We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Wednesday, 21 June 23
CHINA'S MAY COAL IMPORTS FROM AUSTRALIA RECOVER TO PRE-BAN LEVELS - REUTERS
Australian coal sales to China increased in May, as trade resumed between them even as overall coal demand weakened against an uncertain macroecono ...
Monday, 19 June 23
DROUGHT-DEPLETED HYDROPOWER DRIVES CHINA TO TURN TO COAL - REUTERS
China has leant hard on coal-fired power plants as well as wind and solar generators to make up for a shortfall in hydroelectric generation as a re ...
Monday, 19 June 23
CHINA COAL OUTPUT UP 4.2 PCT IN MAY - XINHUA
China’s raw coal output posted steady growth in May, official data showed.
The country produced 390 million tonnes of raw coal ...
Wednesday, 24 May 23
AMMONIA-FUELLED BULK CARRIERS WITHIN FIVE YEARS - BALTIC EXCHANGE
Within five years, ships powered by clean ammonia could be a feature on the iron ore trade routes between West Australia and East Asia.
A study ...
Tuesday, 23 May 23
CHINA'S APRIL COAL OUTPUT LEAPS 11% ON YEAR, BUT DEMAND DOWNTURN LOOMS - REUTERS
China’s daily coal output in April jumped 11% from the same month a year earlier, boosted by Beijing’s order to increase supply to ensu ...
|
|
|
Showing 96 to 100 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Gujarat Mineral Development Corp Ltd - India
- Karaikal Port Pvt Ltd - India
- Ambuja Cements Ltd - India
- Iligan Light & Power Inc, Philippines
- CIMB Investment Bank - Malaysia
- Xindia Steels Limited - India
- Wilmar Investment Holdings
- Energy Link Ltd, New Zealand
- GVK Power & Infra Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sical Logistics Limited - India
- OPG Power Generation Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Australian Commodity Traders Exchange
- Kideco Jaya Agung - Indonesia
- Malabar Cements Ltd - India
- LBH Netherlands Bv - Netherlands
- Planning Commission, India
- McConnell Dowell - Australia
- ASAPP Information Group - India
- Bukit Baiduri Energy - Indonesia
- Power Finance Corporation Ltd., India
- Tata Chemicals Ltd - India
- Eastern Coal Council - USA
- Ceylon Electricity Board - Sri Lanka
- Marubeni Corporation - India
- Merrill Lynch Commodities Europe
- Videocon Industries ltd - India
- Kartika Selabumi Mining - Indonesia
- Deloitte Consulting - India
- Sakthi Sugars Limited - India
- Alfred C Toepfer International GmbH - Germany
- Commonwealth Bank - Australia
- Indo Tambangraya Megah - Indonesia
- Lanco Infratech Ltd - India
- Central Electricity Authority - India
- Indogreen Group - Indonesia
- GAC Shipping (India) Pvt Ltd
- Renaissance Capital - South Africa
- Straits Asia Resources Limited - Singapore
- Kobexindo Tractors - Indoneisa
- Carbofer General Trading SA - India
- Grasim Industreis Ltd - India
- The State Trading Corporation of India Ltd
- Latin American Coal - Colombia
- Mercator Lines Limited - India
- Attock Cement Pakistan Limited
- MS Steel International - UAE
- Port Waratah Coal Services - Australia
- Vijayanagar Sugar Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- Madhucon Powers Ltd - India
- Trasteel International SA, Italy
- Australian Coal Association
- Coastal Gujarat Power Limited - India
- Mjunction Services Limited - India
- Rashtriya Ispat Nigam Limited - India
- Vedanta Resources Plc - India
- Coal and Oil Company - UAE
- Metalloyd Limited - United Kingdom
- Holcim Trading Pte Ltd - Singapore
- Thai Mozambique Logistica
- Goldman Sachs - Singapore
- Kalimantan Lumbung Energi - Indonesia
- New Zealand Coal & Carbon
- Altura Mining Limited, Indonesia
- Orica Mining Services - Indonesia
- Savvy Resources Ltd - HongKong
- Vizag Seaport Private Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sojitz Corporation - Japan
- Salva Resources Pvt Ltd - India
- Semirara Mining Corp, Philippines
- Wood Mackenzie - Singapore
- Mercuria Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- Ministry of Finance - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Petron Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Anglo American - United Kingdom
- Tamil Nadu electricity Board
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Independent Power Producers Association of India
- TeaM Sual Corporation - Philippines
- Indian Oil Corporation Limited
- Maheswari Brothers Coal Limited - India
- Kapuas Tunggal Persada - Indonesia
- Bangladesh Power Developement Board
- Timah Investasi Mineral - Indoneisa
- Binh Thuan Hamico - Vietnam
- ICICI Bank Limited - India
