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, 02 February 24
DRY BULK MARKET: THE DOWNWARD REVISION IN THE GROWTH OF CAPESIZE TONNE DAYS IN JANUARY WITH THE BCI DROPPING - MARIA BERTZELETOU
In the last week of January, the dry freight market sustained weakness in the Capesize segment, while the number of ballasters in the Southeast (SE ...
Friday, 02 February 24
COAL INDIA ACHIEVES NEARLY 80% OF ITS FY24 PRODUCTION TARGET IN TEN MONTHS - CNBCTV18
For the month of January, the company’s production grew by 9.1% from the same period last year to 78.4 Million Tonnes (MT), from 71.9 MT last ...
Thursday, 01 February 24
CHINA'S WIND, SOLAR CAPACITY TO OVERTAKE COAL IN 2024 - INDUSTRY BODY, REUTERS REPORTED
China’s installed wind and solar capacity is expected to overtake coal for the first time this year, according to industry forecasts.
&nb ...
Thursday, 01 February 24
ANTI-DEDUCTION CLAUSES: CAN A CHARTERER WITHHOLD HIRE WITHOUT AN OWNER'S CONSENT? - SKULD
KNOWLEDGE TO ELEVATE
Summary
In The Anna Dorothea, the Court found that where a charterparty provides that no deduction from hire may be m ...
Thursday, 01 February 24
INDIA REBUILDS COAL STOCKS TO ENSURE ELECTRIC RELIABILITY - REUTERS
India’s electricity supply is much more comfortable at the start of 2024 than in either 2023 or 2022 as coal production has ramped up and the ...
|
|
|
Showing 41 to 45 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Latin American Coal - Colombia
- Ambuja Cements Ltd - India
- Indian Energy Exchange, India
- Leighton Contractors Pty Ltd - Australia
- Kideco Jaya Agung - Indonesia
- Ministry of Finance - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Star Paper Mills Limited - India
- Heidelberg Cement - Germany
- Sree Jayajothi Cements Limited - India
- Energy Development Corp, Philippines
- Merrill Lynch Commodities Europe
- Grasim Industreis Ltd - India
- Vizag Seaport Private Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Australian Coal Association
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Riau Bara Harum - Indonesia
- Barasentosa Lestari - Indonesia
- Commonwealth Bank - Australia
- Directorate Of Revenue Intelligence - India
- Uttam Galva Steels Limited - India
- Eastern Coal Council - USA
- Dalmia Cement Bharat India
- Miang Besar Coal Terminal - Indonesia
- Jindal Steel & Power Ltd - India
- IEA Clean Coal Centre - UK
- TeaM Sual Corporation - Philippines
- The Treasury - Australian Government
- Iligan Light & Power Inc, Philippines
- Indian Oil Corporation Limited
- San Jose City I Power Corp, Philippines
- Binh Thuan Hamico - Vietnam
- Videocon Industries ltd - India
- Africa Commodities Group - South Africa
- Madhucon Powers Ltd - India
- India Bulls Power Limited - India
- Mercator Lines Limited - India
- SN Aboitiz Power Inc, Philippines
- Ministry of Transport, Egypt
- Coastal Gujarat Power Limited - India
- Kumho Petrochemical, South Korea
- Global Green Power PLC Corporation, Philippines
- The State Trading Corporation of India Ltd
- Gujarat Electricity Regulatory Commission - India
- Central Java Power - Indonesia
- Parliament of New Zealand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- Bayan Resources Tbk. - Indonesia
- Edison Trading Spa - Italy
- Vijayanagar Sugar Pvt Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Singapore Mercantile Exchange
- Bukit Makmur.PT - Indonesia
- Bhoruka Overseas - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Vedanta Resources Plc - India
- Tamil Nadu electricity Board
- SMC Global Power, Philippines
- Rashtriya Ispat Nigam Limited - India
- Indika Energy - Indonesia
- Savvy Resources Ltd - HongKong
- Formosa Plastics Group - Taiwan
- McConnell Dowell - Australia
- Billiton Holdings Pty Ltd - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Jorong Barutama Greston.PT - Indonesia
- White Energy Company Limited
- AsiaOL BioFuels Corp., Philippines
- Indonesian Coal Mining Association
- Larsen & Toubro Limited - India
- Bharathi Cement Corporation - India
- CIMB Investment Bank - Malaysia
- Australian Commodity Traders Exchange
- European Bulk Services B.V. - Netherlands
- Planning Commission, India
- Samtan Co., Ltd - South Korea
- Aditya Birla Group - India
- Minerals Council of Australia
- PNOC Exploration Corporation - Philippines
- Kaltim Prima Coal - Indonesia
- Oldendorff Carriers - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Meenaskhi Energy Private Limited - India
- Electricity Authority, New Zealand
- Banpu Public Company Limited - Thailand
- Medco Energi Mining Internasional
- Kartika Selabumi Mining - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Meralco Power Generation, Philippines
- LBH Netherlands Bv - Netherlands
- Orica Australia Pty. Ltd.
