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Tuesday, 19 January 10
COAL FOR DOMESTIC USERS
 While the government is already almost a year behind schedule in issuing regulations to implement the new mining law, mineral producers have been worried about the domestic market obligation (DMO) that the Energy and Mining Resources Ministry imposed through a ruling late last month.
Their concern is not so much about the requirement to allocate a portion of their output to domestic users, but the lack of clarity regarding how the volume of domestic needs for each mineral is set, how the obligation will be distributed among the producers and how the prices will be determined.
Mineral producers (other than oil and natural gas) are fully aware that they should fulfill domestic needs. That requirement is also by and large stipulated in their mining contracts. However, the DMO will create new uncertainty if this obligation is not based on clear-cut regulations.
Unfortunately, the Dec. 31, 2009 decree by the energy and mineral resources minister is mostly about repressive measures for companies failing to meet their DMO. It stipulates that producers who fail to realize their DMO are liable to a 50 percent cut of their output for the following year.
What is encouraging to note is that a similar penalty is also imposed on domestic users failing to take up their annual quota — their annual quota will also be cut by 50 percent. This enforcement is important because the volume of the DMO is based on the domestic market demand, which in turn is based on the annual needs of domestic industrial users each year.
The most affected by the DMO policy are certainly coal producers, who have made Indonesia the world’s largest seaborne exporter of thermal coal with an estimated output of 230 million tons last year, of which only about 50 million tons was used locally. However, the domestic demand for coal is estimated to almost double this year with the coming on stream of several power plants run by state electricity company PT PLN, all fired by coal. They are part of the government’s crash program to build 10,000 megawatts in additional capacity at PLN’s plants.
The government has strived to achieve the right balance between maximizing export revenues from coal and also securing supplies for domestic users. The challenge, though, is how to make producers accept domestic prices as fair compared what they get from exports.
Put another way, there should be an Indonesian coal reference price index that is acceptable to both producers and users, taking into account such factors as the coal’s calorific value, moisture content, etc. Such a reference price index is crucial because, unlike other minerals that have commodity exchanges of their own for price formation, coal doesn’t have any exchange of its own.
In the past, the domestic purchasing price of different grades of coal was often considered arbitrary, which acted as a disincentive for some producers to produce and sell higher-quality coal to PLN, the largest single domestic user.
Commercially, as long as the prices are right, producers will happily sell their output to the domestic market as this will cut the delivery time and freight costs.
The problem, though, is that the latest ministerial decree does not touch at all on a pricing mechanism for the implementation of the domestic market obligation, and this is creating a sense of uncertainty among producers.
Obviously the government needs to address this pricing issue immediately through another clear-cut regulation so as not to adversely affect new investment in the mining sector.
Source: Editorial, The Jakarta Post
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Monday, 08 March 10
CHINA SHIPPING TO CARRY MORE COAL FOR SHENHUA
Hellenic Shipping News reported that, China Shipping (Group) Company will expect to ship 40 million tons of coal for Shenhua Group in 2010, Li Shaod ...
Sunday, 07 March 10
SHIPS WERE FIXED AT AROUND US$ 16,000 PER DAY FOR TRIP VIA INDONESIA TO INDIA - CAPT. REDDY
COALspot.com: The freight market was quite buoyant this week and BDI was up by 18 pct . The Cape index up by 23.60 pct and Panamax index was up by 1 ...
Saturday, 06 March 10
ESSAR TO BUY US COAL FIRM FOR $550-600 MN
Business-Standard reported that, the Essar Group is close to buying Trinity Coal, one of the top 10 coal producers in the US, in a deal worth $550-6 ...
Friday, 05 March 10
KARNATAKA POWER SEEKS 900,000 TONS STEAMING COAL OVER 9 MONTHS
Bloomberg reported that, Karnataka Power Corp., an Indian electricity generator, is seeking to import 900,000 metric tons of steaming coal over nine ...
