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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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Monday, 12 March 12
DELTA DUNIA 1M OVERBURDEN DROPS 3.1% - INSIDER STORIES
Insider Stories reported that, Indonesia's second largest coal mining contractor PT Delta Dunia Makmur Tbk (DOID) reported a 25 million bank ...
Monday, 12 March 12
DRY BULK RATES WILL REMAIN LOW IN 2012 SAYS DANISH SHIP FINANCE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
In its annual shipping survey Danish Ship Finance said that the current outlook for the Dry Bulk market seems unlikely to foster higher rates in any ...
Monday, 12 March 12
WEEKLY DRY MARKET OVERVIEW - MARIA BERTZELETOU, HELLENIC SHIPPING
The first days of March appear to be more encouraging for dry bulk operators, but the outlook is still gloomy for the rest of year with earnings for ...
Sunday, 11 March 12
FREIGHT RATES FOR INDONESIA TO INDIA WILL CONTINUE TO REMAIN FIRM- VISTAAR
COALspot.com - This week saw another upward trend with all indices up except for the Cape index.
The BDI was up by 6.87 pct closing at 824 points ...
Friday, 09 March 12
MINING IN INDONESIA: RESTRICTION ON FOREIGN INVESTMENT - SUNIL K KUMBHAT
COALspot.com - Recently Govt has passed regulation instructing foreign mining companies to reduce their ownership stake.
The regulation known as ...
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Showing 4811 to 4815 news of total 6871 |
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- SN Aboitiz Power Inc, Philippines
- White Energy Company Limited
- Medco Energi Mining Internasional
- Bharathi Cement Corporation - India
- Simpson Spence & Young - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Videocon Industries ltd - India
- Maheswari Brothers Coal Limited - India
- Maharashtra Electricity Regulatory Commission - India
- GN Power Mariveles Coal Plant, Philippines
- Intertek Mineral Services - Indonesia
- IEA Clean Coal Centre - UK
- Riau Bara Harum - Indonesia
- Central Java Power - Indonesia
- Power Finance Corporation Ltd., India
- Bukit Asam (Persero) Tbk - Indonesia
- Agrawal Coal Company - India
- Thai Mozambique Logistica
- Gujarat Mineral Development Corp Ltd - India
- McConnell Dowell - Australia
- The University of Queensland
- Manunggal Multi Energi - Indonesia
- Marubeni Corporation - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sindya Power Generating Company Private Ltd
- Kohat Cement Company Ltd. - Pakistan
- Cement Manufacturers Association - India
- Heidelberg Cement - Germany
- Semirara Mining and Power Corporation, Philippines
- Parry Sugars Refinery, India
- Altura Mining Limited, Indonesia
- Indogreen Group - Indonesia
- VISA Power Limited - India
- Meralco Power Generation, Philippines
- Iligan Light & Power Inc, Philippines
- Electricity Generating Authority of Thailand
- MS Steel International - UAE
- Independent Power Producers Association of India
- PowerSource Philippines DevCo
- Trasteel International SA, Italy
- SMG Consultants - Indonesia
- Carbofer General Trading SA - India
- Ministry of Mines - Canada
- Barasentosa Lestari - Indonesia
- The Treasury - Australian Government
- ASAPP Information Group - India
- Chamber of Mines of South Africa
- Georgia Ports Authority, United States
- Kapuas Tunggal Persada - Indonesia
- Jindal Steel & Power Ltd - India
- Price Waterhouse Coopers - Russia
- Bukit Baiduri Energy - Indonesia
- London Commodity Brokers - England
- Mercuria Energy - Indonesia
- Coastal Gujarat Power Limited - India
- Billiton Holdings Pty Ltd - Australia
- Mintek Dendrill Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Aditya Birla Group - India
- Petron Corporation, Philippines
- Ministry of Transport, Egypt
- PTC India Limited - India
- Australian Coal Association
- Energy Link Ltd, New Zealand
- TeaM Sual Corporation - Philippines
- Energy Development Corp, Philippines
- Xindia Steels Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Vedanta Resources Plc - India
- Sakthi Sugars Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Malabar Cements Ltd - India
- Merrill Lynch Commodities Europe
- Indian Oil Corporation Limited
- Kobexindo Tractors - Indoneisa
- International Coal Ventures Pvt Ltd - India
- Coal and Oil Company - UAE
- Lanco Infratech Ltd - India
- Larsen & Toubro Limited - India
- Bhatia International Limited - India
- Globalindo Alam Lestari - Indonesia
- Meenaskhi Energy Private Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Antam Resourcindo - Indonesia
- Indo Tambangraya Megah - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Goldman Sachs - Singapore
