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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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Monday, 02 January 12
THE PROMISE OF INDIA: A BRIEF INTERRUPTION? - CLARKSONS / HELLENIC SHIPPING
Future growth in Indian seaborne coal imports has sometimes been considered as one of the largest potential upsides in the currently oversupplied dr ...
Sunday, 01 January 12
IS INDIA FOLLOWING INDONESIA TO STANDARDIZE COAL PRICES TO GET MAXIMUM BENEFITS?
COALspot.com - Coal India limited, an Indian state owned and world largest coal producer has introduced gross calorific value (GCV) based pricing me ...
Saturday, 31 December 11
GLOBALCOAL NEWC INDEX SURGED 2.32 PERCENT
COALspot.com - globalCOAL index in Newcastle Port, benchmark for Asian market, ended substantially higher, surged 2.32 percent to US$115.47 per ...
Saturday, 31 December 11
BORNEO LUMBUNG TO BUY BUMI STAKE, SWAP CEO - THE JAKARTA GLOBE
The Jakarta Globe, one of the leading english news paper in Indonesia reported yesterday, shareholders of Indonesian coking coal miner Borneo Lumbun ...
Friday, 30 December 11
CENTRAL GOVERNMENT SHOULD ISSUE PERMITS - THE JAKARTA POST
The Jakarta Post reported that, business associations from both the palm oil and mining sectors have suggested that the central government should re ...
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Showing 4906 to 4910 news of total 6871 |
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- Goldman Sachs - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Samtan Co., Ltd - South Korea
- Bhushan Steel Limited - India
- Grasim Industreis Ltd - India
- Semirara Mining Corp, Philippines
- Maheswari Brothers Coal Limited - India
- White Energy Company Limited
- Commonwealth Bank - Australia
- Kepco SPC Power Corporation, Philippines
- Riau Bara Harum - Indonesia
- Oldendorff Carriers - Singapore
- Aditya Birla Group - India
- New Zealand Coal & Carbon
- PNOC Exploration Corporation - Philippines
- Central Java Power - Indonesia
- Bukit Baiduri Energy - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Indian Oil Corporation Limited
- Offshore Bulk Terminal Pte Ltd, Singapore
- Krishnapatnam Port Company Ltd. - India
- Miang Besar Coal Terminal - Indonesia
- Ministry of Finance - Indonesia
- Wilmar Investment Holdings
- IHS Mccloskey Coal Group - USA
- Planning Commission, India
- Chamber of Mines of South Africa
- Rashtriya Ispat Nigam Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Eastern Coal Council - USA
- Sree Jayajothi Cements Limited - India
- SMG Consultants - Indonesia
- Heidelberg Cement - Germany
- Indogreen Group - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Chettinad Cement Corporation Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Indian Energy Exchange, India
- Meralco Power Generation, Philippines
- Meenaskhi Energy Private Limited - India
- Sarangani Energy Corporation, Philippines
- Interocean Group of Companies - India
- TNB Fuel Sdn Bhd - Malaysia
- SN Aboitiz Power Inc, Philippines
- Parliament of New Zealand
- Manunggal Multi Energi - Indonesia
- Dalmia Cement Bharat India
- Energy Development Corp, Philippines
- Sojitz Corporation - Japan
- GMR Energy Limited - India
- MS Steel International - UAE
- Latin American Coal - Colombia
- CNBM International Corporation - China
- Central Electricity Authority - India
- Straits Asia Resources Limited - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Asmin Koalindo Tuhup - Indonesia
- Indika Energy - Indonesia
- Intertek Mineral Services - Indonesia
- Globalindo Alam Lestari - Indonesia
- India Bulls Power Limited - India
- Therma Luzon, Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Bukit Asam (Persero) Tbk - Indonesia
- PTC India Limited - India
- OPG Power Generation Pvt Ltd - India
- SMC Global Power, Philippines
- The University of Queensland
- Siam City Cement PLC, Thailand
- Kartika Selabumi Mining - Indonesia
- Kobexindo Tractors - Indoneisa
- Australian Coal Association
- IEA Clean Coal Centre - UK
- Baramulti Group, Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Videocon Industries ltd - India
- Mintek Dendrill Indonesia
- Kapuas Tunggal Persada - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Alfred C Toepfer International GmbH - Germany
- Sindya Power Generating Company Private Ltd
- Jorong Barutama Greston.PT - Indonesia
- Vedanta Resources Plc - India
- Cigading International Bulk Terminal - Indonesia
- GVK Power & Infra Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Bulk Trading Sa - Switzerland
- Antam Resourcindo - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Coastal Gujarat Power Limited - India
- Cement Manufacturers Association - India
- Vizag Seaport Private Limited - India
- International Coal Ventures Pvt Ltd - India
- Parry Sugars Refinery, India
- Bayan Resources Tbk. - Indonesia
- Bangladesh Power Developement Board
- Sical Logistics Limited - India
- Karaikal Port Pvt Ltd - India
- Coalindo Energy - Indonesia
- San Jose City I Power Corp, Philippines
- Billiton Holdings Pty Ltd - Australia
- Binh Thuan Hamico - Vietnam
- Neyveli Lignite Corporation Ltd, - India
- Orica Mining Services - Indonesia
- McConnell Dowell - Australia
- ASAPP Information Group - India
- Kumho Petrochemical, South Korea
- Mercator Lines Limited - India
- Aboitiz Power Corporation - Philippines
- PowerSource Philippines DevCo
- Simpson Spence & Young - Indonesia
- Coal and Oil Company - UAE
- Kaltim Prima Coal - Indonesia
- Power Finance Corporation Ltd., India
- TeaM Sual Corporation - Philippines
- Orica Australia Pty. Ltd.