- Electricity Generating Authority of Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Coal and Oil Company - UAE
- Carbofer General Trading SA - India
- Globalindo Alam Lestari - Indonesia
- Deloitte Consulting - India
- Ministry of Mines - Canada
- Romanian Commodities Exchange
- Lanco Infratech Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Bhushan Steel Limited - India
- South Luzon Thermal Energy Corporation
- PowerSource Philippines DevCo
- ICICI Bank Limited - India
- Sojitz Corporation - Japan
- Makarim & Taira - Indonesia
- Attock Cement Pakistan Limited
- Standard Chartered Bank - UAE
- Maheswari Brothers Coal Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Kepco SPC Power Corporation, Philippines
- Indogreen Group - Indonesia
- Wood Mackenzie - Singapore
- Eastern Energy - Thailand
- Manunggal Multi Energi - Indonesia
- Petron Corporation, Philippines
- Gujarat Sidhee Cement - India
- Anglo American - United Kingdom
- Gujarat Mineral Development Corp Ltd - India
- Bulk Trading Sa - Switzerland
- Metalloyd Limited - United Kingdom
- GMR Energy Limited - India
- Borneo Indobara - Indonesia
- Renaissance Capital - South Africa
- Xindia Steels Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Directorate General of MIneral and Coal - Indonesia
- Economic Council, Georgia
- Pendopo Energi Batubara - Indonesia
- Trasteel International SA, Italy
- Kapuas Tunggal Persada - Indonesia
- Jaiprakash Power Ventures ltd
- Cigading International Bulk Terminal - Indonesia
- SMG Consultants - Indonesia
- Posco Energy - South Korea
- ASAPP Information Group - India
- Sindya Power Generating Company Private Ltd
- Energy Link Ltd, New Zealand
- Bhatia International Limited - India
- Siam City Cement PLC, Thailand
- Thiess Contractors Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Ind-Barath Power Infra Limited - India
- Rio Tinto Coal - Australia
- Mjunction Services Limited - India
- Agrawal Coal Company - India
- Alfred C Toepfer International GmbH - Germany
- Independent Power Producers Association of India
- Indo Tambangraya Megah - Indonesia
- Siam City Cement - Thailand
- Salva Resources Pvt Ltd - India
- Chamber of Mines of South Africa
- Mercuria Energy - Indonesia
- GVK Power & Infra Limited - India
- Global Business Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Parry Sugars Refinery, India
- Global Coal Blending Company Limited - Australia
- Central Electricity Authority - India
- Sarangani Energy Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- GAC Shipping (India) Pvt Ltd
- Kalimantan Lumbung Energi - Indonesia
- Toyota Tsusho Corporation, Japan
- IHS Mccloskey Coal Group - USA
- Timah Investasi Mineral - Indoneisa
- Thai Mozambique Logistica
- International Coal Ventures Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Price Waterhouse Coopers - Russia
- Krishnapatnam Port Company Ltd. - India
- Bukit Asam (Persero) Tbk - Indonesia
- Bukit Baiduri Energy - Indonesia
- Sakthi Sugars Limited - India
- Therma Luzon, Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Baramulti Group, Indonesia
- Kobexindo Tractors - Indoneisa
- New Zealand Coal & Carbon
- Antam Resourcindo - Indonesia
- Semirara Mining Corp, Philippines
- Wilmar Investment Holdings
- Mintek Dendrill Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Interocean Group of Companies - India
- Coalindo Energy - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Tata Chemicals Ltd - India
- Sical Logistics Limited - India
- Intertek Mineral Services - Indonesia
- The University of Queensland
- Bangladesh Power Developement Board
- VISA Power Limited - India
- OPG Power Generation Pvt Ltd - India
- PTC India Limited - India
- Essar Steel Hazira Ltd - India
- Goldman Sachs - Singapore
- Marubeni Corporation - India
- Orica Mining Services - Indonesia
- Aboitiz Power Corporation - Philippines
- Malabar Cements Ltd - India
- Cement Manufacturers Association - India
- London Commodity Brokers - England
- Georgia Ports Authority, United States
- Power Finance Corporation Ltd., India
- CNBM International Corporation - China
- Chettinad Cement Corporation Ltd - India
- Port Waratah Coal Services - Australia
- MS Steel International - UAE
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Karaikal Port Pvt Ltd - India
|
| |
| |
|
