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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, 17 December 09
THE 6TH CLEAN ENERGY FORUM - CLEAN COAL 2010
COALspot.com (China) - Press Release: The 6th Clean Energy Forum--Clean Coal 2010 January 27-29, 2010 Renaissance Tianjin Teda Hotel And Conven ...
Thursday, 17 December 09
JFE STEEL INVESTS $555 MILLION IN AUSTRALIA COAL MINE
JFE Steel Corp., Japan’s second- largest producer, will invest 50 billion yen ($555 million) in a coal mine in Queensland, Australia, includin ...
Thursday, 17 December 09
CHINA, INDIA DEMAND MAY BOOST THERMAL COAL PRICE, JPMORGAN SAYS
Demand for thermal coal from China and India may boost prices of the fuel to $80 a metric ton next year amid reduced supplies and lower inventories, ...
Thursday, 17 December 09
RBCT PROBLEMS TO CAUSE STEAM COAL PRICE SPIKE IN Q1
Bugs in the new computer system at South Africa's Richards Bay Coal Terminal and persistent rail problems will make it impossible for exporters to ...
Thursday, 17 December 09
CIL TO IMPORT 4 MILLION TONNES COAL FOR NTPC
The country's largest coal miner Coal India Ltd (CIL) will import 4 million tonnes of coal for state-run power company NTPC.
"Earlier, ther ...
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- Gujarat Electricity Regulatory Commission - India
- Dalmia Cement Bharat India
- Australian Coal Association
- Timah Investasi Mineral - Indoneisa
- Meralco Power Generation, Philippines
- Meenaskhi Energy Private Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Mjunction Services Limited - India
- Jaiprakash Power Ventures ltd
- Krishnapatnam Port Company Ltd. - India
- SN Aboitiz Power Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- Cement Manufacturers Association - India
- Uttam Galva Steels Limited - India
- Energy Link Ltd, New Zealand
- Karaikal Port Pvt Ltd - India
- Bharathi Cement Corporation - India
- Riau Bara Harum - Indonesia
- Global Green Power PLC Corporation, Philippines
- Sojitz Corporation - Japan
- GAC Shipping (India) Pvt Ltd
- Pendopo Energi Batubara - Indonesia
- Kobexindo Tractors - Indoneisa
- Thiess Contractors Indonesia
- Semirara Mining Corp, Philippines
- Petron Corporation, Philippines
- San Jose City I Power Corp, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Coalindo Energy - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Siam City Cement PLC, Thailand
- AsiaOL BioFuels Corp., Philippines
- Madhucon Powers Ltd - India
- Baramulti Group, Indonesia
- Australian Commodity Traders Exchange
- Rashtriya Ispat Nigam Limited - India
- Banpu Public Company Limited - Thailand
- Singapore Mercantile Exchange
- Intertek Mineral Services - Indonesia
- Carbofer General Trading SA - India
- Africa Commodities Group - South Africa
- The State Trading Corporation of India Ltd
- Videocon Industries ltd - India
- Tata Chemicals Ltd - India
- The University of Queensland
- Parry Sugars Refinery, India
- Ministry of Transport, Egypt
- Antam Resourcindo - Indonesia
- PNOC Exploration Corporation - Philippines
- Borneo Indobara - Indonesia
- Kumho Petrochemical, South Korea
- Georgia Ports Authority, United States
- Eastern Coal Council - USA
- CNBM International Corporation - China
- Agrawal Coal Company - India
- Sree Jayajothi Cements Limited - India
- TeaM Sual Corporation - Philippines
- Latin American Coal - Colombia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Aboitiz Power Corporation - Philippines
- Planning Commission, India
- SMC Global Power, Philippines
- Vizag Seaport Private Limited - India
- Interocean Group of Companies - India
- IEA Clean Coal Centre - UK
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sarangani Energy Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- MS Steel International - UAE
- Globalindo Alam Lestari - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Commonwealth Bank - Australia
- Coal and Oil Company - UAE
- Bhushan Steel Limited - India
- Standard Chartered Bank - UAE
- Bulk Trading Sa - Switzerland
- Sindya Power Generating Company Private Ltd
- International Coal Ventures Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Makarim & Taira - Indonesia
- Thai Mozambique Logistica
- PowerSource Philippines DevCo
- Gujarat Sidhee Cement - India
- Indo Tambangraya Megah - Indonesia
- Wood Mackenzie - Singapore
- Xindia Steels Limited - India
- McConnell Dowell - Australia
- Economic Council, Georgia
- Bhatia International Limited - India
- Mercuria Energy - Indonesia
- Central Java Power - Indonesia
- Coastal Gujarat Power Limited - India
- Wilmar Investment Holdings
- Minerals Council of Australia
- CIMB Investment Bank - Malaysia
- Orica Mining Services - Indonesia
- Indika Energy - Indonesia
- Jindal Steel & Power Ltd - India
- Siam City Cement - Thailand
- Vedanta Resources Plc - India
- Therma Luzon, Inc, Philippines
- Iligan Light & Power Inc, Philippines
- Simpson Spence & Young - Indonesia
- Chettinad Cement Corporation Ltd - India
- Central Electricity Authority - India
- LBH Netherlands Bv - Netherlands
- The Treasury - Australian Government
- Manunggal Multi Energi - Indonesia
- Kepco SPC Power Corporation, Philippines
- ASAPP Information Group - India
- Orica Australia Pty. Ltd.
