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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
COALspot.com (Indonesia): Indonesia, the world largest coal exporter, exported 19.07 percent of the total coal export in 2009 to China and 15. ...
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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- Eastern Coal Council - USA
- Sakthi Sugars Limited - India
- London Commodity Brokers - England
- Formosa Plastics Group - Taiwan
- LBH Netherlands Bv - Netherlands
- TeaM Sual Corporation - Philippines
- Kaltim Prima Coal - Indonesia
- Siam City Cement PLC, Thailand
- Indika Energy - Indonesia
- Central Java Power - Indonesia
- Thiess Contractors Indonesia
- India Bulls Power Limited - India
- Intertek Mineral Services - Indonesia
- European Bulk Services B.V. - Netherlands
- Price Waterhouse Coopers - Russia
- Singapore Mercantile Exchange
- Alfred C Toepfer International GmbH - Germany
- Ind-Barath Power Infra Limited - India
- Mercuria Energy - Indonesia
- Mercator Lines Limited - India
- Merrill Lynch Commodities Europe
- Maheswari Brothers Coal Limited - India
- Aboitiz Power Corporation - Philippines
- Binh Thuan Hamico - Vietnam
- Edison Trading Spa - Italy
- Medco Energi Mining Internasional
- Star Paper Mills Limited - India
- San Jose City I Power Corp, Philippines
- Bukit Makmur.PT - Indonesia
- PNOC Exploration Corporation - Philippines
- Karbindo Abesyapradhi - Indoneisa
- Madhucon Powers Ltd - India
- Barasentosa Lestari - Indonesia
- Romanian Commodities Exchange
- Agrawal Coal Company - India
- Therma Luzon, Inc, Philippines
- GVK Power & Infra Limited - India
- Sindya Power Generating Company Private Ltd
- Mjunction Services Limited - India
- Orica Australia Pty. Ltd.
- Sical Logistics Limited - India
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- Kartika Selabumi Mining - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Vedanta Resources Plc - India
- Trasteel International SA, Italy
- Coal and Oil Company - UAE
- Deloitte Consulting - India
- Tamil Nadu electricity Board
- Jaiprakash Power Ventures ltd
- Cigading International Bulk Terminal - Indonesia
- Ministry of Mines - Canada
- Dalmia Cement Bharat India
- Bhushan Steel Limited - India
- Sojitz Corporation - Japan
- Indonesian Coal Mining Association
- Orica Mining Services - Indonesia
- Commonwealth Bank - Australia
- MS Steel International - UAE
- Marubeni Corporation - India
- Videocon Industries ltd - India
- Essar Steel Hazira Ltd - India
- Semirara Mining Corp, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Miang Besar Coal Terminal - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Baramulti Group, Indonesia
- ASAPP Information Group - India
- IEA Clean Coal Centre - UK
- SMG Consultants - Indonesia
- Minerals Council of Australia
- Directorate Of Revenue Intelligence - India
- Heidelberg Cement - Germany
- Grasim Industreis Ltd - India
- Australian Coal Association
- Global Coal Blending Company Limited - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- PetroVietnam Power Coal Import and Supply Company
- Antam Resourcindo - Indonesia
- Timah Investasi Mineral - Indoneisa
- PowerSource Philippines DevCo
- Anglo American - United Kingdom
- Renaissance Capital - South Africa
- Riau Bara Harum - Indonesia
- Standard Chartered Bank - UAE
- Kapuas Tunggal Persada - Indonesia
- Electricity Generating Authority of Thailand
- The University of Queensland
- Cement Manufacturers Association - India
- AsiaOL BioFuels Corp., Philippines
- Kepco SPC Power Corporation, Philippines
- Sarangani Energy Corporation, Philippines
- Wilmar Investment Holdings
- Vizag Seaport Private Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Borneo Indobara - Indonesia
- Petron Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- Oldendorff Carriers - Singapore
- Ministry of Transport, Egypt
- Manunggal Multi Energi - Indonesia
- Posco Energy - South Korea
