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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, 01 February 12
2% OF IBPS TOTAL CONCESSION AREA CONTAINS TOTAL COAL RESOURCE OF 56.1 MILLION TON
COALspot.com - PT. Britmindo, a mine consulting firm, has finalized PT. Insani Bara Perkasa (IBP) first JORC (Joint Ore Reserves Committee) res ...
Tuesday, 31 January 12
THERE ARE MANY GOOD REASONS FOR COAL IN GERMANY - DR CIESLIK
COALspot.com - "The year 2011 was again marked by many changes on the markets and energy policies, at times in line with expectations, but at o ...
Tuesday, 31 January 12
DRY BULK MARKET KEEPS FALLING FOR WORST MONTH IN YEARS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market didn't manage to put a halt in its downfall, with the industry's benchmark, the BDI (Baltic Dry Index), posting yet another fa ...
Monday, 30 January 12
CHINA'S HUNGER FOR COAL LEAVES DENT IN PENNSYLVANIA'S SUPPLY - THOMAS LESKIN
With the price of heating oil on the rise, one of Pennsylvania's greatest natural resources - coal - is in high demand, and not just locally.
Et ...
Saturday, 28 January 12
WILL FREIGHT MARKET STABILIZE FROM NEXT WEEK?
COALspot.com - The markets continued to soften with BDI at 663 points down by 15.78 pct closing at 726 points and cape index was down by 5.73 pct cl ...
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- Wood Mackenzie - Singapore
- Bhushan Steel Limited - India
- Ministry of Finance - Indonesia
- The State Trading Corporation of India Ltd
- GN Power Mariveles Coal Plant, Philippines
- Mintek Dendrill Indonesia
- Port Waratah Coal Services - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Eastern Coal Council - USA
- Anglo American - United Kingdom
- Altura Mining Limited, Indonesia
- New Zealand Coal & Carbon
- Kobexindo Tractors - Indoneisa
- Gujarat Electricity Regulatory Commission - India
- Indian Energy Exchange, India
- Lanco Infratech Ltd - India
- Pendopo Energi Batubara - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Energy Link Ltd, New Zealand
- Jaiprakash Power Ventures ltd
- Grasim Industreis Ltd - India
- CNBM International Corporation - China
- Rio Tinto Coal - Australia
- Asmin Koalindo Tuhup - Indonesia
- Sree Jayajothi Cements Limited - India
- Sojitz Corporation - Japan
- Siam City Cement PLC, Thailand
- Thiess Contractors Indonesia
- Bhoruka Overseas - Indonesia
- Kaltim Prima Coal - Indonesia
- Tata Chemicals Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Heidelberg Cement - Germany
- Interocean Group of Companies - India
- Bukit Makmur.PT - Indonesia
- Makarim & Taira - Indonesia
- Ambuja Cements Ltd - India
- PowerSource Philippines DevCo
- Power Finance Corporation Ltd., India
- Kohat Cement Company Ltd. - Pakistan
- Vijayanagar Sugar Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Bangladesh Power Developement Board
- Bukit Asam (Persero) Tbk - Indonesia
- European Bulk Services B.V. - Netherlands
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Goldman Sachs - Singapore
- ICICI Bank Limited - India
- Global Business Power Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- LBH Netherlands Bv - Netherlands
- Central Electricity Authority - India
- Indonesian Coal Mining Association
- Binh Thuan Hamico - Vietnam
- Economic Council, Georgia
- Commonwealth Bank - Australia
- Sindya Power Generating Company Private Ltd
- GMR Energy Limited - India
- Ministry of Transport, Egypt
- Energy Development Corp, Philippines
- Aboitiz Power Corporation - Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Marubeni Corporation - India
- Metalloyd Limited - United Kingdom
- Mjunction Services Limited - India
- Romanian Commodities Exchange
- Tamil Nadu electricity Board
- Indo Tambangraya Megah - Indonesia
- Banpu Public Company Limited - Thailand
- Manunggal Multi Energi - Indonesia
- Antam Resourcindo - Indonesia
- Siam City Cement - Thailand
- Baramulti Group, Indonesia
- Videocon Industries ltd - India
- Krishnapatnam Port Company Ltd. - India
- Eastern Energy - Thailand
- GAC Shipping (India) Pvt Ltd
- Ceylon Electricity Board - Sri Lanka
- PTC India Limited - India
- Australian Commodity Traders Exchange
- Karbindo Abesyapradhi - Indoneisa
- Global Green Power PLC Corporation, Philippines
- Latin American Coal - Colombia
- MS Steel International - UAE
- Parry Sugars Refinery, India
- Cement Manufacturers Association - India
- Indika Energy - Indonesia
- GVK Power & Infra Limited - India
- Africa Commodities Group - South Africa
- Simpson Spence & Young - Indonesia
- Thai Mozambique Logistica
- Electricity Authority, New Zealand
- Merrill Lynch Commodities Europe
- Globalindo Alam Lestari - Indonesia
- Posco Energy - South Korea
- Sinarmas Energy and Mining - Indonesia
- South Luzon Thermal Energy Corporation
- Meenaskhi Energy Private Limited - India
- AsiaOL BioFuels Corp., Philippines
- Uttam Galva Steels Limited - India
- Sarangani Energy Corporation, Philippines
- Agrawal Coal Company - India
- Formosa Plastics Group - Taiwan
- Ind-Barath Power Infra Limited - India
- Larsen & Toubro Limited - India
- Kapuas Tunggal Persada - Indonesia
- Bharathi Cement Corporation - India
- The Treasury - Australian Government
- Sical Logistics Limited - India
- Price Waterhouse Coopers - Russia
- Bukit Baiduri Energy - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Malabar Cements Ltd - India
- Petron Corporation, Philippines
- Semirara Mining Corp, Philippines
- Chamber of Mines of South Africa
- Medco Energi Mining Internasional
- Planning Commission, India
- Therma Luzon, Inc, Philippines
- Orica Australia Pty. Ltd.