- Star Paper Mills Limited - India
- Toyota Tsusho Corporation, Japan
- Wilmar Investment Holdings
- Deloitte Consulting - India
- Rio Tinto Coal - Australia
- Orica Mining Services - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Kumho Petrochemical, South Korea
- GVK Power & Infra Limited - India
- Krishnapatnam Port Company Ltd. - India
- Metalloyd Limited - United Kingdom
- Kalimantan Lumbung Energi - Indonesia
- Directorate Of Revenue Intelligence - India
- Chettinad Cement Corporation Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Aboitiz Power Corporation - Philippines
- Posco Energy - South Korea
- Holcim Trading Pte Ltd - Singapore
- Timah Investasi Mineral - Indoneisa
- Savvy Resources Ltd - HongKong
- Banpu Public Company Limited - Thailand
- Alfred C Toepfer International GmbH - Germany
- Bayan Resources Tbk. - Indonesia
- Borneo Indobara - Indonesia
- GMR Energy Limited - India
- Kaltim Prima Coal - Indonesia
- Electricity Authority, New Zealand
- Therma Luzon, Inc, Philippines
- Global Coal Blending Company Limited - Australia
- Uttam Galva Steels Limited - India
- Ind-Barath Power Infra Limited - India
- Sarangani Energy Corporation, Philippines
- Indian Energy Exchange, India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Latin American Coal - Colombia
- Singapore Mercantile Exchange
- Interocean Group of Companies - India
- Formosa Plastics Group - Taiwan
- Siam City Cement PLC, Thailand
- Africa Commodities Group - South Africa
- GAC Shipping (India) Pvt Ltd
- Indonesian Coal Mining Association
- Straits Asia Resources Limited - Singapore
- European Bulk Services B.V. - Netherlands
- Coalindo Energy - Indonesia
- Karaikal Port Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Bukit Makmur.PT - Indonesia
- Romanian Commodities Exchange
- Anglo American - United Kingdom
- Jaiprakash Power Ventures ltd
- New Zealand Coal & Carbon
- Wood Mackenzie - Singapore
- Renaissance Capital - South Africa
- Port Waratah Coal Services - Australia
- Global Green Power PLC Corporation, Philippines
- Sical Logistics Limited - India
- Gujarat Electricity Regulatory Commission - India
- Commonwealth Bank - Australia
- Attock Cement Pakistan Limited
- Mercator Lines Limited - India
- India Bulls Power Limited - India
- Eastern Energy - Thailand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- AsiaOL BioFuels Corp., Philippines
- Makarim & Taira - Indonesia
- IHS Mccloskey Coal Group - USA
- Vizag Seaport Private Limited - India
- OPG Power Generation Pvt Ltd - India
- Baramulti Group, Indonesia
- San Jose City I Power Corp, Philippines
- Binh Thuan Hamico - Vietnam
- Leighton Contractors Pty Ltd - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Ambuja Cements Ltd - India
- Pendopo Energi Batubara - Indonesia
- ICICI Bank Limited - India
- Siam City Cement - Thailand
- Ministry of Finance - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Mjunction Services Limited - India
- Bangladesh Power Developement Board
- Indika Energy - Indonesia
- LBH Netherlands Bv - Netherlands
- Eastern Coal Council - USA
- Salva Resources Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- TNB Fuel Sdn Bhd - Malaysia
- Standard Chartered Bank - UAE
- Bhoruka Overseas - Indonesia
- Central Electricity Authority - India
- Samtan Co., Ltd - South Korea
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kepco SPC Power Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- CIMB Investment Bank - Malaysia
- Kideco Jaya Agung - Indonesia
- Minerals Council of Australia
- Madhucon Powers Ltd - India
- Grasim Industreis Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- SMC Global Power, Philippines
- Oldendorff Carriers - Singapore
- Kartika Selabumi Mining - Indonesia
- Sojitz Corporation - Japan
- Australian Commodity Traders Exchange
- Planning Commission, India
- Thiess Contractors Indonesia
- CNBM International Corporation - China
- Orica Australia Pty. Ltd.
- Gujarat Sidhee Cement - India
- Semirara Mining Corp, Philippines
- Essar Steel Hazira Ltd - India
- Dalmia Cement Bharat India
- Sree Jayajothi Cements Limited - India
- Tamil Nadu electricity Board
- Miang Besar Coal Terminal - Indonesia
- Economic Council, Georgia
- Bhushan Steel Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- The State Trading Corporation of India Ltd
- Tata Chemicals Ltd - India
- Parliament of New Zealand
- South Luzon Thermal Energy Corporation
- Bulk Trading Sa - Switzerland
- PNOC Exploration Corporation - Philippines
- Edison Trading Spa - Italy
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