- Eastern Energy - Thailand
- Goldman Sachs - Singapore
- GN Power Mariveles Coal Plant, Philippines
- Indogreen Group - Indonesia
- GMR Energy Limited - India
- Mercator Lines Limited - India
- Parliament of New Zealand
- Aditya Birla Group - India
- Romanian Commodities Exchange
- Electricity Authority, New Zealand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PTC India Limited - India
- Toyota Tsusho Corporation, Japan
- Renaissance Capital - South Africa
- Bangladesh Power Developement Board
- Anglo American - United Kingdom
- Salva Resources Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sical Logistics Limited - India
- VISA Power Limited - India
- Star Paper Mills Limited - India
- Merrill Lynch Commodities Europe
- Holcim Trading Pte Ltd - Singapore
- Tamil Nadu electricity Board
- Posco Energy - South Korea
- Kideco Jaya Agung - Indonesia
- Chamber of Mines of South Africa
- European Bulk Services B.V. - Netherlands
- Kalimantan Lumbung Energi - Indonesia
- ICICI Bank Limited - India
- New Zealand Coal & Carbon
- Ministry of Finance - Indonesia
- Energy Development Corp, Philippines
- Global Business Power Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Miang Besar Coal Terminal - Indonesia
- Electricity Generating Authority of Thailand
- Barasentosa Lestari - Indonesia
- Leighton Contractors Pty Ltd - Australia
- OPG Power Generation Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Indonesian Coal Mining Association
- Directorate General of MIneral and Coal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Attock Cement Pakistan Limited
- Ministry of Mines - Canada
- Samtan Co., Ltd - South Korea
- Malabar Cements Ltd - India
- Indian Energy Exchange, India
- SMG Consultants - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Bahari Cakrawala Sebuku - Indonesia
- Lanco Infratech Ltd - India
- White Energy Company Limited
- Bukit Makmur.PT - Indonesia
- Medco Energi Mining Internasional
- Kaltim Prima Coal - Indonesia
- Formosa Plastics Group - Taiwan
- Asmin Koalindo Tuhup - Indonesia
- Maheswari Brothers Coal Limited - India
- Mintek Dendrill Indonesia
- Grasim Industreis Ltd - India
- Ambuja Cements Ltd - India
- Global Coal Blending Company Limited - Australia
- Rio Tinto Coal - Australia
- Deloitte Consulting - India
- Kohat Cement Company Ltd. - Pakistan
- Independent Power Producers Association of India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sakthi Sugars Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Straits Asia Resources Limited - Singapore
- Trasteel International SA, Italy
- PetroVietnam Power Coal Import and Supply Company
- Edison Trading Spa - Italy
- Price Waterhouse Coopers - Russia
- India Bulls Power Limited - India
- Kapuas Tunggal Persada - Indonesia
- Bayan Resources Tbk. - Indonesia
- Ceylon Electricity Board - Sri Lanka
- London Commodity Brokers - England
- Bukit Baiduri Energy - Indonesia
- Heidelberg Cement - Germany
- Port Waratah Coal Services - Australia
- Savvy Resources Ltd - HongKong
- Semirara Mining and Power Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- Bhoruka Overseas - Indonesia
- Indian Oil Corporation Limited
- Larsen & Toubro Limited - India
- GVK Power & Infra Limited - India
- Essar Steel Hazira Ltd - India
- Altura Mining Limited, Indonesia
- South Luzon Thermal Energy Corporation
- Directorate Of Revenue Intelligence - India
- Oldendorff Carriers - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ind-Barath Power Infra Limited - India
- Binh Thuan Hamico - Vietnam
- Power Finance Corporation Ltd., India
- Metalloyd Limited - United Kingdom
- Cigading International Bulk Terminal - Indonesia
- Marubeni Corporation - India
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