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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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Tuesday, 19 January 10
CESC TO BUY 100,000 MT OF INDONESIAN SUB BITUMINOUS COAL
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Tuesday, 19 January 10
RISING DEMAND FROM POWER FIRMS TO PUSH COAL PRICES
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Tuesday, 19 January 10
ESSAR'S MEGA ACQUISITION PLANS
India’s Essar Group has carved a mega plan that includes a slew of acquisitions and investments in assets across various businesses. CNBC-TV18 ...
Monday, 18 January 10
INDONESIA SHIPPED 15.90 PERCENT OF TOTAL COAL EXPORTS IN 2009 TO INDIA
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Monday, 18 January 10
BHP TO SPEND $267 MILLION ON QUEENSLAND COKING COAL
BHP Billiton Ltd, the world’s largest mining company, will spend $267 million to accelerate development of the Caval Ridge mine and the Hay Po ...
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- Binh Thuan Hamico - Vietnam
- Manunggal Multi Energi - Indonesia
- Makarim & Taira - Indonesia
- SMG Consultants - Indonesia
- Bangladesh Power Developement Board
- PetroVietnam Power Coal Import and Supply Company
- Indian Energy Exchange, India
- The University of Queensland
- South Luzon Thermal Energy Corporation
- LBH Netherlands Bv - Netherlands
- SMC Global Power, Philippines
- Meenaskhi Energy Private Limited - India
- Parliament of New Zealand
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- Vizag Seaport Private Limited - India
- Mercator Lines Limited - India
- Electricity Authority, New Zealand
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- CIMB Investment Bank - Malaysia
- Cigading International Bulk Terminal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Deloitte Consulting - India
- Larsen & Toubro Limited - India
- Mjunction Services Limited - India
- PNOC Exploration Corporation - Philippines
- Energy Link Ltd, New Zealand
- Holcim Trading Pte Ltd - Singapore
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- Bulk Trading Sa - Switzerland
- Orica Mining Services - Indonesia
- Chettinad Cement Corporation Ltd - India
- Iligan Light & Power Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Renaissance Capital - South Africa
- Coal and Oil Company - UAE
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- Directorate Of Revenue Intelligence - India
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- Star Paper Mills Limited - India
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- Bhushan Steel Limited - India
- The State Trading Corporation of India Ltd
- Alfred C Toepfer International GmbH - Germany
- Kapuas Tunggal Persada - Indonesia
- Tamil Nadu electricity Board
- Globalindo Alam Lestari - Indonesia
- Mintek Dendrill Indonesia
- GN Power Mariveles Coal Plant, Philippines
- White Energy Company Limited
- International Coal Ventures Pvt Ltd - India
- Attock Cement Pakistan Limited
- Trasteel International SA, Italy
- Karaikal Port Pvt Ltd - India
- Chamber of Mines of South Africa
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- Truba Alam Manunggal Engineering.Tbk - Indonesia
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- Directorate General of MIneral and Coal - Indonesia
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- Wilmar Investment Holdings
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- Intertek Mineral Services - Indonesia
- Eastern Energy - Thailand
- Rio Tinto Coal - Australia
- Singapore Mercantile Exchange
- London Commodity Brokers - England
- Meralco Power Generation, Philippines
- Mercuria Energy - Indonesia
- Edison Trading Spa - Italy
- Sindya Power Generating Company Private Ltd
- Sarangani Energy Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Bukit Makmur.PT - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Planning Commission, India
- Riau Bara Harum - Indonesia
- Grasim Industreis Ltd - India
- Indonesian Coal Mining Association
- Merrill Lynch Commodities Europe
- Independent Power Producers Association of India
- Neyveli Lignite Corporation Ltd, - India
- Thai Mozambique Logistica
- Oldendorff Carriers - Singapore
- Kohat Cement Company Ltd. - Pakistan
- Tata Chemicals Ltd - India
- OPG Power Generation Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Posco Energy - South Korea
- Baramulti Group, Indonesia
- TeaM Sual Corporation - Philippines
- Gujarat Mineral Development Corp Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Borneo Indobara - Indonesia
- Interocean Group of Companies - India
- Madhucon Powers Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Agrawal Coal Company - India
- Bhatia International Limited - India
- IHS Mccloskey Coal Group - USA
- Carbofer General Trading SA - India
- Georgia Ports Authority, United States
- Siam City Cement PLC, Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- New Zealand Coal & Carbon
- Essar Steel Hazira Ltd - India
- Cement Manufacturers Association - India
- Ind-Barath Power Infra Limited - India
- Ambuja Cements Ltd - India
- Central Java Power - Indonesia
- PTC India Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Commonwealth Bank - Australia
- MS Steel International - UAE
- Sinarmas Energy and Mining - Indonesia
- Global Business Power Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Vedanta Resources Plc - India
- Jorong Barutama Greston.PT - Indonesia
- Toyota Tsusho Corporation, Japan
- Karbindo Abesyapradhi - Indoneisa
- Romanian Commodities Exchange
- Kumho Petrochemical, South Korea
- Minerals Council of Australia
- Kideco Jaya Agung - Indonesia
- Bharathi Cement Corporation - India
- Aditya Birla Group - India
- Semirara Mining Corp, Philippines
- Central Electricity Authority - India
- Dalmia Cement Bharat India
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- ICICI Bank Limited - India
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- Altura Mining Limited, Indonesia
- Kobexindo Tractors - Indoneisa
- Port Waratah Coal Services - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Formosa Plastics Group - Taiwan
- Australian Coal Association
- Samtan Co., Ltd - South Korea
- European Bulk Services B.V. - Netherlands
- Uttam Galva Steels Limited - India
- Africa Commodities Group - South Africa
- Antam Resourcindo - Indonesia
- Medco Energi Mining Internasional
- Ministry of Finance - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Power Finance Corporation Ltd., India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Electricity Generating Authority of Thailand
- IEA Clean Coal Centre - UK
- Petron Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Eastern Coal Council - USA
- Bhoruka Overseas - Indonesia
- Bukit Baiduri Energy - Indonesia
- Economic Council, Georgia
- Thiess Contractors Indonesia
- CNBM International Corporation - China
- Maheswari Brothers Coal Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Wood Mackenzie - Singapore
- Malabar Cements Ltd - India
- Coalindo Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Goldman Sachs - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Indian Oil Corporation Limited
- Bayan Resources Tbk. - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
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- Sical Logistics Limited - India
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- Ministry of Transport, Egypt
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- Savvy Resources Ltd - HongKong
- GVK Power & Infra Limited - India
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- Ceylon Electricity Board - Sri Lanka
- Australian Commodity Traders Exchange
- Jaiprakash Power Ventures ltd
- Energy Development Corp, Philippines
- Pendopo Energi Batubara - Indonesia
- Lanco Infratech Ltd - India
- Ministry of Mines - Canada
- Leighton Contractors Pty Ltd - Australia
- Sree Jayajothi Cements Limited - India
- Metalloyd Limited - United Kingdom
- Parry Sugars Refinery, India
- Price Waterhouse Coopers - Russia
- Indogreen Group - Indonesia
- PowerSource Philippines DevCo
- San Jose City I Power Corp, Philippines
- McConnell Dowell - Australia
- Anglo American - United Kingdom
- Orica Australia Pty. Ltd.
- Vijayanagar Sugar Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
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- Videocon Industries ltd - India
- Standard Chartered Bank - UAE
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- Heidelberg Cement - Germany
- VISA Power Limited - India
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