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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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Thursday, 29 December 11
NEW VESSELS DELIVERED ARE FLOODING THE OCEANS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
As expected 2011 has been the year that newbuilding deliveries peaked and kept "flooding" the market, thus supressing freight rates and er ...
Tuesday, 27 December 11
COAL SHIPMENT OF TIANJIN PORT REACHED 6.72 MLN TONNES IN NOVEMBER - STEEL HOME / HELLENIC SHIPPING
Tianjin port shipped 6.72 million tonnes of coal in November, decreasing 600,000 tonnes versus 7.32 million tonnes in October, while up 21.09% or 1. ...
Tuesday, 27 December 11
NEW CLAUSE PUBLISHED FOR SLOW STEAMING - BIMCO
Many owners and operators faced with high bunker prices are considering implementing slow steaming regimes to save fuel and to assist with capacity ...
Monday, 26 December 11
NEW EXPORT TAX PLAN GREETED WITH PRAISE AND CRITICISM - THE JAKARTA POST
The Jakarta Post, one of the Indonesia's leading english news paper reported that, both praise and criticism showered the government’s plan t ...
Sunday, 25 December 11
THERMAL COAL PRICES GAINED UP TO 4.32 PERCENT
COALspot.com - globalCOAL index gained 4.32 percent to US$106.36 per ton in RBCT, benchmark for South Asia and West Europe markets, for the week end ...
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Showing 4911 to 4915 news of total 6871 |
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- Siam City Cement PLC, Thailand
- CNBM International Corporation - China
- Oldendorff Carriers - Singapore
- Sarangani Energy Corporation, Philippines
- SMC Global Power, Philippines
- Romanian Commodities Exchange
- Karbindo Abesyapradhi - Indoneisa
- Aditya Birla Group - India
- GN Power Mariveles Coal Plant, Philippines
- Indonesian Coal Mining Association
- Straits Asia Resources Limited - Singapore
- Grasim Industreis Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Coastal Gujarat Power Limited - India
- GMR Energy Limited - India
- Edison Trading Spa - Italy
- Asmin Koalindo Tuhup - Indonesia
- Ind-Barath Power Infra Limited - India
- Parliament of New Zealand
- TNB Fuel Sdn Bhd - Malaysia
- Electricity Generating Authority of Thailand
- Power Finance Corporation Ltd., India
- Ceylon Electricity Board - Sri Lanka
- Anglo American - United Kingdom
- Bhatia International Limited - India
- Orica Mining Services - Indonesia
- Heidelberg Cement - Germany
- South Luzon Thermal Energy Corporation
- CIMB Investment Bank - Malaysia
- Georgia Ports Authority, United States
- Attock Cement Pakistan Limited
- GAC Shipping (India) Pvt Ltd
- Neyveli Lignite Corporation Ltd, - India
- Borneo Indobara - Indonesia
- Coal and Oil Company - UAE
- Bayan Resources Tbk. - Indonesia
- Pendopo Energi Batubara - Indonesia
- Eastern Energy - Thailand
- Singapore Mercantile Exchange
- New Zealand Coal & Carbon
- Meralco Power Generation, Philippines
- The Treasury - Australian Government
- Indika Energy - Indonesia
- Sree Jayajothi Cements Limited - India
- Kobexindo Tractors - Indoneisa
- Toyota Tsusho Corporation, Japan
- Merrill Lynch Commodities Europe
- Intertek Mineral Services - Indonesia
- Kaltim Prima Coal - Indonesia
- PNOC Exploration Corporation - Philippines
- Metalloyd Limited - United Kingdom
- Kapuas Tunggal Persada - Indonesia
- PTC India Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Renaissance Capital - South Africa
- Global Business Power Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Salva Resources Pvt Ltd - India
- Xindia Steels Limited - India
- London Commodity Brokers - England
- Bharathi Cement Corporation - India
- Aboitiz Power Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Krishnapatnam Port Company Ltd. - India
- Independent Power Producers Association of India
- Carbofer General Trading SA - India
- White Energy Company Limited
- Vedanta Resources Plc - India
- Posco Energy - South Korea
- PetroVietnam Power Coal Import and Supply Company
- Star Paper Mills Limited - India
- Barasentosa Lestari - Indonesia
- Medco Energi Mining Internasional
- Thai Mozambique Logistica
- Timah Investasi Mineral - Indoneisa
- Bhushan Steel Limited - India
- Mjunction Services Limited - India
- Samtan Co., Ltd - South Korea
- Madhucon Powers Ltd - India
- Indian Oil Corporation Limited
- Pipit Mutiara Jaya. PT, Indonesia
- Electricity Authority, New Zealand
- Australian Coal Association
- Formosa Plastics Group - Taiwan
- Siam City Cement - Thailand
