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Thursday, 05 April 12
COAL EXPORT TAX: MATTER OF CONCERN FOR INDIA - SUNIL K KUMBHAT
 COALspot.com - Since the issuance of Indonesian Mining law in 2009, miners have increased their activities in exploring , exploiting and exporting all types of minerals,specially Black Gold –Coal.
In order to regulate the mining sector , the Goverment of Indonesia has announced a series of new mining regulations, including a ban on exports of some unprocessed metals and low-grade Coal from 2014 , which is designed to spur investment in mineral processing .The proposed ban on exports of coal under the 5,700-kcal/kg from Jan 2014 will change the dynamics of the global thermal coal market, which has seen spiralling demand from China and India. Such a ban will have a substantial impact on the thermal coal market, as large amounts of low-quality coal from Indonesia are exported to India and China.
Another Goverment regulation known as GR 24 of 2012 ( Amendment of GR 23 of 2010 ), signed by President of Indonesia on Feb. 21,2012 stipulates that foreign shareholders/ Companies must gradually divest 51 percent of their shares in local mining companies to local investors after the fifth year of commercial production and complete the divestment by the 10th year of production. The divestment regulation resulted from a revision to a earlier GR 23 of 2010 that required foreign shareholders in local mineral and coal mining companies to divest 20 percent of their holdings.
In a latest move The Goverment of Indonesia now plans to impose a tax of 25% on export of coal and base metals during the current year, and increase it to 50% in 2013. The step is to boost investment in the downstream industry of metal and mining sectors. It is also expected to restrict the exports of mineral and ore metal shipment.The date of implementing the regulation and calculating the Export tax is yet to announced.
Indonesian Government is capitalizing on the mining boom driven by high demand of thermal Coal from China and India . Inspite of series of Taxes , the proposed Export tax is designed to restrict the production and also share profit on the minerals being mined. Coal prices are increasing due to huge requirement and inadequate global production capacity. Govt of Indonesia is encashing the Global situation of demand and supply .Coal will remain hot commodity and Indonesia as heart of Coal Boom.
If the proposed tax is implemented , it is definitely cause of serious concern , particularly for Indian buyers. India is a major buyer of Indonesian thermal coal, along with are China, South Korea, Japan .This is a wake-up call for all the foreign miners operating in Indonesia specially for Coal, that gone are the days of soft and flexible regulations.It is also wake up call for country like India that slow environmental ,forestery clearances and land acquisition issues ,if not sorted out will led to stagnating coal production in India which will resultinto increased dependence on imports, specially from Indnonesia , Australia and south Africa.
Never before India has such a high demand for coal, so also environmental consciousness been so high. Both are legitimate & serious issues but the solution is not to clamp down on coal production. India’s soaring energy need is vital for its industrial growth.
The magnitude of growth in power generation in India will necessarily mean that coal demand will remain very strong. Coal will remain life line for Indian economy for coming many decades till identifying an alternative source that can match coal in its accessibility, availability and affordability in the context of scale of capacity addition required in India.
As the situation stands today, India could become the world’s biggest thermal coal importer by 2015 and Indonesia would be one of the Countries to take care of bulk of coal requirement.
India is today one of the fastest growing economies and also has a shortage of power supply. Indonesia is one of the countries with huge natural resources and exporting thermal coal to many countries for use in power plants for generating energy but it is paradoxical that Indonesia is short of energy. Many Indian companies are capable of sharing power technology and setting up mega power plants in Indonesia
Indonesian private companies can buy equity stakes in India’s power plants in exchange for long-term coal supply. Since India is today one of the fastest growing economies and also has a shortage of power supply then such deals can be beneficial to both parties.
Indonesia requires huge investment from foreign investors in infrastructure, Power Generation, Oil & Gas exploration, telecom sector, Port and Rapid transport system. So it is essential to have transparency in all regulations, legal system and improvement in corporate Governance. Indonesia's mining industry is undergoing a regulatory overhaul which may weaken the operating health and financial performance of many domestic mining companies.
Besides increased operating uncertainty, the new regulations of recent past & proposed may also make the mining industry less attractive to foreign investors. Foreign investor is likly to seriouly question the Safety and Security of their investment in mining sector considering the regulations of the recent past. Lack of transparency in the legal process and the risk of regulatory duplication and inconsistencies will continue to act as deterrents to substantial investment ,specially foreign direct investments (FDI).
As the situation stands today next couple of years shall be very challening for foreign companies operating in Mining sector in Indonesia.
The present proposed tax would hit the profits of both domestic and foreign-owned companies and would heavily raise costs for importers.
The market analysts and experts in mining sector are skeptical about all the mining regulations and plans announced in recent past.
