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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, 07 March 12
ASSESS ASIAS POTENTIAL, DEVELOPMENTS AND APPETITE FOR SHALE AT SHALE GAS SUMMIT
Press Release - Assess Asia’s Potential, Developments and Appetite for Shale at Shale Gas Summit on 23-24 Apr, 2012 in Beijing
China is rep ...
Wednesday, 07 March 12
3RD MOZAMBIQUE COAL CONFERENCE
3rd Mozambique Coal Conference
2-4 July 2012 | Joaquim Chissano International Conference Centre , Maputo, Mozambique
http://www.immevents.com/mo ...
Wednesday, 07 March 12
DRY BULK MARKET KEEPS UP TIMID REBOUND - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market has kept its rising momentum yesterday, rising for the eighth straight session, on the back of renewed demand for smaller bulk c ...
Wednesday, 07 March 12
BUKIT ASAM EYES 39% RISE IN COAL SALES - INSIDER STORIES
Insider Stories reported that, PT Bukit Asam Tbk is scouting a 39% increase in coal sales volume to 18.66 million tons this year from last year with ...
Wednesday, 07 March 12
PETROSEA SEALS US$188 MIO CONTRACT - INSIDER STORIES
Insider Stories reported that, coal mining contractor PT Petrosea Tbk has secured a US$188 million additional contract from its affiliated firm PT S ...
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- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Wood Mackenzie - Singapore
- Independent Power Producers Association of India
- Cement Manufacturers Association - India
- Manunggal Multi Energi - Indonesia
- IHS Mccloskey Coal Group - USA
- Lanco Infratech Ltd - India
- Electricity Authority, New Zealand
- Krishnapatnam Port Company Ltd. - India
- Formosa Plastics Group - Taiwan
- Jaiprakash Power Ventures ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Planning Commission, India
- LBH Netherlands Bv - Netherlands
- Xindia Steels Limited - India
- Meralco Power Generation, Philippines
- Kobexindo Tractors - Indoneisa
- Interocean Group of Companies - India
- Rio Tinto Coal - Australia
- ICICI Bank Limited - India
- Thiess Contractors Indonesia
- Carbofer General Trading SA - India
- Minerals Council of Australia
- GAC Shipping (India) Pvt Ltd
- Binh Thuan Hamico - Vietnam
- The State Trading Corporation of India Ltd
- Mercator Lines Limited - India
- Dalmia Cement Bharat India
- Siam City Cement PLC, Thailand
- IEA Clean Coal Centre - UK
- Maheswari Brothers Coal Limited - India
- London Commodity Brokers - England
- Star Paper Mills Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Timah Investasi Mineral - Indoneisa
- Jindal Steel & Power Ltd - India
- San Jose City I Power Corp, Philippines
- Salva Resources Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Attock Cement Pakistan Limited
- Ambuja Cements Ltd - India
- White Energy Company Limited
- Posco Energy - South Korea
- SMG Consultants - Indonesia
- Merrill Lynch Commodities Europe
- Chettinad Cement Corporation Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- International Coal Ventures Pvt Ltd - India
- Edison Trading Spa - Italy
- Renaissance Capital - South Africa
- Sical Logistics Limited - India
- GN Power Mariveles Coal Plant, Philippines
- PTC India Limited - India
- Pendopo Energi Batubara - Indonesia
- Mintek Dendrill Indonesia
- Australian Coal Association
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Eastern Coal Council - USA
- Kumho Petrochemical, South Korea
- Samtan Co., Ltd - South Korea
- Orica Mining Services - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Borneo Indobara - Indonesia
- Global Coal Blending Company Limited - Australia
- Tata Chemicals Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Holcim Trading Pte Ltd - Singapore
- Medco Energi Mining Internasional
- Bulk Trading Sa - Switzerland
- Antam Resourcindo - Indonesia
- Petron Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Videocon Industries ltd - India
- Sindya Power Generating Company Private Ltd
- Directorate General of MIneral and Coal - Indonesia
- Indonesian Coal Mining Association
- SMC Global Power, Philippines
- MS Steel International - UAE
- Wilmar Investment Holdings
- Barasentosa Lestari - Indonesia
- Banpu Public Company Limited - Thailand
- Trasteel International SA, Italy
- Vedanta Resources Plc - India
- Riau Bara Harum - Indonesia
- Kepco SPC Power Corporation, Philippines
- Bhoruka Overseas - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- South Luzon Thermal Energy Corporation
