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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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Monday, 17 July 23
APPROVED AMMONIA-FUELED CONTAINERSHIP - BENEFITS AND RISKS: REED SMITH
Following the news in Offshore Energy that Korea Maritime Consultants has secured approval in principle from the American Bureau of Shipping for it ...
Friday, 14 July 23
CLEAN COAL USE KEY TO DEEP CUTS IN EMISSIONS, STABLE ELECTRICITY SUPPLY - CHINA DAILY
China must push for the clean use of coal and step up integration of the dirty fuel with carbon capture, utilization and storage to achieve sustain ...
Thursday, 13 July 23
VIETNAM'S COAL EMISSIONS PRIMED FOR SURGE AFTER IMPORTS JUMP - REUTERS
Vietnam’s thermal power emissions are primed for a steep climb this summer after the country’s imports of thermal coal soared to their ...
Monday, 26 June 23
COAL PRODUCTION AND CONSUMPTION UP IN 2022 - EUROSTAT
In 2022, EU coal production and consumption continued to increase, reaching 349 million tonnes (+5% compared with the previous year) and 454 millio ...
Wednesday, 21 June 23
QATAR STRIKES SECOND BIG LNG SUPPLY DEAL WITH CHINA - REUTERS
Qatar on Tuesday secured its second large gas supply deal with a Chinese state-controlled company in less than a year, putting Asia clearly ahead i ...
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- Semirara Mining and Power Corporation, Philippines
- The University of Queensland
- Indonesian Coal Mining Association
- Petron Corporation, Philippines
- Australian Coal Association
- London Commodity Brokers - England
- Eastern Energy - Thailand
- Alfred C Toepfer International GmbH - Germany
- Anglo American - United Kingdom
- GN Power Mariveles Coal Plant, Philippines
- Larsen & Toubro Limited - India
- Bhoruka Overseas - Indonesia
- New Zealand Coal & Carbon
- Singapore Mercantile Exchange
- Savvy Resources Ltd - HongKong
- Makarim & Taira - Indonesia
- OPG Power Generation Pvt Ltd - India
- Uttam Galva Steels Limited - India
- IEA Clean Coal Centre - UK
- PNOC Exploration Corporation - Philippines
- Latin American Coal - Colombia
- Holcim Trading Pte Ltd - Singapore
- Tata Chemicals Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- McConnell Dowell - Australia
- Binh Thuan Hamico - Vietnam
- Rashtriya Ispat Nigam Limited - India
- Ind-Barath Power Infra Limited - India
- Mercator Lines Limited - India
- Therma Luzon, Inc, Philippines
- Intertek Mineral Services - Indonesia
- Kaltim Prima Coal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- European Bulk Services B.V. - Netherlands
- Orica Australia Pty. Ltd.
- Salva Resources Pvt Ltd - India
- Posco Energy - South Korea
- Dalmia Cement Bharat India
- Renaissance Capital - South Africa
- Kohat Cement Company Ltd. - Pakistan
- Vizag Seaport Private Limited - India
- Manunggal Multi Energi - Indonesia
- Bangladesh Power Developement Board
- Timah Investasi Mineral - Indoneisa
- Indian Energy Exchange, India
- Electricity Generating Authority of Thailand
- Energy Link Ltd, New Zealand
- Standard Chartered Bank - UAE
- Meralco Power Generation, Philippines
- Samtan Co., Ltd - South Korea
- Neyveli Lignite Corporation Ltd, - India
- Commonwealth Bank - Australia
- Coastal Gujarat Power Limited - India
- Kumho Petrochemical, South Korea
- Star Paper Mills Limited - India
- Formosa Plastics Group - Taiwan
- GAC Shipping (India) Pvt Ltd
- Asmin Koalindo Tuhup - Indonesia
- Grasim Industreis Ltd - India
- Metalloyd Limited - United Kingdom
- Mjunction Services Limited - India
- Parliament of New Zealand
- Borneo Indobara - Indonesia
- Marubeni Corporation - India
- Wood Mackenzie - Singapore
- Chettinad Cement Corporation Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Goldman Sachs - Singapore
- Australian Commodity Traders Exchange
- LBH Netherlands Bv - Netherlands
- Merrill Lynch Commodities Europe
- Bhushan Steel Limited - India
- Indogreen Group - Indonesia
- Indika Energy - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Medco Energi Mining Internasional
- VISA Power Limited - India
- Madhucon Powers Ltd - India
- Directorate Of Revenue Intelligence - India
- Kepco SPC Power Corporation, Philippines
- Trasteel International SA, Italy
- Carbofer General Trading SA - India
- Economic Council, Georgia
- Port Waratah Coal Services - Australia
- Kalimantan Lumbung Energi - Indonesia
- Tamil Nadu electricity Board
- Sree Jayajothi Cements Limited - India
- Leighton Contractors Pty Ltd - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Aboitiz Power Corporation - Philippines
