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Thursday, 02 January 20
DMO 2020 PRICE SET FOR ELECTRICITY SECTOR - IAN WOLLFF
 On the 26th December 2019, the Minister of Energy and Mineral Resources (ESDM) issued the decree No. 261.K/30.MEM/2019 about the States needs for coal in 2020 [Domestic Market Obligation = DMO] that is effective from the 1st January 2020. It is good that the decree was issued prior to its application, and the socialization of the decree is much anticipated.
The first three stipulations simply set the DMO for coal producers at a minimum of 25% of their sales. If this commitment is not met, then the producers are “obliged to pay compensation” for the shortfall amount of DMO sales. Note that the nature of such compensation is not mentioned in this decree.
The remainder of the decree specifically addresses coal sold “for the supply of electricity for public use..” The DMO sales for the cement and other industries are not mentioned, and presumably this decrees price setting formula for the electricity industry may not apply to other DMO coal uses.
The decree sets the coal selling price to the domestic electricity market, based upon a reference coal quality, and at the Free On Board (FOB) sales point. It would appear the business entity providing electricity is now mandatory to buy coal FOB and be responsible for coal transport, and to prioritize long term contracts. Coal producers that do not meet their DMO commitments related to the domestic electric market will be subject to sanctions in the form of reducing quota for the following years approved production. There seems to be no mention on the differentiation of 25% overall DMO and the proportion to be committed to the electric industry.
The Decree’s attachment sets out the determination of the selling price for the supply of electricity for public interest. There is separate formula for when the coal reference price is equal or more than USD 70/ton FOB, and for when the coal reference price is less than USD 70/ton FOB. The formula considers variations in coal quality and provides a table of 77 Indonesian coal quality / brands. There is a third consideration in the calculation of coal sales price to the electricity supply for public interest related to Spot Sales. It would seem the formulae do not consider coking properties.
Ian Wollff
Principal Geologist. Independent Consultant
Originally Published on Linkedin on 1 January 2020
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Thursday, 09 January 20
SUPRAMAX: A NUMBER OF INDONESIAN ROUND TRIPS WERE REPORTED AT BELLOW USD 5,000 PD LEVELS - FEARNLEYS
Capesize
The Capesize market has hit new low's in the first week of the new year, with the West Australia route being fixed at USD 6.6 being ...
Wednesday, 08 January 20
WHAT IS BIMCO THINKING ABOUT 2020? - BIMCO
Every year, BIMCO considers what is in store for the shipping industry and for BIMCO in the coming years, while also reflecting on the year gone by ...
Wednesday, 08 January 20
VINACOMIN SETS TO SELL 49 MILLION TONNES OF COAL IN 2020 - VIETNAM NET
The Vietnam National Coal-Mineral Industries Holding Corporation Limited (Vinacomin) has set to sell 49 million tonnes of coal in 2020, a year-on-y ...
Wednesday, 08 January 20
CHINA'S COAL-RICH PROVINCE CUTS 18.95 MLN TONNES OF CAPACITY IN 2019 - XINHUA
North China’s Shanxi Province reduced its coal production capacity by 18.95 million tonnes by closing 18 coal mines in 2019.
A ...
Wednesday, 08 January 20
JANUARY INDONESIAN COAL PRICE REFERENCE SLIPS US$ 0.37 MOM
COALspot.com: The Ministry of Energy and Mineral Resources of the Republic of Indonesia has revised down the benchmark price of Indonesian thermal ...
