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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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Thursday, 24 December 09
EUROSEAS LTD. ANNOUNCES TWO-YEAR TIME CHARTER AGREEMENT FOR PANAMAX BULK CARRIER
Euroseas Ltd., an owner and operator of drybulk carriers and container vessels and provider of seaborne transportation for dry bulk and containerize ...
Wednesday, 23 December 09
INDONESIA POWER CHIEF TO BUILD PLANTS OUTSIDE JAVA
Indonesia's state electricity firm plans to build new power plants outside Java island with a combined capacity of around 2,000 megawatts to resolv ...
Wednesday, 23 December 09
BUKIT ASAM SEES CHINA COAL DEMAND BOOST
* Rebound in prices to have pushed up 2009 revs
* To more than double Tarahan port capacity
Reuters reported that, Indonesian state-owned coal m ...
Wednesday, 23 December 09
MACARTHUR COAL OFFERS TO BUY RIVAL GLOUCESTER
Queensland-based Macarthur Coal will offer to buy fellow Australian Gloucester Coal, in a move to add two new mines and increase coal resources.
...
Tuesday, 22 December 09
CHINA CONTRACTED COAL PRICE FOR 2010 SEES SLIGHT INCREASE
A number of coal and power enterprises have concluded their annual power-coal supply contracts for 2010, and the contracted coal price saw slight in ...
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- Ambuja Cements Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Bhushan Steel Limited - India
- Cigading International Bulk Terminal - Indonesia
- Sarangani Energy Corporation, Philippines
- Banpu Public Company Limited - Thailand
- McConnell Dowell - Australia
- Kaltim Prima Coal - Indonesia
- Meralco Power Generation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Energy Development Corp, Philippines
- Aboitiz Power Corporation - Philippines
- White Energy Company Limited
- London Commodity Brokers - England
- MS Steel International - UAE
- CNBM International Corporation - China
- Iligan Light & Power Inc, Philippines
- IEA Clean Coal Centre - UK
- Ministry of Finance - Indonesia
- PowerSource Philippines DevCo
- Parliament of New Zealand
- Thiess Contractors Indonesia
- Singapore Mercantile Exchange
- Savvy Resources Ltd - HongKong
- Eastern Energy - Thailand
- Price Waterhouse Coopers - Russia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ministry of Transport, Egypt
- The University of Queensland
- Kobexindo Tractors - Indoneisa
- Tamil Nadu electricity Board
- Medco Energi Mining Internasional
- Siam City Cement - Thailand
- Central Electricity Authority - India
- Mercuria Energy - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Posco Energy - South Korea
- Indonesian Coal Mining Association
- Meenaskhi Energy Private Limited - India
- European Bulk Services B.V. - Netherlands
- Bahari Cakrawala Sebuku - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Planning Commission, India
- Malabar Cements Ltd - India
- Wilmar Investment Holdings
- Videocon Industries ltd - India
- Simpson Spence & Young - Indonesia
- Anglo American - United Kingdom
- Antam Resourcindo - Indonesia
- Vedanta Resources Plc - India
- Aditya Birla Group - India
- Bulk Trading Sa - Switzerland
- Coal and Oil Company - UAE
- Global Coal Blending Company Limited - Australia
- Kepco SPC Power Corporation, Philippines
- ASAPP Information Group - India
- Indian Energy Exchange, India
- South Luzon Thermal Energy Corporation
- Directorate General of MIneral and Coal - Indonesia
- SMG Consultants - Indonesia
- Maheswari Brothers Coal Limited - India
- Vizag Seaport Private Limited - India
- Thai Mozambique Logistica
- Bayan Resources Tbk. - Indonesia
- Ministry of Mines - Canada
- Gujarat Electricity Regulatory Commission - India
- Uttam Galva Steels Limited - India
- Bukit Makmur.PT - Indonesia
- CIMB Investment Bank - Malaysia
- Global Green Power PLC Corporation, Philippines
- Georgia Ports Authority, United States
- Gujarat Sidhee Cement - India
- GN Power Mariveles Coal Plant, Philippines
- Manunggal Multi Energi - Indonesia
- Romanian Commodities Exchange
- Mercator Lines Limited - India
- Orica Australia Pty. Ltd.
