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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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Wednesday, 26 October 11
INDIAN MARKET WAS REMAINED TIGHT THE WHOLE LAST WEEK - BRS
The market once more seems to be at a crossroads. The indices last week remained fairly stable (except for the Panamax sector), ending the week as f ...
Tuesday, 25 October 11
DRY BULK MARKET STEADY, ANALYSTS LOOKING FOR ADDED PRESSURE ON THE MARKET - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market was unchanged on Monday, with the industry’s benchmark, the BDI (Baltic Dry Index) ending the session at 2,153 points, exa ...
Monday, 24 October 11
NEW HEAD OF INDONESIA'S MINING MINISTRY GETS RAKED OVER THE COALS - JOSEPH KIRSCHKE
COALspot.com - Following Indonesia’s presidential cabinet shakeup last week, many are questioning the qualifications of Energy and Mineral Res ...
Monday, 24 October 11
CHINA QINHUANGDAO COAL PRICE RISES TO HIGHEST IN THREE YEARS - BUSINESSWEEK
Business week reported that, China’s power-station coal price rose to the highest level in three years as power stations and central heating p ...
Monday, 24 October 11
CAPESIZE RENTAL RATES RISE FOR THIRD DAY AS MORE SHIPS HIRED - HELLENIC SHIPPING
Rates to hire capesize vessels advanced for a third day on signs of increased demand to transport iron ore, used to make steel.Daily rates for the s ...
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Showing 5011 to 5015 news of total 6871 |
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- Jaiprakash Power Ventures ltd
- Banpu Public Company Limited - Thailand
- Gujarat Sidhee Cement - India
- Oldendorff Carriers - Singapore
- Sarangani Energy Corporation, Philippines
- Wood Mackenzie - Singapore
- The Treasury - Australian Government
- Coalindo Energy - Indonesia
- Jindal Steel & Power Ltd - India
- Indonesian Coal Mining Association
- Bayan Resources Tbk. - Indonesia
- Bhoruka Overseas - Indonesia
- Bhushan Steel Limited - India
- Bulk Trading Sa - Switzerland
- Bhatia International Limited - India
- LBH Netherlands Bv - Netherlands
- Sree Jayajothi Cements Limited - India
- Ceylon Electricity Board - Sri Lanka
- ICICI Bank Limited - India
- Madhucon Powers Ltd - India
- New Zealand Coal & Carbon
- Georgia Ports Authority, United States
- Orica Australia Pty. Ltd.
- Xindia Steels Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Chamber of Mines of South Africa
- The State Trading Corporation of India Ltd
- Energy Development Corp, Philippines
- GAC Shipping (India) Pvt Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Formosa Plastics Group - Taiwan
- Indian Oil Corporation Limited
- Semirara Mining Corp, Philippines
- Rashtriya Ispat Nigam Limited - India
- Petron Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Commonwealth Bank - Australia
- Makarim & Taira - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Barasentosa Lestari - Indonesia
- Tata Chemicals Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Planning Commission, India
- Billiton Holdings Pty Ltd - Australia
- GMR Energy Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Salva Resources Pvt Ltd - India
- Vedanta Resources Plc - India
- Metalloyd Limited - United Kingdom
- Deloitte Consulting - India
- Power Finance Corporation Ltd., India
- Economic Council, Georgia
- Merrill Lynch Commodities Europe
- Orica Mining Services - Indonesia
- Star Paper Mills Limited - India
- Dalmia Cement Bharat India
- Gujarat Electricity Regulatory Commission - India
- Simpson Spence & Young - Indonesia
- Anglo American - United Kingdom
- SMC Global Power, Philippines
- Minerals Council of Australia
- Pendopo Energi Batubara - Indonesia
- Thai Mozambique Logistica
- Global Green Power PLC Corporation, Philippines
- San Jose City I Power Corp, Philippines
- TeaM Sual Corporation - Philippines
- PNOC Exploration Corporation - Philippines
- Maheswari Brothers Coal Limited - India
- Wilmar Investment Holdings
- Standard Chartered Bank - UAE
- Energy Link Ltd, New Zealand
- Central Electricity Authority - India
- Jorong Barutama Greston.PT - Indonesia
- Kaltim Prima Coal - Indonesia
- Indian Energy Exchange, India
- Central Java Power - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Binh Thuan Hamico - Vietnam
- Borneo Indobara - Indonesia
- Rio Tinto Coal - Australia
- Carbofer General Trading SA - India
- Electricity Authority, New Zealand
- SN Aboitiz Power Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- GVK Power & Infra Limited - India
- Price Waterhouse Coopers - Russia
- McConnell Dowell - Australia