By: Sunil K Kumbhat , Jodhpur (Rajasthan) India
Views expressed herein are personal views of the author and not that of COALspot.com.
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Tuesday, 01 May 12
VIETNAM FEARS IT MAY NOT SEEK COAL SUPPLIES - TBKTSG / VIETNAMNET BRIDGE
TBKTSG / VietNamNet Bridge reported that, with five coal-run thermopower plants under construction, PetroVietnam alone would need 18 million tons of ...
Sunday, 29 April 12
THE FREIGHT MARKET EXPECTED TO BE STEADY NEXT WEEK - VISTAAR
COALspot.com - The BDI continued to go up with the support of Panamax/Supramax and was up by 8.34 pct closing at 1,156 points.
The cape index was ...
Sunday, 29 April 12
INDONESIAN SUB-BITUMINOUS COAL SWAPS FOR MAY 2012 DELIVERY WAS STABLE THIS WEEK
COALspot.com - Indonesian sub-bituminous coal swaps for May deliveries stable this week, according to DSP of SGX AsiaClear OTC Coal Swaps. In the me ...
Friday, 27 April 12
BUKIT ASAMS NET INCOME UP 14% IN 1Q 2012 (UNAUDITED)
Press Release - PT Bukit Asam (Persero) Tbk, announced the Consolidated Financial Statements and Subsidiaries per 31 March 2012 (Unaudited).
Reve ...
Thursday, 26 April 12
AUSTRALIAS COKAL EXPANDS MET COAL POTENTIAL INTO WEST KALIMANTAN
COALspot.com - Global metallurgical coal group Cokal Limited (Cokal) (ASX:CKA) announced today it has completed the acquisition of 75.2% of PT Silan ...
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- International Coal Ventures Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Marubeni Corporation - India
- Central Java Power - Indonesia
- PTC India Limited - India
- Mercator Lines Limited - India
- Timah Investasi Mineral - Indoneisa
- Economic Council, Georgia
- Rio Tinto Coal - Australia
- Bhatia International Limited - India
- PowerSource Philippines DevCo
- Kalimantan Lumbung Energi - Indonesia
- Coal and Oil Company - UAE
- White Energy Company Limited
- Oldendorff Carriers - Singapore
- Ministry of Finance - Indonesia
- Wilmar Investment Holdings
- Kobexindo Tractors - Indoneisa
- Heidelberg Cement - Germany
- Kideco Jaya Agung - Indonesia
- Electricity Authority, New Zealand
- GAC Shipping (India) Pvt Ltd
- Kumho Petrochemical, South Korea
- Eastern Coal Council - USA
- Indika Energy - Indonesia
- Petron Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Global Green Power PLC Corporation, Philippines
- Australian Commodity Traders Exchange
- Chamber of Mines of South Africa
- Central Electricity Authority - India
- Energy Link Ltd, New Zealand
- India Bulls Power Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- ICICI Bank Limited - India
- Agrawal Coal Company - India
- Orica Australia Pty. Ltd.
- Medco Energi Mining Internasional
- Semirara Mining and Power Corporation, Philippines
- Energy Development Corp, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Banpu Public Company Limited - Thailand
- Chettinad Cement Corporation Ltd - India
- SMC Global Power, Philippines
- Indogreen Group - Indonesia
- Malabar Cements Ltd - India
- IHS Mccloskey Coal Group - USA
- Maheswari Brothers Coal Limited - India
- San Jose City I Power Corp, Philippines
- Renaissance Capital - South Africa
- Therma Luzon, Inc, Philippines
- Coalindo Energy - Indonesia
- Goldman Sachs - Singapore
- The State Trading Corporation of India Ltd
- The University of Queensland
- Standard Chartered Bank - UAE
- Neyveli Lignite Corporation Ltd, - India
- Singapore Mercantile Exchange
- Vedanta Resources Plc - India
- CNBM International Corporation - China
- Bukit Baiduri Energy - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Manunggal Multi Energi - Indonesia
- Essar Steel Hazira Ltd - India
- Ministry of Mines - Canada
- Madhucon Powers Ltd - India
- Altura Mining Limited, Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Simpson Spence & Young - Indonesia
- Iligan Light & Power Inc, Philippines
- Thai Mozambique Logistica
- Mintek Dendrill Indonesia
- Toyota Tsusho Corporation, Japan
- Indian Oil Corporation Limited
- SMG Consultants - Indonesia
- Gujarat Sidhee Cement - India
- Siam City Cement - Thailand
- Sarangani Energy Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Semirara Mining Corp, Philippines
- Pendopo Energi Batubara - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Globalindo Alam Lestari - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Cigading International Bulk Terminal - Indonesia
- Kepco SPC Power Corporation, Philippines
- Mjunction Services Limited - India