- Petron Corporation, Philippines
- Port Waratah Coal Services - Australia
- The Treasury - Australian Government
- Binh Thuan Hamico - Vietnam
- Economic Council, Georgia
- Bangladesh Power Developement Board
- Krishnapatnam Port Company Ltd. - India
- Commonwealth Bank - Australia
- Riau Bara Harum - Indonesia
- Intertek Mineral Services - Indonesia
- Wood Mackenzie - Singapore
- Karaikal Port Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Essar Steel Hazira Ltd - India
- Power Finance Corporation Ltd., India
- Sinarmas Energy and Mining - Indonesia
- International Coal Ventures Pvt Ltd - India
- Indogreen Group - Indonesia
- IHS Mccloskey Coal Group - USA
- Therma Luzon, Inc, Philippines
- VISA Power Limited - India
- Deloitte Consulting - India
- Altura Mining Limited, Indonesia
- Marubeni Corporation - India
- Baramulti Group, Indonesia
- Semirara Mining and Power Corporation, Philippines
- Indika Energy - Indonesia
- TeaM Sual Corporation - Philippines
- India Bulls Power Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Salva Resources Pvt Ltd - India
- Orica Mining Services - Indonesia
- Sree Jayajothi Cements Limited - India
- Interocean Group of Companies - India
- PNOC Exploration Corporation - Philippines
- Semirara Mining Corp, Philippines
- Madhucon Powers Ltd - India
- Timah Investasi Mineral - Indoneisa
- Jaiprakash Power Ventures ltd
- Independent Power Producers Association of India
- Parry Sugars Refinery, India
- Ind-Barath Power Infra Limited - India
- Oldendorff Carriers - Singapore
- Toyota Tsusho Corporation, Japan
- Asmin Koalindo Tuhup - Indonesia
- New Zealand Coal & Carbon
- Miang Besar Coal Terminal - Indonesia
- Electricity Generating Authority of Thailand
- Siam City Cement PLC, Thailand
- Kumho Petrochemical, South Korea
- LBH Netherlands Bv - Netherlands
- Globalindo Alam Lestari - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Xindia Steels Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Standard Chartered Bank - UAE
- Australian Coal Association
- Karbindo Abesyapradhi - Indoneisa
- Petrochimia International Co. Ltd.- Taiwan
- Australian Commodity Traders Exchange
- Renaissance Capital - South Africa
- Bhatia International Limited - India
- Mjunction Services Limited - India
- Metalloyd Limited - United Kingdom
- Electricity Authority, New Zealand
- Rashtriya Ispat Nigam Limited - India
- SMC Global Power, Philippines
- Attock Cement Pakistan Limited
- Edison Trading Spa - Italy
- Eastern Coal Council - USA
- PTC India Limited - India
- Tata Chemicals Ltd - India
- Lanco Infratech Ltd - India
- Global Business Power Corporation, Philippines
- Sojitz Corporation - Japan
- The State Trading Corporation of India Ltd
- Barasentosa Lestari - Indonesia
- Goldman Sachs - Singapore
- Chamber of Mines of South Africa
- Kapuas Tunggal Persada - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Coastal Gujarat Power Limited - India
- Bharathi Cement Corporation - India
- Formosa Plastics Group - Taiwan
- Cement Manufacturers Association - India
- Larsen & Toubro Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Energy Link Ltd, New Zealand
- Ceylon Electricity Board - Sri Lanka
- Bukit Baiduri Energy - Indonesia
- Agrawal Coal Company - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Grasim Industreis Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Latin American Coal - Colombia
- Alfred C Toepfer International GmbH - Germany
- Coalindo Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Borneo Indobara - Indonesia
- Sakthi Sugars Limited - India
- Merrill Lynch Commodities Europe
- Pendopo Energi Batubara - Indonesia
- Indo Tambangraya Megah - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Rio Tinto Coal - Australia
- Maharashtra Electricity Regulatory Commission - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Directorate Of Revenue Intelligence - India
- Straits Asia Resources Limited - Singapore
- Africa Commodities Group - South Africa
- Trasteel International SA, Italy
- GAC Shipping (India) Pvt Ltd
- Vijayanagar Sugar Pvt Ltd - India
- Sindya Power Generating Company Private Ltd
- SN Aboitiz Power Inc, Philippines
- Kideco Jaya Agung - Indonesia
- Mintek Dendrill Indonesia
- Indian Oil Corporation Limited
- Minerals Council of Australia
- San Jose City I Power Corp, Philippines
- Sical Logistics Limited - India
- GMR Energy Limited - India
- Star Paper Mills Limited - India
- GVK Power & Infra Limited - India
- Heidelberg Cement - Germany
- Carbofer General Trading SA - India
- AsiaOL BioFuels Corp., Philippines
- Samtan Co., Ltd - South Korea
- Chettinad Cement Corporation Ltd - India
- Jindal Steel & Power Ltd - India
- ICICI Bank Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Dalmia Cement Bharat India
- OPG Power Generation Pvt Ltd - India
- Central Java Power - Indonesia
- Bhoruka Overseas - Indonesia
- Kartika Selabumi Mining - Indonesia
- Makarim & Taira - Indonesia
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