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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, 08 January 12
THARPAK CONSORTIUM FORMED TO DEVELOP MEGA ENERGY COMPLEX IN SINDH PROVINCE, PAKISTAN
Press Release: On January 5th, TharPak, LLC met with officials of the Embassy of Pakistan in Washington DC to introduce and announce the formation o ...
Saturday, 07 January 12
COAL MARKETS SEE FALLING SPOT PRICES
COALspot.com – World’s thermal coal spot prices have slipped this week..
globalCOAL index in Newcastle Port, benchmark for Asian mark ...
Friday, 06 January 12
COAL INDIA LINKED COAL PRICES WITH INTERNATIONAL COAL PRICES
COALspot.com - Consumers of indigenous coal in India to pay International prices in the future. Coal India has recently moved from UHV pricing mecha ...
Friday, 06 January 12
CLARIDEN GLOBAL BRINGS YOU INDONESIA MINING 2012
Capitalizing Business & Investment Opportunities in an Uncertain Market.Press Release - Clariden Global brings you Indonesia Mining 2012, the dedi ...
Friday, 06 January 12
THE PANAMAX MARKET EXPERIENCED A SLOW START TO 2012 - FEARNLEYS AS
Handy
As usual after a holiday owners and charterers both try to get a feel of the market. An Armada of Supras were talking to ballast towards USG, ...
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- Medco Energi Mining Internasional
- ASAPP Information Group - India
- ICICI Bank Limited - India
- Wood Mackenzie - Singapore
- Kepco SPC Power Corporation, Philippines
- Aditya Birla Group - India
- Antam Resourcindo - Indonesia
- Mjunction Services Limited - India
- Bukit Makmur.PT - Indonesia
- PNOC Exploration Corporation - Philippines
- Price Waterhouse Coopers - Russia
- Larsen & Toubro Limited - India
- Singapore Mercantile Exchange
- Romanian Commodities Exchange
- Tamil Nadu electricity Board
- Energy Development Corp, Philippines
- Energy Link Ltd, New Zealand
- India Bulls Power Limited - India
- Standard Chartered Bank - UAE
- Tata Chemicals Ltd - India
- Heidelberg Cement - Germany
- Malabar Cements Ltd - India
- Therma Luzon, Inc, Philippines
- CNBM International Corporation - China
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bharathi Cement Corporation - India
- Petron Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Bhatia International Limited - India
- TeaM Sual Corporation - Philippines
- Sree Jayajothi Cements Limited - India
- Latin American Coal - Colombia
- The Treasury - Australian Government
- Global Business Power Corporation, Philippines
- Oldendorff Carriers - Singapore
- The State Trading Corporation of India Ltd
- Holcim Trading Pte Ltd - Singapore
- Parliament of New Zealand
- Bangladesh Power Developement Board
- Mintek Dendrill Indonesia
- Georgia Ports Authority, United States
- Indogreen Group - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Karbindo Abesyapradhi - Indoneisa
- Bukit Baiduri Energy - Indonesia
- Formosa Plastics Group - Taiwan
- Agrawal Coal Company - India
- IHS Mccloskey Coal Group - USA
- Bayan Resources Tbk. - Indonesia
- Power Finance Corporation Ltd., India
- Australian Commodity Traders Exchange
- Intertek Mineral Services - Indonesia
- Altura Mining Limited, Indonesia
- GVK Power & Infra Limited - India
- Posco Energy - South Korea
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kaltim Prima Coal - Indonesia
- New Zealand Coal & Carbon
- Bhoruka Overseas - Indonesia
- Eastern Coal Council - USA
- Wilmar Investment Holdings
- Maheswari Brothers Coal Limited - India
- Thiess Contractors Indonesia
- Jindal Steel & Power Ltd - India
- Minerals Council of Australia
- Parry Sugars Refinery, India
- Chettinad Cement Corporation Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Manunggal Multi Energi - Indonesia
- Central Java Power - Indonesia
- GAC Shipping (India) Pvt Ltd
- Ceylon Electricity Board - Sri Lanka
- Pendopo Energi Batubara - Indonesia
- Jaiprakash Power Ventures ltd
- Semirara Mining and Power Corporation, Philippines
- Sakthi Sugars Limited - India
- Billiton Holdings Pty Ltd - Australia
- Borneo Indobara - Indonesia
- Renaissance Capital - South Africa
- Uttam Galva Steels Limited - India
- Vizag Seaport Private Limited - India
- Ambuja Cements Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Videocon Industries ltd - India
- The University of Queensland
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sindya Power Generating Company Private Ltd
- Xindia Steels Limited - India
- Directorate Of Revenue Intelligence - India
