We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Friday, 15 January 10
ADARO INDONESIA STILL TOPS IN INDONESIAN COAL EXPORT RANKING
COALspot.com (Indonesia): PT. Adaro Indonesia, the world first Envirocoal producer and Indonesia's second largest thermal coal producer is top coal ...
Friday, 15 January 10
NTPC TO ADD 6,000 MW EACH YEAR IN 12TH PLAN
Will raise total generation capacity to 75,000 Mw by 2017, up from 30,644 Mw at present.
India's largest power generator NTPC, which will launch ...
Friday, 15 January 10
POSCO SAYS 2010 COKING COAL AGREEMENT MAY BE DELAYED - BLOOMBERG
Posco, South Korea’s biggest steelmaker, said an agreement on coking coal prices for this year may be delayed because major suppliers of the s ...
Friday, 15 January 10
CHINA POWER FIRMS SEEK COAL IMPORTS, SUPPLY SCARCE
China's coal-hungry power plants have turned to imported coal to cope with widespread shortages, but spot supply is scarce, traders said on Thursda ...
Thursday, 14 January 10
INDONESIA POWER REDUCES COAL SUPPLY
PT Indonesia Power will reduce coal supplies from PT Tambang Batu Bara Bukit Asam to its Suralaya Power Plant. "The coal supply for the plant s ...
|
|
|
Showing 6086 to 6090 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Mercator Lines Limited - India
- Makarim & Taira - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- White Energy Company Limited
- Barasentosa Lestari - Indonesia
- Tamil Nadu electricity Board
- Goldman Sachs - Singapore
- Borneo Indobara - Indonesia
- Bukit Makmur.PT - Indonesia
- Kideco Jaya Agung - Indonesia
- Manunggal Multi Energi - Indonesia
- Edison Trading Spa - Italy
- Larsen & Toubro Limited - India
- Electricity Authority, New Zealand
- OPG Power Generation Pvt Ltd - India
- PowerSource Philippines DevCo
- Bangladesh Power Developement Board
- Posco Energy - South Korea
- Africa Commodities Group - South Africa
- TNB Fuel Sdn Bhd - Malaysia
- Rio Tinto Coal - Australia
- Aditya Birla Group - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Semirara Mining Corp, Philippines
- Intertek Mineral Services - Indonesia
- Wood Mackenzie - Singapore
- Ceylon Electricity Board - Sri Lanka
- International Coal Ventures Pvt Ltd - India
- Parliament of New Zealand
- Oldendorff Carriers - Singapore
- Tata Chemicals Ltd - India
- ASAPP Information Group - India
- Agrawal Coal Company - India
- Eastern Coal Council - USA
- Uttam Galva Steels Limited - India
- Aboitiz Power Corporation - Philippines
- Bhushan Steel Limited - India
- Altura Mining Limited, Indonesia
- Trasteel International SA, Italy
- Sical Logistics Limited - India
- Anglo American - United Kingdom
- Malabar Cements Ltd - India
- Pendopo Energi Batubara - Indonesia
- Petron Corporation, Philippines
- India Bulls Power Limited - India
- Central Electricity Authority - India
- Kumho Petrochemical, South Korea
- Jorong Barutama Greston.PT - Indonesia
- Ministry of Transport, Egypt
- Thiess Contractors Indonesia
- Sakthi Sugars Limited - India
- SMG Consultants - Indonesia
- Kartika Selabumi Mining - Indonesia
- Medco Energi Mining Internasional
- Gujarat Sidhee Cement - India
- Iligan Light & Power Inc, Philippines
- TeaM Sual Corporation - Philippines
- Sinarmas Energy and Mining - Indonesia
- Sree Jayajothi Cements Limited - India
- Vizag Seaport Private Limited - India
- Indonesian Coal Mining Association
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Binh Thuan Hamico - Vietnam
- Bayan Resources Tbk. - Indonesia
- PTC India Limited - India
- Energy Link Ltd, New Zealand
- Petrochimia International Co. Ltd.- Taiwan
- Maheswari Brothers Coal Limited - India
- Rashtriya Ispat Nigam Limited - India
- Interocean Group of Companies - India
- Banpu Public Company Limited - Thailand
- Toyota Tsusho Corporation, Japan
- Mercuria Energy - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Sojitz Corporation - Japan
- Deloitte Consulting - India
- Siam City Cement PLC, Thailand
- Coal and Oil Company - UAE
- Georgia Ports Authority, United States
- Meralco Power Generation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Bhatia International Limited - India
- Salva Resources Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- The University of Queensland
- Wilmar Investment Holdings
- South Luzon Thermal Energy Corporation
- Vijayanagar Sugar Pvt Ltd - India
- Commonwealth Bank - Australia
- LBH Netherlands Bv - Netherlands
- Independent Power Producers Association of India
- The State Trading Corporation of India Ltd
