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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, 23 May 23
INDIA: COAL OUTPUT UP 8.9%, SUPPLY RISES 11.7% IN APRIL - FINANCIAL EXPRESS
India’s coal production jumped 8.85% to 73.14 million tonne (MT) in April 2023 and the total coal despatch during the month went up 11.66% to ...
Tuesday, 23 May 23
CHINA COAL OUTPUT UP 4.5 PCT IN APRIL - XINHUA
China’s raw coal output posted stable expansion in April, official data showed.
The country produced 380 million tonnes of raw ...
Saturday, 20 May 23
NON-OPEC OIL SUPPLY DEVELOPMENT - OPEC
In 2022, non-OPEC supply is estimated to have increased by 1.9 mb/d y-o-y. Out of this, US liquids production increased by 1.2 mb/d, mainly on the ...
Saturday, 20 May 23
GLOBAL COAL TRADE HAS REALLY PICKED UP PACE IN RECENT MONTHS, NOW FULLY BACK TO PRE-COVID LEVELS - BANCHERO COSTA
Global coal trade has really picked up pace in recent months, and is now fully back to pre-Covid levels. In Jan-Apr 2023, total global seaborne coa ...
Saturday, 20 May 23
MARKET INSIGHT - INTERMODAL
India is one of the world's largest coal producers and one of the world's largest importers of coal. The country uses coal mainly for power ...
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Showing 101 to 105 news of total 6871 |
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- Petron Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- Ministry of Finance - Indonesia
- IEA Clean Coal Centre - UK
- Standard Chartered Bank - UAE
- Orica Australia Pty. Ltd.
- Eastern Energy - Thailand
- Medco Energi Mining Internasional
- Sarangani Energy Corporation, Philippines
- CIMB Investment Bank - Malaysia
- The University of Queensland
- Mintek Dendrill Indonesia
- Bukit Baiduri Energy - Indonesia
- Carbofer General Trading SA - India
- London Commodity Brokers - England
- Jindal Steel & Power Ltd - India
- Bharathi Cement Corporation - India
- Lanco Infratech Ltd - India
- Sree Jayajothi Cements Limited - India
- Wood Mackenzie - Singapore
- Maheswari Brothers Coal Limited - India
- Borneo Indobara - Indonesia
- Heidelberg Cement - Germany
- Global Business Power Corporation, Philippines
- Rio Tinto Coal - Australia
- Toyota Tsusho Corporation, Japan
- Kalimantan Lumbung Energi - Indonesia
- Price Waterhouse Coopers - Russia
- GVK Power & Infra Limited - India
- Trasteel International SA, Italy
- Aboitiz Power Corporation - Philippines
- Australian Commodity Traders Exchange
- Videocon Industries ltd - India
- Meenaskhi Energy Private Limited - India
- Eastern Coal Council - USA
- Gujarat Sidhee Cement - India
- Bangladesh Power Developement Board
- Larsen & Toubro Limited - India
- Binh Thuan Hamico - Vietnam
- Agrawal Coal Company - India
- Billiton Holdings Pty Ltd - Australia
- Manunggal Multi Energi - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- ASAPP Information Group - India
- Ceylon Electricity Board - Sri Lanka
- Deloitte Consulting - India
- Renaissance Capital - South Africa
- Global Coal Blending Company Limited - Australia
- PowerSource Philippines DevCo
- Thai Mozambique Logistica
- Economic Council, Georgia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Samtan Co., Ltd - South Korea
- Holcim Trading Pte Ltd - Singapore
- Bhushan Steel Limited - India
- Romanian Commodities Exchange
- Interocean Group of Companies - India
- SMC Global Power, Philippines
- Chettinad Cement Corporation Ltd - India
- Orica Mining Services - Indonesia
- Simpson Spence & Young - Indonesia
- Ministry of Mines - Canada
- Energy Link Ltd, New Zealand
- Malabar Cements Ltd - India
- Kumho Petrochemical, South Korea
- Baramulti Group, Indonesia
- Tata Chemicals Ltd - India
- Directorate Of Revenue Intelligence - India
- Kideco Jaya Agung - Indonesia
- Siam City Cement - Thailand
- Coal and Oil Company - UAE
- Kaltim Prima Coal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Indonesian Coal Mining Association
- Posco Energy - South Korea
- Minerals Council of Australia
- Savvy Resources Ltd - HongKong
- MS Steel International - UAE
- Kapuas Tunggal Persada - Indonesia
- Therma Luzon, Inc, Philippines
- Thiess Contractors Indonesia
- Goldman Sachs - Singapore
- Vedanta Resources Plc - India
- Gujarat Electricity Regulatory Commission - India
- Timah Investasi Mineral - Indoneisa
- Iligan Light & Power Inc, Philippines
- Energy Development Corp, Philippines
- ICICI Bank Limited - India
- Chamber of Mines of South Africa
