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Tuesday, 19 January 10
COAL FOR DOMESTIC USERS
 While the government is already almost a year behind schedule in issuing regulations to implement the new mining law, mineral producers have been worried about the domestic market obligation (DMO) that the Energy and Mining Resources Ministry imposed through a ruling late last month.
Their concern is not so much about the requirement to allocate a portion of their output to domestic users, but the lack of clarity regarding how the volume of domestic needs for each mineral is set, how the obligation will be distributed among the producers and how the prices will be determined.
Mineral producers (other than oil and natural gas) are fully aware that they should fulfill domestic needs. That requirement is also by and large stipulated in their mining contracts. However, the DMO will create new uncertainty if this obligation is not based on clear-cut regulations.
Unfortunately, the Dec. 31, 2009 decree by the energy and mineral resources minister is mostly about repressive measures for companies failing to meet their DMO. It stipulates that producers who fail to realize their DMO are liable to a 50 percent cut of their output for the following year.
What is encouraging to note is that a similar penalty is also imposed on domestic users failing to take up their annual quota — their annual quota will also be cut by 50 percent. This enforcement is important because the volume of the DMO is based on the domestic market demand, which in turn is based on the annual needs of domestic industrial users each year.
The most affected by the DMO policy are certainly coal producers, who have made Indonesia the world’s largest seaborne exporter of thermal coal with an estimated output of 230 million tons last year, of which only about 50 million tons was used locally. However, the domestic demand for coal is estimated to almost double this year with the coming on stream of several power plants run by state electricity company PT PLN, all fired by coal. They are part of the government’s crash program to build 10,000 megawatts in additional capacity at PLN’s plants.
The government has strived to achieve the right balance between maximizing export revenues from coal and also securing supplies for domestic users. The challenge, though, is how to make producers accept domestic prices as fair compared what they get from exports.
Put another way, there should be an Indonesian coal reference price index that is acceptable to both producers and users, taking into account such factors as the coal’s calorific value, moisture content, etc. Such a reference price index is crucial because, unlike other minerals that have commodity exchanges of their own for price formation, coal doesn’t have any exchange of its own.
In the past, the domestic purchasing price of different grades of coal was often considered arbitrary, which acted as a disincentive for some producers to produce and sell higher-quality coal to PLN, the largest single domestic user.
Commercially, as long as the prices are right, producers will happily sell their output to the domestic market as this will cut the delivery time and freight costs.
The problem, though, is that the latest ministerial decree does not touch at all on a pricing mechanism for the implementation of the domestic market obligation, and this is creating a sense of uncertainty among producers.
Obviously the government needs to address this pricing issue immediately through another clear-cut regulation so as not to adversely affect new investment in the mining sector.
Source: Editorial, The Jakarta Post
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Thursday, 21 January 10
MEC IN TALKS WITH TATA POWER ON COAL - TRADE
The UAE's Middle East Coal is in talks to supply coal to Tata Power, India's biggest private sector power firm, from its new Indonesian operations ...
Wednesday, 20 January 10
NALCO SEEKS CONSULTANT FOR $4 BILLION INDONESIAN SMELTER, PLANT
National Aluminium Co., India’s second-biggest producer of the metal, called for bids for a consultant on its proposed aluminum smelter and co ...
Wednesday, 20 January 10
NTPC PLANS TO SET UP ARM FOR ACQUIRING COAL ASSETS ABROAD
NTPC, the world’s second-largest independent power producer (IPP), plans to set up a new entity for acquiring coal assets abroad to secure fue ...
Wednesday, 20 January 10
CEMENT FIRMS TO BUY POWER PLANT COAL ASH
CEBU, Philippines - Cement companies in Cebu are interested to buy the coal ash that will be produced from the coal-fired power plant in Toledo City ...
Tuesday, 19 January 10
CHINA TO INCREASE THERMAL COAL IMPORTS - WEN
China's Premier Wen Jiabao said on Tuesday that China will appropriately increase imports of thermal coal to ease the country's power shortages.
