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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, 16 April 23
CHINA JUGGLES FOUR MAJOR ECONOMIC CHANGES IN 2023 - WOOD MACKENZIE
Change is afoot in China. Economic growth is slowing, while rising political tensions between China and the US, coupled with global supply chain re ...
Sunday, 16 April 23
CHINA'S MARCH COAL IMPORTS JUMP TO 3-YEAR HIGH - REUTERS
China’s coal imports surged in March to their highest in any month over the past three years as utilities increased purchases on expectations ...
Sunday, 16 April 23
OPEC KEEPS WORLD OIL DEMAND GROWTH OUTLOOK UNCHANGED
The OPEC Reference Basket (ORB) declined in March by $3.43, or 4.2%, m-o-m to average $78.45/b. The ICE Brent first-month contract fell by $4.33, o ...
Sunday, 16 April 23
CHEAPER SPOT LNG PRICES TEMPT SOME ASIAN BUYERS AMID SUPPLY GAINS - REUTERS
Cheaper spot prices for liquefied natural gas (LNG) are luring price-sensitive buyers back in Asia, with China and India recording rising imports i ...
Tuesday, 11 April 23
COAL USE CLIMBS WORLDWIDE DESPITE PROMISES TO SLASH IT - AAP
The burning of coal for electricity, cement, steel and other uses went up in 2022 despite global promises to phase down the fuel that is the bigges ...
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- Asia Pacific Energy Resources Ventures Inc, Philippines
- Anglo American - United Kingdom
- Coalindo Energy - Indonesia
- Coastal Gujarat Power Limited - India
- The State Trading Corporation of India Ltd
- Straits Asia Resources Limited - Singapore
- Australian Coal Association
- Semirara Mining Corp, Philippines
- Wood Mackenzie - Singapore
- Goldman Sachs - Singapore
- Global Green Power PLC Corporation, Philippines
- Australian Commodity Traders Exchange
- Heidelberg Cement - Germany
- Kepco SPC Power Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Essar Steel Hazira Ltd - India
- South Luzon Thermal Energy Corporation
- Uttam Galva Steels Limited - India
- Cement Manufacturers Association - India
- Karaikal Port Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Minerals Council of Australia
- Petron Corporation, Philippines
- Siam City Cement PLC, Thailand
- Chettinad Cement Corporation Ltd - India
- London Commodity Brokers - England
- Krishnapatnam Port Company Ltd. - India
- Globalindo Alam Lestari - Indonesia
- Global Coal Blending Company Limited - Australia
- Kumho Petrochemical, South Korea
- Bayan Resources Tbk. - Indonesia
- Bhatia International Limited - India
- Sindya Power Generating Company Private Ltd
- Renaissance Capital - South Africa
- Jaiprakash Power Ventures ltd
- Pipit Mutiara Jaya. PT, Indonesia
- Gujarat Electricity Regulatory Commission - India
- Sojitz Corporation - Japan
- Oldendorff Carriers - Singapore
- Power Finance Corporation Ltd., India
- SMG Consultants - Indonesia
- TeaM Sual Corporation - Philippines
- Xindia Steels Limited - India
- Bukit Baiduri Energy - Indonesia
- Interocean Group of Companies - India
- Kalimantan Lumbung Energi - Indonesia
- Bangladesh Power Developement Board
- Wilmar Investment Holdings
- ICICI Bank Limited - India
- Directorate Of Revenue Intelligence - India
- Parry Sugars Refinery, India
- VISA Power Limited - India
- Formosa Plastics Group - Taiwan
- Coal and Oil Company - UAE
- SN Aboitiz Power Inc, Philippines
- Tata Chemicals Ltd - India
- Energy Link Ltd, New Zealand
- Indika Energy - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Bhoruka Overseas - Indonesia
- Orica Mining Services - Indonesia
- OPG Power Generation Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Standard Chartered Bank - UAE
- Maheswari Brothers Coal Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Meralco Power Generation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Eastern Energy - Thailand
- Price Waterhouse Coopers - Russia
- Barasentosa Lestari - Indonesia
- Agrawal Coal Company - India
- Commonwealth Bank - Australia
- Billiton Holdings Pty Ltd - Australia
- Independent Power Producers Association of India
- PetroVietnam Power Coal Import and Supply Company
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Aditya Birla Group - India
- GMR Energy Limited - India
- Larsen & Toubro Limited - India
- International Coal Ventures Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Sarangani Energy Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Kartika Selabumi Mining - Indonesia
- Mintek Dendrill Indonesia
- Vizag Seaport Private Limited - India
- Sinarmas Energy and Mining - Indonesia
- Meenaskhi Energy Private Limited - India
