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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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Sunday, 31 January 10
NTPC TO IMPORT COAL
NTPC Ltd plans to import coal directly, starting next fiscal.
“We plan to import 15-16 million tonnes of coal directly from next year,&rdqu ...
Saturday, 30 January 10
THE ECI / CHINA (S7) ROUTE SOFTENED BY $ 5,736 AND CLOSED AT $ 27,360 PER DAY - VISTAAR SHIPPING
COALspot.com (Singapore): The freight market continued to soften this week probably in anticipation of Chinese New year holidays.
BDI INDEX
...
Saturday, 30 January 10
INDONESIA TO CONSTRUCT 93 POWER PLANTS IN 2ND PROJECT
The government has announced its list of 93 power plants to be built under the second 10,000-megawatt (MW) power generation scheme.
"With th ...
Saturday, 30 January 10
COAL FIRMS TO KEEP NATION IN THE BLACK
Some Indonesian coal mining companies on Friday pledged to allocate a greater share of their production this year to meet domestic market obligation ...
Friday, 29 January 10
INDIA STEAM COAL IMPORTS TO DOUBLE, BOOST SOUTH AFRICA
* SAfrica seen shipping 75 pct of its coal to Asia in 2010
* Logistics woes hamper SAfrica exports, India imports
India's steam coal imports ar ...
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- Savvy Resources Ltd - HongKong
- Antam Resourcindo - Indonesia
- Banpu Public Company Limited - Thailand
- Power Finance Corporation Ltd., India
- Kepco SPC Power Corporation, Philippines
- Videocon Industries ltd - India
- Chamber of Mines of South Africa
- MS Steel International - UAE
- Global Green Power PLC Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Thai Mozambique Logistica
- Central Java Power - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Eastern Coal Council - USA
- Latin American Coal - Colombia
- Binh Thuan Hamico - Vietnam
- Parry Sugars Refinery, India
- Orica Mining Services - Indonesia
- Independent Power Producers Association of India
- Kartika Selabumi Mining - Indonesia
- New Zealand Coal & Carbon
- Grasim Industreis Ltd - India
- LBH Netherlands Bv - Netherlands
- Tamil Nadu electricity Board
- CNBM International Corporation - China
- Bangladesh Power Developement Board
- Siam City Cement - Thailand
- Global Coal Blending Company Limited - Australia
- Aditya Birla Group - India
- Energy Link Ltd, New Zealand
- Sinarmas Energy and Mining - Indonesia
- Coastal Gujarat Power Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- IHS Mccloskey Coal Group - USA
- Mercuria Energy - Indonesia
- Star Paper Mills Limited - India
- Renaissance Capital - South Africa
- Simpson Spence & Young - Indonesia
- Attock Cement Pakistan Limited
- Leighton Contractors Pty Ltd - Australia
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- Asmin Koalindo Tuhup - Indonesia
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- Vedanta Resources Plc - India
- Bahari Cakrawala Sebuku - Indonesia
- Bukit Makmur.PT - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Goldman Sachs - Singapore
- Coal and Oil Company - UAE
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sree Jayajothi Cements Limited - India
- Trasteel International SA, Italy
- Energy Development Corp, Philippines
- Madhucon Powers Ltd - India
- Manunggal Multi Energi - Indonesia
- CIMB Investment Bank - Malaysia
- Electricity Generating Authority of Thailand
- Minerals Council of Australia
- TeaM Sual Corporation - Philippines
- Jaiprakash Power Ventures ltd
- South Luzon Thermal Energy Corporation
- Marubeni Corporation - India
- Economic Council, Georgia
- GVK Power & Infra Limited - India
- Oldendorff Carriers - Singapore
- Formosa Plastics Group - Taiwan
- Cement Manufacturers Association - India
- Aboitiz Power Corporation - Philippines
- Uttam Galva Steels Limited - India
- Georgia Ports Authority, United States
- PetroVietnam Power Coal Import and Supply Company
- Australian Commodity Traders Exchange
- Sojitz Corporation - Japan
- Borneo Indobara - Indonesia
- Heidelberg Cement - Germany
- Barasentosa Lestari - Indonesia
- OPG Power Generation Pvt Ltd - India
- The Treasury - Australian Government
- Coalindo Energy - Indonesia
- Meralco Power Generation, Philippines
- Romanian Commodities Exchange
- GAC Shipping (India) Pvt Ltd
- GN Power Mariveles Coal Plant, Philippines
- IEA Clean Coal Centre - UK
- Riau Bara Harum - Indonesia
- Thiess Contractors Indonesia
- VISA Power Limited - India
- Standard Chartered Bank - UAE
