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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, 15 January 10
ADARO INDONESIA STILL TOPS IN INDONESIAN COAL EXPORT RANKING
COALspot.com (Indonesia): PT. Adaro Indonesia, the world first Envirocoal producer and Indonesia's second largest thermal coal producer is top coal ...
Friday, 15 January 10
NTPC TO ADD 6,000 MW EACH YEAR IN 12TH PLAN
Will raise total generation capacity to 75,000 Mw by 2017, up from 30,644 Mw at present.
India's largest power generator NTPC, which will launch ...
Friday, 15 January 10
POSCO SAYS 2010 COKING COAL AGREEMENT MAY BE DELAYED - BLOOMBERG
Posco, South Korea’s biggest steelmaker, said an agreement on coking coal prices for this year may be delayed because major suppliers of the s ...
Friday, 15 January 10
CHINA POWER FIRMS SEEK COAL IMPORTS, SUPPLY SCARCE
China's coal-hungry power plants have turned to imported coal to cope with widespread shortages, but spot supply is scarce, traders said on Thursda ...
Thursday, 14 January 10
INDONESIA POWER REDUCES COAL SUPPLY
PT Indonesia Power will reduce coal supplies from PT Tambang Batu Bara Bukit Asam to its Suralaya Power Plant. "The coal supply for the plant s ...
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- Tata Chemicals Ltd - India
- Therma Luzon, Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Asmin Koalindo Tuhup - Indonesia
- Bhatia International Limited - India
- Marubeni Corporation - India
- Bangladesh Power Developement Board
- Carbofer General Trading SA - India
- Manunggal Multi Energi - Indonesia
- Simpson Spence & Young - Indonesia
- VISA Power Limited - India
- White Energy Company Limited
- Formosa Plastics Group - Taiwan
- Straits Asia Resources Limited - Singapore
- GAC Shipping (India) Pvt Ltd
- Ambuja Cements Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Indika Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Cigading International Bulk Terminal - Indonesia
- IEA Clean Coal Centre - UK
- Heidelberg Cement - Germany
- Electricity Authority, New Zealand
- Neyveli Lignite Corporation Ltd, - India
- Binh Thuan Hamico - Vietnam
- Indonesian Coal Mining Association
- Kapuas Tunggal Persada - Indonesia
- Holcim Trading Pte Ltd - Singapore
- India Bulls Power Limited - India
- Videocon Industries ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Iligan Light & Power Inc, Philippines
- Sakthi Sugars Limited - India
- Altura Mining Limited, Indonesia
- Rio Tinto Coal - Australia
- San Jose City I Power Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Aboitiz Power Corporation - Philippines
- Coal and Oil Company - UAE
- Semirara Mining and Power Corporation, Philippines
- Deloitte Consulting - India
- Interocean Group of Companies - India
- Uttam Galva Steels Limited - India
- LBH Netherlands Bv - Netherlands
- Pendopo Energi Batubara - Indonesia
- Eastern Coal Council - USA
- London Commodity Brokers - England
- Global Coal Blending Company Limited - Australia
- Larsen & Toubro Limited - India
- International Coal Ventures Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Siam City Cement PLC, Thailand
- Orica Mining Services - Indonesia
- Bukit Baiduri Energy - Indonesia
- Latin American Coal - Colombia
- Commonwealth Bank - Australia
- Mjunction Services Limited - India
- Parliament of New Zealand
- SN Aboitiz Power Inc, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Riau Bara Harum - Indonesia
- Medco Energi Mining Internasional
- Bhushan Steel Limited - India
- Maheswari Brothers Coal Limited - India
- SMG Consultants - Indonesia
- Trasteel International SA, Italy
- Minerals Council of Australia
- Bukit Makmur.PT - Indonesia
- Lanco Infratech Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Australian Coal Association
- Directorate Of Revenue Intelligence - India
- Sojitz Corporation - Japan
- Sree Jayajothi Cements Limited - India
- South Luzon Thermal Energy Corporation
- Borneo Indobara - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Gujarat Electricity Regulatory Commission - India
- Petrochimia International Co. Ltd.- Taiwan
- Bulk Trading Sa - Switzerland
- Miang Besar Coal Terminal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Salva Resources Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Mintek Dendrill Indonesia
- Billiton Holdings Pty Ltd - Australia
- Sarangani Energy Corporation, Philippines
- ASAPP Information Group - India
- Global Business Power Corporation, Philippines
- Bharathi Cement Corporation - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kumho Petrochemical, South Korea
- Merrill Lynch Commodities Europe
- Global Green Power PLC Corporation, Philippines
- Chamber of Mines of South Africa
- Kobexindo Tractors - Indoneisa
- Ministry of Mines - Canada
- Sindya Power Generating Company Private Ltd
- PTC India Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Edison Trading Spa - Italy
- Jindal Steel & Power Ltd - India
- Barasentosa Lestari - Indonesia
- New Zealand Coal & Carbon
- TNB Fuel Sdn Bhd - Malaysia
- Savvy Resources Ltd - HongKong
- Thai Mozambique Logistica
- Makarim & Taira - Indonesia
- Banpu Public Company Limited - Thailand
- GVK Power & Infra Limited - India
- CIMB Investment Bank - Malaysia
- Romanian Commodities Exchange
- Coastal Gujarat Power Limited - India
- Dalmia Cement Bharat India
- Posco Energy - South Korea
- GN Power Mariveles Coal Plant, Philippines
- Orica Australia Pty. Ltd.