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- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bhushan Steel Limited - India
- Indika Energy - Indonesia
- Bangladesh Power Developement Board
- Coastal Gujarat Power Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Latin American Coal - Colombia
- Mercuria Energy - Indonesia
- Bukit Baiduri Energy - Indonesia
- ASAPP Information Group - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Aboitiz Power Corporation - Philippines
- CIMB Investment Bank - Malaysia
- Standard Chartered Bank - UAE
- Energy Development Corp, Philippines
- PNOC Exploration Corporation - Philippines
- Singapore Mercantile Exchange
- Thiess Contractors Indonesia
- Ambuja Cements Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Parliament of New Zealand
- TNB Fuel Sdn Bhd - Malaysia
- Kepco SPC Power Corporation, Philippines
- Interocean Group of Companies - India
- Sakthi Sugars Limited - India
- GVK Power & Infra Limited - India
- International Coal Ventures Pvt Ltd - India
- Independent Power Producers Association of India
- Port Waratah Coal Services - Australia
- Karbindo Abesyapradhi - Indoneisa
- Power Finance Corporation Ltd., India
- Neyveli Lignite Corporation Ltd, - India
- Miang Besar Coal Terminal - Indonesia
- Baramulti Group, Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Kobexindo Tractors - Indoneisa
- OPG Power Generation Pvt Ltd - India
- McConnell Dowell - Australia
- Romanian Commodities Exchange
- Planning Commission, India
- Jorong Barutama Greston.PT - Indonesia
- Coalindo Energy - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Ministry of Transport, Egypt
- Makarim & Taira - Indonesia
- Semirara Mining Corp, Philippines
- Meralco Power Generation, Philippines
- Georgia Ports Authority, United States
- The State Trading Corporation of India Ltd
- Aditya Birla Group - India
- PowerSource Philippines DevCo
- Malabar Cements Ltd - India
- Edison Trading Spa - Italy
- SN Aboitiz Power Inc, Philippines
- Central Java Power - Indonesia
- Ministry of Mines - Canada
- Iligan Light & Power Inc, Philippines
- Carbofer General Trading SA - India
- The University of Queensland
- GAC Shipping (India) Pvt Ltd
- CNBM International Corporation - China
- New Zealand Coal & Carbon
- Borneo Indobara - Indonesia
- Marubeni Corporation - India
- Siam City Cement PLC, Thailand
- Holcim Trading Pte Ltd - Singapore
- Sarangani Energy Corporation, Philippines
- Manunggal Multi Energi - Indonesia
- Toyota Tsusho Corporation, Japan
- Star Paper Mills Limited - India
- Directorate Of Revenue Intelligence - India
- Bukit Makmur.PT - Indonesia
- Oldendorff Carriers - Singapore
- Ministry of Finance - Indonesia
- Wilmar Investment Holdings
- Cement Manufacturers Association - India
- ICICI Bank Limited - India
- Kapuas Tunggal Persada - Indonesia
- Agrawal Coal Company - India
- Indian Oil Corporation Limited
- GN Power Mariveles Coal Plant, Philippines
- Therma Luzon, Inc, Philippines
- Ceylon Electricity Board - Sri Lanka
- Trasteel International SA, Italy
- Rio Tinto Coal - Australia
- Energy Link Ltd, New Zealand
- Gujarat Sidhee Cement - India
- Antam Resourcindo - Indonesia
- Intertek Mineral Services - Indonesia
- Price Waterhouse Coopers - Russia
- Attock Cement Pakistan Limited
- Tata Chemicals Ltd - India
- Globalindo Alam Lestari - Indonesia
- Thai Mozambique Logistica
- PetroVietnam Power Coal Import and Supply Company
- Directorate General of MIneral and Coal - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Global Coal Blending Company Limited - Australia
- Global Green Power PLC Corporation, Philippines
- Bulk Trading Sa - Switzerland
- White Energy Company Limited
- Altura Mining Limited, Indonesia
- Binh Thuan Hamico - Vietnam
- Offshore Bulk Terminal Pte Ltd, Singapore
- Meenaskhi Energy Private Limited - India
- Barasentosa Lestari - Indonesia
- Mintek Dendrill Indonesia