- Ministry of Transport, Egypt
- Kartika Selabumi Mining - Indonesia
- Anglo American - United Kingdom
- Vijayanagar Sugar Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Tata Chemicals Ltd - India
- Indian Energy Exchange, India
- Vizag Seaport Private Limited - India
- Sree Jayajothi Cements Limited - India
- Bharathi Cement Corporation - India
- Sical Logistics Limited - India
- Bhoruka Overseas - Indonesia
- Carbofer General Trading SA - India
- GVK Power & Infra Limited - India
- Dalmia Cement Bharat India
- PetroVietnam Power Coal Import and Supply Company
- Uttam Galva Steels Limited - India
- Jindal Steel & Power Ltd - India
- Latin American Coal - Colombia
- Larsen & Toubro Limited - India
- Savvy Resources Ltd - HongKong
- Aditya Birla Group - India
- Deloitte Consulting - India
- Parliament of New Zealand
- Directorate General of MIneral and Coal - Indonesia
- Mercuria Energy - Indonesia
- Kaltim Prima Coal - Indonesia
- Salva Resources Pvt Ltd - India
- Minerals Council of Australia
- Bhushan Steel Limited - India
- Karaikal Port Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- Independent Power Producers Association of India
- Bayan Resources Tbk. - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Borneo Indobara - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Lanco Infratech Ltd - India
- Tamil Nadu electricity Board
- South Luzon Thermal Energy Corporation
- OPG Power Generation Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Indo Tambangraya Megah - Indonesia
- Coastal Gujarat Power Limited - India
- Attock Cement Pakistan Limited
- Price Waterhouse Coopers - Russia
- Wood Mackenzie - Singapore
- Grasim Industreis Ltd - India
- Global Coal Blending Company Limited - Australia
- McConnell Dowell - Australia
- Billiton Holdings Pty Ltd - Australia
- Bukit Makmur.PT - Indonesia
- Star Paper Mills Limited - India
- Riau Bara Harum - Indonesia
- European Bulk Services B.V. - Netherlands
- Thiess Contractors Indonesia
- Orica Mining Services - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- CIMB Investment Bank - Malaysia
- New Zealand Coal & Carbon
- Antam Resourcindo - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- SN Aboitiz Power Inc, Philippines
- London Commodity Brokers - England
- Directorate Of Revenue Intelligence - India
- LBH Netherlands Bv - Netherlands
- Meenaskhi Energy Private Limited - India
- Cement Manufacturers Association - India
- Metalloyd Limited - United Kingdom
- Australian Coal Association
- Sakthi Sugars Limited - India
- Sindya Power Generating Company Private Ltd
- Romanian Commodities Exchange
- Eastern Energy - Thailand
- Ceylon Electricity Board - Sri Lanka
- Jorong Barutama Greston.PT - Indonesia
- Aboitiz Power Corporation - Philippines
- Rashtriya Ispat Nigam Limited - India
- MS Steel International - UAE
- Planning Commission, India
- Indonesian Coal Mining Association
- Offshore Bulk Terminal Pte Ltd, Singapore
- Commonwealth Bank - Australia
- Siam City Cement PLC, Thailand
- Gujarat Electricity Regulatory Commission - India
- VISA Power Limited - India
- Kapuas Tunggal Persada - Indonesia
- Xindia Steels Limited - India
- TeaM Sual Corporation - Philippines
- Port Waratah Coal Services - Australia
- ASAPP Information Group - India
- Samtan Co., Ltd - South Korea
- Global Business Power Corporation, Philippines
- Edison Trading Spa - Italy
- PNOC Exploration Corporation - Philippines
- The Treasury - Australian Government
- Bangladesh Power Developement Board
- Electricity Generating Authority of Thailand
- Bulk Trading Sa - Switzerland
- Sojitz Corporation - Japan
- Kohat Cement Company Ltd. - Pakistan
- Straits Asia Resources Limited - Singapore
- GMR Energy Limited - India
- Interocean Group of Companies - India
- Ambuja Cements Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Intertek Mineral Services - Indonesia
- Merrill Lynch Commodities Europe
- Petrochimia International Co. Ltd.- Taiwan
- Posco Energy - South Korea
- Jaiprakash Power Ventures ltd
- IEA Clean Coal Centre - UK
- Parry Sugars Refinery, India
- Meralco Power Generation, Philippines
- Ind-Barath Power Infra Limited - India
- Videocon Industries ltd - India
- Africa Commodities Group - South Africa
- Georgia Ports Authority, United States
- Krishnapatnam Port Company Ltd. - India
- Baramulti Group, Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Makarim & Taira - Indonesia
- Trasteel International SA, Italy
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