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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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Tuesday, 26 January 10
AUSTRALIAN FIRM TO MINE COAL IN WEST BENGAL
India Resources Ltd (IRL), a mining firm listed on the Australian Stock Exchange, has decided to enter into contract mining of coal in
India ...
Monday, 25 January 10
MINING GROUPS MAY SEEK JUDICIAL REVIEW OF 2009 LAW
Indonesia’s mining associations said on Wednesday that they planned to seek a judicial review of the 2009 Mining Law this year if they are una ...
Monday, 25 January 10
INDONESIAN GOVERNMENT TO ISSUE REGULATION FOR IMPLEMENTATION OF MINERAL AND COAL MINING BUSINESS ACTIVITIES LAW NO.4 / 2009 SOON
COALspot.com (Indonesia): The government regulation concerning implementation of mineral and coal mining business activities Law no.4 / 2009 is expe ...
Monday, 25 January 10
DUQM IWPP'S COAL REQUIREMENTS PROJECTED AT 3MT PER YEAR
Oman's first coal-fired Independent Water and Power Project (IWPP) planned at Duqm is envisaged to have a feedstock requirement of around 3 million ...
Monday, 25 January 10
THE FUTURES FOR CAPE, PANAMAX AND SUPRAMAX FOR THREE YEARS (2010 - 2012) WAS AT AROUND US$ 32,000, US$ 20,000 AND US$ 17,000 PER DAY RESPECTIVELY
COALspot.com ( Singapore): The freight market remained flat this week the market slight soft.
BDI INDEX
The BDI was down by 95 points and closed ...
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- Maharashtra Electricity Regulatory Commission - India
- Mercuria Energy - Indonesia
- Australian Commodity Traders Exchange
- Directorate Of Revenue Intelligence - India
- India Bulls Power Limited - India
- Vedanta Resources Plc - India
- Indogreen Group - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Anglo American - United Kingdom
- Kaltim Prima Coal - Indonesia
- Romanian Commodities Exchange
- Meenaskhi Energy Private Limited - India
- Oldendorff Carriers - Singapore
- Cement Manufacturers Association - India
- Manunggal Multi Energi - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- San Jose City I Power Corp, Philippines
- European Bulk Services B.V. - Netherlands
- Indian Energy Exchange, India
- Global Coal Blending Company Limited - Australia
- Holcim Trading Pte Ltd - Singapore
- Jaiprakash Power Ventures ltd
- Africa Commodities Group - South Africa
- Bahari Cakrawala Sebuku - Indonesia
- SN Aboitiz Power Inc, Philippines
- Dalmia Cement Bharat India
- Central Java Power - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Marubeni Corporation - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kumho Petrochemical, South Korea
- Chettinad Cement Corporation Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Global Green Power PLC Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Ministry of Finance - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- White Energy Company Limited
- The University of Queensland
- Globalindo Alam Lestari - Indonesia
- Trasteel International SA, Italy
- Larsen & Toubro Limited - India
- Ceylon Electricity Board - Sri Lanka
- The Treasury - Australian Government
- Chamber of Mines of South Africa
- CNBM International Corporation - China
- Vijayanagar Sugar Pvt Ltd - India
- Vizag Seaport Private Limited - India
- SMC Global Power, Philippines
- Indika Energy - Indonesia
- Orica Mining Services - Indonesia
- Siam City Cement - Thailand
- Sojitz Corporation - Japan
- Ambuja Cements Ltd - India
- Cigading International Bulk Terminal - Indonesia
- TeaM Sual Corporation - Philippines
- Sical Logistics Limited - India
- Intertek Mineral Services - Indonesia
- LBH Netherlands Bv - Netherlands
- Samtan Co., Ltd - South Korea
- PowerSource Philippines DevCo
- Standard Chartered Bank - UAE
- Altura Mining Limited, Indonesia
- Energy Link Ltd, New Zealand
- Electricity Authority, New Zealand
- Offshore Bulk Terminal Pte Ltd, Singapore
- PTC India Limited - India
- Wilmar Investment Holdings
- Kobexindo Tractors - Indoneisa
- VISA Power Limited - India
- Port Waratah Coal Services - Australia
- Ministry of Mines - Canada
- Semirara Mining Corp, Philippines
- Aditya Birla Group - India
- Directorate General of MIneral and Coal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Rashtriya Ispat Nigam Limited - India
- Alfred C Toepfer International GmbH - Germany
- Merrill Lynch Commodities Europe
- Indo Tambangraya Megah - Indonesia
- Bulk Trading Sa - Switzerland
- Eastern Coal Council - USA
- Salva Resources Pvt Ltd - India
- Malabar Cements Ltd - India
- Essar Steel Hazira Ltd - India