- Mjunction Services Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- VISA Power Limited - India
- Orica Mining Services - Indonesia
- Jindal Steel & Power Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Vijayanagar Sugar Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Indogreen Group - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Eastern Coal Council - USA
- Rashtriya Ispat Nigam Limited - India
- Ind-Barath Power Infra Limited - India
- Electricity Authority, New Zealand
- MS Steel International - UAE
- Commonwealth Bank - Australia
- AsiaOL BioFuels Corp., Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Electricity Generating Authority of Thailand
- Eastern Energy - Thailand
- LBH Netherlands Bv - Netherlands
- Cigading International Bulk Terminal - Indonesia
- Deloitte Consulting - India
- European Bulk Services B.V. - Netherlands
- Medco Energi Mining Internasional
- Africa Commodities Group - South Africa
- SMG Consultants - Indonesia
- Madhucon Powers Ltd - India
- Grasim Industreis Ltd - India
- Heidelberg Cement - Germany
- Bharathi Cement Corporation - India
- Australian Commodity Traders Exchange
- India Bulls Power Limited - India
- Chettinad Cement Corporation Ltd - India
- Economic Council, Georgia
- Karaikal Port Pvt Ltd - India
- Sical Logistics Limited - India
- Timah Investasi Mineral - Indoneisa
- Gujarat Mineral Development Corp Ltd - India
- Tamil Nadu electricity Board
- Sree Jayajothi Cements Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Central Electricity Authority - India
- The Treasury - Australian Government
- Semirara Mining and Power Corporation, Philippines
- Vizag Seaport Private Limited - India
- SMC Global Power, Philippines
- Wood Mackenzie - Singapore
- Minerals Council of Australia
- TeaM Sual Corporation - Philippines
- San Jose City I Power Corp, Philippines
- Salva Resources Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Simpson Spence & Young - Indonesia
- Indo Tambangraya Megah - Indonesia
- Savvy Resources Ltd - HongKong
- IHS Mccloskey Coal Group - USA
- PTC India Limited - India
- Sindya Power Generating Company Private Ltd
- Kaltim Prima Coal - Indonesia
- Orica Australia Pty. Ltd.
- Petrochimia International Co. Ltd.- Taiwan
- Mercator Lines Limited - India
- Samtan Co., Ltd - South Korea
- Jaiprakash Power Ventures ltd
- Petron Corporation, Philippines
- Vedanta Resources Plc - India
- Parry Sugars Refinery, India
- South Luzon Thermal Energy Corporation
- Chamber of Mines of South Africa
- Global Business Power Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- Larsen & Toubro Limited - India
- Lanco Infratech Ltd - India
- GMR Energy Limited - India
- Alfred C Toepfer International GmbH - Germany
- Essar Steel Hazira Ltd - India
- Kideco Jaya Agung - Indonesia
- Indian Energy Exchange, India
- Renaissance Capital - South Africa
- Goldman Sachs - Singapore
- IEA Clean Coal Centre - UK
- Merrill Lynch Commodities Europe
- Siam City Cement - Thailand
- Australian Coal Association
- Kumho Petrochemical, South Korea
- Gujarat Electricity Regulatory Commission - India
- Formosa Plastics Group - Taiwan
- Banpu Public Company Limited - Thailand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Dalmia Cement Bharat India
- Xindia Steels Limited - India
- Krishnapatnam Port Company Ltd. - India
- Indonesian Coal Mining Association
- Posco Energy - South Korea
- Bayan Resources Tbk. - Indonesia
- Anglo American - United Kingdom
- Metalloyd Limited - United Kingdom
- Maheswari Brothers Coal Limited - India
- London Commodity Brokers - England
- Bahari Cakrawala Sebuku - Indonesia
- Videocon Industries ltd - India
- Coal and Oil Company - UAE
- Pipit Mutiara Jaya. PT, Indonesia
- Bhatia International Limited - India
- Riau Bara Harum - Indonesia
- Uttam Galva Steels Limited - India
- Sojitz Corporation - Japan
- Bhoruka Overseas - Indonesia
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