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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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- Essar Steel Hazira Ltd - India
- Petron Corporation, Philippines
- Deloitte Consulting - India
- Wood Mackenzie - Singapore
- Larsen & Toubro Limited - India
- Ceylon Electricity Board - Sri Lanka
- Kumho Petrochemical, South Korea
- Globalindo Alam Lestari - Indonesia
- Merrill Lynch Commodities Europe
- Mercator Lines Limited - India
- Bhushan Steel Limited - India
- Bharathi Cement Corporation - India
- Metalloyd Limited - United Kingdom
- Australian Commodity Traders Exchange
- Videocon Industries ltd - India
- Antam Resourcindo - Indonesia
- Bhoruka Overseas - Indonesia
- CNBM International Corporation - China
- Cigading International Bulk Terminal - Indonesia
- Sree Jayajothi Cements Limited - India
- Aditya Birla Group - India
- Kepco SPC Power Corporation, Philippines
- Sindya Power Generating Company Private Ltd
- Vizag Seaport Private Limited - India
- Holcim Trading Pte Ltd - Singapore
- Salva Resources Pvt Ltd - India
- Cement Manufacturers Association - India
- Latin American Coal - Colombia
- Therma Luzon, Inc, Philippines
- Eastern Coal Council - USA
- Marubeni Corporation - India
- Mjunction Services Limited - India
- Energy Link Ltd, New Zealand
- Semirara Mining and Power Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Global Green Power PLC Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- Pipit Mutiara Jaya. PT, Indonesia
- Australian Coal Association
- Jaiprakash Power Ventures ltd
- Jindal Steel & Power Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Malabar Cements Ltd - India
- Independent Power Producers Association of India
- Makarim & Taira - Indonesia
- Thiess Contractors Indonesia
- CIMB Investment Bank - Malaysia
- Indonesian Coal Mining Association
- Bahari Cakrawala Sebuku - Indonesia
- Economic Council, Georgia
- Neyveli Lignite Corporation Ltd, - India
- San Jose City I Power Corp, Philippines
- AsiaOL BioFuels Corp., Philippines
- Georgia Ports Authority, United States
- Energy Development Corp, Philippines
- Manunggal Multi Energi - Indonesia
- Commonwealth Bank - Australia
- Siam City Cement - Thailand
- Barasentosa Lestari - Indonesia
- Star Paper Mills Limited - India
- Mintek Dendrill Indonesia
- Coal and Oil Company - UAE
- Timah Investasi Mineral - Indoneisa
- Singapore Mercantile Exchange
- Grasim Industreis Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Electricity Regulatory Commission - India
- OPG Power Generation Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Interocean Group of Companies - India
- Ministry of Finance - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Bukit Makmur.PT - Indonesia
- Power Finance Corporation Ltd., India
- Indika Energy - Indonesia
- SMG Consultants - Indonesia
- Ministry of Mines - Canada
- Kaltim Prima Coal - Indonesia
- PTC India Limited - India
- Indo Tambangraya Megah - Indonesia
- Baramulti Group, Indonesia
- Borneo Indobara - Indonesia
- Altura Mining Limited, Indonesia
- New Zealand Coal & Carbon
- Tata Chemicals Ltd - India
- Global Coal Blending Company Limited - Australia
- Coalindo Energy - Indonesia
- Uttam Galva Steels Limited - India
- Xindia Steels Limited - India
- Planning Commission, India
- Attock Cement Pakistan Limited
- Alfred C Toepfer International GmbH - Germany
- Lanco Infratech Ltd - India
- Wilmar Investment Holdings
- PowerSource Philippines DevCo
- Goldman Sachs - Singapore
- ICICI Bank Limited - India
- International Coal Ventures Pvt Ltd - India
- Parliament of New Zealand
- Romanian Commodities Exchange
- White Energy Company Limited
- TeaM Sual Corporation - Philippines
- Maharashtra Electricity Regulatory Commission - India
- Bhatia International Limited - India
- Coastal Gujarat Power Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- VISA Power Limited - India
