We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Thursday, 05 April 12
COAL EXPORT TAX: MATTER OF CONCERN FOR INDIA - SUNIL K KUMBHAT
 COALspot.com - Since the issuance of Indonesian Mining law in 2009, miners have increased their activities in exploring , exploiting and exporting all types of minerals,specially Black Gold –Coal.
In order to regulate the mining sector , the Goverment of Indonesia has announced a series of new mining regulations, including a ban on exports of some unprocessed metals and low-grade Coal from 2014 , which is designed to spur investment in mineral processing .The proposed ban on exports of coal under the 5,700-kcal/kg from Jan 2014 will change the dynamics of the global thermal coal market, which has seen spiralling demand from China and India. Such a ban will have a substantial impact on the thermal coal market, as large amounts of low-quality coal from Indonesia are exported to India and China.
Another Goverment regulation known as GR 24 of 2012 ( Amendment of GR 23 of 2010 ), signed by President of Indonesia on Feb. 21,2012 stipulates that foreign shareholders/ Companies must gradually divest 51 percent of their shares in local mining companies to local investors after the fifth year of commercial production and complete the divestment by the 10th year of production. The divestment regulation resulted from a revision to a earlier GR 23 of 2010 that required foreign shareholders in local mineral and coal mining companies to divest 20 percent of their holdings.
In a latest move The Goverment of Indonesia now plans to impose a tax of 25% on export of coal and base metals during the current year, and increase it to 50% in 2013. The step is to boost investment in the downstream industry of metal and mining sectors. It is also expected to restrict the exports of mineral and ore metal shipment.The date of implementing the regulation and calculating the Export tax is yet to announced.
Indonesian Government is capitalizing on the mining boom driven by high demand of thermal Coal from China and India . Inspite of series of Taxes , the proposed Export tax is designed to restrict the production and also share profit on the minerals being mined. Coal prices are increasing due to huge requirement and inadequate global production capacity. Govt of Indonesia is encashing the Global situation of demand and supply .Coal will remain hot commodity and Indonesia as heart of Coal Boom.
If the proposed tax is implemented , it is definitely cause of serious concern , particularly for Indian buyers. India is a major buyer of Indonesian thermal coal, along with are China, South Korea, Japan .This is a wake-up call for all the foreign miners operating in Indonesia specially for Coal, that gone are the days of soft and flexible regulations.It is also wake up call for country like India that slow environmental ,forestery clearances and land acquisition issues ,if not sorted out will led to stagnating coal production in India which will resultinto increased dependence on imports, specially from Indnonesia , Australia and south Africa.
Never before India has such a high demand for coal, so also environmental consciousness been so high. Both are legitimate & serious issues but the solution is not to clamp down on coal production. India’s soaring energy need is vital for its industrial growth.
The magnitude of growth in power generation in India will necessarily mean that coal demand will remain very strong. Coal will remain life line for Indian economy for coming many decades till identifying an alternative source that can match coal in its accessibility, availability and affordability in the context of scale of capacity addition required in India.
As the situation stands today, India could become the world’s biggest thermal coal importer by 2015 and Indonesia would be one of the Countries to take care of bulk of coal requirement.
India is today one of the fastest growing economies and also has a shortage of power supply. Indonesia is one of the countries with huge natural resources and exporting thermal coal to many countries for use in power plants for generating energy but it is paradoxical that Indonesia is short of energy. Many Indian companies are capable of sharing power technology and setting up mega power plants in Indonesia
Indonesian private companies can buy equity stakes in India’s power plants in exchange for long-term coal supply. Since India is today one of the fastest growing economies and also has a shortage of power supply then such deals can be beneficial to both parties.
Indonesia requires huge investment from foreign investors in infrastructure, Power Generation, Oil & Gas exploration, telecom sector, Port and Rapid transport system. So it is essential to have transparency in all regulations, legal system and improvement in corporate Governance. Indonesia's mining industry is undergoing a regulatory overhaul which may weaken the operating health and financial performance of many domestic mining companies.
Besides increased operating uncertainty, the new regulations of recent past & proposed may also make the mining industry less attractive to foreign investors. Foreign investor is likly to seriouly question the Safety and Security of their investment in mining sector considering the regulations of the recent past. Lack of transparency in the legal process and the risk of regulatory duplication and inconsistencies will continue to act as deterrents to substantial investment ,specially foreign direct investments (FDI).
As the situation stands today next couple of years shall be very challening for foreign companies operating in Mining sector in Indonesia.
The present proposed tax would hit the profits of both domestic and foreign-owned companies and would heavily raise costs for importers.
The market analysts and experts in mining sector are skeptical about all the mining regulations and plans announced in recent past.
By: Sunil K Kumbhat , Jodhpur (Rajasthan) India
Views expressed herein are personal views of the author and not that of COALspot.com.
