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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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Wednesday, 03 February 10
INDONESIA BUKIT ASAM SEES DOUBLE DIGIT 2010 REV GROWTH
* 2009 net profit rose an estimated 50 pct
* Sees opportunities for overseas acquisitions
Indonesian state-owned coal miner Bukit Asam saw 2009 ...
Wednesday, 03 February 10
RECOVERY IN INDONESIAN MINING SECTOR EXPECTED TO BOOST SALES, UNITED TRACTORS SAYS
PT United Tractors, the country’s biggest supplier of heavy equipment, said on Tuesday that it expected sales to increase 15 percent this year ...
Tuesday, 02 February 10
THAI BANPU SAYS HIGHER COSTS TO HIT COAL PROFITS
Thailand's top coal miner, expects profits from its coal business in 2010 to be lower than last year due to higher costs, but its chief executive i ...
Monday, 01 February 10
CIL PLANS TO INVEST IN OVERSEAS COAL MINES
Over the next 10 years, CIL expects to import from these mines at least 500 million tonnes of thermal coal, a variety used by power plants
The bo ...
Sunday, 31 January 10
AUSTRALIA NEWCASTLE THERMAL COAL FALLS 0.7 PERCENT TO $ 98.53
Power-station coal prices at Australia’s Newcastle port, a benchmark for Asia, declined 0.7 percent, falling for the first time in four weeks. ...
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- Directorate Of Revenue Intelligence - India
- Madhucon Powers Ltd - India
- Semirara Mining Corp, Philippines
- European Bulk Services B.V. - Netherlands
- Banpu Public Company Limited - Thailand
- Africa Commodities Group - South Africa
- Electricity Generating Authority of Thailand
- Romanian Commodities Exchange
- Riau Bara Harum - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ceylon Electricity Board - Sri Lanka
- International Coal Ventures Pvt Ltd - India
- Commonwealth Bank - Australia
- Mercuria Energy - Indonesia
- Lanco Infratech Ltd - India
- Xindia Steels Limited - India
- Singapore Mercantile Exchange
- Global Coal Blending Company Limited - Australia
- Sree Jayajothi Cements Limited - India
- Latin American Coal - Colombia
- Karaikal Port Pvt Ltd - India
- Mjunction Services Limited - India
- CIMB Investment Bank - Malaysia
- Parry Sugars Refinery, India
- Tata Chemicals Ltd - India
- The University of Queensland
- Planning Commission, India
- Pipit Mutiara Jaya. PT, Indonesia
- Electricity Authority, New Zealand
- Australian Commodity Traders Exchange
- Salva Resources Pvt Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Jorong Barutama Greston.PT - Indonesia
- Carbofer General Trading SA - India
- Jaiprakash Power Ventures ltd
- Leighton Contractors Pty Ltd - Australia
- Ministry of Mines - Canada
- Iligan Light & Power Inc, Philippines
- Orica Mining Services - Indonesia
- Bhoruka Overseas - Indonesia
- MS Steel International - UAE
- Larsen & Toubro Limited - India
- Bangladesh Power Developement Board
- Bhatia International Limited - India
- Aditya Birla Group - India
- ICICI Bank Limited - India
- Ministry of Finance - Indonesia
- Coalindo Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
- Anglo American - United Kingdom
- Wood Mackenzie - Singapore
- Posco Energy - South Korea
- The State Trading Corporation of India Ltd
- Sarangani Energy Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- Antam Resourcindo - Indonesia
- Oldendorff Carriers - Singapore
- Savvy Resources Ltd - HongKong
- Minerals Council of Australia
- TNB Fuel Sdn Bhd - Malaysia
- Dalmia Cement Bharat India
- Cigading International Bulk Terminal - Indonesia
- Rio Tinto Coal - Australia
- Parliament of New Zealand
- Independent Power Producers Association of India
- AsiaOL BioFuels Corp., Philippines
- Orica Australia Pty. Ltd.
