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Tuesday, 27 December 11
MINERS MAKE CASE FOR RESUMING CONTRACT NEGOTIATIONS - THE JAKARTA POST
The Jakarta Post reported that, problems with the renegotiation of mining contracts in the country are far from over, as agreements on several crucial issues are still yet to be found.
The government remains adamant that it will not compromise on its intention to ramp up state revenues by increasing royalties, while miners on the other hand insist that some points in the 2009 minerals and coal law are “irrational” and may create uncertainty in terms of the outcome of their investments.
The Indonesian Mining Association (IMA) revealed that renegotiations had stalled due to three major issues: the size of mining areas, state revenues and contract extensions.
In a bid to make progress on the stagnant talks between the government and miners, the association proposed solutions to the three issues based on what it saw as fair for both parties. With the proposals, it expected that deals would be made, which would foster an air of certainty in relation to operations.
On the issue of state revenues, the association claimed that it was hard for mining companies to adjust the amount of royalties to the level set by the government in the 2003 regulation on tariffs for non-tax revenues for the energy and mineral resources sector (3.75 percent of sales for gold, 3.25 percent for silver and 4 percent for copper).
“If the government wants to raise royalties, it also has to think about other financial obligations paid by companies, such as the corporate income tax, the amount of which is still 35 percent even though the 2008 law on income tax revised it to 25 percent,” said Syahrir AB, an executive director of the IMA, in Jakarta on Monday.
The government could not force mining companies to pay higher royalties without adjusting its other financial obligations because such economic burdens would reduce the profitability of their projects, he explained.
If the goal was to raise state revenues from the mining sector, he suggested that the government apply a threshold for mining companies’ profits. For example, if a company made a profit margin of more than 25 percent due to the soaring prices of commodities, the government could apply an additional tax, he added.
The second suggestion was related to the size of mining areas. The association said most mining companies needed at least 70,000 hectares to make a mining project “economical”. However, the 2009 law on minerals and coal determined that the maximum size for mineral mining was 25,000 hectares, with coal mining at 15,000 hectares.
“In our last meeting with the government, it understood our reasons. The government agreed that the size of an area granted to a company would be judged based on the long-term plan it proposed to the government,” Syahrir reported.
That model requires the Energy and Mineral Resources Ministry to have the human resources to review the plan and judge whether the size of area proposed by a company is reasonable or not. If the reviewers say that the proposal is unreasonable, the government can grant the permit for a smaller area.
The third suggestion was about the contract extension. Currently, mining companies can extend the contract by “two times 10 years”, but the authority to grant approval for the extension is in the hands of the head of regions by issuing mining permits. The association deems that the model creates uncertainty over the future of mining projects. It suggests that the contract extension clause is included into mining contracts (KK) and contracts of work (PKP2B).
The director general for minerals and coal at the Energy and Mineral Resources Ministry, Thamrin Sihite, said that out of 42 mining contract holders and 76 contracts of work, there were companies that agreed to all renegotiation points, and some that partially agreed and disagreed.
“About the suggestion in relation to the size of area, the government will review it first, if the proposal is in line with the government vision, we may approve it,” he said over the phone.
However, he reminded that renegotiations had to be looked at on case by case basis as each company had different problems.
IMA proposals:
•The implementation of a profit threshold to allow the government to tax mining companies if the latter’s profit margins exceed the threshold.
•Determine the mining area based on the profitability of each mining project. The IMA estimates that a company needs at least 70,000 hectares to make a project profitable.
•Contract extensions have to be included into mining contracts (KK) and contracts of work (PKP2B) to create certainty.
Source: The Jakarta Post
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Tuesday, 14 November 23
CHINA'S BELT AND ROAD INITIATIVE TURNS AWAY FROM COAL - WOOD MACKENZIE
Ambitious, contentious and big spending, China’s Belt and Road Initiative (BRI) is 10 years old. In that time, China has splashed more than U ...
Friday, 10 November 23
THE COMMODITIES FEED: OIL UNDER PRESSURE - ING
Energy – Brent plummets
The oil market came under significant pressure yesterday. ICE Brent settled 4.19% lower on the day and ...
