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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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Sunday, 10 September 23
CHINA AUGUST COAL IMPORTS OF 44.3 MLN T HIT RECORD - REUTERS
China, the world’s top coal consumer, imported 44.3 million metric tons of the fuel last month, customs data showed, the highest amount in an ...
Tuesday, 22 August 23
CHINA'S COAL PRODUCTION LOGS STEADY GROWTH IN JANUARY-JULY: XINHUA
China’s output of raw coal went up 3.6 percent year on year in the first seven months of this year, official data showed.
The ...
Sunday, 13 August 23
THE COMMODITIES FEED: LNG SUPPLY RISKS LINGER - ING
Energy – OPEC sees deficit over remainder of 2023
Oil prices came under some pressure yesterday with ICE Brent settling a litt ...
Wednesday, 09 August 23
COAL TRADE TO RETURN TO 2019 LEVELS - BALTIC EXCHANGE
The International Energy Agency’s mid-year Coal Market Update for 2023 brings both positive and concerning news for the global coal industry. ...
Sunday, 23 July 23
ANALYSIS-INDIA'S COAL MINING BET STUMBLES AS WARY BANKS WEIGH RISING RISKS - REUTERS
India’s drive to ramp up coal output to meet growing energy demand is faltering due to banks’ reluctance to finance newly auctioned min ...
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- Interocean Group of Companies - India
- Tata Chemicals Ltd - India
- Meenaskhi Energy Private Limited - India
- Coastal Gujarat Power Limited - India
- OPG Power Generation Pvt Ltd - India
- Port Waratah Coal Services - Australia
- PTC India Limited - India
- Ceylon Electricity Board - Sri Lanka
- Jorong Barutama Greston.PT - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Rashtriya Ispat Nigam Limited - India
- San Jose City I Power Corp, Philippines
- Star Paper Mills Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Coalindo Energy - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Madhucon Powers Ltd - India
- IHS Mccloskey Coal Group - USA
- Electricity Generating Authority of Thailand
- Global Business Power Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- Edison Trading Spa - Italy
- Manunggal Multi Energi - Indonesia
- Therma Luzon, Inc, Philippines
- Marubeni Corporation - India
- MS Steel International - UAE
- Heidelberg Cement - Germany
- Bhatia International Limited - India
- Thai Mozambique Logistica
- Electricity Authority, New Zealand
- Videocon Industries ltd - India
- Barasentosa Lestari - Indonesia
- Indian Energy Exchange, India
- Africa Commodities Group - South Africa
- Leighton Contractors Pty Ltd - Australia
- Bhoruka Overseas - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Energy Link Ltd, New Zealand
- London Commodity Brokers - England
- Bukit Asam (Persero) Tbk - Indonesia
- Price Waterhouse Coopers - Russia
- Timah Investasi Mineral - Indoneisa
- Makarim & Taira - Indonesia
- Central Java Power - Indonesia
- Lanco Infratech Ltd - India
- Globalindo Alam Lestari - Indonesia
- Australian Commodity Traders Exchange
- Larsen & Toubro Limited - India
- Meralco Power Generation, Philippines
- Latin American Coal - Colombia
- Bahari Cakrawala Sebuku - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Borneo Indobara - Indonesia
- Sree Jayajothi Cements Limited - India
- Minerals Council of Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Wilmar Investment Holdings
- Chettinad Cement Corporation Ltd - India
- Deloitte Consulting - India
- Samtan Co., Ltd - South Korea
- ASAPP Information Group - India
- Iligan Light & Power Inc, Philippines
- Holcim Trading Pte Ltd - Singapore
- Siam City Cement PLC, Thailand
- Parliament of New Zealand
- Jindal Steel & Power Ltd - India
- Independent Power Producers Association of India
- SMG Consultants - Indonesia
- Ind-Barath Power Infra Limited - India
- Sinarmas Energy and Mining - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Essar Steel Hazira Ltd - India
- Parry Sugars Refinery, India
- Gujarat Mineral Development Corp Ltd - India
- Jaiprakash Power Ventures ltd
- India Bulls Power Limited - India
- Sojitz Corporation - Japan
- Pendopo Energi Batubara - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Ministry of Mines - Canada
- Ambuja Cements Ltd - India
- Binh Thuan Hamico - Vietnam
- GAC Shipping (India) Pvt Ltd
- TeaM Sual Corporation - Philippines
- IEA Clean Coal Centre - UK
- Vizag Seaport Private Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Directorate Of Revenue Intelligence - India
- Kideco Jaya Agung - Indonesia
- Mjunction Services Limited - India