- AsiaOL BioFuels Corp., Philippines
- International Coal Ventures Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Ministry of Finance - Indonesia
- Indo Tambangraya Megah - Indonesia
- Tamil Nadu electricity Board
- Samtan Co., Ltd - South Korea
- Port Waratah Coal Services - Australia
- Miang Besar Coal Terminal - Indonesia
- Trasteel International SA, Italy
- Uttam Galva Steels Limited - India
- Altura Mining Limited, Indonesia
- Karaikal Port Pvt Ltd - India
- Eastern Energy - Thailand
- European Bulk Services B.V. - Netherlands
- Sical Logistics Limited - India
- Vizag Seaport Private Limited - India
- Kideco Jaya Agung - Indonesia
- Interocean Group of Companies - India
- Australian Commodity Traders Exchange
- Leighton Contractors Pty Ltd - Australia
- Baramulti Group, Indonesia
- Antam Resourcindo - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- IEA Clean Coal Centre - UK
- Electricity Generating Authority of Thailand
- London Commodity Brokers - England
- Indogreen Group - Indonesia
- Larsen & Toubro Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Indika Energy - Indonesia
- Parry Sugars Refinery, India
- Coastal Gujarat Power Limited - India
- Riau Bara Harum - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Eastern Coal Council - USA
- Kumho Petrochemical, South Korea
- Grasim Industreis Ltd - India
- Thiess Contractors Indonesia
- Chettinad Cement Corporation Ltd - India
- Lanco Infratech Ltd - India
- OPG Power Generation Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Kartika Selabumi Mining - Indonesia
- Toyota Tsusho Corporation, Japan
- Australian Coal Association
- Neyveli Lignite Corporation Ltd, - India
- Latin American Coal - Colombia
- Timah Investasi Mineral - Indoneisa
- Mercuria Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- Mercator Lines Limited - India
- Alfred C Toepfer International GmbH - Germany
- MS Steel International - UAE
- Cement Manufacturers Association - India
- The University of Queensland
- Kalimantan Lumbung Energi - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Therma Luzon, Inc, Philippines
- Romanian Commodities Exchange
- Ambuja Cements Ltd - India
- Parliament of New Zealand
- Asmin Koalindo Tuhup - Indonesia
- PowerSource Philippines DevCo
- Heidelberg Cement - Germany
- Africa Commodities Group - South Africa
- CNBM International Corporation - China
- Bangladesh Power Developement Board
- Ind-Barath Power Infra Limited - India
- Aboitiz Power Corporation - Philippines
- Videocon Industries ltd - India
- Bharathi Cement Corporation - India
- Krishnapatnam Port Company Ltd. - India
- Maharashtra Electricity Regulatory Commission - India
- Kepco SPC Power Corporation, Philippines
- Mjunction Services Limited - India
- Meenaskhi Energy Private Limited - India
- ASAPP Information Group - India
- Directorate General of MIneral and Coal - Indonesia
- Siam City Cement - Thailand
- India Bulls Power Limited - India
- Posco Energy - South Korea
- Manunggal Multi Energi - Indonesia
- Sakthi Sugars Limited - India
- Independent Power Producers Association of India
- Singapore Mercantile Exchange
- Goldman Sachs - Singapore
- Iligan Light & Power Inc, Philippines
- Sojitz Corporation - Japan
- Karbindo Abesyapradhi - Indoneisa
- Renaissance Capital - South Africa
- Essar Steel Hazira Ltd - India
- PTC India Limited - India
- Intertek Mineral Services - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Global Coal Blending Company Limited - Australia
- Marubeni Corporation - India
- Bukit Asam (Persero) Tbk - Indonesia
- Bukit Makmur.PT - Indonesia
- Medco Energi Mining Internasional
- Global Business Power Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Malabar Cements Ltd - India
- Edison Trading Spa - Italy
- Aditya Birla Group - India
- Globalindo Alam Lestari - Indonesia
- White Energy Company Limited
- Siam City Cement PLC, Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Ministry of Mines - Canada
- Attock Cement Pakistan Limited
- Ministry of Transport, Egypt
- Bukit Baiduri Energy - Indonesia
- Kapuas Tunggal Persada - Indonesia
- VISA Power Limited - India
- SMG Consultants - Indonesia
- CIMB Investment Bank - Malaysia
- Cigading International Bulk Terminal - Indonesia
- Coal and Oil Company - UAE
- Semirara Mining and Power Corporation, Philippines
- Mintek Dendrill Indonesia
- Meralco Power Generation, Philippines
- IHS Mccloskey Coal Group - USA
- Directorate Of Revenue Intelligence - India
- PetroVietnam Power Coal Import and Supply Company
- Agrawal Coal Company - India
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