- Directorate Of Revenue Intelligence - India
- CIMB Investment Bank - Malaysia
- Indian Oil Corporation Limited
- Videocon Industries ltd - India
- Bharathi Cement Corporation - India
- Bukit Asam (Persero) Tbk - Indonesia
- European Bulk Services B.V. - Netherlands
- Metalloyd Limited - United Kingdom
- Bhoruka Overseas - Indonesia
- SMC Global Power, Philippines
- IEA Clean Coal Centre - UK
- London Commodity Brokers - England
- McConnell Dowell - Australia
- Kalimantan Lumbung Energi - Indonesia
- Ambuja Cements Ltd - India
- Cement Manufacturers Association - India
- Parry Sugars Refinery, India
- Neyveli Lignite Corporation Ltd, - India
- Port Waratah Coal Services - Australia
- New Zealand Coal & Carbon
- Star Paper Mills Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Merrill Lynch Commodities Europe
- Singapore Mercantile Exchange
- Semirara Mining and Power Corporation, Philippines
- Bulk Trading Sa - Switzerland
- SN Aboitiz Power Inc, Philippines
- Global Green Power PLC Corporation, Philippines
- Economic Council, Georgia
- MS Steel International - UAE
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ministry of Finance - Indonesia
- Formosa Plastics Group - Taiwan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indo Tambangraya Megah - Indonesia
- Antam Resourcindo - Indonesia
- PNOC Exploration Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- Ind-Barath Power Infra Limited - India
- Coastal Gujarat Power Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Orica Mining Services - Indonesia
- Kobexindo Tractors - Indoneisa
- GN Power Mariveles Coal Plant, Philippines
- Globalindo Alam Lestari - Indonesia
- Renaissance Capital - South Africa
- Heidelberg Cement - Germany
- Global Business Power Corporation, Philippines
- Grasim Industreis Ltd - India
- Siam City Cement - Thailand
- GAC Shipping (India) Pvt Ltd
- Lanco Infratech Ltd - India
- Alfred C Toepfer International GmbH - Germany
- ICICI Bank Limited - India
- Miang Besar Coal Terminal - Indonesia
- Therma Luzon, Inc, Philippines
- Dalmia Cement Bharat India
- Sarangani Energy Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- AsiaOL BioFuels Corp., Philippines
- Holcim Trading Pte Ltd - Singapore
- VISA Power Limited - India
- CNBM International Corporation - China
- Thai Mozambique Logistica
- Jaiprakash Power Ventures ltd
- Mintek Dendrill Indonesia
- Leighton Contractors Pty Ltd - Australia
- Baramulti Group, Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Mjunction Services Limited - India
- Indika Energy - Indonesia
- Romanian Commodities Exchange
- Gujarat Electricity Regulatory Commission - India
- Indian Energy Exchange, India
- Ministry of Mines - Canada
- Samtan Co., Ltd - South Korea
- The Treasury - Australian Government
- Price Waterhouse Coopers - Russia
- Energy Development Corp, Philippines
- Coalindo Energy - Indonesia
- Vedanta Resources Plc - India
- Global Coal Blending Company Limited - Australia
- Carbofer General Trading SA - India
- Marubeni Corporation - India
- Riau Bara Harum - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Meenaskhi Energy Private Limited - India
- Madhucon Powers Ltd - India
- GVK Power & Infra Limited - India
- Indogreen Group - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Electricity Generating Authority of Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Central Java Power - Indonesia
- Power Finance Corporation Ltd., India
- Jindal Steel & Power Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Essar Steel Hazira Ltd - India
- Kaltim Prima Coal - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- San Jose City I Power Corp, Philippines
- Xindia Steels Limited - India
- Straits Asia Resources Limited - Singapore
- GMR Energy Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Cigading International Bulk Terminal - Indonesia
- Standard Chartered Bank - UAE
- Australian Coal Association
- Eastern Energy - Thailand
- Kepco SPC Power Corporation, Philippines
- Chamber of Mines of South Africa
- Minerals Council of Australia
- Orica Australia Pty. Ltd.
- Australian Commodity Traders Exchange
- Maharashtra Electricity Regulatory Commission - India
- Directorate General of MIneral and Coal - Indonesia
- Attock Cement Pakistan Limited
- Planning Commission, India
- Simpson Spence & Young - Indonesia
- Timah Investasi Mineral - Indoneisa
- Bukit Baiduri Energy - Indonesia
- Chettinad Cement Corporation Ltd - India
- Latin American Coal - Colombia
- Sindya Power Generating Company Private Ltd
|
| |
| |
|