- VISA Power Limited - India
- Semirara Mining and Power Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Bhushan Steel Limited - India
- Sical Logistics Limited - India
- Global Green Power PLC Corporation, Philippines
- Indogreen Group - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Goldman Sachs - Singapore
- Bayan Resources Tbk. - Indonesia
- Attock Cement Pakistan Limited
- Siam City Cement - Thailand
- Borneo Indobara - Indonesia
- SMG Consultants - Indonesia
- Interocean Group of Companies - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Standard Chartered Bank - UAE
- Bukit Asam (Persero) Tbk - Indonesia
- Meenaskhi Energy Private Limited - India
- Samtan Co., Ltd - South Korea
- South Luzon Thermal Energy Corporation
- Marubeni Corporation - India
- Kepco SPC Power Corporation, Philippines
- Indonesian Coal Mining Association
- Star Paper Mills Limited - India
- Rashtriya Ispat Nigam Limited - India
- PowerSource Philippines DevCo
- SN Aboitiz Power Inc, Philippines
- Uttam Galva Steels Limited - India
- Power Finance Corporation Ltd., India
- PTC India Limited - India
- Heidelberg Cement - Germany
- Chettinad Cement Corporation Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Simpson Spence & Young - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Meralco Power Generation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- IEA Clean Coal Centre - UK
- Central Java Power - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Karbindo Abesyapradhi - Indoneisa
- Directorate General of MIneral and Coal - Indonesia
- Sojitz Corporation - Japan
- Essar Steel Hazira Ltd - India
- San Jose City I Power Corp, Philippines
- Miang Besar Coal Terminal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Coastal Gujarat Power Limited - India
- Merrill Lynch Commodities Europe
- McConnell Dowell - Australia
- London Commodity Brokers - England
- Bukit Makmur.PT - Indonesia
- Grasim Industreis Ltd - India
- Agrawal Coal Company - India
- GAC Shipping (India) Pvt Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Mintek Dendrill Indonesia
- Ind-Barath Power Infra Limited - India
- Thai Mozambique Logistica
- Neyveli Lignite Corporation Ltd, - India
- Indian Energy Exchange, India
- Port Waratah Coal Services - Australia
- Eastern Energy - Thailand
- Economic Council, Georgia
- Vijayanagar Sugar Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Jindal Steel & Power Ltd - India
- Manunggal Multi Energi - Indonesia
- Vizag Seaport Private Limited - India
- New Zealand Coal & Carbon
- Toyota Tsusho Corporation, Japan
- IHS Mccloskey Coal Group - USA
- OPG Power Generation Pvt Ltd - India
- Australian Coal Association
- Trasteel International SA, Italy
- White Energy Company Limited
- Price Waterhouse Coopers - Russia
- GN Power Mariveles Coal Plant, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Gujarat Sidhee Cement - India
- Chamber of Mines of South Africa
- Kobexindo Tractors - Indoneisa
- Tamil Nadu electricity Board
- Barasentosa Lestari - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- GVK Power & Infra Limited - India
- Baramulti Group, Indonesia
- Kohat Cement Company Ltd. - Pakistan
- The Treasury - Australian Government
- Maheswari Brothers Coal Limited - India
- Kumho Petrochemical, South Korea
- Thiess Contractors Indonesia
- Eastern Coal Council - USA
- Petron Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Ambuja Cements Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Energy Link Ltd, New Zealand
- Globalindo Alam Lestari - Indonesia
- CNBM International Corporation - China
- Formosa Plastics Group - Taiwan
- PNOC Exploration Corporation - Philippines
- Sindya Power Generating Company Private Ltd
- Siam City Cement PLC, Thailand
- Aboitiz Power Corporation - Philippines
- Sinarmas Energy and Mining - Indonesia
- Edison Trading Spa - Italy
- Alfred C Toepfer International GmbH - Germany
- Billiton Holdings Pty Ltd - Australia
- GMR Energy Limited - India
- Bukit Baiduri Energy - Indonesia
- Makarim & Taira - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Energy Development Corp, Philippines
- Georgia Ports Authority, United States
- ASAPP Information Group - India
- Indian Oil Corporation Limited
- Medco Energi Mining Internasional
- PetroVietnam Power Coal Import and Supply Company
- Vedanta Resources Plc - India
- Central Electricity Authority - India
- TeaM Sual Corporation - Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indika Energy - Indonesia
- Therma Luzon, Inc, Philippines
- Kideco Jaya Agung - Indonesia
- Sakthi Sugars Limited - India
- Intertek Mineral Services - Indonesia
- Cement Manufacturers Association - India
- Timah Investasi Mineral - Indoneisa
- Straits Asia Resources Limited - Singapore
- Malabar Cements Ltd - India
- Global Business Power Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Deloitte Consulting - India
- Ministry of Transport, Egypt
- Mercator Lines Limited - India
- Bulk Trading Sa - Switzerland
- Asmin Koalindo Tuhup - Indonesia
- Bharathi Cement Corporation - India
- SMC Global Power, Philippines
- Altura Mining Limited, Indonesia
- Binh Thuan Hamico - Vietnam
- Wilmar Investment Holdings
- Renaissance Capital - South Africa
- Videocon Industries ltd - India
- Coal and Oil Company - UAE
- Kapuas Tunggal Persada - Indonesia
- India Bulls Power Limited - India
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