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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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Friday, 09 March 12
SHIP OWNERS LOOKING TO CHINA FOR REVIVAL, WHILE THEY KEEP SELLING OLD SHIPS FOR SCRAP - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
With China’s economic policy plan for the future on every ship owner’s mind, at least those involved in the dry bulk industry, the lates ...
Thursday, 08 March 12
INDONESIA'S COAL SECTOR CAN BENEFIT FROM CLEARER REGULATIONS - FITCH RATINGS
Fitch Ratings says Indonesia's coal mining sector should continue to see strong growth prospects but can benefit from clearer and more predictable ...
Thursday, 08 March 12
DRY BULK MARKET ON THE RISE; CHINAS COAL IMPORTS COULD INCREASE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market kept on rising back to healthier levels yesterday, with the BDI (Baltic Dry Index) the industry’s benchmark, marking its 8 ...
Wednesday, 07 March 12
INDONESIA COAL BENCHMARK PRICE GAINS FOR SECOND MONTH
COALspot.com - Indonesia raised the monthly coal reference price for sales in March by 1.15 percent, the second increase since February.
The Mini ...
Wednesday, 07 March 12
INDONESIA TO LIMIT FOREIGN OWNERSHIP IN MINES TO 49 PERCENT WITHIN 10 YEARS OF PRODUCTION
COALspot.com - Foreign holders of mining licenses in Indonesia have to divert 51% of their stakes to Indonesian government or domestic entitie ...
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Showing 4816 to 4820 news of total 6871 |
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- Simpson Spence & Young - Indonesia
- Metalloyd Limited - United Kingdom
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Salva Resources Pvt Ltd - India
- Australian Coal Association
- Mercuria Energy - Indonesia
- South Luzon Thermal Energy Corporation
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Coal and Oil Company - UAE
- Barasentosa Lestari - Indonesia
- Aboitiz Power Corporation - Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- ASAPP Information Group - India
- Kepco SPC Power Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- IEA Clean Coal Centre - UK
- Bhushan Steel Limited - India
- The State Trading Corporation of India Ltd
- The Treasury - Australian Government
- Samtan Co., Ltd - South Korea
- Central Java Power - Indonesia
- Sical Logistics Limited - India
- Madhucon Powers Ltd - India
- Miang Besar Coal Terminal - Indonesia
- White Energy Company Limited
- GMR Energy Limited - India
- Medco Energi Mining Internasional
- Economic Council, Georgia
- Port Waratah Coal Services - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- McConnell Dowell - Australia
- Therma Luzon, Inc, Philippines
- Chamber of Mines of South Africa
- Coalindo Energy - Indonesia
- Global Green Power PLC Corporation, Philippines
- Anglo American - United Kingdom
- Bangladesh Power Developement Board
- Bhoruka Overseas - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Latin American Coal - Colombia
- Singapore Mercantile Exchange
- Sarangani Energy Corporation, Philippines
- Cement Manufacturers Association - India
- Globalindo Alam Lestari - Indonesia
- Australian Commodity Traders Exchange
- Neyveli Lignite Corporation Ltd, - India
- Kapuas Tunggal Persada - Indonesia
- Thiess Contractors Indonesia
- Karaikal Port Pvt Ltd - India
- Energy Development Corp, Philippines
- London Commodity Brokers - England
- AsiaOL BioFuels Corp., Philippines
- Ministry of Transport, Egypt
- Ceylon Electricity Board - Sri Lanka
- Gujarat Sidhee Cement - India
- Antam Resourcindo - Indonesia
- Bayan Resources Tbk. - Indonesia
- Bukit Baiduri Energy - Indonesia
- Central Electricity Authority - India
- Bhatia International Limited - India
- Semirara Mining Corp, Philippines
- European Bulk Services B.V. - Netherlands
- Vedanta Resources Plc - India
- PowerSource Philippines DevCo
- Planning Commission, India
- Wilmar Investment Holdings
- Indika Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Billiton Holdings Pty Ltd - Australia
- ICICI Bank Limited - India
- Coastal Gujarat Power Limited - India
- Meenaskhi Energy Private Limited - India
- Orica Mining Services - Indonesia
- Bharathi Cement Corporation - India
- Leighton Contractors Pty Ltd - Australia
- Kideco Jaya Agung - Indonesia
- Savvy Resources Ltd - HongKong
- Aditya Birla Group - India
- Altura Mining Limited, Indonesia
- Global Coal Blending Company Limited - Australia
- CNBM International Corporation - China
- Trasteel International SA, Italy
- Borneo Indobara - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Siam City Cement PLC, Thailand