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- Sical Logistics Limited - India
- Kepco SPC Power Corporation, Philippines
- Parry Sugars Refinery, India
- Bhatia International Limited - India
- Vizag Seaport Private Limited - India
- Medco Energi Mining Internasional
- Economic Council, Georgia
- Malabar Cements Ltd - India
- Banpu Public Company Limited - Thailand
- Tata Chemicals Ltd - India
- LBH Netherlands Bv - Netherlands
- Attock Cement Pakistan Limited
- Central Java Power - Indonesia
- Makarim & Taira - Indonesia
- MS Steel International - UAE
- Port Waratah Coal Services - Australia
- Bhoruka Overseas - Indonesia
- Wilmar Investment Holdings
- Straits Asia Resources Limited - Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Cigading International Bulk Terminal - Indonesia
- Agrawal Coal Company - India
- AsiaOL BioFuels Corp., Philippines
- Asmin Koalindo Tuhup - Indonesia
- VISA Power Limited - India
- The State Trading Corporation of India Ltd
- SN Aboitiz Power Inc, Philippines
- White Energy Company Limited
- Barasentosa Lestari - Indonesia
- Posco Energy - South Korea
- Simpson Spence & Young - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Billiton Holdings Pty Ltd - Australia
- Tamil Nadu electricity Board
- Directorate Of Revenue Intelligence - India
- Borneo Indobara - Indonesia
- Jaiprakash Power Ventures ltd
- Antam Resourcindo - Indonesia
- Indian Energy Exchange, India
- Meralco Power Generation, Philippines
- Ministry of Finance - Indonesia
- European Bulk Services B.V. - Netherlands
- Pendopo Energi Batubara - Indonesia
- Thiess Contractors Indonesia
- Coal and Oil Company - UAE
- Siam City Cement PLC, Thailand
- Kideco Jaya Agung - Indonesia
- Energy Development Corp, Philippines
- Samtan Co., Ltd - South Korea
- Star Paper Mills Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Coalindo Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Energy Link Ltd, New Zealand
- PTC India Limited - India
- Bhushan Steel Limited - India
- India Bulls Power Limited - India
- Kaltim Prima Coal - Indonesia
- Indika Energy - Indonesia
- Petron Corporation, Philippines
- Rio Tinto Coal - Australia
- Bukit Baiduri Energy - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Wood Mackenzie - Singapore
- Miang Besar Coal Terminal - Indonesia
- Uttam Galva Steels Limited - India
- Gujarat Electricity Regulatory Commission - India
- The Treasury - Australian Government
- Global Business Power Corporation, Philippines
- Commonwealth Bank - Australia
- Chettinad Cement Corporation Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Standard Chartered Bank - UAE
- Australian Coal Association
- GMR Energy Limited - India
- Bukit Makmur.PT - Indonesia
- Vedanta Resources Plc - India
- McConnell Dowell - Australia
- Merrill Lynch Commodities Europe
- Power Finance Corporation Ltd., India
- Holcim Trading Pte Ltd - Singapore
- Meenaskhi Energy Private Limited - India
- Maheswari Brothers Coal Limited - India
- Eastern Coal Council - USA
- Madhucon Powers Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Grasim Industreis Ltd - India
- San Jose City I Power Corp, Philippines
- CIMB Investment Bank - Malaysia
- Indogreen Group - Indonesia
- Goldman Sachs - Singapore
- IHS Mccloskey Coal Group - USA
- Indo Tambangraya Megah - Indonesia
- Sarangani Energy Corporation, Philippines
- Sindya Power Generating Company Private Ltd
- Savvy Resources Ltd - HongKong
- TeaM Sual Corporation - Philippines
- Kartika Selabumi Mining - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Petrochimia International Co. Ltd.- Taiwan
- South Luzon Thermal Energy Corporation
- Dalmia Cement Bharat India
- Aboitiz Power Corporation - Philippines
- Electricity Generating Authority of Thailand
- Renaissance Capital - South Africa
- London Commodity Brokers - England
- Ceylon Electricity Board - Sri Lanka
