We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Monday, 23 November 09
INDONESIA MINING RULE THREATENS INVESTMENT DRIVE
 A new Indonesian mining rule, limiting contract work that can be outsourced and favouring local players, is shaping up as a new blow to plans to boost mining investment in Southeast Asia's biggest economy.
The rule, attached to a mining law passed last year, presents an immediate challenge for new energy and mining minister Darwin Saleh, who was sworn in last month amid hopes that a new government could boost the resources sector.
The mining law, which replaced one issued 41 years ago, aims to squeeze more benefits from rich mineral reserves in Indonesia, the world's top exporter of tin and thermal coal and a key producer of zinc, copper, nickel and gold.
But Indonesia has seen little new foreign investment in metal mining in recent years and the energy and mining ministry's new rules seems likely to dampen enthusiasm among potential investors.
"It will increase costs for miners because they have to buy their own equipment and hire new people," said Priyo Pribadi Soemarno of the Indonesian Mining Association.
To contain costs, most mining firms in Indonesia, particularly coal firms, rely on contractors for work ranging from actual mining to stockpiling of minerals.
But the new regulation limits contractors to stripping away top soil and transporting mining products, while the miner itself has to extract minerals.
The move would encourage inefficiency and was out of step with global trends, said Soemarno, the executive director of the mining group. "Mining companies globally are trying to slim down their organisations," he said.
Former Mining and Energy Minister Purnomo Yusgiantoro signed the new regulation at the end of September.
His successor, a suprise pick in President Susilo Bambang Yudhoyono's cabinet last month, has not publicly commented on it and little is known of his policy stance.
Indonesia has struggled to lure foreign investment into mining in recent years, compounded by some politicians taking a nationalist line on resource exploitation and also because of uncertainty over regulations.
Major global resource firms operating in Indonesia include Freeport-McMoRan Copper & Gold Inc and Newmont Mining Corp, but much of the investment was made decades ago.
Investment in mining, including coal and geothermal, rose to $1.65 billion in 2008 from $1 billion in 2004 but mostly came from existing miners rather than new entrants.
Some foreign firms have already shelved investment plans since last year, partly due to uncertainties over the new mining law, which also includes contentious items such as shorter-term mining permits rather than longer-term contracts of work.
Miners will also have to process minerals in Indonesia and to set aside some of their coal for the domestic market.
COAL MINERS TO SUFFER MOST
The new mining services rule limits miners' use of contractors, and when allowed to use one, they must give a local contractor first preference and need the energy ministry's permission to hire affiliates.
David Kiu, an analyst at Eurasia Group, said the new rule was mainly aimed at curtailing transfer pricing, a practice rife in Indonesian mining, by which firms in the same group sell to each other at artificial prices to avoid taxes.
The new regulation applies immediately to new mining projects but allows existing miners a term of three years to adjust.
The regulation will have a bigger impact on coal producers, since they tend to use mining contractors for nearly all their mining activities, some experts said.
PT Adaro Energy Tbk, Indonesia's largest coal miner by market value, and PT Berau Coal, the fifth-biggest by volume, currently outsource their entire mining activities.
Sacha Winzenried, a mining partner at PricewaterhouseCoopers Indonesia, said coal companies would have to do more themselves and weigh up local contractors over foreigners.
"This will result in increased expenditures on capital equipment," Winzenried said.
Miners whose affiliates carry out mining activities might need to restructure their businesses after the end of the exemption period, he added.
"It's either by merging the contract mining business with the mining company or transferring the assets, or selling-off the contract mining altogether," Winzenried said.
Companies are still assesing the cost impact, although rating agency Fitch said it did not see negative rating implications for firms it covers including PT Adaro Indonesia and PT Indika Energy Tbk
But an executive at a top coal firm, who declined to be identified, said the regulation would significantly increase the requirements for capital, possibly limiting expansion.
"By employing contractors, this limits the capital requirements for heavy equipment and therefore we can expand faster."
The Indonesian Mining Association fears mining investment could fall below $1 billion this year due to uncertainty over the new law, although the government has said investment from mining -- including geothermal -- could surpass $2 billion.
Last year, mining giant BHP Billiton scrapped a study to develop an integrated nickel project in eastern Indonesia and decided not to go ahead with a coal mine in Central Kalimantan. Tsingshan Mineral Company Ltd had scrapped a $500 million nickel project in North Maluku in Indonesia.
"If the regulation is not amended, new investors will think over before investing because it will increase costs and not every mining company is capable of increasing their investment," said Soemarno of the Indonesia Mining Association.