- Aditya Birla Group - India
- VISA Power Limited - India
- Miang Besar Coal Terminal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Trasteel International SA, Italy
- Singapore Mercantile Exchange
- Wilmar Investment Holdings
- PNOC Exploration Corporation - Philippines
- Neyveli Lignite Corporation Ltd, - India
- Jindal Steel & Power Ltd - India
- Ministry of Mines - Canada
- Barasentosa Lestari - Indonesia
- Mercuria Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Indogreen Group - Indonesia
- White Energy Company Limited
- Billiton Holdings Pty Ltd - Australia
- IHS Mccloskey Coal Group - USA
- Coal and Oil Company - UAE
- Electricity Generating Authority of Thailand
- Vizag Seaport Private Limited - India
- India Bulls Power Limited - India
- Chettinad Cement Corporation Ltd - India
- TeaM Sual Corporation - Philippines
- Standard Chartered Bank - UAE
- Georgia Ports Authority, United States
- Intertek Mineral Services - Indonesia
- Dalmia Cement Bharat India
- Edison Trading Spa - Italy
- Sakthi Sugars Limited - India
- Holcim Trading Pte Ltd - Singapore
- Xindia Steels Limited - India
- SMG Consultants - Indonesia
- OPG Power Generation Pvt Ltd - India
- Borneo Indobara - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Madhucon Powers Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Kumho Petrochemical, South Korea
- Coastal Gujarat Power Limited - India
- Timah Investasi Mineral - Indoneisa
- Star Paper Mills Limited - India
- Iligan Light & Power Inc, Philippines
- Attock Cement Pakistan Limited
- SN Aboitiz Power Inc, Philippines
- Vedanta Resources Plc - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Samtan Co., Ltd - South Korea
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kalimantan Lumbung Energi - Indonesia
- International Coal Ventures Pvt Ltd - India
- IEA Clean Coal Centre - UK
- SMC Global Power, Philippines
- Central Java Power - Indonesia
- Renaissance Capital - South Africa
- Straits Asia Resources Limited - Singapore
- Kepco SPC Power Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Minerals Council of Australia
- Indian Oil Corporation Limited
- CIMB Investment Bank - Malaysia
- Mercator Lines Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Toyota Tsusho Corporation, Japan
- San Jose City I Power Corp, Philippines
- Kideco Jaya Agung - Indonesia
- Parliament of New Zealand
- Carbofer General Trading SA - India
- Independent Power Producers Association of India
- Coalindo Energy - Indonesia
- The University of Queensland
- Gujarat Sidhee Cement - India
- Meralco Power Generation, Philippines
- Bulk Trading Sa - Switzerland
- Bank of Tokyo Mitsubishi UFJ Ltd
- ASAPP Information Group - India
- London Commodity Brokers - England
- Savvy Resources Ltd - HongKong
- Riau Bara Harum - Indonesia
- Salva Resources Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- McConnell Dowell - Australia
- Rashtriya Ispat Nigam Limited - India
- Bhatia International Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Deloitte Consulting - India
- Cigading International Bulk Terminal - Indonesia
- Essar Steel Hazira Ltd - India
- Karaikal Port Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Global Coal Blending Company Limited - Australia
- Oldendorff Carriers - Singapore
- Orica Mining Services - Indonesia
- Australian Coal Association
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