We welcome article submissions from experts in the areas of coal, mining, shipping, etc. To submit your article please click here.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Friday, 05 January 24
BANGLADESH’S 2023 COAL-FIRED POWER OUTPUT TRIPLED, EASING SHORTAGES - REUTERS
Bangladesh nearly tripled its coal-fired power output in 2023, a Reuters analysis of government data showed, helping it tide over the worst power s ...
Tuesday, 02 January 24
COAL TRADE CONTINUES TO HEAD EAST - BALTIC EXCHANGE
The global coal trade, once concentrated in the Pacific and Atlantic basins, is undergoing a significant transformation, as highlighted in the Inte ...
Tuesday, 02 January 24
COAL CARGOES: AVOIDING EXPLOSION AND SELF-HEATING - GARD
KNOWLEDGE TO ELEVATE
Despite its contribution to greenhouse gas emissions, global coal consumption climbed to an all-time high in 2022 and is ...
Tuesday, 02 January 24
SINOPEC FORECASTS CHINA’S COAL CONSUMPTION TO PEAK AROUND 2025 - REUTERS
China Petrochemical Corp, or Sinopec, expects coal consumption to peak around 2025 at 4.37 billion metric tons, the state energy group said in an o ...
Thursday, 07 December 23
CHINA TO SET UP COAL PRODUCTION RESERVE TO STABILISE PRICES - REUTERS
China will establish a back-up coal production system by 2027 to stabilise prices and secure coal supply, the state planner said on Wednesday, even ...
|
|
|
Showing 61 to 65 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- GN Power Mariveles Coal Plant, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Interocean Group of Companies - India
- Binh Thuan Hamico - Vietnam
- Ministry of Finance - Indonesia
- India Bulls Power Limited - India
- LBH Netherlands Bv - Netherlands
- Deloitte Consulting - India
- ASAPP Information Group - India
- Kumho Petrochemical, South Korea
- TeaM Sual Corporation - Philippines
- Trasteel International SA, Italy
- Baramulti Group, Indonesia
- Electricity Generating Authority of Thailand
- Tamil Nadu electricity Board
- Pendopo Energi Batubara - Indonesia
- Makarim & Taira - Indonesia
- Electricity Authority, New Zealand
- Sarangani Energy Corporation, Philippines
- Energy Link Ltd, New Zealand
- Cement Manufacturers Association - India
- Goldman Sachs - Singapore
- Maharashtra Electricity Regulatory Commission - India
- Kideco Jaya Agung - Indonesia
- Central Java Power - Indonesia
- Rio Tinto Coal - Australia
- Mintek Dendrill Indonesia
- Therma Luzon, Inc, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Coastal Gujarat Power Limited - India
- Orica Mining Services - Indonesia
- Indogreen Group - Indonesia
- Indo Tambangraya Megah - Indonesia
- Grasim Industreis Ltd - India
- SMG Consultants - Indonesia
- Ambuja Cements Ltd - India
- Marubeni Corporation - India
- Timah Investasi Mineral - Indoneisa
- Coal and Oil Company - UAE
- GMR Energy Limited - India
- Latin American Coal - Colombia
- Thai Mozambique Logistica
- Bharathi Cement Corporation - India
- Attock Cement Pakistan Limited
- Parry Sugars Refinery, India
- Kapuas Tunggal Persada - Indonesia
- Sojitz Corporation - Japan
- Essar Steel Hazira Ltd - India
- South Luzon Thermal Energy Corporation
- Mercuria Energy - Indonesia
- Sakthi Sugars Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Economic Council, Georgia
- Bukit Makmur.PT - Indonesia
- Indika Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- AsiaOL BioFuels Corp., Philippines
- Singapore Mercantile Exchange
- Star Paper Mills Limited - India
- Kobexindo Tractors - Indoneisa
- Bukit Asam (Persero) Tbk - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Electricity Regulatory Commission - India
- Videocon Industries ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Eastern Energy - Thailand
- Romanian Commodities Exchange
- Heidelberg Cement - Germany
- PowerSource Philippines DevCo
- GAC Shipping (India) Pvt Ltd
- Malabar Cements Ltd - India
- Posco Energy - South Korea
- Directorate Of Revenue Intelligence - India
- Global Coal Blending Company Limited - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Barasentosa Lestari - Indonesia
- Semirara Mining Corp, Philippines
- PNOC Exploration Corporation - Philippines
- London Commodity Brokers - England
- Alfred C Toepfer International GmbH - Germany
- Kalimantan Lumbung Energi - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Ministry of Transport, Egypt
- Semirara Mining and Power Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Cigading International Bulk Terminal - Indonesia
- The Treasury - Australian Government
- Price Waterhouse Coopers - Russia
- Renaissance Capital - South Africa
- Power Finance Corporation Ltd., India
- Meenaskhi Energy Private Limited - India
- White Energy Company Limited
- Iligan Light & Power Inc, Philippines
- Metalloyd Limited - United Kingdom
- ICICI Bank Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Altura Mining Limited, Indonesia
- Madhucon Powers Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- San Jose City I Power Corp, Philippines
- Commonwealth Bank - Australia
- Kohat Cement Company Ltd. - Pakistan
- Independent Power Producers Association of India
- Petron Corporation, Philippines
- Bulk Trading Sa - Switzerland
- Bhoruka Overseas - Indonesia
- Planning Commission, India
- Thiess Contractors Indonesia
- Lanco Infratech Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Energy Development Corp, Philippines
- Indian Oil Corporation Limited
- Global Green Power PLC Corporation, Philippines
- Bhushan Steel Limited - India
- Merrill Lynch Commodities Europe
- Salva Resources Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Indonesian Coal Mining Association
- Indian Energy Exchange, India
- New Zealand Coal & Carbon
- Vizag Seaport Private Limited - India
- Edison Trading Spa - Italy
- Sinarmas Energy and Mining - Indonesia
- Kepco SPC Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Formosa Plastics Group - Taiwan
- Neyveli Lignite Corporation Ltd, - India
- Orica Australia Pty. Ltd.
