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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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Wednesday, 11 January 12
NEWBUILDING ORDERS DECLINE, AS SHIP OWNERS REALIZE OVERSUPPLY WILL "KILL" THEM - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
With 2012 now underway, it will be rather interesting to see how ship owners will play the "newbuilding ordering" card to their favor, as ...
Tuesday, 10 January 12
THE 4TH DEEPWATER ASIA CONGRESS 2012 WILL KICK OFF ON MAY 23 - 25
Press release - Based on the past three years’ success, SZ & W Group is excited to announce the 4th Deepwater Asia Congress will be held o ...
Monday, 09 January 12
2012: WHAT WILL IT BRING FOR THE DRY BULK MARKET? - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
A further increase in dry bulk demand could be the remedy for most of the industry's oversupply issues, together of course with the high level of s ...
Sunday, 08 January 12
ICICI OUTLOOK ON INDIAN POWER, MINING,CEMENT, AND SHIPPING SECTORS PERFORMANCE IN 2012
Broking firm, ICICIdirect (India) has come out with report on sectors outlook for 2012. IRIS has collated key highlights for each sector from ...
Sunday, 08 January 12
SUPRAMAX DELIVERY SOUTH CHINA FOR TRIPS VIA INDONESIA WERE REPORTED AROUND $ 7000 PER DAY - VISTAAR
Wish You a Very Happy and Prosperous New year 2012.
COALspot.com - The last report by us was on 16th Dec 2011 and because of holidays this would ...
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- Intertek Mineral Services - Indonesia
- Aboitiz Power Corporation - Philippines
- Singapore Mercantile Exchange
- Vedanta Resources Plc - India
- Bhoruka Overseas - Indonesia
- Kideco Jaya Agung - Indonesia
- Tamil Nadu electricity Board
- Gujarat Sidhee Cement - India
- Directorate Of Revenue Intelligence - India
- PowerSource Philippines DevCo
- Merrill Lynch Commodities Europe
- Sojitz Corporation - Japan
- Indian Energy Exchange, India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Videocon Industries ltd - India
- Global Green Power PLC Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Agrawal Coal Company - India
- Alfred C Toepfer International GmbH - Germany
- Maharashtra Electricity Regulatory Commission - India
- Orica Australia Pty. Ltd.
- Semirara Mining and Power Corporation, Philippines
- Wood Mackenzie - Singapore
- Miang Besar Coal Terminal - Indonesia
- MS Steel International - UAE
- Rio Tinto Coal - Australia
- Kalimantan Lumbung Energi - Indonesia
- Siam City Cement - Thailand
- Bhatia International Limited - India
- SN Aboitiz Power Inc, Philippines
- Siam City Cement PLC, Thailand
- Georgia Ports Authority, United States
- Attock Cement Pakistan Limited
- Aditya Birla Group - India
- Pendopo Energi Batubara - Indonesia
- Straits Asia Resources Limited - Singapore
- Edison Trading Spa - Italy
- Indika Energy - Indonesia
- Ministry of Finance - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Lanco Infratech Ltd - India
- Chettinad Cement Corporation Ltd - India
- Carbofer General Trading SA - India
- Bharathi Cement Corporation - India
- LBH Netherlands Bv - Netherlands
- Gujarat Mineral Development Corp Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Australian Commodity Traders Exchange
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Business Power Corporation, Philippines
- Samtan Co., Ltd - South Korea
- TNB Fuel Sdn Bhd - Malaysia
- Sarangani Energy Corporation, Philippines
- VISA Power Limited - India
- Ministry of Mines - Canada
- Vizag Seaport Private Limited - India
- Uttam Galva Steels Limited - India
- Thiess Contractors Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Minerals Council of Australia
- Standard Chartered Bank - UAE
- Jorong Barutama Greston.PT - Indonesia
- Thai Mozambique Logistica
- McConnell Dowell - Australia
- Independent Power Producers Association of India
- European Bulk Services B.V. - Netherlands
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kaltim Prima Coal - Indonesia
- CNBM International Corporation - China
- Sree Jayajothi Cements Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Bukit Asam (Persero) Tbk - Indonesia
- Indonesian Coal Mining Association
- Jaiprakash Power Ventures ltd
- Therma Luzon, Inc, Philippines
- Xindia Steels Limited - India
- Romanian Commodities Exchange
- Antam Resourcindo - Indonesia
- Gujarat Electricity Regulatory Commission - India
- PNOC Exploration Corporation - Philippines
- Parliament of New Zealand
- Oldendorff Carriers - Singapore
