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, 26 November 09
CIL EYES OVERSEAS ACQUISITIONS TO BRIDGE SUPPLY GAP
Coal Minister Sriprakash Jaiswal on Wednesday said that state-run coal major Coal India is looking to acquire coal blocks in the US and
othe ...
Wednesday, 25 November 09
NAPOCOR SCRAPS AWARD OF 715,000 TONS COAL
Top Philippine electricity producer National Power Corp. (Napocor) said on Wednesday it had cancelled plans to award 715,000 tons in coal supply con ...
Wednesday, 25 November 09
RISING FREIGHT RATES HIT COAL IMPORTERS
While state-owned NTPC’s 12.5 million tonne coal import order may have been aimed at plugging the shortage of coal at its thermal power plants ...
Wednesday, 25 November 09
CSN TO BUY RIVERSDALE STAKE TO BOOST COAL SUPPLIES
Cia. Siderurgica Nacional SA plans to buy 16.3 percent of Australian coal-exploration company Riversdale Mining Ltd. for about A$190.5 million ($175 ...
Tuesday, 24 November 09
ICRA DOWNGRADES TNPL`S RATING TO LAA
Credit rating agency, ICRA has revised the long term rating for the Rs 11.25 billion long-term fund-based bank facilities and Rs 1.5 billion non-con ...
|
|
|
Showing 6226 to 6230 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- South Luzon Thermal Energy Corporation
- TeaM Sual Corporation - Philippines
- Tamil Nadu electricity Board
- Mercuria Energy - Indonesia
- Bukit Baiduri Energy - Indonesia
- Australian Coal Association
- SMG Consultants - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Simpson Spence & Young - Indonesia
- Essar Steel Hazira Ltd - India
- Mercator Lines Limited - India
- Latin American Coal - Colombia
- Karaikal Port Pvt Ltd - India
- Romanian Commodities Exchange
- ICICI Bank Limited - India
- Dalmia Cement Bharat India
- SMC Global Power, Philippines
- Bulk Trading Sa - Switzerland
- Coastal Gujarat Power Limited - India
- Toyota Tsusho Corporation, Japan
- Neyveli Lignite Corporation Ltd, - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Barasentosa Lestari - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Planning Commission, India
- Binh Thuan Hamico - Vietnam
- The State Trading Corporation of India Ltd
- Intertek Mineral Services - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Bhoruka Overseas - Indonesia
- Agrawal Coal Company - India
- Grasim Industreis Ltd - India
- Gujarat Sidhee Cement - India
- Kalimantan Lumbung Energi - Indonesia
- Formosa Plastics Group - Taiwan
- Borneo Indobara - Indonesia
- Chamber of Mines of South Africa
- PowerSource Philippines DevCo
- SN Aboitiz Power Inc, Philippines
- Siam City Cement PLC, Thailand
- Xindia Steels Limited - India
- Siam City Cement - Thailand
- Rio Tinto Coal - Australia
- AsiaOL BioFuels Corp., Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Tata Chemicals Ltd - India
- VISA Power Limited - India
- Singapore Mercantile Exchange
- Riau Bara Harum - Indonesia
- Global Coal Blending Company Limited - Australia
- Videocon Industries ltd - India
- Chettinad Cement Corporation Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- Cement Manufacturers Association - India
- Indogreen Group - Indonesia
- Australian Commodity Traders Exchange
- Mjunction Services Limited - India
- Ministry of Transport, Egypt
- Metalloyd Limited - United Kingdom
- Sarangani Energy Corporation, Philippines
- Electricity Authority, New Zealand
- Ministry of Finance - Indonesia
- White Energy Company Limited
- Therma Luzon, Inc, Philippines
- Cigading International Bulk Terminal - Indonesia
- The Treasury - Australian Government
- Renaissance Capital - South Africa
- Edison Trading Spa - Italy
- Bangladesh Power Developement Board
- Samtan Co., Ltd - South Korea
- Aditya Birla Group - India
- PNOC Exploration Corporation - Philippines
- Carbofer General Trading SA - India
- ASAPP Information Group - India
- Power Finance Corporation Ltd., India
- Vizag Seaport Private Limited - India
- Bharathi Cement Corporation - India
- Altura Mining Limited, Indonesia
- Ministry of Mines - Canada
- Bhushan Steel Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Goldman Sachs - Singapore
- Kartika Selabumi Mining - Indonesia
- Sree Jayajothi Cements Limited - India
- McConnell Dowell - Australia
- Medco Energi Mining Internasional
- Global Green Power PLC Corporation, Philippines
- Global Business Power Corporation, Philippines
- Makarim & Taira - Indonesia
- GMR Energy Limited - India
