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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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Thursday, 29 December 11
NEW VESSELS DELIVERED ARE FLOODING THE OCEANS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
As expected 2011 has been the year that newbuilding deliveries peaked and kept "flooding" the market, thus supressing freight rates and er ...
Tuesday, 27 December 11
COAL SHIPMENT OF TIANJIN PORT REACHED 6.72 MLN TONNES IN NOVEMBER - STEEL HOME / HELLENIC SHIPPING
Tianjin port shipped 6.72 million tonnes of coal in November, decreasing 600,000 tonnes versus 7.32 million tonnes in October, while up 21.09% or 1. ...
Tuesday, 27 December 11
NEW CLAUSE PUBLISHED FOR SLOW STEAMING - BIMCO
Many owners and operators faced with high bunker prices are considering implementing slow steaming regimes to save fuel and to assist with capacity ...
Monday, 26 December 11
NEW EXPORT TAX PLAN GREETED WITH PRAISE AND CRITICISM - THE JAKARTA POST
The Jakarta Post, one of the Indonesia's leading english news paper reported that, both praise and criticism showered the government’s plan t ...
Sunday, 25 December 11
THERMAL COAL PRICES GAINED UP TO 4.32 PERCENT
COALspot.com - globalCOAL index gained 4.32 percent to US$106.36 per ton in RBCT, benchmark for South Asia and West Europe markets, for the week end ...
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Showing 4911 to 4915 news of total 6871 |
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- Trasteel International SA, Italy
- Holcim Trading Pte Ltd - Singapore
- Cigading International Bulk Terminal - Indonesia
- Energy Link Ltd, New Zealand
- Vedanta Resources Plc - India
- Borneo Indobara - Indonesia
- Parliament of New Zealand
- Coal and Oil Company - UAE
- Jindal Steel & Power Ltd - India
- GAC Shipping (India) Pvt Ltd
- Bukit Makmur.PT - Indonesia
- Grasim Industreis Ltd - India
- Sarangani Energy Corporation, Philippines
- Mercator Lines Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Billiton Holdings Pty Ltd - Australia
- Bhushan Steel Limited - India
- SMC Global Power, Philippines
- Malabar Cements Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Price Waterhouse Coopers - Russia
- Toyota Tsusho Corporation, Japan
- Indo Tambangraya Megah - Indonesia
- Bukit Baiduri Energy - Indonesia
- Standard Chartered Bank - UAE
- IEA Clean Coal Centre - UK
- Siam City Cement PLC, Thailand
- Thai Mozambique Logistica
- Ambuja Cements Ltd - India
- Maheswari Brothers Coal Limited - India
- Miang Besar Coal Terminal - Indonesia
- Bulk Trading Sa - Switzerland
- Banpu Public Company Limited - Thailand
- Gujarat Sidhee Cement - India
- Mercuria Energy - Indonesia
- CNBM International Corporation - China
- SN Aboitiz Power Inc, Philippines
- Eastern Energy - Thailand
- South Luzon Thermal Energy Corporation
- Minerals Council of Australia
- LBH Netherlands Bv - Netherlands
- Marubeni Corporation - India
- Uttam Galva Steels Limited - India
- Manunggal Multi Energi - Indonesia
- Kaltim Prima Coal - Indonesia
- Eastern Coal Council - USA
- Georgia Ports Authority, United States
- Globalindo Alam Lestari - Indonesia
- Salva Resources Pvt Ltd - India
- GMR Energy Limited - India
- Thiess Contractors Indonesia
- Dalmia Cement Bharat India
- Kalimantan Lumbung Energi - Indonesia
- Mintek Dendrill Indonesia
- Metalloyd Limited - United Kingdom
- Kobexindo Tractors - Indoneisa
- Aboitiz Power Corporation - Philippines
- Edison Trading Spa - Italy
- Krishnapatnam Port Company Ltd. - India
- London Commodity Brokers - England
- Kohat Cement Company Ltd. - Pakistan
- Port Waratah Coal Services - Australia
- Sinarmas Energy and Mining - Indonesia
- Kapuas Tunggal Persada - Indonesia
- CIMB Investment Bank - Malaysia
- Ministry of Transport, Egypt
- Bahari Cakrawala Sebuku - Indonesia
- Bangladesh Power Developement Board
- Vizag Seaport Private Limited - India
- Indonesian Coal Mining Association
- Bayan Resources Tbk. - Indonesia
- VISA Power Limited - India
- Kartika Selabumi Mining - Indonesia
- Medco Energi Mining Internasional
- Directorate Of Revenue Intelligence - India
- Posco Energy - South Korea
- Commonwealth Bank - Australia
- Alfred C Toepfer International GmbH - Germany
- Australian Coal Association
- Straits Asia Resources Limited - Singapore
- Pendopo Energi Batubara - Indonesia
- Energy Development Corp, Philippines
- Riau Bara Harum - Indonesia
- Sree Jayajothi Cements Limited - India
- Xindia Steels Limited - India
- Central Java Power - Indonesia
- Bharathi Cement Corporation - India
- Sakthi Sugars Limited - India
- Carbofer General Trading SA - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Singapore Mercantile Exchange
- Independent Power Producers Association of India
- European Bulk Services B.V. - Netherlands
- Altura Mining Limited, Indonesia
- Kideco Jaya Agung - Indonesia
- Baramulti Group, Indonesia
- Indian Energy Exchange, India
- Directorate General of MIneral and Coal - Indonesia
- Coastal Gujarat Power Limited - India
- Kepco SPC Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Gujarat Mineral Development Corp Ltd - India
- Semirara Mining Corp, Philippines
- Intertek Mineral Services - Indonesia
- India Bulls Power Limited - India
- Chamber of Mines of South Africa
- Videocon Industries ltd - India
- Orica Australia Pty. Ltd.
