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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, 07 February 12
DRY BULK MARKET FINALLY STOPS DECLINE, POSTS FIRST RISE IN MORE THAN A MONTH - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
After falling to near record lows, not seen since the mid-80s the dry bulk market has finally stopped its path to "hell", with the industr ...
Saturday, 04 February 12
SUPRAMAX DELIVERY SOUTH CHINA FOR TRIPS VIA INDONESIA WERE REPORTED AROUND $ 6,000 PER DAY - VISTAAR
COALspot.com - The markets continued to soften which dropped by almost 11 pct and BDI closing at 647 points.
The drop in BDI was mainly due to dr ...
Thursday, 02 February 12
NO RELIEF YET FOR DRY BULK SHIP OWNERS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
Although at the start of 2012 nobody can claim that the global seaborne trade has suddenly come to a halt, quite the contrary, it seems that the dry ...
Wednesday, 01 February 12
KRISHNAPATNAM PORT - GOING DEEP TO SOAR HIGH
COALspot.com - Krishnapatnam Port now rightfully claims as the deepest draft port in India, as it has started accepting vessels with maximum permiss ...
Wednesday, 01 February 12
IN JAMBI, MOST MINING COMPANIES LACK 'CLEAR-AND-CLEAN' PERMITS - JP
More than three-quarters of the 386 mining companies in Jambi lack “clear-and-clean” certifications from the government, according to an ...
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- Vijayanagar Sugar Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- CIMB Investment Bank - Malaysia
- Kaltim Prima Coal - Indonesia
- Essar Steel Hazira Ltd - India
- Oldendorff Carriers - Singapore
- Sree Jayajothi Cements Limited - India
- Jaiprakash Power Ventures ltd
- Parliament of New Zealand
- Grasim Industreis Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- CNBM International Corporation - China
- Energy Development Corp, Philippines
- Deloitte Consulting - India
- Goldman Sachs - Singapore
- Videocon Industries ltd - India
- Coalindo Energy - Indonesia
- IEA Clean Coal Centre - UK
- MS Steel International - UAE
- The University of Queensland
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Medco Energi Mining Internasional
- Gujarat Sidhee Cement - India
- Pipit Mutiara Jaya. PT, Indonesia
- Barasentosa Lestari - Indonesia
- White Energy Company Limited
- ASAPP Information Group - India
- Meenaskhi Energy Private Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mercuria Energy - Indonesia
- Eastern Coal Council - USA
- TeaM Sual Corporation - Philippines
- Central Electricity Authority - India
- GAC Shipping (India) Pvt Ltd
- Cement Manufacturers Association - India
- Orica Australia Pty. Ltd.
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- Altura Mining Limited, Indonesia
- Alfred C Toepfer International GmbH - Germany
- Directorate General of MIneral and Coal - Indonesia
- Chettinad Cement Corporation Ltd - India
- PowerSource Philippines DevCo
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- Romanian Commodities Exchange
- Borneo Indobara - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Chamber of Mines of South Africa
- Karbindo Abesyapradhi - Indoneisa
- Wood Mackenzie - Singapore
- Bulk Trading Sa - Switzerland
- Leighton Contractors Pty Ltd - Australia
- Metalloyd Limited - United Kingdom
- Vizag Seaport Private Limited - India
- Mercator Lines Limited - India
- McConnell Dowell - Australia
- Renaissance Capital - South Africa
- Mjunction Services Limited - India
- Port Waratah Coal Services - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- Economic Council, Georgia
- Thiess Contractors Indonesia
- Sakthi Sugars Limited - India
- Attock Cement Pakistan Limited
- Indian Oil Corporation Limited
- Directorate Of Revenue Intelligence - India
- Sarangani Energy Corporation, Philippines
- Indogreen Group - Indonesia
- Iligan Light & Power Inc, Philippines
- Georgia Ports Authority, United States
- Power Finance Corporation Ltd., India
- Kobexindo Tractors - Indoneisa
- Independent Power Producers Association of India
- Central Java Power - Indonesia
- Orica Mining Services - Indonesia
- San Jose City I Power Corp, Philippines
- Antam Resourcindo - Indonesia
- European Bulk Services B.V. - Netherlands
- Sojitz Corporation - Japan
- Heidelberg Cement - Germany
- Kideco Jaya Agung - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Aditya Birla Group - India
- TNB Fuel Sdn Bhd - Malaysia
- Coastal Gujarat Power Limited - India
- Miang Besar Coal Terminal - Indonesia
- Bhoruka Overseas - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Intertek Mineral Services - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kumho Petrochemical, South Korea
