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Friday, 10 July 09
DMO AND ICPR AIMED AT SECURING DOMESTIC COAL SUPPLY
 COALspot.com (Indonesia): According to website of DGCMG, the implementation of coal Domestic Market Obligation (DMO) and the Indonesian Coal Price Reference (ICPR) is aimed at securing continued domestic coal supply and optimization of state revenue. The DMO and ICPR programs is currently in the final stages of implementation.
“During the transition period, the government will implement and distribute average monthly coal prices as a reference for coal mining companies operating in Indonesia” explains the Director General of Mineral, Coal and Geothermal, Bambang Setiawan during the 15th Coaltrans Asia in Nusa Dua, Bali (1-3/6)
The implementation of DMO and ICPR refers to Presidential Decree No.5/2006 on National Energy Policies which states that by 2025, coal shall contribute to 35% towards the national energy mix. This is also regulated in Law No.3/2007 on Energy and Law No.4/2009 on Mineral and Coal Mining.
According to article 11 and 12 of the PKP2B contract, mining companies are able to export their products after fulfilling their domestic market coal obligation. Mining companies are also obligated to help support domestic coal supply. This program emphasizes the need to determine domestic coal demand and the Minimum Domestic Coal Supply Obligation Percentage (PMPBDN) for each company.
“DMO is divided proportionally between each coal mining companies through an agreed work and financial plan” explains the Director General of Mineral, Coal and Geothermal, Bambang Setiawan. The Director General further explains that the PMPBDN is regulated in the form of a ministerial decree. A ministerial decree on domestic coal demand is issued based on of coal demand calculation put forward by domestic coal consumers.
ICPR will be regulated based on the average of 4 price index, consisting of BJ and GC as an international coal price reference, and ICI and Platts as the Indonesian coal price reference. Coal price is then set according to this reference, where coal prices is then set towards Indonesian coal production, reflecting their quality an quantity.
Indonesia is one of the main producers of coal, exceeding 220 million metric tones in 2008 alone. Most of this production, or around 70% is then exported, with the remaining 30% allocated for domestic demands. Indonesia is currently preparing to implement several policies to ensure domestic coal supply due to increasing domestic demands.
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Tuesday, 18 August 09
BANPU TO FOCUS ON CORE BUSINESS
Banpu, the country's leading energy firm, expects to conclude its four-year strategic plan next month, resulting in a strengthening of its core bus ...
Monday, 17 August 09
COAL EXPORTS CONTINUE DESPITE SHORTAGE
Vietnam News reported that, Viet Nam is exporting more coal despite a warning from experts that the country could face a shortage of this fossil fue ...
Monday, 17 August 09
S.KOREA JULY COAL IMPORTS UP TO 8.97 MLN T
* Imports of heating coal in July up 3.7 percent on year
* LNG imports in July fall for seventh straight month
Alibaba reorted that, South Kore ...
Monday, 17 August 09
COAL INDIA PLANS A PRICE HIKE OF 11%
With the state-run CIL mining 84% of the coal produced in the country, an 11% increase will push up inflation by around 0.16%, the company said
L ...
Monday, 17 August 09
BANPU SEES INDONESIAN MINE OUTPUT UP 10 PCT IN 2010
Reuters reported that, Thailand's top coal miner, Banpu, said on Monday it expected coal output from its Indonesian mines to rise 10 percent to abo ...
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