We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Thursday, 04 February 10
RI TO GRADUALLY STOP COAL EXPORTS
Indonesia, which over the past few years has become the world`s third largest coal exporter after Australia and China, is planning to gradually stop ...
Thursday, 04 February 10
NO AMDAL, NO COAL MINING IN KALIMANTAN: MINISTRY
To prevent further environmental damage, the government has said it would revoke the licenses of mining firms operating in Kalimantan that do not ha ...
Thursday, 04 February 10
ANTICIPATING DOMESTIC COAL DEMAND
Indonesia has an abundant amount of coal reserves, which in 2008 is estimated at 7,12 billion tones. Coal production in 2008 reached 231,18 mi ...
Wednesday, 03 February 10
CHINA'S MAIN COAL PRICES FALL AS WINTER DEMAND EASES
Weekly coal prices at China's Qinhuangdao port, a benchmark in the world's biggest producer and consumer of the fuel, fell for the first time in s ...
Wednesday, 03 February 10
NEWCASTLE COAL EXPORTS RISE 3%; SHIP QUEUE SHORTENS
Coal shipments from Australia’s Newcastle port, the world’s biggest export harbor for the fuel, increased 3 percent last week while the ...
|
|
|
Showing 6031 to 6035 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Dalmia Cement Bharat India
- Sakthi Sugars Limited - India
- Billiton Holdings Pty Ltd - Australia
- Gujarat Electricity Regulatory Commission - India
- Kaltim Prima Coal - Indonesia
- Makarim & Taira - Indonesia
- Essar Steel Hazira Ltd - India
- European Bulk Services B.V. - Netherlands
- Pipit Mutiara Jaya. PT, Indonesia
- The State Trading Corporation of India Ltd
- IHS Mccloskey Coal Group - USA
- Central Java Power - Indonesia
- Standard Chartered Bank - UAE
- Aboitiz Power Corporation - Philippines
- Indonesian Coal Mining Association
- Bangladesh Power Developement Board
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Parliament of New Zealand
- Petron Corporation, Philippines
- Energy Development Corp, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Madhucon Powers Ltd - India
- Uttam Galva Steels Limited - India
- Global Green Power PLC Corporation, Philippines
- Mjunction Services Limited - India
- Africa Commodities Group - South Africa
- Romanian Commodities Exchange
- Central Electricity Authority - India
- Toyota Tsusho Corporation, Japan
- New Zealand Coal & Carbon
- Indian Energy Exchange, India
- South Luzon Thermal Energy Corporation
- Directorate Of Revenue Intelligence - India
- Electricity Generating Authority of Thailand
- Australian Commodity Traders Exchange
- Directorate General of MIneral and Coal - Indonesia
- Iligan Light & Power Inc, Philippines
- Siam City Cement - Thailand
- Orica Mining Services - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Bharathi Cement Corporation - India
- Chettinad Cement Corporation Ltd - India
- Renaissance Capital - South Africa
- Commonwealth Bank - Australia
- Grasim Industreis Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Formosa Plastics Group - Taiwan
- Indo Tambangraya Megah - Indonesia
- Deloitte Consulting - India
- Samtan Co., Ltd - South Korea
- Coal and Oil Company - UAE
- Intertek Mineral Services - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Indika Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- The Treasury - Australian Government
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Trasteel International SA, Italy
- SMG Consultants - Indonesia
- Planning Commission, India
- Bukit Asam (Persero) Tbk - Indonesia
- Gujarat Sidhee Cement - India
- San Jose City I Power Corp, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Rio Tinto Coal - Australia
- ICICI Bank Limited - India
- Baramulti Group, Indonesia
- IEA Clean Coal Centre - UK
- Global Business Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Bulk Trading Sa - Switzerland
- ASAPP Information Group - India
- Timah Investasi Mineral - Indoneisa
- Tata Chemicals Ltd - India
- VISA Power Limited - India
- Straits Asia Resources Limited - Singapore
- Sarangani Energy Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Marubeni Corporation - India
- Kobexindo Tractors - Indoneisa
- Lanco Infratech Ltd - India
- PTC India Limited - India
- PowerSource Philippines DevCo
- Xindia Steels Limited - India
- Vedanta Resources Plc - India
- Eastern Coal Council - USA
- Posco Energy - South Korea
- Karaikal Port Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Therma Luzon, Inc, Philippines