- Interocean Group of Companies - India
- Bukit Makmur.PT - Indonesia
- PNOC Exploration Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- Uttam Galva Steels Limited - India
- The University of Queensland
- Romanian Commodities Exchange
- Minerals Council of Australia
- Gujarat Sidhee Cement - India
- IEA Clean Coal Centre - UK
- Africa Commodities Group - South Africa
- Agrawal Coal Company - India
- Kohat Cement Company Ltd. - Pakistan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Maharashtra Electricity Regulatory Commission - India
- Dalmia Cement Bharat India
- India Bulls Power Limited - India
- Cigading International Bulk Terminal - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Oldendorff Carriers - Singapore
- Larsen & Toubro Limited - India
- Kepco SPC Power Corporation, Philippines
- Coalindo Energy - Indonesia
- Baramulti Group, Indonesia
- The Treasury - Australian Government
- Cement Manufacturers Association - India
- Siam City Cement PLC, Thailand
- Jorong Barutama Greston.PT - Indonesia
- Central Java Power - Indonesia
- Mintek Dendrill Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Miang Besar Coal Terminal - Indonesia
- San Jose City I Power Corp, Philippines
- Samtan Co., Ltd - South Korea
- PowerSource Philippines DevCo
- PTC India Limited - India
- IHS Mccloskey Coal Group - USA
- Standard Chartered Bank - UAE
- Electricity Authority, New Zealand
- SMC Global Power, Philippines
- Aditya Birla Group - India
- Manunggal Multi Energi - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Therma Luzon, Inc, Philippines
- Formosa Plastics Group - Taiwan
- PetroVietnam Power Coal Import and Supply Company
- Borneo Indobara - Indonesia
- Makarim & Taira - Indonesia
- Bhatia International Limited - India
- Edison Trading Spa - Italy
- Kaltim Prima Coal - Indonesia
- Kumho Petrochemical, South Korea
- GN Power Mariveles Coal Plant, Philippines
- Meralco Power Generation, Philippines
- SMG Consultants - Indonesia
- White Energy Company Limited
- Pipit Mutiara Jaya. PT, Indonesia
- Bulk Trading Sa - Switzerland
- Riau Bara Harum - Indonesia
- Meenaskhi Energy Private Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Global Coal Blending Company Limited - Australia
- Electricity Generating Authority of Thailand
- Barasentosa Lestari - Indonesia
- Global Green Power PLC Corporation, Philippines
- Essar Steel Hazira Ltd - India
- VISA Power Limited - India
- Antam Resourcindo - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Orica Australia Pty. Ltd.
- Sindya Power Generating Company Private Ltd
- Sree Jayajothi Cements Limited - India
- Bharathi Cement Corporation - India
- Petrochimia International Co. Ltd.- Taiwan
- Krishnapatnam Port Company Ltd. - India
- GMR Energy Limited - India
- Ministry of Mines - Canada
- Eastern Energy - Thailand
- Thiess Contractors Indonesia
- CNBM International Corporation - China
- Leighton Contractors Pty Ltd - Australia
- Chamber of Mines of South Africa
- Karbindo Abesyapradhi - Indoneisa
- Chettinad Cement Corporation Ltd - India
- Indian Energy Exchange, India
- Bayan Resources Tbk. - Indonesia
- Intertek Mineral Services - Indonesia
- London Commodity Brokers - England
- Gujarat Electricity Regulatory Commission - India
- European Bulk Services B.V. - Netherlands
- Energy Development Corp, Philippines
- Price Waterhouse Coopers - Russia
- Georgia Ports Authority, United States
- Pendopo Energi Batubara - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Medco Energi Mining Internasional
- Indika Energy - Indonesia
- Banpu Public Company Limited - Thailand
- Globalindo Alam Lestari - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Bhushan Steel Limited - India
- Ministry of Transport, Egypt
- Sinarmas Energy and Mining - Indonesia
- South Luzon Thermal Energy Corporation
- Directorate Of Revenue Intelligence - India
- Indonesian Coal Mining Association
- Rio Tinto Coal - Australia
- Siam City Cement - Thailand
- Singapore Mercantile Exchange
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Posco Energy - South Korea
- Global Business Power Corporation, Philippines
- Parry Sugars Refinery, India
- Jindal Steel & Power Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bhoruka Overseas - Indonesia
- Heidelberg Cement - Germany
- Parliament of New Zealand
- Billiton Holdings Pty Ltd - Australia
- Economic Council, Georgia
- Star Paper Mills Limited - India
- Jaiprakash Power Ventures ltd
- Aboitiz Power Corporation - Philippines
|
| |
| |
|
