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Tuesday, 27 December 11
MINERS MAKE CASE FOR RESUMING CONTRACT NEGOTIATIONS - THE JAKARTA POST
The Jakarta Post reported that, problems with the renegotiation of mining contracts in the country are far from over, as agreements on several crucial issues are still yet to be found.
The government remains adamant that it will not compromise on its intention to ramp up state revenues by increasing royalties, while miners on the other hand insist that some points in the 2009 minerals and coal law are “irrational” and may create uncertainty in terms of the outcome of their investments.
The Indonesian Mining Association (IMA) revealed that renegotiations had stalled due to three major issues: the size of mining areas, state revenues and contract extensions.
In a bid to make progress on the stagnant talks between the government and miners, the association proposed solutions to the three issues based on what it saw as fair for both parties. With the proposals, it expected that deals would be made, which would foster an air of certainty in relation to operations.
On the issue of state revenues, the association claimed that it was hard for mining companies to adjust the amount of royalties to the level set by the government in the 2003 regulation on tariffs for non-tax revenues for the energy and mineral resources sector (3.75 percent of sales for gold, 3.25 percent for silver and 4 percent for copper).
“If the government wants to raise royalties, it also has to think about other financial obligations paid by companies, such as the corporate income tax, the amount of which is still 35 percent even though the 2008 law on income tax revised it to 25 percent,” said Syahrir AB, an executive director of the IMA, in Jakarta on Monday.
The government could not force mining companies to pay higher royalties without adjusting its other financial obligations because such economic burdens would reduce the profitability of their projects, he explained.
If the goal was to raise state revenues from the mining sector, he suggested that the government apply a threshold for mining companies’ profits. For example, if a company made a profit margin of more than 25 percent due to the soaring prices of commodities, the government could apply an additional tax, he added.
The second suggestion was related to the size of mining areas. The association said most mining companies needed at least 70,000 hectares to make a mining project “economical”. However, the 2009 law on minerals and coal determined that the maximum size for mineral mining was 25,000 hectares, with coal mining at 15,000 hectares.
“In our last meeting with the government, it understood our reasons. The government agreed that the size of an area granted to a company would be judged based on the long-term plan it proposed to the government,” Syahrir reported.
That model requires the Energy and Mineral Resources Ministry to have the human resources to review the plan and judge whether the size of area proposed by a company is reasonable or not. If the reviewers say that the proposal is unreasonable, the government can grant the permit for a smaller area.
The third suggestion was about the contract extension. Currently, mining companies can extend the contract by “two times 10 years”, but the authority to grant approval for the extension is in the hands of the head of regions by issuing mining permits. The association deems that the model creates uncertainty over the future of mining projects. It suggests that the contract extension clause is included into mining contracts (KK) and contracts of work (PKP2B).
The director general for minerals and coal at the Energy and Mineral Resources Ministry, Thamrin Sihite, said that out of 42 mining contract holders and 76 contracts of work, there were companies that agreed to all renegotiation points, and some that partially agreed and disagreed.
“About the suggestion in relation to the size of area, the government will review it first, if the proposal is in line with the government vision, we may approve it,” he said over the phone.
However, he reminded that renegotiations had to be looked at on case by case basis as each company had different problems.
IMA proposals:
•The implementation of a profit threshold to allow the government to tax mining companies if the latter’s profit margins exceed the threshold.
•Determine the mining area based on the profitability of each mining project. The IMA estimates that a company needs at least 70,000 hectares to make a project profitable.
•Contract extensions have to be included into mining contracts (KK) and contracts of work (PKP2B) to create certainty.
Source: The Jakarta Post
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Tuesday, 01 November 11
DRY BULK MARKETS CORRECTION SPILLS OVER ONTO NEW WEEK - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market is losing steam, as evidenced by the falls experienced last week, which were also apparent at the beginning of the new week. A l ...
Monday, 31 October 11
CHINAS HUNGER FOR INDONESIAN COAL AT THREE YEAR-HIGH AS WINTER NEARS - JOSEPH KIRSCHKE
COALspot.com - Chinese demand for power-station coal from Indonesia has soared to its highest level in three years, as central heating plants and po ...
Saturday, 29 October 11
ATLAS RESOURCES SEALS US$95 MIO LOAN - INSIDER STORIES
Insider Stories reported that, coal producer PT Atlas Resources Tbk, that is controlled by Indonesian businessman Andre Abdi, has secured US$95 mill ...