- Mjunction Services Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Global Business Power Corporation, Philippines
- Makarim & Taira - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Mercator Lines Limited - India
- Heidelberg Cement - Germany
- Tamil Nadu electricity Board
- Offshore Bulk Terminal Pte Ltd, Singapore
- Goldman Sachs - Singapore
- IHS Mccloskey Coal Group - USA
- Videocon Industries ltd - India
- Semirara Mining and Power Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Dalmia Cement Bharat India
- Agrawal Coal Company - India
- Electricity Authority, New Zealand
- Toyota Tsusho Corporation, Japan
- Iligan Light & Power Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- Lanco Infratech Ltd - India
- Riau Bara Harum - Indonesia
- Commonwealth Bank - Australia
- Power Finance Corporation Ltd., India
- PNOC Exploration Corporation - Philippines
- Indian Energy Exchange, India
- LBH Netherlands Bv - Netherlands
- India Bulls Power Limited - India
- Intertek Mineral Services - Indonesia
- San Jose City I Power Corp, Philippines
- Xindia Steels Limited - India
- Binh Thuan Hamico - Vietnam
- GN Power Mariveles Coal Plant, Philippines
- Kartika Selabumi Mining - Indonesia
- Jaiprakash Power Ventures ltd
- Renaissance Capital - South Africa
- Merrill Lynch Commodities Europe
- Gujarat Mineral Development Corp Ltd - India
- Sojitz Corporation - Japan
- Grasim Industreis Ltd - India
- Sinarmas Energy and Mining - Indonesia
- OPG Power Generation Pvt Ltd - India
- Eastern Energy - Thailand
- Indo Tambangraya Megah - Indonesia
- MS Steel International - UAE
- Thai Mozambique Logistica
- Romanian Commodities Exchange
- Uttam Galva Steels Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- VISA Power Limited - India
- TeaM Sual Corporation - Philippines
- Carbofer General Trading SA - India
- Bulk Trading Sa - Switzerland
- Attock Cement Pakistan Limited
- Manunggal Multi Energi - Indonesia
- Energy Link Ltd, New Zealand
- Holcim Trading Pte Ltd - Singapore
- SMC Global Power, Philippines
- GAC Shipping (India) Pvt Ltd
- Parliament of New Zealand
- SMG Consultants - Indonesia
- Kobexindo Tractors - Indoneisa
- Sindya Power Generating Company Private Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Straits Asia Resources Limited - Singapore
- Wood Mackenzie - Singapore
- Formosa Plastics Group - Taiwan
- Interocean Group of Companies - India
- Directorate General of MIneral and Coal - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Ambuja Cements Ltd - India
- Minerals Council of Australia
- Eastern Coal Council - USA
- Oldendorff Carriers - Singapore
- Tata Chemicals Ltd - India
- Malabar Cements Ltd - India
- Ministry of Finance - Indonesia
- CIMB Investment Bank - Malaysia
- Georgia Ports Authority, United States
- Kohat Cement Company Ltd. - Pakistan
- Directorate Of Revenue Intelligence - India
- Siam City Cement - Thailand
- Ind-Barath Power Infra Limited - India
- Maheswari Brothers Coal Limited - India
- Baramulti Group, Indonesia
- Vizag Seaport Private Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Kumho Petrochemical, South Korea
- Electricity Generating Authority of Thailand
- Price Waterhouse Coopers - Russia
- Orica Australia Pty. Ltd.
- Larsen & Toubro Limited - India
- SN Aboitiz Power Inc, Philippines
- Sakthi Sugars Limited - India
- Chettinad Cement Corporation Ltd - India
- Deloitte Consulting - India
- Indogreen Group - Indonesia
- Indian Oil Corporation Limited
- Bukit Asam (Persero) Tbk - Indonesia
- Cigading International Bulk Terminal - Indonesia
- PTC India Limited - India
- Pendopo Energi Batubara - Indonesia
- New Zealand Coal & Carbon
- Jorong Barutama Greston.PT - Indonesia
- Timah Investasi Mineral - Indoneisa
- The University of Queensland
- Bahari Cakrawala Sebuku - Indonesia
- Edison Trading Spa - Italy
- Petron Corporation, Philippines
- Star Paper Mills Limited - India
- Posco Energy - South Korea
- Bukit Makmur.PT - Indonesia
- Marubeni Corporation - India
- Meralco Power Generation, Philippines
- Rio Tinto Coal - Australia
- Indonesian Coal Mining Association
- GVK Power & Infra Limited - India
- Gujarat Electricity Regulatory Commission - India
- Parry Sugars Refinery, India
- Kaltim Prima Coal - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Banpu Public Company Limited - Thailand
- Africa Commodities Group - South Africa
- Standard Chartered Bank - UAE
- Mintek Dendrill Indonesia
- Jindal Steel & Power Ltd - India
- Ministry of Mines - Canada
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- International Coal Ventures Pvt Ltd - India
- Independent Power Producers Association of India
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