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Tuesday, 13 March 12
CLARIFICATION OF GR 24 OF 2012 REQUIRING DIVESTMENT OF FOREIGN OWNERSHIP OVER TIME
 ASX Announcement
Global metallurgical coal group, Cokal Limited (ASX-CKA), is responding to the recent announcement of the Indonesian Ministry of Mining and Energy to make a new regulation GR 24 of 2012 which will requires the gradual divestment of foreign ownership of mining assets.
Under the new regulation mining interests held under an IUP, the type of licence Cokal has, are required to achieve minimum levels of Indonesian ownership by a certain points in their operational life. The minimum level of local ownership is related to how many years a specific mining licence has been in commercial production, see below:
Clause 97
(1) The holder of IUP and IUPK for the purpose of foreign investment, after 5 (five) years as of its production is obliged to divest its shares gradually so that on the tenth year its shares will beheld at least 51% (fifty one percent) by an Indonesian citizen.
(1a) The ownership of the Indonesian citizen as stipulated under verse (1), in each year after the end of the fifth year as of production shall not be less than the percentages below:
a. Sixth year 20% (twenty percent);
b. Seventh Year 30% (thirty percent);
c. Eighth Year 37% (thirty seven percent);
d. Ninth Year 44% (forty four percent);
e. Tenth Year 51% (Fifty one percent), of all the amount of shares.
The new regulation specifies that, if an IUP has not achieved the required level of Indonesian ownership by the required time, a divestment process will commence whereby the equity is first offered to various government interests ahead of a private Indonesian Investor.
The regulation, if applied in a similar manner to previous divestment processes on COW licences in the past, would allow the foreign owner to sell the equity at a suitable market price. Cokal currently has four IUPs in Central Kalimantan, AAM and AAK are owned 75% by Cokal, and would be affected by the new divestment requirements, if fully implemented, by the seventh year of production. Cokal’s other two IUPs BBM and BBP are 60% owned and would therefore not be effected until year nine of commercial production.
The implementation of the new regulation is a process that has operated in Indonesia on other licences such as COWs for many years. These previous divestment actions provide some examples of how local ownership requirements can be met in a manner that is manageable and ensures investors are delivered maximum value. Structures which have been implemented previously by other foreign mining companies in Indonesia include:
1. The dual listing of the parent company which owns the various IUPs on the Indonesian Stock exchange. This can be used to provide access to additional capital while providing a percentage of local ownership on top of any pre-existing locally owned direct equity in the individual IUPs.
2. The listing of a separate vehicle on the Indonesian Stock Exchange owned jointly by the parent company and local investors which can hold any additional equity beyond that which may already be locally owned to meet the overall local ownership requirements.
3. The sale of direct project (IUP) equity to a suitable Indonesia investor under a trade sale arrangement.
With considerable value to be realised across its Indonesian portfolio over the next 10 + years, the company intends to be proactive in developing a corporate strategy that captures the best outcome for shareholders while meeting the legal requirements of the government of Indonesia. The company remains confident in the potential of Central Kalimantan to become a bottom cost quartile metallurgical coal province, and will continue to push ahead with its goal of becoming a significant producer in the region.
Source: Cokal Website
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Monday, 05 March 12
SOME RESOURCE TITANS NOT THRILLED WITH INDONESIAN EXPORT BAN - THE JAKARTA GLOBE
The Jakarta Globe reported that, local representatives of major business associations in East Kalimantan have protested a government regulation that ...
Monday, 05 March 12
WEEKLY DRY MARKET OVERVIEW - MARIA BERTZELETOU, HELLENIC SHIPPING
An air of optimism poured in the market this week for dry bulk shippers with the Baltic Dry Index recording daily gains during the end of February b ...
Sunday, 04 March 12
SE ASIA WAS FIRM FOR TRIPS TO INDIA AND CHINA - VISTAAR
COALspot.com - This week saw another upward trend with all indices up and generally market was firm.
The BDI was up by 7.38 pct closing at 771 po ...
