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 $500 million nickel project in North Maluku in Indonesia.
"If the regulation is not amended, new investors will think over before investing because it will increase costs and not every mining company is capable of increasing their investment," said Soemarno of the Indonesia Mining Association.
Source: Reuters / Alibaba
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Thursday, 29 October 09
COAL OF AFRICA SEES VELE OUTPUT BY APRIL 2010
* First coal from Mooiplaats mined and sold
* Talks with Transnet on rail PPP on track
Reuters reported that, Coal of Africa (CoAL) said on Mond ...
Thursday, 29 October 09
UAE FUND EYES INDIA POWER FOR INDONESIAN COAL
Reuters reported that, the UAE's Middle East Coal (MEC) is in talks to buy equity stakes in India's power plants in exchange for long-term coal su ...
Thursday, 29 October 09
CESC POSTS RS 126 CRORE (US$ 26,655,178) NET PROFIT IN QUARTER TWO
Economic Times reported that, Energy major CESC posted a marginal increase in net profit at Rs 126 crore (US$ 26,655,178) for the quarter ended Sep ...
Thursday, 29 October 09
INDIA MMTC TENDER SET TO BOOST S.AFRICA COAL
The South African coal market is set to be boosted further by India's state-owned trading firm MMTC Ltd's tender for 12.5 million tonnes, Indian t ...
Thursday, 29 October 09
INDIA CEMENTS SET TO ACQUIRE COAL MINE IN INDONESIA
Business-Standard reported that, India Cements is set to acquire a coal mine in Indonesia for around $20 million (around Rs 100 crore). The company ...
|
|
|
Showing 6291 to 6295 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Bhoruka Overseas - Indonesia
- TeaM Sual Corporation - Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Coalindo Energy - Indonesia
- Metalloyd Limited - United Kingdom
- Wilmar Investment Holdings
- CNBM International Corporation - China
- Bayan Resources Tbk. - Indonesia
- MS Steel International - UAE
- Globalindo Alam Lestari - Indonesia
- Marubeni Corporation - India
- Electricity Generating Authority of Thailand
- Iligan Light & Power Inc, Philippines
- Bulk Trading Sa - Switzerland
- Commonwealth Bank - Australia
- Tata Chemicals Ltd - India
- Deloitte Consulting - India
- Jorong Barutama Greston.PT - Indonesia
- Mercator Lines Limited - India
- ICICI Bank Limited - India
- Ind-Barath Power Infra Limited - India
- Aboitiz Power Corporation - Philippines
- Manunggal Multi Energi - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- SN Aboitiz Power Inc, Philippines
- Power Finance Corporation Ltd., India
- Ambuja Cements Ltd - India
- GAC Shipping (India) Pvt Ltd
- Alfred C Toepfer International GmbH - Germany
- Makarim & Taira - Indonesia
- Indian Energy Exchange, India
- Bharathi Cement Corporation - India
- Sakthi Sugars Limited - India
- Petron Corporation, Philippines
- The State Trading Corporation of India Ltd
- Standard Chartered Bank - UAE
- Lanco Infratech Ltd - India
- Bukit Baiduri Energy - Indonesia
- White Energy Company Limited
- Singapore Mercantile Exchange
- Australian Commodity Traders Exchange
- Maharashtra Electricity Regulatory Commission - India
- The Treasury - Australian Government
- Electricity Authority, New Zealand
- Bukit Makmur.PT - Indonesia
- Agrawal Coal Company - India
- Petrochimia International Co. Ltd.- Taiwan
- Vijayanagar Sugar Pvt Ltd - India
- Latin American Coal - Colombia
- Essar Steel Hazira Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Indo Tambangraya Megah - Indonesia
- Riau Bara Harum - Indonesia
- Eastern Coal Council - USA
- International Coal Ventures Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Toyota Tsusho Corporation, Japan
- Savvy Resources Ltd - HongKong
- Kalimantan Lumbung Energi - Indonesia
- Cement Manufacturers Association - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Africa Commodities Group - South Africa
- Parliament of New Zealand
- Mjunction Services Limited - India
- Semirara Mining and Power Corporation, Philippines
- Thai Mozambique Logistica
- Goldman Sachs - Singapore
- Tamil Nadu electricity Board
- Formosa Plastics Group - Taiwan
- Krishnapatnam Port Company Ltd. - India
- Vedanta Resources Plc - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Malabar Cements Ltd - India
- Eastern Energy - Thailand
- LBH Netherlands Bv - Netherlands
- Jaiprakash Power Ventures ltd
- Pendopo Energi Batubara - Indonesia
- Minerals Council of Australia
- India Bulls Power Limited - India
- Romanian Commodities Exchange
- Larsen & Toubro Limited - India
- New Zealand Coal & Carbon
- Sree Jayajothi Cements Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Bangladesh Power Developement Board