- Binh Thuan Hamico - Vietnam
- Parry Sugars Refinery, India
- Therma Luzon, Inc, Philippines
- Riau Bara Harum - Indonesia
- Tata Chemicals Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Larsen & Toubro Limited - India
- Siam City Cement PLC, Thailand
- Rio Tinto Coal - Australia
- Star Paper Mills Limited - India
- Singapore Mercantile Exchange
- Marubeni Corporation - India
- Australian Commodity Traders Exchange
- Ministry of Mines - Canada
- Salva Resources Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- SMG Consultants - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Carbofer General Trading SA - India
- Kapuas Tunggal Persada - Indonesia
- New Zealand Coal & Carbon
- Petrochimia International Co. Ltd.- Taiwan
- GVK Power & Infra Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Holcim Trading Pte Ltd - Singapore
- PetroVietnam Power Coal Import and Supply Company
- Ministry of Transport, Egypt
- Vedanta Resources Plc - India
- Cigading International Bulk Terminal - Indonesia
- Price Waterhouse Coopers - Russia
- London Commodity Brokers - England
- Standard Chartered Bank - UAE
- Trasteel International SA, Italy
- Sindya Power Generating Company Private Ltd
- GMR Energy Limited - India
- Karaikal Port Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Global Coal Blending Company Limited - Australia
- Pendopo Energi Batubara - Indonesia
- ICICI Bank Limited - India
- The Treasury - Australian Government
- Posco Energy - South Korea
- Global Business Power Corporation, Philippines
- Energy Link Ltd, New Zealand
- Tamil Nadu electricity Board
- GN Power Mariveles Coal Plant, Philippines
- Madhucon Powers Ltd - India
- IHS Mccloskey Coal Group - USA
- Electricity Authority, New Zealand
- Krishnapatnam Port Company Ltd. - India
- Agrawal Coal Company - India
- Kartika Selabumi Mining - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Thai Mozambique Logistica
- Rashtriya Ispat Nigam Limited - India
- OPG Power Generation Pvt Ltd - India
- Meralco Power Generation, Philippines
- Xindia Steels Limited - India
- Ministry of Finance - Indonesia
- Makarim & Taira - Indonesia
- Indika Energy - Indonesia
- Globalindo Alam Lestari - Indonesia
- Timah Investasi Mineral - Indoneisa
- VISA Power Limited - India
- Sical Logistics Limited - India
- Eastern Energy - Thailand
- Kepco SPC Power Corporation, Philippines
- Baramulti Group, Indonesia
- Simpson Spence & Young - Indonesia
- Latin American Coal - Colombia
- Malabar Cements Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Ind-Barath Power Infra Limited - India
- South Luzon Thermal Energy Corporation
- Interocean Group of Companies - India
- Wilmar Investment Holdings
- Indian Energy Exchange, India
- Indonesian Coal Mining Association
- Bukit Makmur.PT - Indonesia
- Bhatia International Limited - India
- SMC Global Power, Philippines
- Indo Tambangraya Megah - Indonesia
- Africa Commodities Group - South Africa
- PTC India Limited - India
- Ambuja Cements Ltd - India
- Minerals Council of Australia
- India Bulls Power Limited - India
- Bharathi Cement Corporation - India
- Straits Asia Resources Limited - Singapore
- Bukit Asam (Persero) Tbk - Indonesia
- Lanco Infratech Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Toyota Tsusho Corporation, Japan
- Manunggal Multi Energi - Indonesia
- Australian Coal Association
- Commonwealth Bank - Australia
- Ceylon Electricity Board - Sri Lanka
- Jorong Barutama Greston.PT - Indonesia
- Jindal Steel & Power Ltd - India
- Dalmia Cement Bharat India
- Maheswari Brothers Coal Limited - India
- SN Aboitiz Power Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Global Green Power PLC Corporation, Philippines
- Electricity Generating Authority of Thailand
- Bhushan Steel Limited - India
- Mintek Dendrill Indonesia
- Siam City Cement - Thailand
- Banpu Public Company Limited - Thailand
- Semirara Mining Corp, Philippines
- Edison Trading Spa - Italy
- Neyveli Lignite Corporation Ltd, - India
- Anglo American - United Kingdom
- Aboitiz Power Corporation - Philippines
- LBH Netherlands Bv - Netherlands
- Bukit Baiduri Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Semirara Mining and Power Corporation, Philippines
- Planning Commission, India
- The State Trading Corporation of India Ltd
- Petron Corporation, Philippines
- Coal and Oil Company - UAE
- Kohat Cement Company Ltd. - Pakistan
- Merrill Lynch Commodities Europe
- Savvy Resources Ltd - HongKong
- Bangladesh Power Developement Board
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