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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, 22 December 11
DRY BULK MARKET KEEPS LOSING TRACTION AHEAD OF HOLIDAY SEASON - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market kept retreating in the middle of the week, as charterers seem to be looking towards the holiday season and the start of the new ye ...
Tuesday, 20 December 11
THE COAL IMPORT INTO CHINA WAS QUIETER AS COAL STOCKS WERE AT HIGH LEVELS - BRS
The BDI ended the week at 1888 points (-1.8%), the BCI corrected to 3572 (-3.4%), the BPI was up at 1,775 (+3.6%), the BSI dropped to 1193 (-3.0%) a ...
Tuesday, 20 December 11
INDIA IMPORTS 66.41 PERCENT MORE COAL FROM INDONESIA LAST MONTH - SOURCES
COALspot.com: Indonesia, the world largest coal exporter, shipped 33.476* mln mt of coal in November, which is slightly higher than its Octobe ...
Monday, 19 December 11
KOPEX COMMITS ADDITIONAL ONE MILLION DOLLAR FOR PT TRANSCOAL MINERGY
COALspot.com - Mining contractor Kopex has agreed to extend a further US$1 million to finance the remainder of the expanded drill program at PT Tran ...
Monday, 19 December 11
PLN WILL NO LONGER BUY COAL FROM TRADERS
COALspot.com - Indonesia's state electricity company PT Perusahaan Listrik Negara will no longer allow traders to become their suppliers, said, its ...
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Showing 4921 to 4925 news of total 6871 |
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- Siam City Cement - Thailand
- Dalmia Cement Bharat India
- Kideco Jaya Agung - Indonesia
- Therma Luzon, Inc, Philippines
- The University of Queensland
- Indika Energy - Indonesia
- Mjunction Services Limited - India
- Vedanta Resources Plc - India
- Sojitz Corporation - Japan
- Asmin Koalindo Tuhup - Indonesia
- Toyota Tsusho Corporation, Japan
- TeaM Sual Corporation - Philippines
- The Treasury - Australian Government
- Kapuas Tunggal Persada - Indonesia
- Port Waratah Coal Services - Australia
- Kalimantan Lumbung Energi - Indonesia
- Wilmar Investment Holdings
- Iligan Light & Power Inc, Philippines
- Edison Trading Spa - Italy
- SMG Consultants - Indonesia
- Commonwealth Bank - Australia
- Grasim Industreis Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Indonesian Coal Mining Association
- Georgia Ports Authority, United States
- Gujarat Electricity Regulatory Commission - India
- Bhatia International Limited - India
- Minerals Council of Australia
- Simpson Spence & Young - Indonesia
- Timah Investasi Mineral - Indoneisa
- OPG Power Generation Pvt Ltd - India
- Ministry of Mines - Canada
- Singapore Mercantile Exchange
- Electricity Generating Authority of Thailand
- Riau Bara Harum - Indonesia
- GAC Shipping (India) Pvt Ltd
- Bhushan Steel Limited - India
- New Zealand Coal & Carbon
- Ceylon Electricity Board - Sri Lanka
- Central Java Power - Indonesia
- LBH Netherlands Bv - Netherlands
- Bukit Baiduri Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Antam Resourcindo - Indonesia
- CNBM International Corporation - China
- Bank of Tokyo Mitsubishi UFJ Ltd
- Coalindo Energy - Indonesia
- Agrawal Coal Company - India
- Electricity Authority, New Zealand
- Semirara Mining and Power Corporation, Philippines
- PowerSource Philippines DevCo
- Bukit Makmur.PT - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Holcim Trading Pte Ltd - Singapore
- San Jose City I Power Corp, Philippines
- Global Coal Blending Company Limited - Australia
- Kumho Petrochemical, South Korea
- Chettinad Cement Corporation Ltd - India
- VISA Power Limited - India
- Sindya Power Generating Company Private Ltd
- Power Finance Corporation Ltd., India
- South Luzon Thermal Energy Corporation
- Interocean Group of Companies - India
- Directorate Of Revenue Intelligence - India
- Kepco SPC Power Corporation, Philippines
- Anglo American - United Kingdom
- Binh Thuan Hamico - Vietnam
- SN Aboitiz Power Inc, Philippines
- Samtan Co., Ltd - South Korea
- Manunggal Multi Energi - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Energy Development Corp, Philippines
- Aboitiz Power Corporation - Philippines
- Renaissance Capital - South Africa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Energy Link Ltd, New Zealand
- Lanco Infratech Ltd - India
- Mercator Lines Limited - India
- European Bulk Services B.V. - Netherlands
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Karbindo Abesyapradhi - Indoneisa
- Attock Cement Pakistan Limited
- White Energy Company Limited
- McConnell Dowell - Australia
- Indian Oil Corporation Limited
- Ambuja Cements Ltd - India
- Gujarat Sidhee Cement - India