- Global Green Power PLC Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Kideco Jaya Agung - Indonesia
- Tata Chemicals Ltd - India
- Straits Asia Resources Limited - Singapore
- Central Electricity Authority - India
- Bhatia International Limited - India
- Bulk Trading Sa - Switzerland
- OPG Power Generation Pvt Ltd - India
- ICICI Bank Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- SN Aboitiz Power Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- SMC Global Power, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Attock Cement Pakistan Limited
- Indian Energy Exchange, India
- Electricity Authority, New Zealand
- Goldman Sachs - Singapore
- Kalimantan Lumbung Energi - Indonesia
- Gujarat Sidhee Cement - India
- Pendopo Energi Batubara - Indonesia
- Globalindo Alam Lestari - Indonesia
- Bharathi Cement Corporation - India
- CIMB Investment Bank - Malaysia
- Rashtriya Ispat Nigam Limited - India
- PTC India Limited - India
- Thai Mozambique Logistica
- Leighton Contractors Pty Ltd - Australia
- CNBM International Corporation - China
- Bukit Baiduri Energy - Indonesia
- The State Trading Corporation of India Ltd
- International Coal Ventures Pvt Ltd - India
- Coalindo Energy - Indonesia
- Indian Oil Corporation Limited
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Iligan Light & Power Inc, Philippines
- Independent Power Producers Association of India
- Asmin Koalindo Tuhup - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Global Business Power Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Ambuja Cements Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Salva Resources Pvt Ltd - India
- GAC Shipping (India) Pvt Ltd
- Banpu Public Company Limited - Thailand
- Billiton Holdings Pty Ltd - Australia
- Economic Council, Georgia
- Lanco Infratech Ltd - India
- McConnell Dowell - Australia
- Siam City Cement - Thailand
- Gujarat Electricity Regulatory Commission - India
- Carbofer General Trading SA - India
- Africa Commodities Group - South Africa
- Bayan Resources Tbk. - Indonesia
- Planning Commission, India
- Kohat Cement Company Ltd. - Pakistan
- Bhoruka Overseas - Indonesia
- Rio Tinto Coal - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bangladesh Power Developement Board
- Simpson Spence & Young - Indonesia
- IHS Mccloskey Coal Group - USA
- Neyveli Lignite Corporation Ltd, - India
- Jorong Barutama Greston.PT - Indonesia
- Parry Sugars Refinery, India
- GMR Energy Limited - India
- Krishnapatnam Port Company Ltd. - India
- Aditya Birla Group - India
- Larsen & Toubro Limited - India
- Australian Commodity Traders Exchange
- South Luzon Thermal Energy Corporation
- Eastern Energy - Thailand
- Ministry of Finance - Indonesia
- Indogreen Group - Indonesia
- Power Finance Corporation Ltd., India
- Samtan Co., Ltd - South Korea
- Energy Link Ltd, New Zealand
- Makarim & Taira - Indonesia
- Ceylon Electricity Board - Sri Lanka
- GN Power Mariveles Coal Plant, Philippines
- VISA Power Limited - India
- Parliament of New Zealand
- Interocean Group of Companies - India
- Karaikal Port Pvt Ltd - India
- Meralco Power Generation, Philippines
- New Zealand Coal & Carbon
- Meenaskhi Energy Private Limited - India
- Uttam Galva Steels Limited - India
- Port Waratah Coal Services - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Altura Mining Limited, Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Malabar Cements Ltd - India
- Energy Development Corp, Philippines
- Xindia Steels Limited - India
- Toyota Tsusho Corporation, Japan
- Mintek Dendrill Indonesia
- Kumho Petrochemical, South Korea
- Georgia Ports Authority, United States
- Indo Tambangraya Megah - Indonesia
- White Energy Company Limited
- Sree Jayajothi Cements Limited - India
- Jindal Steel & Power Ltd - India
- Metalloyd Limited - United Kingdom
- Wood Mackenzie - Singapore
- Semirara Mining and Power Corporation, Philippines
- The Treasury - Australian Government
- Chamber of Mines of South Africa
- Coastal Gujarat Power Limited - India
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