- SMC Global Power, Philippines
- Antam Resourcindo - Indonesia
- Gujarat Sidhee Cement - India
- Banpu Public Company Limited - Thailand
- Bhushan Steel Limited - India
- OPG Power Generation Pvt Ltd - India
- GMR Energy Limited - India
- Simpson Spence & Young - Indonesia
- Australian Coal Association
- Orica Mining Services - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Sical Logistics Limited - India
- Maheswari Brothers Coal Limited - India
- Baramulti Group, Indonesia
- Energy Link Ltd, New Zealand
- Mintek Dendrill Indonesia
- Kartika Selabumi Mining - Indonesia
- Mercuria Energy - Indonesia
- The University of Queensland
- Miang Besar Coal Terminal - Indonesia
- Posco Energy - South Korea
- PTC India Limited - India
- Altura Mining Limited, Indonesia
- Dalmia Cement Bharat India
- Binh Thuan Hamico - Vietnam
- Chettinad Cement Corporation Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Rio Tinto Coal - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Xindia Steels Limited - India
- Leighton Contractors Pty Ltd - Australia
- Therma Luzon, Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- Directorate Of Revenue Intelligence - India
- Global Business Power Corporation, Philippines
- IEA Clean Coal Centre - UK
- Jindal Steel & Power Ltd - India
- Straits Asia Resources Limited - Singapore
- ASAPP Information Group - India
- Renaissance Capital - South Africa
- Interocean Group of Companies - India
- Ministry of Finance - Indonesia
- Central Electricity Authority - India
- Ministry of Mines - Canada
- Siam City Cement - Thailand
- Orica Australia Pty. Ltd.
- Kapuas Tunggal Persada - Indonesia
- VISA Power Limited - India
- AsiaOL BioFuels Corp., Philippines
- San Jose City I Power Corp, Philippines
- Star Paper Mills Limited - India
- Indian Oil Corporation Limited
- South Luzon Thermal Energy Corporation
- Medco Energi Mining Internasional
- Indika Energy - Indonesia
- Barasentosa Lestari - Indonesia
- London Commodity Brokers - England
- Kobexindo Tractors - Indoneisa
- Neyveli Lignite Corporation Ltd, - India
- Cigading International Bulk Terminal - Indonesia
- Salva Resources Pvt Ltd - India
- Port Waratah Coal Services - Australia
- Global Coal Blending Company Limited - Australia
- Thiess Contractors Indonesia
- Madhucon Powers Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Kaltim Prima Coal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Price Waterhouse Coopers - Russia
- Indonesian Coal Mining Association
- IHS Mccloskey Coal Group - USA
- Attock Cement Pakistan Limited
- Siam City Cement PLC, Thailand
- Videocon Industries ltd - India
- Sojitz Corporation - Japan
- Gujarat Mineral Development Corp Ltd - India
- Grasim Industreis Ltd - India
- Wood Mackenzie - Singapore
- Aditya Birla Group - India
- Meenaskhi Energy Private Limited - India
- Borneo Indobara - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Independent Power Producers Association of India
- McConnell Dowell - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Energy Development Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Anglo American - United Kingdom
- SMG Consultants - Indonesia
- Meralco Power Generation, Philippines
- CIMB Investment Bank - Malaysia
- Oldendorff Carriers - Singapore
- Kumho Petrochemical, South Korea
- Georgia Ports Authority, United States
- Trasteel International SA, Italy
- Carbofer General Trading SA - India
- Planning Commission, India
- Economic Council, Georgia
- Chamber of Mines of South Africa
- Coal and Oil Company - UAE
- Intertek Mineral Services - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Coastal Gujarat Power Limited - India
- Edison Trading Spa - Italy
- Rashtriya Ispat Nigam Limited - India
- PNOC Exploration Corporation - Philippines
- Vizag Seaport Private Limited - India
- Bhatia International Limited - India
- Heidelberg Cement - Germany
- Indogreen Group - Indonesia
- Timah Investasi Mineral - Indoneisa
- GVK Power & Infra Limited - India
- Ministry of Transport, Egypt
- PowerSource Philippines DevCo
- European Bulk Services B.V. - Netherlands
- Karaikal Port Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Central Java Power - Indonesia
- Kideco Jaya Agung - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Merrill Lynch Commodities Europe
- Semirara Mining Corp, Philippines
- Sarangani Energy Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Samtan Co., Ltd - South Korea
- Parry Sugars Refinery, India
- Ceylon Electricity Board - Sri Lanka
- Sindya Power Generating Company Private Ltd
|
| |
| |
|
