ionizing radiation with a specific activity greater than 70 kBq / kg or 2 nCi / g (seventy kilobecquerel per kilogram or two nanocurie per gram)”. Indeed this definition is worked into the draft new mining law.

Presidential Regulation 103 of 2001 sets out the administrative functions and working procedures of a number of non department government agencies (LPND) such as the state library etc, and includes the nuclear energy supervisory agency (BAPETEN) and the national nuclear energy agency (BATAN) etc. These agencies tasks include assessment and formulation of national policy in their areas. It is interesting to note that coordination with the various ministries (Article 106) does not include the Minister for Mines & Energy. The 6^th amendment of 103/2001 (Presidential Decree 11/2005) relates to this coordination clause 106 and specifically refers BAPETEN & BATAN, plus others to coordinate with the state minister for research & technology.

Exploration.

Exploration for uranium & thorium is undertaken within BATAN by the Center for Nuclear Minerals Technology, headed by Ir Agus Sumaryanto.  Note that Coal Asia Vol. 50 presented an article wherein Ir Agus discussed rare earth minerals. Currently their exploration section contains 14 geologists with 2 to 25 years experience (most about 7 years) and a budget of around $400,000 (Rp 5 M) / year. The exploration results are regularly published in the journal Eksplorium [http://jurnal.batan.go.id/index.php/eksplorium ], and they cooperate with the International Atomic Energy Agency (IAEA) regarding publishing resources & reserves.

The exploration division is reviewing various professional affiliations [UNCF, KCMI, JORC, SNI etc] to determine a competent person status to certify the quality of such reserve reporting, with a preference for a UN code. Such professional certification will be needed once a decision is made to formalize the resources & reserves in preparation for commercial exploitation. The Indonesian geological associations of MEGI & IAG have begun talking with BATAN geologists on professional certification for their formal recognition of their geological skills and reporting. BATAN has a number of cooperation agreements with China, France, Germany for nuclear power plants, but finds it difficult to have a significant cooperation agreements on exploration. BATAN exploration is not based upon a firm tenement system (such as IUPK) but under a “special permit to enter” issued by the state. Before entering an area, BATAN undertakes socialization with the local government and communities. All minerals belong to the state (metal, non metal & radioactive), however the Mining law 4/2009 (and the draft new mining law) does not provide for tenements for nuclear minerals, perhaps assuming that BATAN has sole authority to manage their extraction and processing. There is clearly a potential for overlapping of uranium mines with existing mineral & coal IUP’s or other tenements.  Perhaps there is the opportunity to be unaffected by some forestry restrictions.

Discussion.

It would seem that the ESDM should work closer with BATAN on a number of technical issues. The ESDM allows PT. Timah and others to mine alluvial tin from sands which also contains minor amounts of monazite. This monazite is presumably of low radiation potential as it is diluted within the ore sands, and is typically returned to the earth as part of the waste disposal process. However should PT. Timah wish to capture and retain the monazite in its concentrate, then this will need to be undertaken with some form of joint operation with BATAN.

An earlier Coal Asia magazine article drew attention to the export of zircon, wherein some of the zircon contained high background levels of uranium & thorium. Such radioactive minerals are typically considered as a contaminant that imposes a price penalty on the zircon. Such cheap zircon may end up as abrasion for making sand-paper or similar low value products. The more pure zircon is required for the higher value refractory bricks or paint-ceramic dye. However BATAN raises a valid concern that such tiny amounts of diluted uranium are not being adequately tracked to their end use as may be required for more tradition international uranium trade requirements.  It is recognized that the zircon export business may not be thoroughly monitored (similar to poor monitoring in the alluvial tin and gold mineral products), wherein there is scope for illegal exports.

Political overview.

The Indonesian constitution effectively says that God placed minerals in the ground for the benefit of the people, wherein the government then assumes the authority to manage the extraction of such minerals. With regards to Uranium and other radioactive minerals, the government’s policy has been to leave such minerals in the ground as a “benefit to the people” reflecting some form of public safety measure. Indeed the Mines Department has more recently opted for leaving raw minerals (nickel, bauxite etc) in the ground as another interpretation of “benefit for the people” wherein such perception of benefit is linked to value adding  of smelting etc.

The issue of public safety around the uranium is now debated more openly, with anti nuclear activists pointing to various nuclear reactor incidents. Other scientists point to improved technology and safety measures to promote the use of nuclear energy, along with lower carbon emissions. There is a growing public awareness that Indonesia’s coal and oil will not be sufficient for the next century, and that renewable energy options have certain limitations. Indonesia’s growing sophisticated urbanization is hungry for more power – with the near future wanting an expanded electric powered manufacturing industries, growing electric train service, high density living (needing lifts, air conditioners, electric cooking) plus a future where electric cars and bikes want overnight recharging. Nuclear power will come, and it will take years of socialization and construction.

Conclusion.

The published geological findings are of great interest to professional geologist, who may help the wider public reduce the unjustified fear of the uranium industry. There is the potential for international uranium geologists to come to Indonesia to study the unique island ach geology for uranium ore settings.