Friday, 10 November 23
COAL USE AT U.S. POWER PLANTS CONTINUES DOWNWARD SPIRAL; FULL IMPACT ON MINES TO BE FELT IN 2024 - IEEFA
This year, the use of coal by the U.S.’s power producers has been so anemic that the fuel has not achieved a 20% market share in any month so ...
Friday, 10 November 23
INDIA: NATIONAL COAL INDEX RISES 3.83 POINTS IN SEPTEMBER AMID HIGHER DEMAND - LIVEMINT
The National Coal Index (NCI) rose 3.83 points to 143.91 in September amid growing demand for coal.
The union coal ministry on Tuesd ...
Thursday, 09 November 23
WE'RE PRODUCING TOO MUCH COAL, OIL AND GAS, REPORT SAYS - WSJ
World leaders pledged in 2015 to reduce emissions in a combined effort to limit climate change.
Now they are stepping up production ...
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- The University of Queensland
- European Bulk Services B.V. - Netherlands
- Bukit Makmur.PT - Indonesia
- Larsen & Toubro Limited - India
- Latin American Coal - Colombia
- Ceylon Electricity Board - Sri Lanka
- International Coal Ventures Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- Uttam Galva Steels Limited - India
- SMG Consultants - Indonesia
- Port Waratah Coal Services - Australia
- Kohat Cement Company Ltd. - Pakistan
- Wood Mackenzie - Singapore
- PTC India Limited - India
- Simpson Spence & Young - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sojitz Corporation - Japan
- SMC Global Power, Philippines
- Power Finance Corporation Ltd., India
- Sical Logistics Limited - India
- Salva Resources Pvt Ltd - India
- Indian Oil Corporation Limited
- Carbofer General Trading SA - India
- Jindal Steel & Power Ltd - India
- Parliament of New Zealand
- Siam City Cement - Thailand
- Chamber of Mines of South Africa
- Lanco Infratech Ltd - India
- Sree Jayajothi Cements Limited - India
- Standard Chartered Bank - UAE
- Central Electricity Authority - India
- Bahari Cakrawala Sebuku - Indonesia
- Africa Commodities Group - South Africa
- Ministry of Transport, Egypt
- Coalindo Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Kalimantan Lumbung Energi - Indonesia
- Agrawal Coal Company - India
- OPG Power Generation Pvt Ltd - India
- Thiess Contractors Indonesia
- Aditya Birla Group - India
- Eastern Coal Council - USA
- Siam City Cement PLC, Thailand
- Global Green Power PLC Corporation, Philippines
- The Treasury - Australian Government
- Indian Energy Exchange, India
- Australian Coal Association
- Rio Tinto Coal - Australia
- Semirara Mining Corp, Philippines
- Electricity Generating Authority of Thailand
- Sakthi Sugars Limited - India
- Independent Power Producers Association of India
- Dalmia Cement Bharat India
- Goldman Sachs - Singapore
- Sindya Power Generating Company Private Ltd
- Eastern Energy - Thailand
- Electricity Authority, New Zealand
- Malabar Cements Ltd - India
- Cement Manufacturers Association - India
- Bhoruka Overseas - Indonesia
- Bangladesh Power Developement Board
- Kideco Jaya Agung - Indonesia
- Globalindo Alam Lestari - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Vijayanagar Sugar Pvt Ltd - India
- Vedanta Resources Plc - India
- Ambuja Cements Ltd - India
- Bayan Resources Tbk. - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Mercuria Energy - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Deloitte Consulting - India
- PetroVietnam Power Coal Import and Supply Company
- Krishnapatnam Port Company Ltd. - India
- Minerals Council of Australia
- Antam Resourcindo - Indonesia
- India Bulls Power Limited - India
- Holcim Trading Pte Ltd - Singapore
- Coastal Gujarat Power Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Chettinad Cement Corporation Ltd - India
- Banpu Public Company Limited - Thailand
- Maheswari Brothers Coal Limited - India
- Energy Development Corp, Philippines
- VISA Power Limited - India
- Orica Mining Services - Indonesia
- PNOC Exploration Corporation - Philippines
- Directorate General of MIneral and Coal - Indonesia
- New Zealand Coal & Carbon
- Australian Commodity Traders Exchange
- Samtan Co., Ltd - South Korea
- SN Aboitiz Power Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Star Paper Mills Limited - India
- Renaissance Capital - South Africa
- Parry Sugars Refinery, India