Friday, 02 March 12
DJMBP HAS ANNOUNCED SECOND BATCH OF CLEAR N CLEAN CERTIFIED MINERS
COALspot.com - The Directorate general of mineral & coal of Indonesia has announced second batch of companies who have passed IUP Clear and Clea ...
Thursday, 01 March 12
BUKIT ASAM TARGETS EUROPEAN INVESTORS
COALspot.com - PT. Bukit Asam (persero) Tbk, Indonesian state owned coal miner is planning to conduct road show in Europe next week to target at Eur ...
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- Straits Asia Resources Limited - Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Planning Commission, India
- Semirara Mining and Power Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- London Commodity Brokers - England
- Kumho Petrochemical, South Korea
- Directorate Of Revenue Intelligence - India
- Karaikal Port Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Goldman Sachs - Singapore
- Orica Mining Services - Indonesia
- Georgia Ports Authority, United States
- Pendopo Energi Batubara - Indonesia
- Romanian Commodities Exchange
- Posco Energy - South Korea
- SN Aboitiz Power Inc, Philippines
- Heidelberg Cement - Germany
- Vizag Seaport Private Limited - India
- ICICI Bank Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Coal and Oil Company - UAE
- Anglo American - United Kingdom
- Siam City Cement PLC, Thailand
- McConnell Dowell - Australia
- Vedanta Resources Plc - India
- Economic Council, Georgia
- Sindya Power Generating Company Private Ltd
- SMC Global Power, Philippines
- New Zealand Coal & Carbon
- GMR Energy Limited - India
- Baramulti Group, Indonesia
- Global Green Power PLC Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Commonwealth Bank - Australia
- Binh Thuan Hamico - Vietnam
- Kartika Selabumi Mining - Indonesia
- Mercator Lines Limited - India
- SMG Consultants - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Indo Tambangraya Megah - Indonesia
- Singapore Mercantile Exchange
- Antam Resourcindo - Indonesia
- International Coal Ventures Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Marubeni Corporation - India
- Leighton Contractors Pty Ltd - Australia
- Kobexindo Tractors - Indoneisa
- Latin American Coal - Colombia
- Salva Resources Pvt Ltd - India
- Mjunction Services Limited - India
- Bukit Makmur.PT - Indonesia
- Australian Commodity Traders Exchange
- Larsen & Toubro Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Ministry of Mines - Canada
- Bank of Tokyo Mitsubishi UFJ Ltd
- Manunggal Multi Energi - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sarangani Energy Corporation, Philippines
- PTC India Limited - India
- Oldendorff Carriers - Singapore
- Bulk Trading Sa - Switzerland
- Ministry of Finance - Indonesia
- Thai Mozambique Logistica
- IHS Mccloskey Coal Group - USA
- Rashtriya Ispat Nigam Limited - India
- Agrawal Coal Company - India
- Merrill Lynch Commodities Europe
- Malabar Cements Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Uttam Galva Steels Limited - India
- Videocon Industries ltd - India
- Timah Investasi Mineral - Indoneisa
- Kideco Jaya Agung - Indonesia
- Trasteel International SA, Italy
- Indogreen Group - Indonesia
- IEA Clean Coal Centre - UK
- Parliament of New Zealand
- Sical Logistics Limited - India
- Lanco Infratech Ltd - India
- Eastern Coal Council - USA
- Essar Steel Hazira Ltd - India
- Meenaskhi Energy Private Limited - India
- Savvy Resources Ltd - HongKong
- Standard Chartered Bank - UAE
- Altura Mining Limited, Indonesia
- Global Business Power Corporation, Philippines
- European Bulk Services B.V. - Netherlands
- Sakthi Sugars Limited - India
- India Bulls Power Limited - India
- Gujarat Electricity Regulatory Commission - India
- Jaiprakash Power Ventures ltd
- Aditya Birla Group - India
- Holcim Trading Pte Ltd - Singapore
- Semirara Mining Corp, Philippines
- Coalindo Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Barasentosa Lestari - Indonesia
- Dalmia Cement Bharat India
- Aboitiz Power Corporation - Philippines
- Port Waratah Coal Services - Australia
- Indika Energy - Indonesia
- Deloitte Consulting - India
- Independent Power Producers Association of India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Globalindo Alam Lestari - Indonesia
- San Jose City I Power Corp, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Alfred C Toepfer International GmbH - Germany
- GVK Power & Infra Limited - India
- Metalloyd Limited - United Kingdom
- Eastern Energy - Thailand
- Krishnapatnam Port Company Ltd. - India
- Bhushan Steel Limited - India
- Wilmar Investment Holdings
- Billiton Holdings Pty Ltd - Australia
- Edison Trading Spa - Italy
- Samtan Co., Ltd - South Korea
- Meralco Power Generation, Philippines
- Orica Australia Pty. Ltd.