- Interocean Group of Companies - India
- Heidelberg Cement - Germany
- GN Power Mariveles Coal Plant, Philippines
- Rio Tinto Coal - Australia
- Kumho Petrochemical, South Korea
- Antam Resourcindo - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- PTC India Limited - India
- San Jose City I Power Corp, Philippines
- Samtan Co., Ltd - South Korea
- The State Trading Corporation of India Ltd
- Tamil Nadu electricity Board
- McConnell Dowell - Australia
- The Treasury - Australian Government
- Romanian Commodities Exchange
- Wilmar Investment Holdings
- Siam City Cement - Thailand
- Neyveli Lignite Corporation Ltd, - India
- Deloitte Consulting - India
- Orica Mining Services - Indonesia
- The University of Queensland
- MS Steel International - UAE
- Petron Corporation, Philippines
- ICICI Bank Limited - India
- Bhatia International Limited - India
- Binh Thuan Hamico - Vietnam
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Attock Cement Pakistan Limited
- Electricity Generating Authority of Thailand
- PetroVietnam Power Coal Import and Supply Company
- Maharashtra Electricity Regulatory Commission - India
- Simpson Spence & Young - Indonesia
- Power Finance Corporation Ltd., India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Larsen & Toubro Limited - India
- Global Business Power Corporation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Planning Commission, India
- Rashtriya Ispat Nigam Limited - India
- Latin American Coal - Colombia
- Lanco Infratech Ltd - India
- International Coal Ventures Pvt Ltd - India
- Merrill Lynch Commodities Europe
- Timah Investasi Mineral - Indoneisa
- Pipit Mutiara Jaya. PT, Indonesia
- Indogreen Group - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Barasentosa Lestari - Indonesia
- Indian Oil Corporation Limited
- Bhoruka Overseas - Indonesia
- Oldendorff Carriers - Singapore
- TeaM Sual Corporation - Philippines
- SMG Consultants - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Formosa Plastics Group - Taiwan
- ASAPP Information Group - India
- Ministry of Finance - Indonesia
- Global Green Power PLC Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Meenaskhi Energy Private Limited - India
- Wood Mackenzie - Singapore
- Aditya Birla Group - India
- PowerSource Philippines DevCo
- Central Electricity Authority - India
- Parry Sugars Refinery, India
- Sindya Power Generating Company Private Ltd
- PNOC Exploration Corporation - Philippines
- Ministry of Mines - Canada
- Renaissance Capital - South Africa
- Anglo American - United Kingdom
- Karbindo Abesyapradhi - Indoneisa
- Australian Commodity Traders Exchange
- Savvy Resources Ltd - HongKong
- Essar Steel Hazira Ltd - India
- Jaiprakash Power Ventures ltd
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sical Logistics Limited - India
- Madhucon Powers Ltd - India
- Therma Luzon, Inc, Philippines
- Africa Commodities Group - South Africa
- GVK Power & Infra Limited - India
- Ind-Barath Power Infra Limited - India
- Sojitz Corporation - Japan
- Chettinad Cement Corporation Ltd - India
- Economic Council, Georgia
- Makarim & Taira - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Coalindo Energy - Indonesia
- Iligan Light & Power Inc, Philippines
- Goldman Sachs - Singapore
- AsiaOL BioFuels Corp., Philippines
- Indika Energy - Indonesia
- Tata Chemicals Ltd - India
- White Energy Company Limited
- Electricity Authority, New Zealand
- Meralco Power Generation, Philippines
- Star Paper Mills Limited - India
- Agrawal Coal Company - India
- OPG Power Generation Pvt Ltd - India
- Karaikal Port Pvt Ltd - India
- Mjunction Services Limited - India
- New Zealand Coal & Carbon
- Leighton Contractors Pty Ltd - Australia
- Cement Manufacturers Association - India
- IHS Mccloskey Coal Group - USA
- Ceylon Electricity Board - Sri Lanka
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