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Monday, 27 April 09
INDONESIA MINING RULES MAY DETER INVESTORS-OFFICIALS - REUTERS
Indonesia's rules on foreign divestment of mining projects must be revised to address issues such as finding buyers if Southeast Asia's biggest economy is to attract new investment in the sector, industry officials said.
The issue of divestment, whereby foreign investors are required to sell down their stakes in local units, has led to several disputes involving global players.
A local unit of Newmont Mining Corp (NEM.N) is currently involved in an arbitration case over share divestment. In 2003, Rio Tinto (RIO.AX) and BP (BP.L) were embroiled in a long legal battle over the sale of a stake in PT Kaltim Prima Coal (KPC)
A new mining law passed in December requires foreign investors to divest shares to either the government, state-owned enterprises, and/or a local private entity after the fifth year of commercial production.
The previous mining law, dating from 1967, did not include this requirement. However, some mining companies, including PT Newmont Nusa Tenggara (NNT), were required to divest some of their shares to the government and local investors according to the terms of their contract of works with the government.
"The main concern for investors is the divestiture process that KPC and Newmont experienced was bad, because the provision in the contract of works was not well drafted," said Bob Parsons, an independent mining consultant.
"The divestiture provision will discourage foreign investment because it's against international business practices," he added.
The new mining law promises more certainty for investors, but also includes some contentious issues, with contracts of work replaced by shorter-term mining permits.
Priyo Pribadi Soemarno, executive director of the Indonesian Mining Association, said the five-year divestiture period was too short.
"Mining is a long-term business and is financed through loans. They need time to reach break-even point, repay the loan before starting to sell their shares, and five years is not sufficient," Soemarno said.
"We are not against divestiture. But it should not make it difficult for foreign investors to do it."
The association warns that mining investment in Indonesia may drop below $1 billion this year, adding that there may be no fresh projects as metal prices fall and miners await details of the new mining bill including the divestiture provision.
The government is more upbeat, saying mining and geothermal investment could hit $2.24 billion, up from $1.6 billion in 2008.
GOING PUBLIC?
One of the main obstacles for a foreign investor is finding a buyer, as shown by Newmont's experience with its unit, NNT, which operates the Batu Hijau copper and gold mine in Sumbawa.
Under its contract of work, Newmont must sell 51 percent of its shares in the unit to local investors, with the finance ministry having first right of refusal on all the share sales.
The Indonesian authorities said Newmont had not sold its shares quickly enough, even though the finance ministry did not take up the offer to buy the shares because of limited funds and other spending priorities, leading to a dispute.
An arbitration court ruled earlier this month that Newmont must sell a 17 percent stake to the government within 180 days.
"It is easy for the law to mandate companies to sell their shares but when there is no buyer, what should they do?" said Parsons. "The regulations should anticipate various scenarios."
One solution, analysts suggest, is to allow foreign investors to list shares in the local venture on the stock exchange.
That strategy was used by PT International Nickel Indonesia Tbk -- in which Brazil's Vale Inco Ltd has a 60.8 percent stake -- when it sold a 20 percent stake in an initial public offering in 1990.
The government is now drafting the implementing regulations for the new law, including regulations on divestiture.
"We are discussing various options, including whether to release miners from the obligation to divest their shares if they cannot find buyers within a certain period," said an energy and mines ministry official, who asked not to be identified by name.
Source: http://uk.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUKJAK50340220090427?sp=true
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Sunday, 26 April 09
INDONESIAN GOVT SAYS COAL MINES CAUSE WEEKLONG FLOOD - THE JAKARTA POST
Samarinda administration in East Kalimantan admitted openly Thursday that the weeklong flood that paralyzed the city was caused by unruly management ...
Saturday, 25 April 09
FOREIGN SHARE DIVESTMENT STARTING THE 6TH YEAR OF PRODUCTION - MAJALAH TAMBANG
The government would set a divestment scheme for foreign miners, which would require companies to divest their ownership starting the 6th year of pr ...
Saturday, 25 April 09
INDO TAMBANGRAYA MEGAH ALLOCATED USD 126 MILLION FOR CAPITAL SPENDING - MAJALAH TAMBANG
Somyot Ruchirawat, President Director of PT Indo Tambangraya Megah, Tbk (ITMG), has announced the company's total dividend payment of Rp 1,345 per ...