- Leighton Contractors Pty Ltd - Australia
- Petron Corporation, Philippines
- Deloitte Consulting - India
- ICICI Bank Limited - India
- Salva Resources Pvt Ltd - India
- CIMB Investment Bank - Malaysia
- Larsen & Toubro Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Independent Power Producers Association of India
- Miang Besar Coal Terminal - Indonesia
- Aditya Birla Group - India
- Marubeni Corporation - India
- Videocon Industries ltd - India
- Bayan Resources Tbk. - Indonesia
- India Bulls Power Limited - India
- Thai Mozambique Logistica
- Neyveli Lignite Corporation Ltd, - India
- Altura Mining Limited, Indonesia
- Tamil Nadu electricity Board
- Star Paper Mills Limited - India
- IHS Mccloskey Coal Group - USA
- Billiton Holdings Pty Ltd - Australia
- Maharashtra Electricity Regulatory Commission - India
- Krishnapatnam Port Company Ltd. - India
- Africa Commodities Group - South Africa
- The State Trading Corporation of India Ltd
- Borneo Indobara - Indonesia
- Oldendorff Carriers - Singapore
- Price Waterhouse Coopers - Russia
- Indo Tambangraya Megah - Indonesia
- Xindia Steels Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Thiess Contractors Indonesia
- Parliament of New Zealand
- Directorate General of MIneral and Coal - Indonesia
- Uttam Galva Steels Limited - India
- Goldman Sachs - Singapore
- Central Electricity Authority - India
- PTC India Limited - India
- Kohat Cement Company Ltd. - Pakistan
- London Commodity Brokers - England
- Carbofer General Trading SA - India
- Mintek Dendrill Indonesia
- Romanian Commodities Exchange
- Maheswari Brothers Coal Limited - India
- Latin American Coal - Colombia
- Rio Tinto Coal - Australia
- Ministry of Transport, Egypt
- Ind-Barath Power Infra Limited - India
- Economic Council, Georgia
- Sarangani Energy Corporation, Philippines
- Semirara Mining Corp, Philippines
- Jaiprakash Power Ventures ltd
- Petrochimia International Co. Ltd.- Taiwan
- Eastern Energy - Thailand
- Medco Energi Mining Internasional
- Madhucon Powers Ltd - India
- Indogreen Group - Indonesia
- Baramulti Group, Indonesia
- Cigading International Bulk Terminal - Indonesia
- MS Steel International - UAE
- Meralco Power Generation, Philippines
- Bangladesh Power Developement Board
- Alfred C Toepfer International GmbH - Germany
- Sinarmas Energy and Mining - Indonesia
- Chamber of Mines of South Africa
- Bhoruka Overseas - Indonesia
- Straits Asia Resources Limited - Singapore
- Siam City Cement PLC, Thailand
- Karaikal Port Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Cement Manufacturers Association - India
- Sakthi Sugars Limited - India
- Gujarat Mineral Development Corp Ltd - India
- SMC Global Power, Philippines
- IEA Clean Coal Centre - UK
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- AsiaOL BioFuels Corp., Philippines
- Planning Commission, India
- Pendopo Energi Batubara - Indonesia
- Formosa Plastics Group - Taiwan
- Savvy Resources Ltd - HongKong
- Global Green Power PLC Corporation, Philippines
- Trasteel International SA, Italy
- Kartika Selabumi Mining - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Heidelberg Cement - Germany
- Jindal Steel & Power Ltd - India
- Sree Jayajothi Cements Limited - India
- Australian Commodity Traders Exchange
- Bulk Trading Sa - Switzerland
- Posco Energy - South Korea
- Barasentosa Lestari - Indonesia
- Sical Logistics Limited - India
- Kaltim Prima Coal - Indonesia
- Tata Chemicals Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Vizag Seaport Private Limited - India
- Orica Mining Services - Indonesia
- Banpu Public Company Limited - Thailand
- Merrill Lynch Commodities Europe
- Global Business Power Corporation, Philippines
- Parry Sugars Refinery, India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Standard Chartered Bank - UAE
- Metalloyd Limited - United Kingdom
- Coastal Gujarat Power Limited - India
- Indian Energy Exchange, India
- International Coal Ventures Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Coal and Oil Company - UAE
- Bharathi Cement Corporation - India
- GVK Power & Infra Limited - India
- Makarim & Taira - Indonesia
- Orica Australia Pty. Ltd.
- Australian Coal Association
- Intertek Mineral Services - Indonesia
- Ministry of Finance - Indonesia
- Meenaskhi Energy Private Limited - India
- GMR Energy Limited - India
- Malabar Cements Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- ASAPP Information Group - India
- Wood Mackenzie - Singapore
- Eastern Coal Council - USA
- Mercuria Energy - Indonesia
- Globalindo Alam Lestari - Indonesia
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