We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
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 ...
|
|
|
Showing 4906 to 4910 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Ambuja Cements Ltd - India
- Tata Chemicals Ltd - India
- Wood Mackenzie - Singapore
- Therma Luzon, Inc, Philippines
- Star Paper Mills Limited - India
- Georgia Ports Authority, United States
- LBH Netherlands Bv - Netherlands
- Ministry of Mines - Canada
- Banpu Public Company Limited - Thailand
- SMC Global Power, Philippines
- Independent Power Producers Association of India
- Coal and Oil Company - UAE
- Electricity Generating Authority of Thailand
- Simpson Spence & Young - Indonesia
- Indo Tambangraya Megah - Indonesia
- Uttam Galva Steels Limited - India
- Standard Chartered Bank - UAE
- Lanco Infratech Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Kobexindo Tractors - Indoneisa
- GAC Shipping (India) Pvt Ltd
- Marubeni Corporation - India
- Indian Oil Corporation Limited
- Global Green Power PLC Corporation, Philippines
- Vizag Seaport Private Limited - India
- Chamber of Mines of South Africa
- Economic Council, Georgia
- Cement Manufacturers Association - India
- Tamil Nadu electricity Board
- Grasim Industreis Ltd - India
- Central Electricity Authority - India
- South Luzon Thermal Energy Corporation
- Kalimantan Lumbung Energi - Indonesia
- Ministry of Finance - Indonesia
- Port Waratah Coal Services - Australia
- Africa Commodities Group - South Africa
- Wilmar Investment Holdings
- Kaltim Prima Coal - Indonesia
- Globalindo Alam Lestari - Indonesia
- Kartika Selabumi Mining - Indonesia
- Siam City Cement - Thailand
- Ind-Barath Power Infra Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Renaissance Capital - South Africa
- The State Trading Corporation of India Ltd
- Sakthi Sugars Limited - India
- Bharathi Cement Corporation - India
- McConnell Dowell - Australia
- Maharashtra Electricity Regulatory Commission - India
- Romanian Commodities Exchange
- Manunggal Multi Energi - Indonesia
- Merrill Lynch Commodities Europe
- Energy Development Corp, Philippines
- Xindia Steels Limited - India
- MS Steel International - UAE
- VISA Power Limited - India
- Orica Australia Pty. Ltd.
- Planning Commission, India
- Baramulti Group, Indonesia
- Rashtriya Ispat Nigam Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Goldman Sachs - Singapore
- Riau Bara Harum - Indonesia
- PNOC Exploration Corporation - Philippines
- Thiess Contractors Indonesia
- Aboitiz Power Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- International Coal Ventures Pvt Ltd - India
- Oldendorff Carriers - Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Indika Energy - Indonesia
- Siam City Cement PLC, Thailand
- PowerSource Philippines DevCo
- Intertek Mineral Services - Indonesia
- Borneo Indobara - Indonesia
- Dalmia Cement Bharat India
- Coastal Gujarat Power Limited - India
- The University of Queensland
- Australian Coal Association
- Thai Mozambique Logistica
- Chettinad Cement Corporation Ltd - India
- European Bulk Services B.V. - Netherlands
- Sindya Power Generating Company Private Ltd
- Eastern Energy - Thailand
- Indogreen Group - Indonesia
- Australian Commodity Traders Exchange
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Heidelberg Cement - Germany
- PetroVietnam Power Coal Import and Supply Company
- Sojitz Corporation - Japan
- Kideco Jaya Agung - Indonesia
- Iligan Light & Power Inc, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Minerals Council of Australia
- Kumho Petrochemical, South Korea
- Meralco Power Generation, Philippines
- Bhoruka Overseas - Indonesia
- Sical Logistics Limited - India
- Bangladesh Power Developement Board
- ICICI Bank Limited - India
- GVK Power & Infra Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Central Java Power - Indonesia
- Global Coal Blending Company Limited - Australia
- San Jose City I Power Corp, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Mjunction Services Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Business Power Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Interocean Group of Companies - India
- Attock Cement Pakistan Limited
- Metalloyd Limited - United Kingdom
- Billiton Holdings Pty Ltd - Australia
- Jaiprakash Power Ventures ltd
- Semirara Mining and Power Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- GMR Energy Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kepco SPC Power Corporation, Philippines
- New Zealand Coal & Carbon
- Bayan Resources Tbk. - Indonesia
- Indian Energy Exchange, India
- Toyota Tsusho Corporation, Japan
- Aditya Birla Group - India
- Directorate General of MIneral and Coal - Indonesia
- Bhatia International Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Deloitte Consulting - India
- The Treasury - Australian Government
- Maheswari Brothers Coal Limited - India
- Antam Resourcindo - Indonesia
- Gujarat Sidhee Cement - India
- Madhucon Powers Ltd - India
- Bhushan Steel Limited - India
- Bulk Trading Sa - Switzerland
- Parry Sugars Refinery, India
- Power Finance Corporation Ltd., India
- IEA Clean Coal Centre - UK
- Semirara Mining Corp, Philippines
- Sree Jayajothi Cements Limited - India
- Altura Mining Limited, Indonesia
- Krishnapatnam Port Company Ltd. - India
- CIMB Investment Bank - Malaysia
- Parliament of New Zealand
- Karaikal Port Pvt Ltd - India
- SMG Consultants - Indonesia
- Videocon Industries ltd - India
- Petron Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Orica Mining Services - Indonesia
- Ministry of Transport, Egypt
- Eastern Coal Council - USA
- Savvy Resources Ltd - HongKong
- Mintek Dendrill Indonesia
- Edison Trading Spa - Italy
- Cigading International Bulk Terminal - Indonesia
- ASAPP Information Group - India
- Vedanta Resources Plc - India
- Singapore Mercantile Exchange
- Miang Besar Coal Terminal - Indonesia
- Indonesian Coal Mining Association
- Mercuria Energy - Indonesia
- Rio Tinto Coal - Australia
- Gujarat Mineral Development Corp Ltd - India
- Sarangani Energy Corporation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Energy Link Ltd, New Zealand
- Coalindo Energy - Indonesia
- Jindal Steel & Power Ltd - India
- Commonwealth Bank - Australia
- Trasteel International SA, Italy
- London Commodity Brokers - England
- Timah Investasi Mineral - Indoneisa
- Larsen & Toubro Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Electricity Authority, New Zealand
- OPG Power Generation Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Carbofer General Trading SA - India
- Essar Steel Hazira Ltd - India
- White Energy Company Limited
- Bukit Baiduri Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Posco Energy - South Korea
- Samtan Co., Ltd - South Korea
- Straits Asia Resources Limited - Singapore
- Bank of Tokyo Mitsubishi UFJ Ltd
- Agrawal Coal Company - India
- Bukit Asam (Persero) Tbk - Indonesia
- Malabar Cements Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Pendopo Energi Batubara - Indonesia
- Mercator Lines Limited - India
- Salva Resources Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Medco Energi Mining Internasional
- Meenaskhi Energy Private Limited - India
- CNBM International Corporation - China
- Pipit Mutiara Jaya. PT, Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Makarim & Taira - Indonesia
- Anglo American - United Kingdom
- PTC India Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Alfred C Toepfer International GmbH - Germany
- GN Power Mariveles Coal Plant, Philippines
- Formosa Plastics Group - Taiwan
- India Bulls Power Limited - India
- Binh Thuan Hamico - Vietnam
- SN Aboitiz Power Inc, Philippines
- Latin American Coal - Colombia
- Gujarat Electricity Regulatory Commission - India
|
| |
| |
|