- Romanian Commodities Exchange
- Savvy Resources Ltd - HongKong
- MS Steel International - UAE
- Toyota Tsusho Corporation, Japan
- GVK Power & Infra Limited - India
- Makarim & Taira - Indonesia
- Altura Mining Limited, Indonesia
- India Bulls Power Limited - India
- Salva Resources Pvt Ltd - India
- Deloitte Consulting - India
- San Jose City I Power Corp, Philippines
- McConnell Dowell - Australia
- Georgia Ports Authority, United States
- Bharathi Cement Corporation - India
- Dalmia Cement Bharat India
- CIMB Investment Bank - Malaysia
- Kaltim Prima Coal - Indonesia
- Marubeni Corporation - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- European Bulk Services B.V. - Netherlands
- Jindal Steel & Power Ltd - India
- Mercuria Energy - Indonesia
- Gujarat Sidhee Cement - India
- Indian Oil Corporation Limited
- Mjunction Services Limited - India
- PowerSource Philippines DevCo
- Madhucon Powers Ltd - India
- Binh Thuan Hamico - Vietnam
- Antam Resourcindo - Indonesia
- Thiess Contractors Indonesia
- Malabar Cements Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Attock Cement Pakistan Limited
- Vedanta Resources Plc - India
- Samtan Co., Ltd - South Korea
- Simpson Spence & Young - Indonesia
- LBH Netherlands Bv - Netherlands
- Ministry of Finance - Indonesia
- Ind-Barath Power Infra Limited - India
- Ministry of Mines - Canada
- Miang Besar Coal Terminal - Indonesia
- PTC India Limited - India
- Videocon Industries ltd - India
- New Zealand Coal & Carbon
- Bahari Cakrawala Sebuku - Indonesia
- Energy Development Corp, Philippines
- Indonesian Coal Mining Association
- Global Business Power Corporation, Philippines
- Mercator Lines Limited - India
- Carbofer General Trading SA - India
- CNBM International Corporation - China
- Sakthi Sugars Limited - India
- Latin American Coal - Colombia
- Rashtriya Ispat Nigam Limited - India
- Bulk Trading Sa - Switzerland
- Bank of Tokyo Mitsubishi UFJ Ltd
- The University of Queensland
- SMC Global Power, Philippines
- Central Java Power - Indonesia
- Port Waratah Coal Services - Australia
- Baramulti Group, Indonesia
- Semirara Mining and Power Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- PNOC Exploration Corporation - Philippines
- Sree Jayajothi Cements Limited - India
- Indogreen Group - Indonesia
- Metalloyd Limited - United Kingdom
- Edison Trading Spa - Italy
- Timah Investasi Mineral - Indoneisa
- Bukit Makmur.PT - Indonesia
- Central Electricity Authority - India
- Borneo Indobara - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Aboitiz Power Corporation - Philippines
- Ministry of Transport, Egypt
- Economic Council, Georgia
- Karbindo Abesyapradhi - Indoneisa
- Rio Tinto Coal - Australia
- Singapore Mercantile Exchange
- Petrochimia International Co. Ltd.- Taiwan
- Tamil Nadu electricity Board
- Leighton Contractors Pty Ltd - Australia
- Lanco Infratech Ltd - India
- Electricity Authority, New Zealand
- Kohat Cement Company Ltd. - Pakistan
- Bukit Asam (Persero) Tbk - Indonesia
- Kobexindo Tractors - Indoneisa
- IEA Clean Coal Centre - UK
- Directorate General of MIneral and Coal - Indonesia
- Planning Commission, India
- Ceylon Electricity Board - Sri Lanka
- Neyveli Lignite Corporation Ltd, - India
- IHS Mccloskey Coal Group - USA
- Banpu Public Company Limited - Thailand
- Thai Mozambique Logistica
- Merrill Lynch Commodities Europe
- Medco Energi Mining Internasional
- Riau Bara Harum - Indonesia
- GAC Shipping (India) Pvt Ltd
- White Energy Company Limited
- Chamber of Mines of South Africa
- Posco Energy - South Korea
- Africa Commodities Group - South Africa
- Orica Australia Pty. Ltd.
- Bhushan Steel Limited - India
- Jorong Barutama Greston.PT - Indonesia
- ASAPP Information Group - India
- Sical Logistics Limited - India
- Pendopo Energi Batubara - Indonesia
- Indian Energy Exchange, India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kapuas Tunggal Persada - Indonesia
- Intertek Mineral Services - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Maharashtra Electricity Regulatory Commission - India
- Parliament of New Zealand
- Electricity Generating Authority of Thailand
- Eastern Coal Council - USA
- Grasim Industreis Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Manunggal Multi Energi - Indonesia
- Iligan Light & Power Inc, Philippines
- Cigading International Bulk Terminal - Indonesia
- Star Paper Mills Limited - India
- Trasteel International SA, Italy
- The Treasury - Australian Government
- Ambuja Cements Ltd - India
- Siam City Cement - Thailand
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