Friday, 05 March 10
COAL RALLY ON CHINESE DEMAND SPARKS $59 ESTIMATES
Bloomberg reportd that, A rally that has boosted coal prices 21 percent from their lows last year may have further to go as the coldest U.S. winter ...
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- Parliament of New Zealand
- Indonesian Coal Mining Association
- Dalmia Cement Bharat India
- Iligan Light & Power Inc, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Mjunction Services Limited - India
- Cement Manufacturers Association - India
- CIMB Investment Bank - Malaysia
- MS Steel International - UAE
- Manunggal Multi Energi - Indonesia
- Coal and Oil Company - UAE
- VISA Power Limited - India
- Makarim & Taira - Indonesia
- Global Coal Blending Company Limited - Australia
- PowerSource Philippines DevCo
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Tata Chemicals Ltd - India
- IEA Clean Coal Centre - UK
- TeaM Sual Corporation - Philippines
- Semirara Mining and Power Corporation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Jindal Steel & Power Ltd - India
- Pendopo Energi Batubara - Indonesia
- Renaissance Capital - South Africa
- Indian Oil Corporation Limited
- Oldendorff Carriers - Singapore
- Star Paper Mills Limited - India
- GAC Shipping (India) Pvt Ltd
- New Zealand Coal & Carbon
- Pipit Mutiara Jaya. PT, Indonesia
- The Treasury - Australian Government
- LBH Netherlands Bv - Netherlands
- Anglo American - United Kingdom
- White Energy Company Limited
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mercator Lines Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Bukit Makmur.PT - Indonesia
- Kepco SPC Power Corporation, Philippines
- Standard Chartered Bank - UAE
- Edison Trading Spa - Italy
- Bukit Baiduri Energy - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Intertek Mineral Services - Indonesia
- Romanian Commodities Exchange
- Goldman Sachs - Singapore
- GVK Power & Infra Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Siam City Cement PLC, Thailand
- Binh Thuan Hamico - Vietnam
- Sojitz Corporation - Japan
- Eastern Coal Council - USA
- Global Business Power Corporation, Philippines
- Bhushan Steel Limited - India
- Posco Energy - South Korea
- Banpu Public Company Limited - Thailand
- Latin American Coal - Colombia
- Bhatia International Limited - India
- Sical Logistics Limited - India
- Coalindo Energy - Indonesia
- Meenaskhi Energy Private Limited - India
- Marubeni Corporation - India
- Toyota Tsusho Corporation, Japan
- GN Power Mariveles Coal Plant, Philippines
- IHS Mccloskey Coal Group - USA
- South Luzon Thermal Energy Corporation
- Krishnapatnam Port Company Ltd. - India
- Ministry of Mines - Canada
- Independent Power Producers Association of India
- Sarangani Energy Corporation, Philippines
- Merrill Lynch Commodities Europe
- Wilmar Investment Holdings
- Aditya Birla Group - India
- Singapore Mercantile Exchange
- London Commodity Brokers - England
- Electricity Generating Authority of Thailand
- Bayan Resources Tbk. - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Attock Cement Pakistan Limited
- Kideco Jaya Agung - Indonesia
- SMC Global Power, Philippines
- Meralco Power Generation, Philippines
- Georgia Ports Authority, United States
- Timah Investasi Mineral - Indoneisa
- Gujarat Electricity Regulatory Commission - India
- Price Waterhouse Coopers - Russia
- Orica Australia Pty. Ltd.