- Global Coal Blending Company Limited - Australia
- Sarangani Energy Corporation, Philippines
- Renaissance Capital - South Africa
- Altura Mining Limited, Indonesia
- Simpson Spence & Young - Indonesia
- South Luzon Thermal Energy Corporation
- Trasteel International SA, Italy
- Uttam Galva Steels Limited - India
- Antam Resourcindo - Indonesia
- CIMB Investment Bank - Malaysia
- Krishnapatnam Port Company Ltd. - India
- Eastern Coal Council - USA
- Cigading International Bulk Terminal - Indonesia
- Economic Council, Georgia
- Indonesian Coal Mining Association
- Mercator Lines Limited - India
- Thiess Contractors Indonesia
- Toyota Tsusho Corporation, Japan
- Kartika Selabumi Mining - Indonesia
- White Energy Company Limited
- Oldendorff Carriers - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Salva Resources Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- Power Finance Corporation Ltd., India
- Semirara Mining Corp, Philippines
- Commonwealth Bank - Australia
- Siam City Cement - Thailand
- Baramulti Group, Indonesia
- Merrill Lynch Commodities Europe
- Rio Tinto Coal - Australia
- New Zealand Coal & Carbon
- International Coal Ventures Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Ministry of Transport, Egypt
- Bhushan Steel Limited - India
- Sakthi Sugars Limited - India
- The Treasury - Australian Government
- Karaikal Port Pvt Ltd - India
- Petron Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Wood Mackenzie - Singapore
- Aboitiz Power Corporation - Philippines
- Savvy Resources Ltd - HongKong
- Alfred C Toepfer International GmbH - Germany
- Gujarat Sidhee Cement - India
- SN Aboitiz Power Inc, Philippines
- Mercuria Energy - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sical Logistics Limited - India
- Kepco SPC Power Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Banpu Public Company Limited - Thailand
- Vijayanagar Sugar Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- ICICI Bank Limited - India
- Tamil Nadu electricity Board
- PNOC Exploration Corporation - Philippines
- Orica Australia Pty. Ltd.
- The University of Queensland
- AsiaOL BioFuels Corp., Philippines
- Anglo American - United Kingdom
- Romanian Commodities Exchange
- Attock Cement Pakistan Limited
- Global Green Power PLC Corporation, Philippines
- Dalmia Cement Bharat India
- Central Electricity Authority - India
- Billiton Holdings Pty Ltd - Australia
- Bukit Baiduri Energy - Indonesia
- McConnell Dowell - Australia
- PowerSource Philippines DevCo
- Vedanta Resources Plc - India
- Kaltim Prima Coal - Indonesia
- Grasim Industreis Ltd - India
- Australian Coal Association
- The State Trading Corporation of India Ltd
- Kalimantan Lumbung Energi - Indonesia
- Maheswari Brothers Coal Limited - India
- Aditya Birla Group - India
- TNB Fuel Sdn Bhd - Malaysia
- Goldman Sachs - Singapore
- GMR Energy Limited - India
- Georgia Ports Authority, United States
- Orica Mining Services - Indonesia
- Singapore Mercantile Exchange
- Coal and Oil Company - UAE
- Bulk Trading Sa - Switzerland
- Indo Tambangraya Megah - Indonesia
- Indian Oil Corporation Limited
- Posco Energy - South Korea
- VISA Power Limited - India
- Mintek Dendrill Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Agrawal Coal Company - India
- Carbofer General Trading SA - India
- Directorate General of MIneral and Coal - Indonesia
- GVK Power & Infra Limited - India
- Planning Commission, India
- Cement Manufacturers Association - India
- Standard Chartered Bank - UAE
- Karbindo Abesyapradhi - Indoneisa
- Kumho Petrochemical, South Korea
- Bangladesh Power Developement Board
- Formosa Plastics Group - Taiwan
- Miang Besar Coal Terminal - Indonesia
- Ministry of Finance - Indonesia
- Bharathi Cement Corporation - India
- CNBM International Corporation - China
- Maharashtra Electricity Regulatory Commission - India
- European Bulk Services B.V. - Netherlands
- Semirara Mining and Power Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indogreen Group - Indonesia
- Chamber of Mines of South Africa
- Straits Asia Resources Limited - Singapore
- Eastern Energy - Thailand
- Kobexindo Tractors - Indoneisa
- SMC Global Power, Philippines
- Bukit Makmur.PT - Indonesia
- Medco Energi Mining Internasional
- Bank of Tokyo Mitsubishi UFJ Ltd
- Xindia Steels Limited - India
- Gujarat Electricity Regulatory Commission - India
- Energy Development Corp, Philippines
- Malabar Cements Ltd - India
- Indika Energy - Indonesia
- Intertek Mineral Services - Indonesia
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