- Siam City Cement PLC, Thailand
- Australian Coal Association
- Salva Resources Pvt Ltd - India
- Wilmar Investment Holdings
- Minerals Council of Australia
- Sindya Power Generating Company Private Ltd
- Medco Energi Mining Internasional
- CNBM International Corporation - China
- Jindal Steel & Power Ltd - India
- Anglo American - United Kingdom
- GMR Energy Limited - India
- Independent Power Producers Association of India
- Tamil Nadu electricity Board
- Port Waratah Coal Services - Australia
- Banpu Public Company Limited - Thailand
- MS Steel International - UAE
- Thiess Contractors Indonesia
- Sical Logistics Limited - India
- Kapuas Tunggal Persada - Indonesia
- Borneo Indobara - Indonesia
- White Energy Company Limited
- Star Paper Mills Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Economic Council, Georgia
- PNOC Exploration Corporation - Philippines
- Mintek Dendrill Indonesia
- OPG Power Generation Pvt Ltd - India
- Malabar Cements Ltd - India
- Chamber of Mines of South Africa
- Rashtriya Ispat Nigam Limited - India
- Kepco SPC Power Corporation, Philippines
- Meralco Power Generation, Philippines
- Latin American Coal - Colombia
- Eastern Energy - Thailand
- Meenaskhi Energy Private Limited - India
- Georgia Ports Authority, United States
- Karbindo Abesyapradhi - Indoneisa
- Electricity Authority, New Zealand
- Larsen & Toubro Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ceylon Electricity Board - Sri Lanka
- Sojitz Corporation - Japan
- Mercator Lines Limited - India
- Indian Oil Corporation Limited
- Vizag Seaport Private Limited - India
- Edison Trading Spa - Italy
- Interocean Group of Companies - India
- Kartika Selabumi Mining - Indonesia
- Kumho Petrochemical, South Korea
- Ministry of Transport, Egypt
- Aditya Birla Group - India
- Agrawal Coal Company - India
- Bukit Baiduri Energy - Indonesia
- Bhushan Steel Limited - India
- Miang Besar Coal Terminal - Indonesia
- Altura Mining Limited, Indonesia
- Kideco Jaya Agung - Indonesia
- SMC Global Power, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Goldman Sachs - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Cement Manufacturers Association - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- LBH Netherlands Bv - Netherlands
- Binh Thuan Hamico - Vietnam
- Videocon Industries ltd - India
- Bhatia International Limited - India
- Parry Sugars Refinery, India
- Mercuria Energy - Indonesia
- Semirara Mining Corp, Philippines
- Carbofer General Trading SA - India
- McConnell Dowell - Australia
- Sree Jayajothi Cements Limited - India
- Thai Mozambique Logistica
- London Commodity Brokers - England
- Jorong Barutama Greston.PT - Indonesia
- Ministry of Mines - Canada
- The University of Queensland
- Price Waterhouse Coopers - Russia
- Merrill Lynch Commodities Europe
- Leighton Contractors Pty Ltd - Australia
- Bukit Makmur.PT - Indonesia
- Jaiprakash Power Ventures ltd
- Coastal Gujarat Power Limited - India
- Energy Link Ltd, New Zealand
- Maharashtra Electricity Regulatory Commission - India
- Orica Australia Pty. Ltd.
- AsiaOL BioFuels Corp., Philippines
- Heidelberg Cement - Germany
- Wood Mackenzie - Singapore
- Petrochimia International Co. Ltd.- Taiwan
- Vijayanagar Sugar Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Holcim Trading Pte Ltd - Singapore
- Manunggal Multi Energi - Indonesia
- Ministry of Finance - Indonesia
- Coalindo Energy - Indonesia
- Attock Cement Pakistan Limited
- Maheswari Brothers Coal Limited - India
- Ambuja Cements Ltd - India
- Barasentosa Lestari - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Bayan Resources Tbk. - Indonesia
- SN Aboitiz Power Inc, Philippines
- Indogreen Group - Indonesia
- GVK Power & Infra Limited - India
- TeaM Sual Corporation - Philippines
- GN Power Mariveles Coal Plant, Philippines
- Singapore Mercantile Exchange
- India Bulls Power Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Savvy Resources Ltd - HongKong
- Simpson Spence & Young - Indonesia
- Metalloyd Limited - United Kingdom
- GAC Shipping (India) Pvt Ltd
- Bhoruka Overseas - Indonesia
- Globalindo Alam Lestari - Indonesia
- International Coal Ventures Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- Power Finance Corporation Ltd., India
- Oldendorff Carriers - Singapore
- Riau Bara Harum - Indonesia
- Antam Resourcindo - Indonesia
- Gujarat Mineral Development Corp Ltd - India
|
| |
| |
|