Saturday, 29 October 11
INDONESIA TO INDIA FREIGHT LIKELY TO REMAIN SOFT
COALspot.com - The market continued to slow down and all segment were down this week.
The biggest drop was in the Cape Index down by 8.19 pct&nbs ...
Friday, 28 October 11
RISING COAL PRICES TO WORSEN CHINA'S WINTER POWER CRUNCH - CRI ENGLISH
CRI English reported that, the rising price of coal is fueling concerns about a power crunch set to plague China this winter, analysts said.
The ...
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- Indogreen Group - Indonesia
- Vizag Seaport Private Limited - India
- Kaltim Prima Coal - Indonesia
- European Bulk Services B.V. - Netherlands
- Neyveli Lignite Corporation Ltd, - India
- Billiton Holdings Pty Ltd - Australia
- Oldendorff Carriers - Singapore
- Ministry of Finance - Indonesia
- Indonesian Coal Mining Association
- PNOC Exploration Corporation - Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Chettinad Cement Corporation Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Chamber of Mines of South Africa
- IHS Mccloskey Coal Group - USA
- Kideco Jaya Agung - Indonesia
- Gujarat Sidhee Cement - India
- Madhucon Powers Ltd - India
- Jaiprakash Power Ventures ltd
- Siam City Cement PLC, Thailand
- Goldman Sachs - Singapore
- The University of Queensland
- Indo Tambangraya Megah - Indonesia
- Medco Energi Mining Internasional
- Bukit Asam (Persero) Tbk - Indonesia
- Cement Manufacturers Association - India
- Alfred C Toepfer International GmbH - Germany
- Global Coal Blending Company Limited - Australia
- Latin American Coal - Colombia
- Thai Mozambique Logistica
- Electricity Generating Authority of Thailand
- McConnell Dowell - Australia
- Karbindo Abesyapradhi - Indoneisa
- Global Green Power PLC Corporation, Philippines
- Borneo Indobara - Indonesia
- Africa Commodities Group - South Africa
- Pendopo Energi Batubara - Indonesia
- Economic Council, Georgia
- Orica Mining Services - Indonesia
- Heidelberg Cement - Germany
- Trasteel International SA, Italy
- Kalimantan Lumbung Energi - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PowerSource Philippines DevCo
- Bukit Baiduri Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Deloitte Consulting - India
- Larsen & Toubro Limited - India
- ICICI Bank Limited - India
- Banpu Public Company Limited - Thailand
- Indian Oil Corporation Limited
- Coalindo Energy - Indonesia
- Agrawal Coal Company - India
- India Bulls Power Limited - India
- VISA Power Limited - India
- The Treasury - Australian Government
- Minerals Council of Australia
- Star Paper Mills Limited - India
- Eastern Energy - Thailand
- Commonwealth Bank - Australia
- Price Waterhouse Coopers - Russia
- Sree Jayajothi Cements Limited - India
- Kepco SPC Power Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Straits Asia Resources Limited - Singapore
- Simpson Spence & Young - Indonesia
- PTC India Limited - India
- Anglo American - United Kingdom
- Krishnapatnam Port Company Ltd. - India
- Sindya Power Generating Company Private Ltd
- Standard Chartered Bank - UAE
- Maharashtra Electricity Regulatory Commission - India
- Siam City Cement - Thailand
- Parry Sugars Refinery, India
- Savvy Resources Ltd - HongKong
- Directorate General of MIneral and Coal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Independent Power Producers Association of India
- Posco Energy - South Korea
- Global Business Power Corporation, Philippines
- Indika Energy - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Rio Tinto Coal - Australia
- Bahari Cakrawala Sebuku - Indonesia
- MS Steel International - UAE
- Maheswari Brothers Coal Limited - India
- Merrill Lynch Commodities Europe
- GAC Shipping (India) Pvt Ltd
- Thiess Contractors Indonesia
- Electricity Authority, New Zealand
- Carbofer General Trading SA - India
- Bukit Makmur.PT - Indonesia
- Lanco Infratech Ltd - India
- Riau Bara Harum - Indonesia
- Petron Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Vedanta Resources Plc - India
- Ind-Barath Power Infra Limited - India