- GVK Power & Infra Limited - India
- Attock Cement Pakistan Limited
- Global Business Power Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Kobexindo Tractors - Indoneisa
- Eastern Coal Council - USA
- Thai Mozambique Logistica
- Kapuas Tunggal Persada - Indonesia
- Sindya Power Generating Company Private Ltd
- PetroVietnam Power Coal Import and Supply Company
- TeaM Sual Corporation - Philippines
- Ministry of Mines - Canada
- Ministry of Transport, Egypt
- Jaiprakash Power Ventures ltd
- Vijayanagar Sugar Pvt Ltd - India
- GMR Energy Limited - India
- Chamber of Mines of South Africa
- Essar Steel Hazira Ltd - India
- Interocean Group of Companies - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Cement Manufacturers Association - India
- Videocon Industries ltd - India
- Semirara Mining Corp, Philippines
- Siam City Cement - Thailand
- Gujarat Electricity Regulatory Commission - India
- Mercuria Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- SN Aboitiz Power Inc, Philippines
- Independent Power Producers Association of India
- Maharashtra Electricity Regulatory Commission - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- SMC Global Power, Philippines
- Banpu Public Company Limited - Thailand
- Minerals Council of Australia
- MS Steel International - UAE
- Toyota Tsusho Corporation, Japan
- Straits Asia Resources Limited - Singapore
- Altura Mining Limited, Indonesia
- Africa Commodities Group - South Africa
- AsiaOL BioFuels Corp., Philippines
- Wilmar Investment Holdings
- Ambuja Cements Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Bulk Trading Sa - Switzerland
- India Bulls Power Limited - India
- Price Waterhouse Coopers - Russia
- The State Trading Corporation of India Ltd
- Sarangani Energy Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- Billiton Holdings Pty Ltd - Australia
- Bhatia International Limited - India
- Kartika Selabumi Mining - Indonesia
- PowerSource Philippines DevCo
- Global Coal Blending Company Limited - Australia
- Central Electricity Authority - India
- Coalindo Energy - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Riau Bara Harum - Indonesia
- Deloitte Consulting - India
- Aditya Birla Group - India
- Parry Sugars Refinery, India
- Sical Logistics Limited - India
- Bharathi Cement Corporation - India
- International Coal Ventures Pvt Ltd - India
- Bayan Resources Tbk. - Indonesia
- Heidelberg Cement - Germany
- Ministry of Finance - Indonesia
- Oldendorff Carriers - Singapore
- Central Java Power - Indonesia
- Mintek Dendrill Indonesia
- Ceylon Electricity Board - Sri Lanka
- Vedanta Resources Plc - India
- Meenaskhi Energy Private Limited - India
- SMG Consultants - Indonesia
- Karaikal Port Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Energy Development Corp, Philippines
- Krishnapatnam Port Company Ltd. - India
- Coal and Oil Company - UAE
- Maheswari Brothers Coal Limited - India
- Indo Tambangraya Megah - Indonesia
- Georgia Ports Authority, United States
- Pipit Mutiara Jaya. PT, Indonesia
- Thiess Contractors Indonesia
- ICICI Bank Limited - India
- Orica Mining Services - Indonesia
- The Treasury - Australian Government
- Jorong Barutama Greston.PT - Indonesia
- Pendopo Energi Batubara - Indonesia
- South Luzon Thermal Energy Corporation
- Kideco Jaya Agung - Indonesia
- CNBM International Corporation - China
- Baramulti Group, Indonesia
- Malabar Cements Ltd - India
- Agrawal Coal Company - India
- Power Finance Corporation Ltd., India
- Sakthi Sugars Limited - India
- CIMB Investment Bank - Malaysia
- Planning Commission, India
- Globalindo Alam Lestari - Indonesia
- Barasentosa Lestari - Indonesia
- Bukit Baiduri Energy - Indonesia
- Rio Tinto Coal - Australia
- Sojitz Corporation - Japan
- Edison Trading Spa - Italy
- Antam Resourcindo - Indonesia
- San Jose City I Power Corp, Philippines
- ASAPP Information Group - India
- Gujarat Sidhee Cement - India
- Romanian Commodities Exchange
- Jindal Steel & Power Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Iligan Light & Power Inc, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Cigading International Bulk Terminal - Indonesia
- Xindia Steels Limited - India
- Lanco Infratech Ltd - India
- PTC India Limited - India
- White Energy Company Limited
- Miang Besar Coal Terminal - Indonesia
- Simpson Spence & Young - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Indian Oil Corporation Limited
- Electricity Authority, New Zealand
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