- Kepco SPC Power Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- Carbofer General Trading SA - India
- Karbindo Abesyapradhi - Indoneisa
- Power Finance Corporation Ltd., India
- Singapore Mercantile Exchange
- Madhucon Powers Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Pendopo Energi Batubara - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Medco Energi Mining Internasional
- Bukit Baiduri Energy - Indonesia
- Videocon Industries ltd - India
- Electricity Generating Authority of Thailand
- Tata Chemicals Ltd - India
- Deloitte Consulting - India
- Coalindo Energy - Indonesia
- GVK Power & Infra Limited - India
- Barasentosa Lestari - Indonesia
- Agrawal Coal Company - India
- Billiton Holdings Pty Ltd - Australia
- Aboitiz Power Corporation - Philippines
- The State Trading Corporation of India Ltd
- Therma Luzon, Inc, Philippines
- Antam Resourcindo - Indonesia
- Simpson Spence & Young - Indonesia
- Bhatia International Limited - India
- Ministry of Transport, Egypt
- Sakthi Sugars Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Semirara Mining and Power Corporation, Philippines
- IEA Clean Coal Centre - UK
- Banpu Public Company Limited - Thailand
- Australian Coal Association
- Straits Asia Resources Limited - Singapore
- ASAPP Information Group - India
- South Luzon Thermal Energy Corporation
- Formosa Plastics Group - Taiwan
- PNOC Exploration Corporation - Philippines
- Wood Mackenzie - Singapore
- Xindia Steels Limited - India
- Mjunction Services Limited - India
- Metalloyd Limited - United Kingdom
- Maheswari Brothers Coal Limited - India
- GMR Energy Limited - India
- ICICI Bank Limited - India
- Bhoruka Overseas - Indonesia
- Energy Development Corp, Philippines
- Star Paper Mills Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Petron Corporation, Philippines
- Bharathi Cement Corporation - India
- McConnell Dowell - Australia
- Iligan Light & Power Inc, Philippines
- Parry Sugars Refinery, India
- GAC Shipping (India) Pvt Ltd
- Indian Oil Corporation Limited
- Economic Council, Georgia
- Grasim Industreis Ltd - India
- Bhushan Steel Limited - India
- Leighton Contractors Pty Ltd - Australia
- Global Business Power Corporation, Philippines
- Meralco Power Generation, Philippines
- Minerals Council of Australia
- Gujarat Sidhee Cement - India
- MS Steel International - UAE
- Ind-Barath Power Infra Limited - India
- Borneo Indobara - Indonesia
- Rio Tinto Coal - Australia
- Coastal Gujarat Power Limited - India
- Posco Energy - South Korea
- Latin American Coal - Colombia
- Coal and Oil Company - UAE
- Pipit Mutiara Jaya. PT, Indonesia
- Sarangani Energy Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Commonwealth Bank - Australia
- New Zealand Coal & Carbon
- Kalimantan Lumbung Energi - Indonesia
- London Commodity Brokers - England
- Mintek Dendrill Indonesia
- Goldman Sachs - Singapore
- Siam City Cement PLC, Thailand
- Eastern Energy - Thailand
- OPG Power Generation Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kideco Jaya Agung - Indonesia
- Bangladesh Power Developement Board
- Bayan Resources Tbk. - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Independent Power Producers Association of India
- PetroVietnam Power Coal Import and Supply Company
- Kohat Cement Company Ltd. - Pakistan
- Central Electricity Authority - India
- Heidelberg Cement - Germany
- Thai Mozambique Logistica
- Price Waterhouse Coopers - Russia
- Makarim & Taira - Indonesia
- Parliament of New Zealand
- Jorong Barutama Greston.PT - Indonesia
- Edison Trading Spa - Italy
- Mercator Lines Limited - India
- Interocean Group of Companies - India
- IHS Mccloskey Coal Group - USA
- Orica Australia Pty. Ltd.
- Georgia Ports Authority, United States
- Uttam Galva Steels Limited - India
- Toyota Tsusho Corporation, Japan
- Thiess Contractors Indonesia
- Baramulti Group, Indonesia
- Kapuas Tunggal Persada - Indonesia
- Sree Jayajothi Cements Limited - India
- Lanco Infratech Ltd - India
- Riau Bara Harum - Indonesia
- Kartika Selabumi Mining - Indonesia
- Timah Investasi Mineral - Indoneisa
- Binh Thuan Hamico - Vietnam
- Tamil Nadu electricity Board
- Jindal Steel & Power Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Indonesian Coal Mining Association
- Planning Commission, India
- TNB Fuel Sdn Bhd - Malaysia
- SMG Consultants - Indonesia
- Renaissance Capital - South Africa
- Attock Cement Pakistan Limited
- Sindya Power Generating Company Private Ltd
- Bukit Makmur.PT - Indonesia
- International Coal Ventures Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
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