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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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Friday, 22 January 10
JSW ENERGY TO INVEST RS 4,500 CRORE IN COAL MINES ABROAD
The Sajjan Jindal-promoted JSW Energy is planning an investment of Rs 4,500 crore (US$ 978,260,869) to acquire coal mines abroad and another of Rs 1 ...
Thursday, 21 January 10
HANDYMAX - SHORT PERIOD OWNERS IDEAS ARE AROUND MID/LOW 20S - FEARNLEYS AS
HANDY
The BSI moved in a downward direction since last Friday reflecting minor a ...
Thursday, 21 January 10
ASF GROUP TO COMMENCE COAL SALES TO CHINA BY FEBRUARY 2010
Sydney-based China energy and resource conduit, ASF Group has struck an agreement to supply coal to China.
In September 2009, ASF announced a ven ...
Thursday, 21 January 10
INDONESIA BUKIT ASAM AGREES ON LOWER COAL PRICE
Indonesian state coal miner PT Tambang Batubara Bukit Asam Tbk has agreed with a local power plant to set 2010 coal prices at 23 percent lower than ...
Thursday, 21 January 10
CABOTAGE POLICY POSTPONED
The Transportation Ministry has decided to postpone for one year the full enforcement of the cabotage principle – a maritime term for the proh ...
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- Rio Tinto Coal - Australia
- Orica Mining Services - Indonesia
- Metalloyd Limited - United Kingdom
- Port Waratah Coal Services - Australia
- Antam Resourcindo - Indonesia
- Medco Energi Mining Internasional
- Kalimantan Lumbung Energi - Indonesia
- Jaiprakash Power Ventures ltd
- Riau Bara Harum - Indonesia
- Economic Council, Georgia
- San Jose City I Power Corp, Philippines
- SN Aboitiz Power Inc, Philippines
- Grasim Industreis Ltd - India
- Parry Sugars Refinery, India
- Manunggal Multi Energi - Indonesia
- Renaissance Capital - South Africa
- Bharathi Cement Corporation - India
- Bukit Makmur.PT - Indonesia
- Indian Energy Exchange, India
- IHS Mccloskey Coal Group - USA
- New Zealand Coal & Carbon
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sakthi Sugars Limited - India
- Xindia Steels Limited - India
- Electricity Generating Authority of Thailand
- Sree Jayajothi Cements Limited - India
- Siam City Cement - Thailand
- VISA Power Limited - India
- The Treasury - Australian Government
- International Coal Ventures Pvt Ltd - India
- Singapore Mercantile Exchange
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Attock Cement Pakistan Limited
- Indian Oil Corporation Limited
- Essar Steel Hazira Ltd - India
- Ambuja Cements Ltd - India
- Kartika Selabumi Mining - Indonesia
- Mercator Lines Limited - India
- Australian Coal Association
- Kobexindo Tractors - Indoneisa
- Electricity Authority, New Zealand
- TNB Fuel Sdn Bhd - Malaysia
- Maheswari Brothers Coal Limited - India
- Leighton Contractors Pty Ltd - Australia
- Georgia Ports Authority, United States
- Maharashtra Electricity Regulatory Commission - India
- Karbindo Abesyapradhi - Indoneisa
- Heidelberg Cement - Germany
- Energy Development Corp, Philippines
- Kumho Petrochemical, South Korea
- Binh Thuan Hamico - Vietnam
- ASAPP Information Group - India
- Sindya Power Generating Company Private Ltd
- Oldendorff Carriers - Singapore
- Jindal Steel & Power Ltd - India
- Ministry of Mines - Canada
- PetroVietnam Power Coal Import and Supply Company
- Cigading International Bulk Terminal - Indonesia
- Coastal Gujarat Power Limited - India
- McConnell Dowell - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Cement Manufacturers Association - India
- Coal and Oil Company - UAE
- Rashtriya Ispat Nigam Limited - India
- Bhoruka Overseas - Indonesia
- Pendopo Energi Batubara - Indonesia
- Latin American Coal - Colombia
- Mjunction Services Limited - India
- Kaltim Prima Coal - Indonesia
- Power Finance Corporation Ltd., India
- South Luzon Thermal Energy Corporation
- Indonesian Coal Mining Association
- Indika Energy - Indonesia
- Karaikal Port Pvt Ltd - India
- ICICI Bank Limited - India
- Thai Mozambique Logistica
- Sojitz Corporation - Japan
- Dalmia Cement Bharat India
- Formosa Plastics Group - Taiwan
- Sical Logistics Limited - India
- OPG Power Generation Pvt Ltd - India
- Tamil Nadu electricity Board
- Indogreen Group - Indonesia
- Romanian Commodities Exchange
- Posco Energy - South Korea
- Bahari Cakrawala Sebuku - Indonesia
- Trasteel International SA, Italy
- The University of Queensland
- Kohat Cement Company Ltd. - Pakistan
- Kepco SPC Power Corporation, Philippines