- Simpson Spence & Young - Indonesia
- Vedanta Resources Plc - India
- Central Electricity Authority - India
- TNB Fuel Sdn Bhd - Malaysia
- Tata Chemicals Ltd - India
- Standard Chartered Bank - UAE
- Karaikal Port Pvt Ltd - India
- Siam City Cement - Thailand
- Agrawal Coal Company - India
- Oldendorff Carriers - Singapore
- Jindal Steel & Power Ltd - India
- Australian Commodity Traders Exchange
- SN Aboitiz Power Inc, Philippines
- Intertek Mineral Services - Indonesia
- Savvy Resources Ltd - HongKong
- Kartika Selabumi Mining - Indonesia
- Bhatia International Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Eastern Coal Council - USA
- Globalindo Alam Lestari - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Chettinad Cement Corporation Ltd - India
- Chamber of Mines of South Africa
- Billiton Holdings Pty Ltd - Australia
- Wood Mackenzie - Singapore
- IEA Clean Coal Centre - UK
- Riau Bara Harum - Indonesia
- Port Waratah Coal Services - Australia
- VISA Power Limited - India
- Aditya Birla Group - India
- Parliament of New Zealand
- Maheswari Brothers Coal Limited - India
- Ind-Barath Power Infra Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Borneo Indobara - Indonesia
- The State Trading Corporation of India Ltd
- Minerals Council of Australia
- Global Business Power Corporation, Philippines
- Medco Energi Mining Internasional
- Miang Besar Coal Terminal - Indonesia
- GVK Power & Infra Limited - India
- Antam Resourcindo - Indonesia
- Sree Jayajothi Cements Limited - India
- Ceylon Electricity Board - Sri Lanka
- Holcim Trading Pte Ltd - Singapore
- Rashtriya Ispat Nigam Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Carbofer General Trading SA - India
- Bangladesh Power Developement Board
- Australian Coal Association
- Sindya Power Generating Company Private Ltd
- Ministry of Mines - Canada
- IHS Mccloskey Coal Group - USA
- The University of Queensland
- MS Steel International - UAE
- Kaltim Prima Coal - Indonesia
- Coalindo Energy - Indonesia
- Uttam Galva Steels Limited - India
- Meralco Power Generation, Philippines
- SMC Global Power, Philippines
- Bukit Baiduri Energy - Indonesia
- Banpu Public Company Limited - Thailand
- European Bulk Services B.V. - Netherlands
- Sical Logistics Limited - India
- OPG Power Generation Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mjunction Services Limited - India
- Larsen & Toubro Limited - India
- Dalmia Cement Bharat India
- Krishnapatnam Port Company Ltd. - India
- Mercator Lines Limited - India
- PTC India Limited - India
- Africa Commodities Group - South Africa
- International Coal Ventures Pvt Ltd - India
- CIMB Investment Bank - Malaysia
- Anglo American - United Kingdom
- Directorate General of MIneral and Coal - Indonesia
- Xindia Steels Limited - India
- Bayan Resources Tbk. - Indonesia
- Jaiprakash Power Ventures ltd
- Gujarat Sidhee Cement - India
- Aboitiz Power Corporation - Philippines
- CNBM International Corporation - China
- Wilmar Investment Holdings
- Samtan Co., Ltd - South Korea
- Georgia Ports Authority, United States
- Vijayanagar Sugar Pvt Ltd - India
- McConnell Dowell - Australia
|
| |
| |
|