- PTC India Limited - India
- Miang Besar Coal Terminal - Indonesia
- Bharathi Cement Corporation - India
- Jorong Barutama Greston.PT - Indonesia
- Deloitte Consulting - India
- Trasteel International SA, Italy
- Baramulti Group, Indonesia
- Kapuas Tunggal Persada - Indonesia
- Globalindo Alam Lestari - Indonesia
- Parry Sugars Refinery, India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Bahari Cakrawala Sebuku - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indo Tambangraya Megah - Indonesia
- Sree Jayajothi Cements Limited - India
- Videocon Industries ltd - India
- Savvy Resources Ltd - HongKong
- Ceylon Electricity Board - Sri Lanka
- Indian Energy Exchange, India
- Port Waratah Coal Services - Australia
- Simpson Spence & Young - Indonesia
- Central Java Power - Indonesia
- Mintek Dendrill Indonesia
- Sinarmas Energy and Mining - Indonesia
- Orica Mining Services - Indonesia
- Kumho Petrochemical, South Korea
- Larsen & Toubro Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Africa Commodities Group - South Africa
- Aboitiz Power Corporation - Philippines
- Formosa Plastics Group - Taiwan
- Kobexindo Tractors - Indoneisa
- Uttam Galva Steels Limited - India
- Economic Council, Georgia
- Petrochimia International Co. Ltd.- Taiwan
- Vizag Seaport Private Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Salva Resources Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- Energy Development Corp, Philippines
- Alfred C Toepfer International GmbH - Germany
- India Bulls Power Limited - India
- Grasim Industreis Ltd - India
- Energy Link Ltd, New Zealand
- Directorate Of Revenue Intelligence - India
- Bulk Trading Sa - Switzerland
- Metalloyd Limited - United Kingdom
- Heidelberg Cement - Germany
- San Jose City I Power Corp, Philippines
- Petron Corporation, Philippines
- Semirara Mining Corp, Philippines
- McConnell Dowell - Australia
- CNBM International Corporation - China
- Rio Tinto Coal - Australia
- European Bulk Services B.V. - Netherlands
- Coastal Gujarat Power Limited - India
- Ind-Barath Power Infra Limited - India
- Karaikal Port Pvt Ltd - India
- Electricity Authority, New Zealand
- Thai Mozambique Logistica
- Australian Commodity Traders Exchange
- Leighton Contractors Pty Ltd - Australia
- Ministry of Transport, Egypt
- OPG Power Generation Pvt Ltd - India
- Tamil Nadu electricity Board
- Mercuria Energy - Indonesia
- Madhucon Powers Ltd - India
- Maheswari Brothers Coal Limited - India
- Altura Mining Limited, Indonesia
- Chamber of Mines of South Africa
- Xindia Steels Limited - India
- Global Green Power PLC Corporation, Philippines
- Thiess Contractors Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Mineral Development Corp Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Holcim Trading Pte Ltd - Singapore
- Billiton Holdings Pty Ltd - Australia
- Wood Mackenzie - Singapore
- PNOC Exploration Corporation - Philippines
- The State Trading Corporation of India Ltd
- Riau Bara Harum - Indonesia
- International Coal Ventures Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- Gujarat Sidhee Cement - India
- Minerals Council of Australia
- Therma Luzon, Inc, Philippines
- Antam Resourcindo - Indonesia
- Indika Energy - Indonesia
- ASAPP Information Group - India
- Barasentosa Lestari - Indonesia
- Jaiprakash Power Ventures ltd
- Bangladesh Power Developement Board
- Kartika Selabumi Mining - Indonesia
- The University of Queensland
- Essar Steel Hazira Ltd - India
- Ministry of Finance - Indonesia
- Kaltim Prima Coal - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Vedanta Resources Plc - India
- Sindya Power Generating Company Private Ltd
- Carbofer General Trading SA - India
- Australian Coal Association
- ICICI Bank Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Borneo Indobara - Indonesia
- Siam City Cement - Thailand
- Indogreen Group - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Planning Commission, India
- Central Electricity Authority - India
- Interocean Group of Companies - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Lanco Infratech Ltd - India
- Medco Energi Mining Internasional
- Agrawal Coal Company - India
- Ambuja Cements Ltd - India
- Eastern Energy - Thailand
- GMR Energy Limited - India
- SN Aboitiz Power Inc, Philippines
- Commonwealth Bank - Australia
- Sakthi Sugars Limited - India
- SMG Consultants - Indonesia
- Malabar Cements Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Straits Asia Resources Limited - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bhoruka Overseas - Indonesia
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