- Simpson Spence & Young - Indonesia
- White Energy Company Limited
- Siam City Cement PLC, Thailand
- Meralco Power Generation, Philippines
- Agrawal Coal Company - India
- MS Steel International - UAE
- Borneo Indobara - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- SMC Global Power, Philippines
- Merrill Lynch Commodities Europe
- Goldman Sachs - Singapore
- Intertek Mineral Services - Indonesia
- Deloitte Consulting - India
- Kapuas Tunggal Persada - Indonesia
- The State Trading Corporation of India Ltd
- Thiess Contractors Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Gujarat Electricity Regulatory Commission - India
- Larsen & Toubro Limited - India
- Meenaskhi Energy Private Limited - India
- Bhatia International Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Straits Asia Resources Limited - Singapore
- Central Electricity Authority - India
- Wood Mackenzie - Singapore
- Holcim Trading Pte Ltd - Singapore
- Semirara Mining and Power Corporation, Philippines
- Gujarat Sidhee Cement - India
- India Bulls Power Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Aditya Birla Group - India
- Vedanta Resources Plc - India
- Ministry of Finance - Indonesia
- Lanco Infratech Ltd - India
- Kideco Jaya Agung - Indonesia
- Aboitiz Power Corporation - Philippines
- Marubeni Corporation - India
- Banpu Public Company Limited - Thailand
- CNBM International Corporation - China
- Tata Chemicals Ltd - India
- Parliament of New Zealand
- Chettinad Cement Corporation Ltd - India
- Interocean Group of Companies - India
- TeaM Sual Corporation - Philippines
- Uttam Galva Steels Limited - India
- GVK Power & Infra Limited - India
- Africa Commodities Group - South Africa
- Iligan Light & Power Inc, Philippines
- Mintek Dendrill Indonesia
- Asmin Koalindo Tuhup - Indonesia
- PTC India Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Wilmar Investment Holdings
- Bukit Asam (Persero) Tbk - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Star Paper Mills Limited - India
- Savvy Resources Ltd - HongKong
- Independent Power Producers Association of India
- Planning Commission, India
- CIMB Investment Bank - Malaysia
- Ministry of Transport, Egypt
- Edison Trading Spa - Italy
- Central Java Power - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Salva Resources Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Global Coal Blending Company Limited - Australia
- PNOC Exploration Corporation - Philippines
- Minerals Council of Australia
- Makarim & Taira - Indonesia
- Global Green Power PLC Corporation, Philippines
- Vizag Seaport Private Limited - India
- Miang Besar Coal Terminal - Indonesia
- Eastern Energy - Thailand
- Barasentosa Lestari - Indonesia
- LBH Netherlands Bv - Netherlands
- Indo Tambangraya Megah - Indonesia
- Sinarmas Energy and Mining - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Bangladesh Power Developement Board
- Australian Commodity Traders Exchange
- Krishnapatnam Port Company Ltd. - India
- Bulk Trading Sa - Switzerland
- GAC Shipping (India) Pvt Ltd
- Semirara Mining Corp, Philippines
- Therma Luzon, Inc, Philippines
- Energy Link Ltd, New Zealand
- Commonwealth Bank - Australia
- Mercuria Energy - Indonesia
- Global Business Power Corporation, Philippines
- Samtan Co., Ltd - South Korea
- Petron Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Coalindo Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Altura Mining Limited, Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Toyota Tsusho Corporation, Japan
- IEA Clean Coal Centre - UK
- London Commodity Brokers - England
- GMR Energy Limited - India
- SMG Consultants - Indonesia
- Timah Investasi Mineral - Indoneisa
- PowerSource Philippines DevCo
- Standard Chartered Bank - UAE
- Gujarat Mineral Development Corp Ltd - India
- Sarangani Energy Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Price Waterhouse Coopers - Russia
- Bukit Baiduri Energy - Indonesia
- Malabar Cements Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Orica Australia Pty. Ltd.
- Ind-Barath Power Infra Limited - India
- Videocon Industries ltd - India
- Carbofer General Trading SA - India
- Bayan Resources Tbk. - Indonesia
- Anglo American - United Kingdom
- European Bulk Services B.V. - Netherlands
- Eastern Coal Council - USA
- Baramulti Group, Indonesia
- Madhucon Powers Ltd - India
- Bhushan Steel Limited - India
- Chamber of Mines of South Africa
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