Source: Reuters / Alibaba
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Thursday, 03 December 09
COAL INDIA IPO LIKELY TO HIT MARKETS BY NOVEMBER 2010
Soon investors will get to own a slice of India's largest coal mining company. Coal India its initial public offering will hit markets in November ...
Thursday, 03 December 09
PROLONGED COAL MARGIN SQUEEZE AHEAD - WESCOAL
Mining Weekly reported that, Coal junior Wescoal foresees a continued margin squeeze ahead. The JSE AltX-listed company's gross margin was reduced ...
Tuesday, 01 December 09
COAL DEMAND REBOUNDING FROM DOWNTURN - U.S. MINING EXECS
The coal industry is slowly rebounding from last year's recession with demand and prices inching upward, although inventories at U.S. power ...
Tuesday, 01 December 09
INDONESIA COAL OUTPUT SEEN LIFTED BY CHINA, INDIA
Reuters reported that, Indonesia's coal output is expected to grow by as much as 12 percent in 2010, boosted by demand from power hungry China and ...
Monday, 30 November 09
NTPC SCOUTS FOR MORE COAL BLOCKS IN INDONESIA
State-run National Thermal Power Corporation (NTPC) today said it has identified three more coal blocks in Indonesia for acquisition.
"We ha ...
|
|
|
Showing 6211 to 6215 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Independent Power Producers Association of India
- Antam Resourcindo - Indonesia
- Cement Manufacturers Association - India
- Xindia Steels Limited - India
- Ministry of Finance - Indonesia
- Tata Chemicals Ltd - India
- Meenaskhi Energy Private Limited - India
- Lanco Infratech Ltd - India
- Star Paper Mills Limited - India
- Georgia Ports Authority, United States
- IEA Clean Coal Centre - UK
- Vizag Seaport Private Limited - India
- Kobexindo Tractors - Indoneisa
- Merrill Lynch Commodities Europe
- Thiess Contractors Indonesia
- Ceylon Electricity Board - Sri Lanka
- Makarim & Taira - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- GAC Shipping (India) Pvt Ltd
- Sinarmas Energy and Mining - Indonesia
- Metalloyd Limited - United Kingdom
- Pipit Mutiara Jaya. PT, Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Toyota Tsusho Corporation, Japan
- Chamber of Mines of South Africa
- Electricity Generating Authority of Thailand
- Indogreen Group - Indonesia
- Uttam Galva Steels Limited - India
- Kaltim Prima Coal - Indonesia
- Salva Resources Pvt Ltd - India
- Meralco Power Generation, Philippines
- Sree Jayajothi Cements Limited - India
- European Bulk Services B.V. - Netherlands
- PetroVietnam Power Coal Import and Supply Company
- Larsen & Toubro Limited - India
- Bulk Trading Sa - Switzerland
- Directorate General of MIneral and Coal - Indonesia
- Latin American Coal - Colombia
- Ministry of Mines - Canada
- Siam City Cement - Thailand
- Petrochimia International Co. Ltd.- Taiwan
- Therma Luzon, Inc, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bhushan Steel Limited - India
- Thai Mozambique Logistica
- Maheswari Brothers Coal Limited - India
- Krishnapatnam Port Company Ltd. - India
- Carbofer General Trading SA - India
- Bhoruka Overseas - Indonesia
- Price Waterhouse Coopers - Russia
- Mercuria Energy - Indonesia
- Trasteel International SA, Italy
- Agrawal Coal Company - India
- ASAPP Information Group - India
- Indian Oil Corporation Limited
- TNB Fuel Sdn Bhd - Malaysia
- Kapuas Tunggal Persada - Indonesia
- Dalmia Cement Bharat India
- Ambuja Cements Ltd - India
- Indika Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- New Zealand Coal & Carbon
- Africa Commodities Group - South Africa
- Bukit Makmur.PT - Indonesia
- Singapore Mercantile Exchange
- Tamil Nadu electricity Board
- Renaissance Capital - South Africa
- Energy Development Corp, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Edison Trading Spa - Italy
- Madhucon Powers Ltd - India
- India Bulls Power Limited - India
- Holcim Trading Pte Ltd - Singapore
- Interocean Group of Companies - India
- Attock Cement Pakistan Limited
- Global Coal Blending Company Limited - Australia
- Semirara Mining Corp, Philippines
- Eastern Coal Council - USA
- Banpu Public Company Limited - Thailand
- Straits Asia Resources Limited - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Binh Thuan Hamico - Vietnam
- Global Green Power PLC Corporation, Philippines
- Sindya Power Generating Company Private Ltd
- Port Waratah Coal Services - Australia
- GN Power Mariveles Coal Plant, Philippines
- Indian Energy Exchange, India
- McConnell Dowell - Australia
- Aditya Birla Group - India
- Gujarat Mineral Development Corp Ltd - India