Saturday, 25 April 09
MINING SECTOR IS STILL ON THE SURPLUS - THE JAKARTA POST
The global financial crisis is apparently also having an impact on the mining sector. People are thinking twice about investing in the mining sector ...
Saturday, 25 April 09
ADARO RUNS CATARACT OPERATION PROGRAM - THE JAKARTA POST
As part of its CSR program, thermal coal producer PT Adaro Indonesia has made cataract operations available to residents of Tandjung district, South ...
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- Attock Cement Pakistan Limited
- Binh Thuan Hamico - Vietnam
- Heidelberg Cement - Germany
- Independent Power Producers Association of India
- Bukit Baiduri Energy - Indonesia
- The State Trading Corporation of India Ltd
- Savvy Resources Ltd - HongKong
- Star Paper Mills Limited - India
- Sical Logistics Limited - India
- Baramulti Group, Indonesia
- Malabar Cements Ltd - India
- Orica Mining Services - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Kaltim Prima Coal - Indonesia
- Rio Tinto Coal - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Samtan Co., Ltd - South Korea
- Marubeni Corporation - India
- Kalimantan Lumbung Energi - Indonesia
- Deloitte Consulting - India
- Grasim Industreis Ltd - India
- Ind-Barath Power Infra Limited - India
- Makarim & Taira - Indonesia
- Indian Oil Corporation Limited
- Gujarat Mineral Development Corp Ltd - India
- Coastal Gujarat Power Limited - India
- Salva Resources Pvt Ltd - India
- Tata Chemicals Ltd - India
- Kobexindo Tractors - Indoneisa
- Eastern Coal Council - USA
- Maheswari Brothers Coal Limited - India
- Madhucon Powers Ltd - India
- CIMB Investment Bank - Malaysia
- Interocean Group of Companies - India
- McConnell Dowell - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Leighton Contractors Pty Ltd - Australia
- The Treasury - Australian Government
- Thai Mozambique Logistica
- White Energy Company Limited
- VISA Power Limited - India
- Central Java Power - Indonesia
- GVK Power & Infra Limited - India
- International Coal Ventures Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Vizag Seaport Private Limited - India
- Kumho Petrochemical, South Korea
- Sindya Power Generating Company Private Ltd
- Standard Chartered Bank - UAE
- Gujarat Sidhee Cement - India
- Krishnapatnam Port Company Ltd. - India
- Karbindo Abesyapradhi - Indoneisa
- Jorong Barutama Greston.PT - Indonesia
- Ministry of Mines - Canada
- Videocon Industries ltd - India
- Intertek Mineral Services - Indonesia
- Medco Energi Mining Internasional
- Posco Energy - South Korea
- Coalindo Energy - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Iligan Light & Power Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Bangladesh Power Developement Board
- Bhatia International Limited - India
- MS Steel International - UAE
- Banpu Public Company Limited - Thailand
- Essar Steel Hazira Ltd - India
- Bharathi Cement Corporation - India
- Petron Corporation, Philippines
- Africa Commodities Group - South Africa
- Larsen & Toubro Limited - India
- Vedanta Resources Plc - India
- Jaiprakash Power Ventures ltd
- Gujarat Electricity Regulatory Commission - India
- Sojitz Corporation - Japan
- Kideco Jaya Agung - Indonesia
- Indogreen Group - Indonesia
- Xindia Steels Limited - India
- Indonesian Coal Mining Association
- Price Waterhouse Coopers - Russia
- PNOC Exploration Corporation - Philippines
- Minerals Council of Australia
- Cement Manufacturers Association - India
- Oldendorff Carriers - Singapore
- Australian Commodity Traders Exchange
- Ambuja Cements Ltd - India
- ICICI Bank Limited - India
- Carbofer General Trading SA - India
- Sakthi Sugars Limited - India
- Metalloyd Limited - United Kingdom
- Planning Commission, India
- Georgia Ports Authority, United States
- Altura Mining Limited, Indonesia
- Mercuria Energy - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Renaissance Capital - South Africa
- Agrawal Coal Company - India
- Uttam Galva Steels Limited - India
- Timah Investasi Mineral - Indoneisa
- TeaM Sual Corporation - Philippines