- Commonwealth Bank - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Planning Commission, India
- Jorong Barutama Greston.PT - Indonesia
- Globalindo Alam Lestari - Indonesia
- Vizag Seaport Private Limited - India
- Manunggal Multi Energi - Indonesia
- Maheswari Brothers Coal Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Dalmia Cement Bharat India
- Lanco Infratech Ltd - India
- Global Coal Blending Company Limited - Australia
- Kartika Selabumi Mining - Indonesia
- The University of Queensland
- Tamil Nadu electricity Board
- Bahari Cakrawala Sebuku - Indonesia
- GVK Power & Infra Limited - India
- Petron Corporation, Philippines
- Trasteel International SA, Italy
- Bulk Trading Sa - Switzerland
- Cigading International Bulk Terminal - Indonesia
- Iligan Light & Power Inc, Philippines
- Central Electricity Authority - India
- Coalindo Energy - Indonesia
- Ministry of Finance - Indonesia
- Jaiprakash Power Ventures ltd
- Riau Bara Harum - Indonesia
- IHS Mccloskey Coal Group - USA
- Ministry of Transport, Egypt
- Chamber of Mines of South Africa
- Jindal Steel & Power Ltd - India
- Indogreen Group - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Banpu Public Company Limited - Thailand
- Karaikal Port Pvt Ltd - India
- PowerSource Philippines DevCo
- Mercator Lines Limited - India
- Central Java Power - Indonesia
- Standard Chartered Bank - UAE
- Meenaskhi Energy Private Limited - India
- Australian Commodity Traders Exchange
- Petrochimia International Co. Ltd.- Taiwan
- Rashtriya Ispat Nigam Limited - India
- Kideco Jaya Agung - Indonesia
- Eastern Coal Council - USA
- Antam Resourcindo - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Wood Mackenzie - Singapore
- Holcim Trading Pte Ltd - Singapore
- Uttam Galva Steels Limited - India
- Essar Steel Hazira Ltd - India
- SN Aboitiz Power Inc, Philippines
- Cement Manufacturers Association - India
- Latin American Coal - Colombia
- Kohat Cement Company Ltd. - Pakistan
- MS Steel International - UAE
- Bukit Baiduri Energy - Indonesia
- Kumho Petrochemical, South Korea
- Alfred C Toepfer International GmbH - Germany
- Maharashtra Electricity Regulatory Commission - India
- Billiton Holdings Pty Ltd - Australia
- Altura Mining Limited, Indonesia
- Sindya Power Generating Company Private Ltd
- Indo Tambangraya Megah - Indonesia
- Deloitte Consulting - India
- Semirara Mining Corp, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Port Waratah Coal Services - Australia
- Marubeni Corporation - India
- VISA Power Limited - India
- Miang Besar Coal Terminal - Indonesia
- Bhoruka Overseas - Indonesia
- The State Trading Corporation of India Ltd
- Videocon Industries ltd - India
- LBH Netherlands Bv - Netherlands
- Chettinad Cement Corporation Ltd - India
- IEA Clean Coal Centre - UK
- Wilmar Investment Holdings
- Baramulti Group, Indonesia
- OPG Power Generation Pvt Ltd - India
- Rio Tinto Coal - Australia
- ICICI Bank Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Gujarat Sidhee Cement - India
- Ministry of Mines - Canada
- Africa Commodities Group - South Africa
- Ambuja Cements Ltd - India
- Mercuria Energy - Indonesia
- Goldman Sachs - Singapore
- India Bulls Power Limited - India
- Bukit Makmur.PT - Indonesia
- Larsen & Toubro Limited - India
- Sical Logistics Limited - India
- Orica Australia Pty. Ltd.
- Minerals Council of Australia
- Agrawal Coal Company - India
- San Jose City I Power Corp, Philippines
- Makarim & Taira - Indonesia
- Indian Energy Exchange, India
- Sojitz Corporation - Japan
- Energy Development Corp, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kepco SPC Power Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Simpson Spence & Young - Indonesia
- Parry Sugars Refinery, India
- Price Waterhouse Coopers - Russia
- SMG Consultants - Indonesia
- Mintek Dendrill Indonesia
- Therma Luzon, Inc, Philippines
- Tata Chemicals Ltd - India
- McConnell Dowell - Australia
- Malabar Cements Ltd - India
- Binh Thuan Hamico - Vietnam
- Thiess Contractors Indonesia
- Semirara Mining and Power Corporation, Philippines
- Interocean Group of Companies - India
- Directorate Of Revenue Intelligence - India
- ASAPP Information Group - India
- European Bulk Services B.V. - Netherlands
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bangladesh Power Developement Board
- Kalimantan Lumbung Energi - Indonesia
- Sakthi Sugars Limited - India
- Sinarmas Energy and Mining - Indonesia
- Energy Link Ltd, New Zealand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Economic Council, Georgia
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