- Global Coal Blending Company Limited - Australia
- Leighton Contractors Pty Ltd - Australia
- Altura Mining Limited, Indonesia
- Bulk Trading Sa - Switzerland
- Iligan Light & Power Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Chamber of Mines of South Africa
- ICICI Bank Limited - India
- Larsen & Toubro Limited - India
- New Zealand Coal & Carbon
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ambuja Cements Ltd - India
- Lanco Infratech Ltd - India
- Romanian Commodities Exchange
- GVK Power & Infra Limited - India
- Karaikal Port Pvt Ltd - India
- Indian Oil Corporation Limited
- Minerals Council of Australia
- Independent Power Producers Association of India
- The University of Queensland
- PetroVietnam Power Coal Import and Supply Company
- Salva Resources Pvt Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Oldendorff Carriers - Singapore
- Maharashtra Electricity Regulatory Commission - India
- Ministry of Transport, Egypt
- Electricity Authority, New Zealand
- TNB Fuel Sdn Bhd - Malaysia
- Timah Investasi Mineral - Indoneisa
- Jindal Steel & Power Ltd - India
- Central Electricity Authority - India
- SMG Consultants - Indonesia
- Binh Thuan Hamico - Vietnam
- Africa Commodities Group - South Africa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sakthi Sugars Limited - India
- Globalindo Alam Lestari - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Baramulti Group, Indonesia
- Carbofer General Trading SA - India
- Kapuas Tunggal Persada - Indonesia
- Price Waterhouse Coopers - Russia
- Cement Manufacturers Association - India
- Interocean Group of Companies - India
- Aditya Birla Group - India
- SMC Global Power, Philippines
- Singapore Mercantile Exchange
- Pipit Mutiara Jaya. PT, Indonesia
- Anglo American - United Kingdom
- Semirara Mining Corp, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Latin American Coal - Colombia
- Sinarmas Energy and Mining - Indonesia
- Alfred C Toepfer International GmbH - Germany
- PowerSource Philippines DevCo
- Intertek Mineral Services - Indonesia
- Edison Trading Spa - Italy
- Riau Bara Harum - Indonesia
- Deloitte Consulting - India
- IEA Clean Coal Centre - UK
- Toyota Tsusho Corporation, Japan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- ASAPP Information Group - India
- Heidelberg Cement - Germany
- Orica Mining Services - Indonesia
- Bangladesh Power Developement Board
- Kobexindo Tractors - Indoneisa
- Gujarat Mineral Development Corp Ltd - India
- Metalloyd Limited - United Kingdom
- GAC Shipping (India) Pvt Ltd
- Karbindo Abesyapradhi - Indoneisa
- Marubeni Corporation - India
- Mintek Dendrill Indonesia
- Videocon Industries ltd - India
- Orica Australia Pty. Ltd.
- Semirara Mining and Power Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Planning Commission, India
- Gujarat Sidhee Cement - India
- Sojitz Corporation - Japan
- PNOC Exploration Corporation - Philippines
- Mercuria Energy - Indonesia
- Trasteel International SA, Italy
- Thai Mozambique Logistica
- Australian Commodity Traders Exchange
- Ministry of Mines - Canada
- International Coal Ventures Pvt Ltd - India
- Mjunction Services Limited - India
- Parliament of New Zealand
- Ind-Barath Power Infra Limited - India
- Formosa Plastics Group - Taiwan
- Coastal Gujarat Power Limited - India
- Manunggal Multi Energi - Indonesia
- Kumho Petrochemical, South Korea
- Xindia Steels Limited - India
- Therma Luzon, Inc, Philippines
- OPG Power Generation Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- CNBM International Corporation - China
- Indonesian Coal Mining Association
- Siam City Cement - Thailand
- Mercator Lines Limited - India
- Georgia Ports Authority, United States
- Krishnapatnam Port Company Ltd. - India
- Bharathi Cement Corporation - India
- Eastern Energy - Thailand
- Sree Jayajothi Cements Limited - India
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