- Electricity Generating Authority of Thailand
- Bhoruka Overseas - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- The University of Queensland
- Bukit Makmur.PT - Indonesia
- South Luzon Thermal Energy Corporation
- Vijayanagar Sugar Pvt Ltd - India
- New Zealand Coal & Carbon
- Chettinad Cement Corporation Ltd - India
- Romanian Commodities Exchange
- Straits Asia Resources Limited - Singapore
- Electricity Authority, New Zealand
- Siam City Cement - Thailand
- Singapore Mercantile Exchange
- Ministry of Transport, Egypt
- Power Finance Corporation Ltd., India
- Kartika Selabumi Mining - Indonesia
- Global Business Power Corporation, Philippines
- Meralco Power Generation, Philippines
- Trasteel International SA, Italy
- Anglo American - United Kingdom
- GN Power Mariveles Coal Plant, Philippines
- Simpson Spence & Young - Indonesia
- Indika Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- Central Electricity Authority - India
- Eastern Energy - Thailand
- Bhushan Steel Limited - India
- Edison Trading Spa - Italy
- Ceylon Electricity Board - Sri Lanka
- Manunggal Multi Energi - Indonesia
- Globalindo Alam Lestari - Indonesia
- LBH Netherlands Bv - Netherlands
- Commonwealth Bank - Australia
- Meenaskhi Energy Private Limited - India
- Chamber of Mines of South Africa
- Energy Link Ltd, New Zealand
- Merrill Lynch Commodities Europe
- Holcim Trading Pte Ltd - Singapore
- SMC Global Power, Philippines
- India Bulls Power Limited - India
- Antam Resourcindo - Indonesia
- Semirara Mining Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sree Jayajothi Cements Limited - India
- Aditya Birla Group - India
- Riau Bara Harum - Indonesia
- Port Waratah Coal Services - Australia
- ASAPP Information Group - India
- Thiess Contractors Indonesia
- GAC Shipping (India) Pvt Ltd
- PTC India Limited - India
- Barasentosa Lestari - Indonesia
- Ministry of Finance - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- European Bulk Services B.V. - Netherlands
- Cigading International Bulk Terminal - Indonesia
- Therma Luzon, Inc, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Goldman Sachs - Singapore
- Bayan Resources Tbk. - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Jindal Steel & Power Ltd - India
- Pendopo Energi Batubara - Indonesia
- Energy Development Corp, Philippines
- Indian Energy Exchange, India
- Wood Mackenzie - Singapore
- Alfred C Toepfer International GmbH - Germany
- OPG Power Generation Pvt Ltd - India
- SMG Consultants - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Dalmia Cement Bharat India
- Australian Coal Association
- Mercator Lines Limited - India
- Karaikal Port Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- CNBM International Corporation - China
- Siam City Cement PLC, Thailand
- IEA Clean Coal Centre - UK
- Parliament of New Zealand
- Asmin Koalindo Tuhup - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Parry Sugars Refinery, India
- Semirara Mining and Power Corporation, Philippines
- Bulk Trading Sa - Switzerland
- Indo Tambangraya Megah - Indonesia
- Borneo Indobara - Indonesia
- Global Green Power PLC Corporation, Philippines
- Formosa Plastics Group - Taiwan
- Kohat Cement Company Ltd. - Pakistan
- Bank of Tokyo Mitsubishi UFJ Ltd
- SN Aboitiz Power Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Sarangani Energy Corporation, Philippines
- London Commodity Brokers - England
- Wilmar Investment Holdings
- Mintek Dendrill Indonesia
- PowerSource Philippines DevCo
- Mjunction Services Limited - India
- Kepco SPC Power Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GMR Energy Limited - India
- San Jose City I Power Corp, Philippines
- Tamil Nadu electricity Board
- Coal and Oil Company - UAE
- Global Coal Blending Company Limited - Australia
- Economic Council, Georgia
- AsiaOL BioFuels Corp., Philippines
- Lanco Infratech Ltd - India
- Latin American Coal - Colombia
- Orica Australia Pty. Ltd.
- Aboitiz Power Corporation - Philippines
- Kapuas Tunggal Persada - Indonesia
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