- Cigading International Bulk Terminal - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Bangladesh Power Developement Board
- Indonesian Coal Mining Association
- Iligan Light & Power Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Bayan Resources Tbk. - Indonesia
- PNOC Exploration Corporation - Philippines
- Medco Energi Mining Internasional
- Formosa Plastics Group - Taiwan
- Ceylon Electricity Board - Sri Lanka
- Thiess Contractors Indonesia
- Energy Link Ltd, New Zealand
- Gujarat Sidhee Cement - India
- Australian Coal Association
- VISA Power Limited - India
- Tamil Nadu electricity Board
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Riau Bara Harum - Indonesia
- TeaM Sual Corporation - Philippines
- ASAPP Information Group - India
- Global Coal Blending Company Limited - Australia
- Intertek Mineral Services - Indonesia
- The Treasury - Australian Government
- Chettinad Cement Corporation Ltd - India
- Simpson Spence & Young - Indonesia
- Carbofer General Trading SA - India
- Attock Cement Pakistan Limited
- OPG Power Generation Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Maheswari Brothers Coal Limited - India
- Energy Development Corp, Philippines
- Asmin Koalindo Tuhup - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Xindia Steels Limited - India
- Petron Corporation, Philippines
- Tata Chemicals Ltd - India
- CNBM International Corporation - China
- Price Waterhouse Coopers - Russia
- Chamber of Mines of South Africa
- Kapuas Tunggal Persada - Indonesia
- Sojitz Corporation - Japan
- Central Java Power - Indonesia
- Ambuja Cements Ltd - India
- The University of Queensland
- Renaissance Capital - South Africa
- Cement Manufacturers Association - India
- Siam City Cement - Thailand
- Maharashtra Electricity Regulatory Commission - India
- Miang Besar Coal Terminal - Indonesia
- Parry Sugars Refinery, India
- Borneo Indobara - Indonesia
- Indian Oil Corporation Limited
- Pipit Mutiara Jaya. PT, Indonesia
- White Energy Company Limited
- Electricity Generating Authority of Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Karbindo Abesyapradhi - Indoneisa
- GAC Shipping (India) Pvt Ltd
- Minerals Council of Australia
- Ministry of Transport, Egypt
- Neyveli Lignite Corporation Ltd, - India
- Star Paper Mills Limited - India
- Bhoruka Overseas - Indonesia
- Therma Luzon, Inc, Philippines
- Kepco SPC Power Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Rio Tinto Coal - Australia
- South Luzon Thermal Energy Corporation
- Ind-Barath Power Infra Limited - India
- PowerSource Philippines DevCo
- Makarim & Taira - Indonesia
- Bharathi Cement Corporation - India
- Bhatia International Limited - India
- Mintek Dendrill Indonesia
- Indian Energy Exchange, India
- The State Trading Corporation of India Ltd
- Coastal Gujarat Power Limited - India
- Jindal Steel & Power Ltd - India
- Central Electricity Authority - India
- CIMB Investment Bank - Malaysia
- AsiaOL BioFuels Corp., Philippines
- Wood Mackenzie - Singapore
- Madhucon Powers Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Interocean Group of Companies - India
- MS Steel International - UAE
- Kaltim Prima Coal - Indonesia
- Mercuria Energy - Indonesia
- Bukit Baiduri Energy - Indonesia
- Africa Commodities Group - South Africa
- Grasim Industreis Ltd - India
- Electricity Authority, New Zealand
- Banpu Public Company Limited - Thailand
- LBH Netherlands Bv - Netherlands
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