- Global Coal Blending Company Limited - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Rio Tinto Coal - Australia
- PowerSource Philippines DevCo
- Gujarat Sidhee Cement - India
- Miang Besar Coal Terminal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Gujarat Mineral Development Corp Ltd - India
- Sical Logistics Limited - India
- McConnell Dowell - Australia
- Kalimantan Lumbung Energi - Indonesia
- Dalmia Cement Bharat India
- Thai Mozambique Logistica
- Krishnapatnam Port Company Ltd. - India
- European Bulk Services B.V. - Netherlands
- Globalindo Alam Lestari - Indonesia
- Metalloyd Limited - United Kingdom
- Asmin Koalindo Tuhup - Indonesia
- Iligan Light & Power Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Economic Council, Georgia
- Semirara Mining Corp, Philippines
- Kobexindo Tractors - Indoneisa
- Siam City Cement - Thailand
- Anglo American - United Kingdom
- Indika Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- Leighton Contractors Pty Ltd - Australia
- Coalindo Energy - Indonesia
- Eastern Energy - Thailand
- Neyveli Lignite Corporation Ltd, - India
- Ministry of Finance - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Kideco Jaya Agung - Indonesia
- LBH Netherlands Bv - Netherlands
- Indonesian Coal Mining Association
- Toyota Tsusho Corporation, Japan
- Deloitte Consulting - India
- Sarangani Energy Corporation, Philippines
- Lanco Infratech Ltd - India
- Meralco Power Generation, Philippines
- Planning Commission, India
- Mercuria Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Barasentosa Lestari - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Orica Mining Services - Indonesia
- Simpson Spence & Young - Indonesia
- Coal and Oil Company - UAE
- OPG Power Generation Pvt Ltd - India
- Orica Australia Pty. Ltd.
- IEA Clean Coal Centre - UK
- Merrill Lynch Commodities Europe
- Indo Tambangraya Megah - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Independent Power Producers Association of India
- Vedanta Resources Plc - India
- Kumho Petrochemical, South Korea
- Marubeni Corporation - India
- Salva Resources Pvt Ltd - India
- Riau Bara Harum - Indonesia
- VISA Power Limited - India
- GMR Energy Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- MS Steel International - UAE
- Alfred C Toepfer International GmbH - Germany
- Ministry of Transport, Egypt
- PTC India Limited - India
- Commonwealth Bank - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Australian Coal Association
- SN Aboitiz Power Inc, Philippines
- Ind-Barath Power Infra Limited - India
- Gujarat Electricity Regulatory Commission - India
- Mercator Lines Limited - India
- SMG Consultants - Indonesia
- Edison Trading Spa - Italy
- TNB Fuel Sdn Bhd - Malaysia
- San Jose City I Power Corp, Philippines
- Carbofer General Trading SA - India
- White Energy Company Limited
- PetroVietnam Power Coal Import and Supply Company
- Electricity Authority, New Zealand
- Kartika Selabumi Mining - Indonesia
- SMC Global Power, Philippines
- Straits Asia Resources Limited - Singapore
- Star Paper Mills Limited - India
- Binh Thuan Hamico - Vietnam
- Essar Steel Hazira Ltd - India
- Samtan Co., Ltd - South Korea
- Savvy Resources Ltd - HongKong
- Port Waratah Coal Services - Australia
- Siam City Cement PLC, Thailand
- Central Electricity Authority - India
- Madhucon Powers Ltd - India
- London Commodity Brokers - England
- Cement Manufacturers Association - India
- Africa Commodities Group - South Africa
- Sojitz Corporation - Japan
- Coastal Gujarat Power Limited - India
- Bulk Trading Sa - Switzerland
- Indian Oil Corporation Limited
- Indian Energy Exchange, India
- Bhushan Steel Limited - India
- Grasim Industreis Ltd - India
- Interocean Group of Companies - India
- Kohat Cement Company Ltd. - Pakistan
- Maharashtra Electricity Regulatory Commission - India
- Banpu Public Company Limited - Thailand
- Timah Investasi Mineral - Indoneisa
- Attock Cement Pakistan Limited
- South Luzon Thermal Energy Corporation
- Baramulti Group, Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Meenaskhi Energy Private Limited - India
- Global Green Power PLC Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Chamber of Mines of South Africa
- Goldman Sachs - Singapore
- Makarim & Taira - Indonesia
- Electricity Generating Authority of Thailand
- Trasteel International SA, Italy
- Vijayanagar Sugar Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- Ministry of Mines - Canada
- Karaikal Port Pvt Ltd - India
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