- Kepco SPC Power Corporation, Philippines
- Antam Resourcindo - Indonesia
- The Treasury - Australian Government
- Port Waratah Coal Services - Australia
- Krishnapatnam Port Company Ltd. - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- SMC Global Power, Philippines
- Independent Power Producers Association of India
- Africa Commodities Group - South Africa
- Vedanta Resources Plc - India
- European Bulk Services B.V. - Netherlands
- Malabar Cements Ltd - India
- CNBM International Corporation - China
- Kideco Jaya Agung - Indonesia
- Oldendorff Carriers - Singapore
- Planning Commission, India
- Petron Corporation, Philippines
- The State Trading Corporation of India Ltd
- PNOC Exploration Corporation - Philippines
- Grasim Industreis Ltd - India
- Energy Link Ltd, New Zealand
- Maharashtra Electricity Regulatory Commission - India
- Sical Logistics Limited - India
- Chettinad Cement Corporation Ltd - India
- Cement Manufacturers Association - India
- Coalindo Energy - Indonesia
- Wilmar Investment Holdings
- Meralco Power Generation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Anglo American - United Kingdom
- Australian Commodity Traders Exchange
- Thiess Contractors Indonesia
- Timah Investasi Mineral - Indoneisa
- Indian Oil Corporation Limited
- Siam City Cement - Thailand
- Semirara Mining Corp, Philippines
- Kartika Selabumi Mining - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Energy Development Corp, Philippines
- Renaissance Capital - South Africa
- Attock Cement Pakistan Limited
- Toyota Tsusho Corporation, Japan
- Mercator Lines Limited - India
- GMR Energy Limited - India
- PowerSource Philippines DevCo
- Standard Chartered Bank - UAE
- Ministry of Finance - Indonesia
- Metalloyd Limited - United Kingdom
- Ind-Barath Power Infra Limited - India
- Indogreen Group - Indonesia
- TeaM Sual Corporation - Philippines
- Xindia Steels Limited - India
- Gujarat Sidhee Cement - India
- Vizag Seaport Private Limited - India
- Essar Steel Hazira Ltd - India
- Price Waterhouse Coopers - Russia
- Economic Council, Georgia
- Goldman Sachs - Singapore
- The University of Queensland
- McConnell Dowell - Australia
- Eastern Energy - Thailand
- Baramulti Group, Indonesia
- Samtan Co., Ltd - South Korea
- MS Steel International - UAE
- OPG Power Generation Pvt Ltd - India
- Madhucon Powers Ltd - India
- Intertek Mineral Services - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Singapore Mercantile Exchange
- Central Electricity Authority - India
- Bhoruka Overseas - Indonesia
- Central Java Power - Indonesia
- Star Paper Mills Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Georgia Ports Authority, United States
- Power Finance Corporation Ltd., India
- Bayan Resources Tbk. - Indonesia
- Karaikal Port Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Kaltim Prima Coal - Indonesia
- Ministry of Transport, Egypt
- Rashtriya Ispat Nigam Limited - India
- Indian Energy Exchange, India
- Indo Tambangraya Megah - Indonesia
- Aditya Birla Group - India
- Mercuria Energy - Indonesia
- Wood Mackenzie - Singapore
- Agrawal Coal Company - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- IHS Mccloskey Coal Group - USA
- Meenaskhi Energy Private Limited - India
- Ceylon Electricity Board - Sri Lanka
- Tamil Nadu electricity Board
- Bukit Asam (Persero) Tbk - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- ICICI Bank Limited - India
- Parry Sugars Refinery, India
- Globalindo Alam Lestari - Indonesia
- Jaiprakash Power Ventures ltd
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