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.
|
|
Friday, 27 November 09
BHP SEEKS VARIABLE COKING COAL PRICE IN JAPAN, NIKKEI SAYS
Bloomberg reproted that, BHP Billiton Ltd. has asked Japanese steelmakers to move to pricing of coking coal linked to spot rates rather than negotia ...
Friday, 27 November 09
EXXARO SEES HIGH COAL DEMAND RAISING PRICES
Reuters reported that, South African diversified miner Exxaro Resources said on Thursday it expected coal prices to rise to between $70 and $75 per ...
Friday, 27 November 09
CENTENNIAL SAYS ENERGY-COAL PRICE TO RISE AS CHINA SEEKS FUEL
Bloomberg reported that, Centennial Coal Co., an Australian producer of the fuel, said contract prices are expected to rise in 2010, with Chinese co ...
Friday, 27 November 09
IN FIRST-10-MONTH OF 2009 COAL IMPORTS IN GUANGXI-FANGCHENG EXCEEDED FULL-2008 IMPORTS
According to Customs statistics, during the January-October, Fangcheng port accumulatively imported 3.676mln tons valuing U.S.$370, rising by 53.8% ...
Thursday, 26 November 09
CHINA'S COAL IMPORTS TO RISE BY 170 PERCENT IN 2009
According to the statistics released by China's General Administration of Customs on November 23, China's coal imports for October totaled 11.1 mi ...
|
|
|
Showing 6221 to 6225 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Chamber of Mines of South Africa
- Agrawal Coal Company - India
- Gujarat Sidhee Cement - India
- Larsen & Toubro Limited - India
- Wilmar Investment Holdings
- Leighton Contractors Pty Ltd - Australia
- Romanian Commodities Exchange
- Billiton Holdings Pty Ltd - Australia
- Orica Australia Pty. Ltd.
- Heidelberg Cement - Germany
- Neyveli Lignite Corporation Ltd, - India
- Electricity Authority, New Zealand
- Tata Chemicals Ltd - India
- International Coal Ventures Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Siam City Cement PLC, Thailand
- Manunggal Multi Energi - Indonesia
- Malabar Cements Ltd - India
- Singapore Mercantile Exchange
- Pendopo Energi Batubara - Indonesia
- Sarangani Energy Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- Indian Oil Corporation Limited
- Economic Council, Georgia
- Africa Commodities Group - South Africa
- Price Waterhouse Coopers - Russia
- Rio Tinto Coal - Australia
- Globalindo Alam Lestari - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Intertek Mineral Services - Indonesia
- TeaM Sual Corporation - Philippines
- Bangladesh Power Developement Board
- Independent Power Producers Association of India
- Jorong Barutama Greston.PT - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- India Bulls Power Limited - India
- VISA Power Limited - India
- Tamil Nadu electricity Board
- Asmin Koalindo Tuhup - Indonesia
- The Treasury - Australian Government
- IHS Mccloskey Coal Group - USA
- Sojitz Corporation - Japan
- Mintek Dendrill Indonesia
- Bulk Trading Sa - Switzerland
- Thiess Contractors Indonesia
- AsiaOL BioFuels Corp., Philippines
- Wood Mackenzie - Singapore
- ICICI Bank Limited - India
- Ministry of Finance - Indonesia
- Grasim Industreis Ltd - India
- Barasentosa Lestari - Indonesia
- Borneo Indobara - Indonesia
- IEA Clean Coal Centre - UK
- Sical Logistics Limited - India
- Energy Development Corp, Philippines
- Antam Resourcindo - Indonesia
- South Luzon Thermal Energy Corporation
- Semirara Mining and Power Corporation, Philippines
- PowerSource Philippines DevCo
- Energy Link Ltd, New Zealand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ministry of Transport, Egypt
- GAC Shipping (India) Pvt Ltd
- Semirara Mining Corp, Philippines
- Bukit Makmur.PT - Indonesia
- Madhucon Powers Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Trasteel International SA, Italy
- Global Business Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Savvy Resources Ltd - HongKong
- CIMB Investment Bank - Malaysia
- Mercator Lines Limited - India
- Sree Jayajothi Cements Limited - India
- Georgia Ports Authority, United States
- Kideco Jaya Agung - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Therma Luzon, Inc, Philippines
- Electricity Generating Authority of Thailand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- GVK Power & Infra Limited - India
- Australian Coal Association
- OPG Power Generation Pvt Ltd - India
- Mjunction Services Limited - India
- Thai Mozambique Logistica
- TNB Fuel Sdn Bhd - Malaysia
- SMG Consultants - Indonesia
- Binh Thuan Hamico - Vietnam
- Marubeni Corporation - India