- Singapore Mercantile Exchange
- Uttam Galva Steels Limited - India
- Global Coal Blending Company Limited - Australia
- CIMB Investment Bank - Malaysia
- Metalloyd Limited - United Kingdom
- Bank of Tokyo Mitsubishi UFJ Ltd
- Australian Commodity Traders Exchange
- Georgia Ports Authority, United States
- Merrill Lynch Commodities Europe
- Electricity Authority, New Zealand
- Bhoruka Overseas - Indonesia
- London Commodity Brokers - England
- South Luzon Thermal Energy Corporation
- Malabar Cements Ltd - India
- Siam City Cement - Thailand
- Pendopo Energi Batubara - Indonesia
- Energy Link Ltd, New Zealand
- Mercuria Energy - Indonesia
- European Bulk Services B.V. - Netherlands
- GAC Shipping (India) Pvt Ltd
- Medco Energi Mining Internasional
- Indonesian Coal Mining Association
- Agrawal Coal Company - India
- Bhatia International Limited - India
- Trasteel International SA, Italy
- Sinarmas Energy and Mining - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Banpu Public Company Limited - Thailand
- GN Power Mariveles Coal Plant, Philippines
- Eastern Energy - Thailand
- Attock Cement Pakistan Limited
- Thiess Contractors Indonesia
- Independent Power Producers Association of India
- Barasentosa Lestari - Indonesia
- Bukit Makmur.PT - Indonesia
- Altura Mining Limited, Indonesia
- Rio Tinto Coal - Australia
- Standard Chartered Bank - UAE
- Mjunction Services Limited - India
- VISA Power Limited - India
- Semirara Mining and Power Corporation, Philippines
- Ind-Barath Power Infra Limited - India
- Savvy Resources Ltd - HongKong
- Romanian Commodities Exchange
- Deloitte Consulting - India
- Xindia Steels Limited - India
- Thai Mozambique Logistica
- Kohat Cement Company Ltd. - Pakistan
- PetroVietnam Power Coal Import and Supply Company
- Petron Corporation, Philippines
- Africa Commodities Group - South Africa
- Posco Energy - South Korea
- Gujarat Sidhee Cement - India
- ICICI Bank Limited - India
- Salva Resources Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Economic Council, Georgia
- LBH Netherlands Bv - Netherlands
- Madhucon Powers Ltd - India
- Jindal Steel & Power Ltd - India
- Tamil Nadu electricity Board
- Wood Mackenzie - Singapore
- Port Waratah Coal Services - Australia
- Ministry of Transport, Egypt
- Timah Investasi Mineral - Indoneisa
- The State Trading Corporation of India Ltd
- Carbofer General Trading SA - India
- Electricity Generating Authority of Thailand
- Marubeni Corporation - India
- Borneo Indobara - Indonesia
- Lanco Infratech Ltd - India
- Renaissance Capital - South Africa
- Bahari Cakrawala Sebuku - Indonesia
- Star Paper Mills Limited - India
- Bharathi Cement Corporation - India
- Larsen & Toubro Limited - India
- Minerals Council of Australia
- Kideco Jaya Agung - Indonesia
- Ambuja Cements Ltd - India
- Directorate Of Revenue Intelligence - India
- Sakthi Sugars Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Tata Chemicals Ltd - India
- Iligan Light & Power Inc, Philippines
- Makarim & Taira - Indonesia
- Edison Trading Spa - Italy
- Formosa Plastics Group - Taiwan
- Indo Tambangraya Megah - Indonesia
- Price Waterhouse Coopers - Russia
- Anglo American - United Kingdom
- Pipit Mutiara Jaya. PT, Indonesia
- The Treasury - Australian Government
- Ministry of Mines - Canada
- Global Green Power PLC Corporation, Philippines
- Essar Steel Hazira Ltd - India
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