- Edison Trading Spa - Italy
- Minerals Council of Australia
- Sical Logistics Limited - India
- Central Electricity Authority - India
- GN Power Mariveles Coal Plant, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- European Bulk Services B.V. - Netherlands
- Sinarmas Energy and Mining - Indonesia
- Heidelberg Cement - Germany
- Sojitz Corporation - Japan
- India Bulls Power Limited - India
- Sarangani Energy Corporation, Philippines
- Bulk Trading Sa - Switzerland
- Karbindo Abesyapradhi - Indoneisa
- Leighton Contractors Pty Ltd - Australia
- Indian Oil Corporation Limited
- Siam City Cement PLC, Thailand
- Ministry of Transport, Egypt
- Petrochimia International Co. Ltd.- Taiwan
- Carbofer General Trading SA - India
- Trasteel International SA, Italy
- Standard Chartered Bank - UAE
- Medco Energi Mining Internasional
- Ambuja Cements Ltd - India
- Tamil Nadu electricity Board
- Aboitiz Power Corporation - Philippines
- Kalimantan Lumbung Energi - Indonesia
- Straits Asia Resources Limited - Singapore
- Dalmia Cement Bharat India
- Toyota Tsusho Corporation, Japan
- Indogreen Group - Indonesia
- Electricity Authority, New Zealand
- Karaikal Port Pvt Ltd - India
- Rio Tinto Coal - Australia
- Bangladesh Power Developement Board
- Indian Energy Exchange, India
- Electricity Generating Authority of Thailand
- Price Waterhouse Coopers - Russia
- Meralco Power Generation, Philippines
- Oldendorff Carriers - Singapore
- GAC Shipping (India) Pvt Ltd
- IHS Mccloskey Coal Group - USA
- Mercuria Energy - Indonesia
- Orica Australia Pty. Ltd.
- Directorate Of Revenue Intelligence - India
- Vedanta Resources Plc - India
- PNOC Exploration Corporation - Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Thai Mozambique Logistica
- Semirara Mining Corp, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Riau Bara Harum - Indonesia
- GMR Energy Limited - India
- Ind-Barath Power Infra Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- ASAPP Information Group - India
- Samtan Co., Ltd - South Korea
- Bukit Baiduri Energy - Indonesia
- Kideco Jaya Agung - Indonesia
- Parry Sugars Refinery, India
- SMC Global Power, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Jorong Barutama Greston.PT - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Sakthi Sugars Limited - India
- Formosa Plastics Group - Taiwan
- Chettinad Cement Corporation Ltd - India
- Iligan Light & Power Inc, Philippines
- MS Steel International - UAE
- PetroVietnam Power Coal Import and Supply Company
- Banpu Public Company Limited - Thailand
- Simpson Spence & Young - Indonesia
- Binh Thuan Hamico - Vietnam
- The Treasury - Australian Government
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Agrawal Coal Company - India
- Central Java Power - Indonesia
- Africa Commodities Group - South Africa
- SN Aboitiz Power Inc, Philippines
- South Luzon Thermal Energy Corporation
- Chamber of Mines of South Africa
- Global Business Power Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Gujarat Sidhee Cement - India
- Intertek Mineral Services - Indonesia
- Madhucon Powers Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Posco Energy - South Korea
- Meenaskhi Energy Private Limited - India
- IEA Clean Coal Centre - UK
- The State Trading Corporation of India Ltd
- Pendopo Energi Batubara - Indonesia
- Orica Mining Services - Indonesia
- Port Waratah Coal Services - Australia
- McConnell Dowell - Australia
- LBH Netherlands Bv - Netherlands
- Maheswari Brothers Coal Limited - India
- Rashtriya Ispat Nigam Limited - India
- Anglo American - United Kingdom
- Renaissance Capital - South Africa
- Bayan Resources Tbk. - Indonesia
- Kartika Selabumi Mining - Indonesia
- The University of Queensland
- London Commodity Brokers - England
- GVK Power & Infra Limited - India
- Eastern Energy - Thailand
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