- London Commodity Brokers - England
- IHS Mccloskey Coal Group - USA
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- IEA Clean Coal Centre - UK
- Sarangani Energy Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Indika Energy - Indonesia
- Commonwealth Bank - Australia
- Timah Investasi Mineral - Indoneisa
- Metalloyd Limited - United Kingdom
- Vizag Seaport Private Limited - India
- Videocon Industries ltd - India
- Savvy Resources Ltd - HongKong
- Makarim & Taira - Indonesia
- Therma Luzon, Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Medco Energi Mining Internasional
- Barasentosa Lestari - Indonesia
- Borneo Indobara - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Xindia Steels Limited - India
- Grasim Industreis Ltd - India
- Ind-Barath Power Infra Limited - India
- Karaikal Port Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- TeaM Sual Corporation - Philippines
- Directorate Of Revenue Intelligence - India
- White Energy Company Limited
- Asmin Koalindo Tuhup - Indonesia
- Petron Corporation, Philippines
- Kumho Petrochemical, South Korea
- Romanian Commodities Exchange
- Attock Cement Pakistan Limited
- Jaiprakash Power Ventures ltd
- Ministry of Mines - Canada
- GMR Energy Limited - India
- Mintek Dendrill Indonesia
- Indogreen Group - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bharathi Cement Corporation - India
- Manunggal Multi Energi - Indonesia
- Heidelberg Cement - Germany
- MS Steel International - UAE
- Gujarat Sidhee Cement - India
- Meralco Power Generation, Philippines
- Central Java Power - Indonesia
- Bulk Trading Sa - Switzerland
- Coal and Oil Company - UAE
- Straits Asia Resources Limited - Singapore
- Energy Link Ltd, New Zealand
- Riau Bara Harum - Indonesia
- Global Business Power Corporation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Georgia Ports Authority, United States
- Bukit Asam (Persero) Tbk - Indonesia
- CNBM International Corporation - China
- Global Coal Blending Company Limited - Australia
- ICICI Bank Limited - India
- GVK Power & Infra Limited - India
- Tamil Nadu electricity Board
- Billiton Holdings Pty Ltd - Australia
- Marubeni Corporation - India
- Planning Commission, India
- The State Trading Corporation of India Ltd
- Meenaskhi Energy Private Limited - India
- Merrill Lynch Commodities Europe
- Bukit Baiduri Energy - Indonesia
- McConnell Dowell - Australia
- Trasteel International SA, Italy
- Kapuas Tunggal Persada - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Kobexindo Tractors - Indoneisa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Cigading International Bulk Terminal - Indonesia
- San Jose City I Power Corp, Philippines
- PowerSource Philippines DevCo
- Wilmar Investment Holdings
- Iligan Light & Power Inc, Philippines
- CIMB Investment Bank - Malaysia
- Indonesian Coal Mining Association
- Ministry of Finance - Indonesia
- Altura Mining Limited, Indonesia
- Formosa Plastics Group - Taiwan
- Indo Tambangraya Megah - Indonesia
- LBH Netherlands Bv - Netherlands
- Aboitiz Power Corporation - Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Kepco SPC Power Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Edison Trading Spa - Italy
- Gujarat Mineral Development Corp Ltd - India
- Bhatia International Limited - India
- Interocean Group of Companies - India
- Bhushan Steel Limited - India
- Orica Australia Pty. Ltd.
- Madhucon Powers Ltd - India
- AsiaOL BioFuels Corp., Philippines
- GAC Shipping (India) Pvt Ltd
- Maharashtra Electricity Regulatory Commission - India
- ASAPP Information Group - India
- Kartika Selabumi Mining - Indonesia
- Oldendorff Carriers - Singapore
- Baramulti Group, Indonesia
- Posco Energy - South Korea
- Anglo American - United Kingdom
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Economic Council, Georgia
- Mjunction Services Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Mercator Lines Limited - India
- Thai Mozambique Logistica
- Leighton Contractors Pty Ltd - Australia
- South Luzon Thermal Energy Corporation
- Tata Chemicals Ltd - India
- Gujarat Electricity Regulatory Commission - India
- GN Power Mariveles Coal Plant, Philippines
- Singapore Mercantile Exchange
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