- Bhatia International Limited - India
- Iligan Light & Power Inc, Philippines
- Meralco Power Generation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- The University of Queensland
- Independent Power Producers Association of India
- European Bulk Services B.V. - Netherlands
- Energy Development Corp, Philippines
- Maheswari Brothers Coal Limited - India
- GVK Power & Infra Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Oldendorff Carriers - Singapore
- Jaiprakash Power Ventures ltd
- Billiton Holdings Pty Ltd - Australia
- Directorate Of Revenue Intelligence - India
- Posco Energy - South Korea
- Kumho Petrochemical, South Korea
- MS Steel International - UAE
- Electricity Generating Authority of Thailand
- Indonesian Coal Mining Association
- Gujarat Mineral Development Corp Ltd - India
- Coalindo Energy - Indonesia
- Wilmar Investment Holdings
- Georgia Ports Authority, United States
- Mintek Dendrill Indonesia
- London Commodity Brokers - England
- CNBM International Corporation - China
- Miang Besar Coal Terminal - Indonesia
- IEA Clean Coal Centre - UK
- Timah Investasi Mineral - Indoneisa
- Thai Mozambique Logistica
- Interocean Group of Companies - India
- Thiess Contractors Indonesia
- Straits Asia Resources Limited - Singapore
- Bank of Tokyo Mitsubishi UFJ Ltd
- Savvy Resources Ltd - HongKong
- Africa Commodities Group - South Africa
- Marubeni Corporation - India
- Kobexindo Tractors - Indoneisa
- Pendopo Energi Batubara - Indonesia
- Vedanta Resources Plc - India
- Madhucon Powers Ltd - India
- Heidelberg Cement - Germany
- Bukit Asam (Persero) Tbk - Indonesia
- Wood Mackenzie - Singapore
- Maharashtra Electricity Regulatory Commission - India
- Sakthi Sugars Limited - India
- OPG Power Generation Pvt Ltd - India
- Star Paper Mills Limited - India
- Sinarmas Energy and Mining - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Parliament of New Zealand
- Alfred C Toepfer International GmbH - Germany
- Orica Mining Services - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Attock Cement Pakistan Limited
- Leighton Contractors Pty Ltd - Australia
- Kapuas Tunggal Persada - Indonesia
- Baramulti Group, Indonesia
- Sical Logistics Limited - India
- San Jose City I Power Corp, Philippines
- Petron Corporation, Philippines
- Trasteel International SA, Italy
- Anglo American - United Kingdom
- Globalindo Alam Lestari - Indonesia
- GAC Shipping (India) Pvt Ltd
- Malabar Cements Ltd - India
- Energy Link Ltd, New Zealand
- Larsen & Toubro Limited - India
- Ind-Barath Power Infra Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Price Waterhouse Coopers - Russia
- New Zealand Coal & Carbon
- Sindya Power Generating Company Private Ltd
- CIMB Investment Bank - Malaysia
- Indian Energy Exchange, India
- Holcim Trading Pte Ltd - Singapore
- Indian Oil Corporation Limited
- Kepco SPC Power Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- Meenaskhi Energy Private Limited - India
- Kaltim Prima Coal - Indonesia
- Ambuja Cements Ltd - India
- Minerals Council of Australia
- Eastern Coal Council - USA
- Vijayanagar Sugar Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Semirara Mining Corp, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Coal and Oil Company - UAE
- Commonwealth Bank - Australia
- Banpu Public Company Limited - Thailand
- Manunggal Multi Energi - Indonesia
- Economic Council, Georgia
- Lanco Infratech Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- IHS Mccloskey Coal Group - USA
- Merrill Lynch Commodities Europe
- Central Electricity Authority - India
- Petrochimia International Co. Ltd.- Taiwan
- Salva Resources Pvt Ltd - India
- Orica Australia Pty. Ltd.
- PTC India Limited - India
- Standard Chartered Bank - UAE
- Port Waratah Coal Services - Australia
- Central Java Power - Indonesia
- Indo Tambangraya Megah - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Parry Sugars Refinery, India
- Kideco Jaya Agung - Indonesia
- Antam Resourcindo - Indonesia
- India Bulls Power Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Jindal Steel & Power Ltd - India
- Deloitte Consulting - India
- GN Power Mariveles Coal Plant, Philippines
- Eastern Energy - Thailand
- LBH Netherlands Bv - Netherlands
- Uttam Galva Steels Limited - India
- Aboitiz Power Corporation - Philippines
- Directorate General of MIneral and Coal - Indonesia
- Indika Energy - Indonesia
- Sojitz Corporation - Japan
|
| |
| |
|