- Rashtriya Ispat Nigam Limited - India
- The State Trading Corporation of India Ltd
- Ministry of Transport, Egypt
- Bhoruka Overseas - Indonesia
- SMG Consultants - Indonesia
- Edison Trading Spa - Italy
- Aboitiz Power Corporation - Philippines
- Xindia Steels Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bangladesh Power Developement Board
- Bayan Resources Tbk. - Indonesia
- Interocean Group of Companies - India
- Baramulti Group, Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Bulk Trading Sa - Switzerland
- Gujarat Mineral Development Corp Ltd - India
- Kartika Selabumi Mining - Indonesia
- Tata Chemicals Ltd - India
- Coal and Oil Company - UAE
- Samtan Co., Ltd - South Korea
- Kapuas Tunggal Persada - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Semirara Mining Corp, Philippines
- Holcim Trading Pte Ltd - Singapore
- New Zealand Coal & Carbon
- Toyota Tsusho Corporation, Japan
- Sarangani Energy Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- Bank of Tokyo Mitsubishi UFJ Ltd
- SMC Global Power, Philippines
- Central Java Power - Indonesia
- Power Finance Corporation Ltd., India
- Altura Mining Limited, Indonesia
- Therma Luzon, Inc, Philippines
- Ministry of Mines - Canada
- GMR Energy Limited - India
- Bhatia International Limited - India
- White Energy Company Limited
- Sical Logistics Limited - India
- Timah Investasi Mineral - Indoneisa
- GVK Power & Infra Limited - India
- Energy Link Ltd, New Zealand
- Port Waratah Coal Services - Australia
- LBH Netherlands Bv - Netherlands
- Asmin Koalindo Tuhup - Indonesia
- Bhushan Steel Limited - India
- GN Power Mariveles Coal Plant, Philippines
- TeaM Sual Corporation - Philippines
- Planning Commission, India
- Central Electricity Authority - India
- Binh Thuan Hamico - Vietnam
- Formosa Plastics Group - Taiwan
- Kumho Petrochemical, South Korea
- Malabar Cements Ltd - India
- Energy Development Corp, Philippines
- Videocon Industries ltd - India
- Georgia Ports Authority, United States
- Dalmia Cement Bharat India
- San Jose City I Power Corp, Philippines
- Mercuria Energy - Indonesia
- Leighton Contractors Pty Ltd - Australia
- ASAPP Information Group - India
- Indian Energy Exchange, India
- Pipit Mutiara Jaya. PT, Indonesia
- Ambuja Cements Ltd - India
- Meralco Power Generation, Philippines
- South Luzon Thermal Energy Corporation
- Sojitz Corporation - Japan
- OPG Power Generation Pvt Ltd - India
- Australian Coal Association
- Aditya Birla Group - India
- Makarim & Taira - Indonesia
- Attock Cement Pakistan Limited
- CNBM International Corporation - China
- Antam Resourcindo - Indonesia
- Mercator Lines Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- London Commodity Brokers - England
- Globalindo Alam Lestari - Indonesia
- Mjunction Services Limited - India
- Miang Besar Coal Terminal - Indonesia
- Parliament of New Zealand
- Meenaskhi Energy Private Limited - India
- Metalloyd Limited - United Kingdom
- CIMB Investment Bank - Malaysia
- Barasentosa Lestari - Indonesia
- Wood Mackenzie - Singapore
- Romanian Commodities Exchange
- Orica Australia Pty. Ltd.
- Wilmar Investment Holdings
- Uttam Galva Steels Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Iligan Light & Power Inc, Philippines
- IEA Clean Coal Centre - UK
- Coastal Gujarat Power Limited - India
- Mintek Dendrill Indonesia
- Eastern Coal Council - USA
- Tamil Nadu electricity Board
- Marubeni Corporation - India
- AsiaOL BioFuels Corp., Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Jindal Steel & Power Ltd - India
- Bharathi Cement Corporation - India
- Ceylon Electricity Board - Sri Lanka
- Directorate Of Revenue Intelligence - India
- Singapore Mercantile Exchange
- Renaissance Capital - South Africa
- Australian Commodity Traders Exchange
- Grasim Industreis Ltd - India
- SN Aboitiz Power Inc, Philippines
- Sakthi Sugars Limited - India
- Manunggal Multi Energi - Indonesia
- Karaikal Port Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
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