- Kideco Jaya Agung - Indonesia
- Malabar Cements Ltd - India
- Eastern Energy - Thailand
- Energy Link Ltd, New Zealand
- Central Electricity Authority - India
- Marubeni Corporation - India
- Vijayanagar Sugar Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indian Energy Exchange, India
- Karaikal Port Pvt Ltd - India
- The Treasury - Australian Government
- Sarangani Energy Corporation, Philippines
- Power Finance Corporation Ltd., India
- ASAPP Information Group - India
- AsiaOL BioFuels Corp., Philippines
- Goldman Sachs - Singapore
- Global Green Power PLC Corporation, Philippines
- Madhucon Powers Ltd - India
- Port Waratah Coal Services - Australia
- Globalindo Alam Lestari - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Central Java Power - Indonesia
- Uttam Galva Steels Limited - India
- Leighton Contractors Pty Ltd - Australia
- PowerSource Philippines DevCo
- Anglo American - United Kingdom
- India Bulls Power Limited - India
- Heidelberg Cement - Germany
- Indika Energy - Indonesia
- Indian Oil Corporation Limited
- Bangladesh Power Developement Board
- GMR Energy Limited - India
- Kartika Selabumi Mining - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Price Waterhouse Coopers - Russia
- VISA Power Limited - India
- Thai Mozambique Logistica
- Tamil Nadu electricity Board
- Romanian Commodities Exchange
- CIMB Investment Bank - Malaysia
- Aditya Birla Group - India
- Ministry of Transport, Egypt
- Global Business Power Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Coalindo Energy - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Toyota Tsusho Corporation, Japan
- Grasim Industreis Ltd - India
- Standard Chartered Bank - UAE
- Larsen & Toubro Limited - India
- Sojitz Corporation - Japan
- Savvy Resources Ltd - HongKong
- Commonwealth Bank - Australia
- Baramulti Group, Indonesia
- Kapuas Tunggal Persada - Indonesia
- Ministry of Mines - Canada
- Chamber of Mines of South Africa
- New Zealand Coal & Carbon
- Sakthi Sugars Limited - India
- Coastal Gujarat Power Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Bayan Resources Tbk. - Indonesia
- Orica Australia Pty. Ltd.
- Bhushan Steel Limited - India
- Latin American Coal - Colombia
- Kalimantan Lumbung Energi - Indonesia
- Vizag Seaport Private Limited - India
- Alfred C Toepfer International GmbH - Germany
- Energy Development Corp, Philippines
- Deloitte Consulting - India
- Mercuria Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- SN Aboitiz Power Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- CNBM International Corporation - China
- Gujarat Mineral Development Corp Ltd - India
- Singapore Mercantile Exchange
- Bhatia International Limited - India
- Directorate Of Revenue Intelligence - India
- European Bulk Services B.V. - Netherlands
- GVK Power & Infra Limited - India
- Intertek Mineral Services - Indonesia
- Bharathi Cement Corporation - India
- Makarim & Taira - Indonesia
- Agrawal Coal Company - India
- Simpson Spence & Young - Indonesia
- Siam City Cement - Thailand
- Georgia Ports Authority, United States
- Bukit Baiduri Energy - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Coal and Oil Company - UAE
- Parliament of New Zealand
- Gujarat Sidhee Cement - India
- Sree Jayajothi Cements Limited - India
- Miang Besar Coal Terminal - Indonesia
- TeaM Sual Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Metalloyd Limited - United Kingdom
- Electricity Generating Authority of Thailand
- Australian Commodity Traders Exchange
- McConnell Dowell - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Africa Commodities Group - South Africa
- Essar Steel Hazira Ltd - India
- Semirara Mining Corp, Philippines
- Iligan Light & Power Inc, Philippines
- Economic Council, Georgia
- Ministry of Finance - Indonesia
- OPG Power Generation Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Petrochimia International Co. Ltd.- Taiwan
- PNOC Exploration Corporation - Philippines
- Kohat Cement Company Ltd. - Pakistan
- The University of Queensland
- Kaltim Prima Coal - Indonesia
- Therma Luzon, Inc, Philippines
- Indogreen Group - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Oldendorff Carriers - Singapore
- Altura Mining Limited, Indonesia
- Meenaskhi Energy Private Limited - India
- Parry Sugars Refinery, India
- Indo Tambangraya Megah - Indonesia
- Mjunction Services Limited - India
- Sinarmas Energy and Mining - Indonesia
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