- Jaiprakash Power Ventures ltd
- Planning Commission, India
- Meralco Power Generation, Philippines
- Indo Tambangraya Megah - Indonesia
- Ministry of Transport, Egypt
- Karbindo Abesyapradhi - Indoneisa
- Miang Besar Coal Terminal - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Kartika Selabumi Mining - Indonesia
- VISA Power Limited - India
- Singapore Mercantile Exchange
- Commonwealth Bank - Australia
- Marubeni Corporation - India
- Ambuja Cements Ltd - India
- Global Green Power PLC Corporation, Philippines
- European Bulk Services B.V. - Netherlands
- AsiaOL BioFuels Corp., Philippines
- PNOC Exploration Corporation - Philippines
- Mercuria Energy - Indonesia
- Intertek Mineral Services - Indonesia
- Latin American Coal - Colombia
- Indian Energy Exchange, India
- Mercator Lines Limited - India
- Central Java Power - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Ind-Barath Power Infra Limited - India
- Independent Power Producers Association of India
- GN Power Mariveles Coal Plant, Philippines
- Semirara Mining and Power Corporation, Philippines
- Grasim Industreis Ltd - India
- OPG Power Generation Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bayan Resources Tbk. - Indonesia
- Parliament of New Zealand
- Central Electricity Authority - India
- Gujarat Mineral Development Corp Ltd - India
- Metalloyd Limited - United Kingdom
- Sinarmas Energy and Mining - Indonesia
- Bhatia International Limited - India
- Semirara Mining Corp, Philippines
- Indika Energy - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- LBH Netherlands Bv - Netherlands
- Neyveli Lignite Corporation Ltd, - India
- Georgia Ports Authority, United States
- Krishnapatnam Port Company Ltd. - India
- Cigading International Bulk Terminal - Indonesia
- Altura Mining Limited, Indonesia
- Tamil Nadu electricity Board
- Bhoruka Overseas - Indonesia
- The Treasury - Australian Government
- Kohat Cement Company Ltd. - Pakistan
- Aditya Birla Group - India
- Barasentosa Lestari - Indonesia
- Antam Resourcindo - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Electricity Authority, New Zealand
- Xindia Steels Limited - India
- Edison Trading Spa - Italy
- Mjunction Services Limited - India
- Cement Manufacturers Association - India
- Makarim & Taira - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Anglo American - United Kingdom
- Pendopo Energi Batubara - Indonesia
- India Bulls Power Limited - India
- Sojitz Corporation - Japan
- Electricity Generating Authority of Thailand
- Dalmia Cement Bharat India
- Alfred C Toepfer International GmbH - Germany
- Sakthi Sugars Limited - India
- McConnell Dowell - Australia
- GMR Energy Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Africa Commodities Group - South Africa
- International Coal Ventures Pvt Ltd - India
- Star Paper Mills Limited - India
- Formosa Plastics Group - Taiwan
- Kepco SPC Power Corporation, Philippines
- PTC India Limited - India
- GAC Shipping (India) Pvt Ltd
- Wilmar Investment Holdings
- Banpu Public Company Limited - Thailand
- Bulk Trading Sa - Switzerland
- TNB Fuel Sdn Bhd - Malaysia
- Parry Sugars Refinery, India
- Coastal Gujarat Power Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- New Zealand Coal & Carbon
- SN Aboitiz Power Inc, Philippines
- The State Trading Corporation of India Ltd
- Indian Oil Corporation Limited
- San Jose City I Power Corp, Philippines
- Sical Logistics Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Australian Coal Association
- CNBM International Corporation - China
- Oldendorff Carriers - Singapore
- Globalindo Alam Lestari - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Karaikal Port Pvt Ltd - India
- Port Waratah Coal Services - Australia
- Bukit Makmur.PT - Indonesia
- SMG Consultants - Indonesia
- Essar Steel Hazira Ltd - India
- Straits Asia Resources Limited - Singapore
- Attock Cement Pakistan Limited
- Coalindo Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- Siam City Cement PLC, Thailand
- Vizag Seaport Private Limited - India
- South Luzon Thermal Energy Corporation
- Uttam Galva Steels Limited - India
- Salva Resources Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- White Energy Company Limited
- Riau Bara Harum - Indonesia
- TeaM Sual Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- Indogreen Group - Indonesia
- Power Finance Corporation Ltd., India
- Madhucon Powers Ltd - India
- Merrill Lynch Commodities Europe
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