- Ministry of Transport, Egypt
- Krishnapatnam Port Company Ltd. - India
- ASAPP Information Group - India
- GN Power Mariveles Coal Plant, Philippines
- GAC Shipping (India) Pvt Ltd
- Kumho Petrochemical, South Korea
- Mercator Lines Limited - India
- The Treasury - Australian Government
- Asmin Koalindo Tuhup - Indonesia
- Kobexindo Tractors - Indoneisa
- Energy Link Ltd, New Zealand
- Australian Coal Association
- White Energy Company Limited
- GVK Power & Infra Limited - India
- Maheswari Brothers Coal Limited - India
- Kepco SPC Power Corporation, Philippines
- Orica Mining Services - Indonesia
- Renaissance Capital - South Africa
- Sinarmas Energy and Mining - Indonesia
- Ceylon Electricity Board - Sri Lanka
- SMC Global Power, Philippines
- Central Java Power - Indonesia
- TeaM Sual Corporation - Philippines
- Directorate General of MIneral and Coal - Indonesia
- Kartika Selabumi Mining - Indonesia
- IHS Mccloskey Coal Group - USA
- Dalmia Cement Bharat India
- Sindya Power Generating Company Private Ltd
- Deloitte Consulting - India
- Electricity Authority, New Zealand
- Medco Energi Mining Internasional
- Bhushan Steel Limited - India
- Kapuas Tunggal Persada - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Ambuja Cements Ltd - India
- Energy Development Corp, Philippines
- Coastal Gujarat Power Limited - India
- Bulk Trading Sa - Switzerland
- ICICI Bank Limited - India
- Star Paper Mills Limited - India
- Timah Investasi Mineral - Indoneisa
- Parry Sugars Refinery, India
- Global Coal Blending Company Limited - Australia
- Port Waratah Coal Services - Australia
- Meralco Power Generation, Philippines
- Metalloyd Limited - United Kingdom
- Makarim & Taira - Indonesia
- Baramulti Group, Indonesia
- Anglo American - United Kingdom
- Semirara Mining Corp, Philippines
- Indian Oil Corporation Limited
- Barasentosa Lestari - Indonesia
- Commonwealth Bank - Australia
- Latin American Coal - Colombia
- Mercuria Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Ind-Barath Power Infra Limited - India
- Essar Steel Hazira Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Interocean Group of Companies - India
- Jindal Steel & Power Ltd - India
- Cement Manufacturers Association - India
- Billiton Holdings Pty Ltd - Australia
- Bayan Resources Tbk. - Indonesia
- Globalindo Alam Lestari - Indonesia
- New Zealand Coal & Carbon
- Trasteel International SA, Italy
- Rashtriya Ispat Nigam Limited - India
- Indo Tambangraya Megah - Indonesia
- Petron Corporation, Philippines
- Grasim Industreis Ltd - India
- Larsen & Toubro Limited - India
- Binh Thuan Hamico - Vietnam
- Sakthi Sugars Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- International Coal Ventures Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Borneo Indobara - Indonesia
- Electricity Generating Authority of Thailand
- Mintek Dendrill Indonesia
- IEA Clean Coal Centre - UK
- Karaikal Port Pvt Ltd - India
- Malabar Cements Ltd - India
- Sical Logistics Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Tata Chemicals Ltd - India
- Iligan Light & Power Inc, Philippines
- India Bulls Power Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- London Commodity Brokers - England
- Kohat Cement Company Ltd. - Pakistan
- Altura Mining Limited, Indonesia
- Chamber of Mines of South Africa
- Goldman Sachs - Singapore
- Savvy Resources Ltd - HongKong
- Formosa Plastics Group - Taiwan
- OPG Power Generation Pvt Ltd - India
- Planning Commission, India
- Economic Council, Georgia
- Coal and Oil Company - UAE
- Banpu Public Company Limited - Thailand
- Simpson Spence & Young - Indonesia
- Eastern Coal Council - USA
- Wilmar Investment Holdings
- Africa Commodities Group - South Africa
- The University of Queensland
- Toyota Tsusho Corporation, Japan
- Leighton Contractors Pty Ltd - Australia
- Coalindo Energy - Indonesia
- Riau Bara Harum - Indonesia
- San Jose City I Power Corp, Philippines
- Madhucon Powers Ltd - India
- Bukit Makmur.PT - Indonesia
- Central Electricity Authority - India
- Bahari Cakrawala Sebuku - Indonesia
- SMG Consultants - Indonesia
- Bangladesh Power Developement Board
- Mjunction Services Limited - India
- Marubeni Corporation - India
- AsiaOL BioFuels Corp., Philippines
- GMR Energy Limited - India
- PTC India Limited - India
- Bukit Baiduri Energy - Indonesia
- Indogreen Group - Indonesia
- Heidelberg Cement - Germany
- Posco Energy - South Korea
- Eastern Energy - Thailand
- The State Trading Corporation of India Ltd
- Price Waterhouse Coopers - Russia
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