- MS Steel International - UAE
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Vijayanagar Sugar Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Commonwealth Bank - Australia
- Grasim Industreis Ltd - India
- Kartika Selabumi Mining - Indonesia
- Sical Logistics Limited - India
- Petron Corporation, Philippines
- London Commodity Brokers - England
- Baramulti Group, Indonesia
- Bayan Resources Tbk. - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Rio Tinto Coal - Australia
- Eastern Energy - Thailand
- Cigading International Bulk Terminal - Indonesia
- Australian Commodity Traders Exchange
- VISA Power Limited - India
- Riau Bara Harum - Indonesia
- PowerSource Philippines DevCo
- Economic Council, Georgia
- Sakthi Sugars Limited - India
- Central Java Power - Indonesia
- Wood Mackenzie - Singapore
- Kepco SPC Power Corporation, Philippines
- Sojitz Corporation - Japan
- The State Trading Corporation of India Ltd
- Alfred C Toepfer International GmbH - Germany
- Altura Mining Limited, Indonesia
- CIMB Investment Bank - Malaysia
- Marubeni Corporation - India
- Kumho Petrochemical, South Korea
- Jindal Steel & Power Ltd - India
- Oldendorff Carriers - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- PNOC Exploration Corporation - Philippines
- San Jose City I Power Corp, Philippines
- Planning Commission, India
- SMG Consultants - Indonesia
- Coal and Oil Company - UAE
- Gujarat Electricity Regulatory Commission - India
- Global Business Power Corporation, Philippines
- Goldman Sachs - Singapore
- Mjunction Services Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Directorate Of Revenue Intelligence - India
- Savvy Resources Ltd - HongKong
- Globalindo Alam Lestari - Indonesia
- Kideco Jaya Agung - Indonesia
- LBH Netherlands Bv - Netherlands
- Miang Besar Coal Terminal - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Heidelberg Cement - Germany
- Bhatia International Limited - India
- The Treasury - Australian Government
- Borneo Indobara - Indonesia
- Australian Coal Association
- Bharathi Cement Corporation - India
- Leighton Contractors Pty Ltd - Australia
- Samtan Co., Ltd - South Korea
- CNBM International Corporation - China
- GMR Energy Limited - India
- The University of Queensland
- AsiaOL BioFuels Corp., Philippines
- Parry Sugars Refinery, India
- Bukit Asam (Persero) Tbk - Indonesia
- Mercator Lines Limited - India
- Timah Investasi Mineral - Indoneisa
- Coastal Gujarat Power Limited - India
- Iligan Light & Power Inc, Philippines
- Ind-Barath Power Infra Limited - India
- ICICI Bank Limited - India
- Rashtriya Ispat Nigam Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Barasentosa Lestari - Indonesia
- IHS Mccloskey Coal Group - USA
- OPG Power Generation Pvt Ltd - India
- Ministry of Transport, Egypt
- Malabar Cements Ltd - India
- Medco Energi Mining Internasional
- Coalindo Energy - Indonesia
- Gujarat Sidhee Cement - India
- Kalimantan Lumbung Energi - Indonesia
- Aboitiz Power Corporation - Philippines
- Parliament of New Zealand
- Indonesian Coal Mining Association
- Central Electricity Authority - India
- Indo Tambangraya Megah - Indonesia
- Videocon Industries ltd - India
- Simpson Spence & Young - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Mintek Dendrill Indonesia
- Siam City Cement PLC, Thailand
- Formosa Plastics Group - Taiwan
- White Energy Company Limited
- Vedanta Resources Plc - India
- Jaiprakash Power Ventures ltd
- Minerals Council of Australia
- Deloitte Consulting - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bukit Baiduri Energy - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Orica Mining Services - Indonesia
- TeaM Sual Corporation - Philippines
- Electricity Authority, New Zealand
- SMC Global Power, Philippines
- Bangladesh Power Developement Board
- Sarangani Energy Corporation, Philippines
- South Luzon Thermal Energy Corporation
- GVK Power & Infra Limited - India
- Standard Chartered Bank - UAE
- Intertek Mineral Services - Indonesia
- Romanian Commodities Exchange
- Essar Steel Hazira Ltd - India
- Orica Australia Pty. Ltd.
- PTC India Limited - India
- International Coal Ventures Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- Karaikal Port Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Anglo American - United Kingdom
- Posco Energy - South Korea
- Pendopo Energi Batubara - Indonesia
- Wilmar Investment Holdings
- Manunggal Multi Energi - Indonesia
- Jorong Barutama Greston.PT - Indonesia
|
| |
| |
|