- Anglo American - United Kingdom
- Interocean Group of Companies - India
- Miang Besar Coal Terminal - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Offshore Bulk Terminal Pte Ltd, Singapore
- Meenaskhi Energy Private Limited - India
- Indian Energy Exchange, India
- Price Waterhouse Coopers - Russia
- Deloitte Consulting - India
- Semirara Mining and Power Corporation, Philippines
- Dalmia Cement Bharat India
- Straits Asia Resources Limited - Singapore
- Intertek Mineral Services - Indonesia
- Kumho Petrochemical, South Korea
- Mintek Dendrill Indonesia
- Billiton Holdings Pty Ltd - Australia
- PTC India Limited - India
- Edison Trading Spa - Italy
- Karbindo Abesyapradhi - Indoneisa
- Eastern Energy - Thailand
- Planning Commission, India
- Chettinad Cement Corporation Ltd - India
- Metalloyd Limited - United Kingdom
- Xindia Steels Limited - India
- Central Electricity Authority - India
- Sakthi Sugars Limited - India
- Posco Energy - South Korea
- Ministry of Finance - Indonesia
- Kaltim Prima Coal - Indonesia
- Parliament of New Zealand
- White Energy Company Limited
- Globalindo Alam Lestari - Indonesia
- Therma Luzon, Inc, Philippines
- Electricity Authority, New Zealand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Rashtriya Ispat Nigam Limited - India
- Altura Mining Limited, Indonesia
- Mercator Lines Limited - India
- Essar Steel Hazira Ltd - India
- London Commodity Brokers - England
- Ambuja Cements Ltd - India
- Rio Tinto Coal - Australia
- Medco Energi Mining Internasional
- Singapore Mercantile Exchange
- Jorong Barutama Greston.PT - Indonesia
- Bhatia International Limited - India
- Makarim & Taira - Indonesia
- Indo Tambangraya Megah - Indonesia
- The State Trading Corporation of India Ltd
- The University of Queensland
- Holcim Trading Pte Ltd - Singapore
- Kalimantan Lumbung Energi - Indonesia
- Ind-Barath Power Infra Limited - India
- Africa Commodities Group - South Africa
- Mjunction Services Limited - India
- Malabar Cements Ltd - India
- Commonwealth Bank - Australia
- Indian Oil Corporation Limited
- SMC Global Power, Philippines
- Tata Chemicals Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Semirara Mining Corp, Philippines
- Sindya Power Generating Company Private Ltd
- Ministry of Mines - Canada
- Sical Logistics Limited - India
- Kideco Jaya Agung - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Gujarat Sidhee Cement - India
- Iligan Light & Power Inc, Philippines
- Bharathi Cement Corporation - India
- Global Business Power Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Petron Corporation, Philippines
- SMG Consultants - Indonesia
- PowerSource Philippines DevCo
- McConnell Dowell - Australia
- Larsen & Toubro Limited - India
- Indogreen Group - Indonesia
- Samtan Co., Ltd - South Korea
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- Gujarat Mineral Development Corp Ltd - India
- PNOC Exploration Corporation - Philippines
- Bukit Baiduri Energy - Indonesia
- Bayan Resources Tbk. - Indonesia
- Baramulti Group, Indonesia
- Indonesian Coal Mining Association
- Ceylon Electricity Board - Sri Lanka
- International Coal Ventures Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Australian Coal Association
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- India Bulls Power Limited - India
- Siam City Cement PLC, Thailand
- Maheswari Brothers Coal Limited - India
- Ministry of Transport, Egypt
- Karaikal Port Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Indika Energy - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Directorate Of Revenue Intelligence - India
- Bulk Trading Sa - Switzerland
- AsiaOL BioFuels Corp., Philippines
- Bhushan Steel Limited - India
- Wood Mackenzie - Singapore
- Pendopo Energi Batubara - Indonesia
- Jindal Steel & Power Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Orica Australia Pty. Ltd.
- Agrawal Coal Company - India
- ICICI Bank Limited - India
- Salva Resources Pvt Ltd - India
- ASAPP Information Group - India
- Lanco Infratech Ltd - India
- GMR Energy Limited - India
- SN Aboitiz Power Inc, Philippines
- Carbofer General Trading SA - India
- Bhoruka Overseas - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- European Bulk Services B.V. - Netherlands
- Gujarat Electricity Regulatory Commission - India
- Port Waratah Coal Services - Australia
- Wilmar Investment Holdings
- Toyota Tsusho Corporation, Japan
- Merrill Lynch Commodities Europe
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