- Kepco SPC Power Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Iligan Light & Power Inc, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Bhatia International Limited - India
- European Bulk Services B.V. - Netherlands
- Central Electricity Authority - India
- Kalimantan Lumbung Energi - Indonesia
- Kobexindo Tractors - Indoneisa
- Rashtriya Ispat Nigam Limited - India
- Meralco Power Generation, Philippines
- Attock Cement Pakistan Limited
- Indogreen Group - Indonesia
- Interocean Group of Companies - India
- Vizag Seaport Private Limited - India
- Baramulti Group, Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Uttam Galva Steels Limited - India
- Commonwealth Bank - Australia
- Coal and Oil Company - UAE
- Indian Energy Exchange, India
- Toyota Tsusho Corporation, Japan
- Kaltim Prima Coal - Indonesia
- Ind-Barath Power Infra Limited - India
- Global Green Power PLC Corporation, Philippines
- Formosa Plastics Group - Taiwan
- Orica Mining Services - Indonesia
- Coastal Gujarat Power Limited - India
- Aboitiz Power Corporation - Philippines
- Kartika Selabumi Mining - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Kohat Cement Company Ltd. - Pakistan
- Carbofer General Trading SA - India
- Riau Bara Harum - Indonesia
- Port Waratah Coal Services - Australia
- Essar Steel Hazira Ltd - India
- Dalmia Cement Bharat India
- Deloitte Consulting - India
- Maheswari Brothers Coal Limited - India
- PNOC Exploration Corporation - Philippines
- MS Steel International - UAE
- Xindia Steels Limited - India
- Chettinad Cement Corporation Ltd - India
- Simpson Spence & Young - Indonesia
- Posco Energy - South Korea
- White Energy Company Limited
- Cigading International Bulk Terminal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Jaiprakash Power Ventures ltd
- Sakthi Sugars Limited - India
- Meenaskhi Energy Private Limited - India
- Merrill Lynch Commodities Europe
- Parliament of New Zealand
- McConnell Dowell - Australia
- Standard Chartered Bank - UAE
- Ministry of Mines - Canada
- Medco Energi Mining Internasional
- SN Aboitiz Power Inc, Philippines
- London Commodity Brokers - England
- Bhushan Steel Limited - India
- Latin American Coal - Colombia
- The State Trading Corporation of India Ltd
- GMR Energy Limited - India
- Ambuja Cements Ltd - India
- Videocon Industries ltd - India
- Mercuria Energy - Indonesia
- Coalindo Energy - Indonesia
- CNBM International Corporation - China
- Salva Resources Pvt Ltd - India
- Lanco Infratech Ltd - India
- Star Paper Mills Limited - India
- Samtan Co., Ltd - South Korea
- Planning Commission, India
- Bharathi Cement Corporation - India
- Eastern Energy - Thailand
- ASAPP Information Group - India
- Bukit Baiduri Energy - Indonesia
- San Jose City I Power Corp, Philippines
- Indika Energy - Indonesia
- Petron Corporation, Philippines
- Bhoruka Overseas - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Timah Investasi Mineral - Indoneisa
- Metalloyd Limited - United Kingdom
- PTC India Limited - India
- Central Java Power - Indonesia
- New Zealand Coal & Carbon
- Maharashtra Electricity Regulatory Commission - India
- Indonesian Coal Mining Association
- Straits Asia Resources Limited - Singapore
- Directorate Of Revenue Intelligence - India
- LBH Netherlands Bv - Netherlands
- Siam City Cement - Thailand
- Petrochimia International Co. Ltd.- Taiwan
- Directorate General of MIneral and Coal - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Aditya Birla Group - India
- Parry Sugars Refinery, India
- Vedanta Resources Plc - India
- Sindya Power Generating Company Private Ltd
- Karaikal Port Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Australian Commodity Traders Exchange
- SMC Global Power, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Jindal Steel & Power Ltd - India
- Minerals Council of Australia
- Kumho Petrochemical, South Korea
- Alfred C Toepfer International GmbH - Germany
- The University of Queensland
- Bukit Asam (Persero) Tbk - Indonesia
- Renaissance Capital - South Africa
- Bahari Cakrawala Sebuku - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Anglo American - United Kingdom
- Edison Trading Spa - Italy
- Eastern Coal Council - USA
- Oldendorff Carriers - Singapore
- Cement Manufacturers Association - India
- Makarim & Taira - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Goldman Sachs - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Miang Besar Coal Terminal - Indonesia
- Banpu Public Company Limited - Thailand
|
| |
| |
|
