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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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Monday, 07 December 09
CHINA COKING COAL PRICE MAY RISE 14% ON DEFICIT, CITIGROUP SAYS
Coking coal prices in China, the world’s biggest steel producer, may rise 14 percent next year because of a supply deficit, Citigroup Inc. sai ...
Monday, 07 December 09
JSW STEEL TO SELL MOZAMBIQUE COAL MINE FOR RS 300 CRORE
JSW Steel may sell its coal mine in Mozambique to sister company JSW Energy as the mine has become commercially unviable for the steel producer, a t ...
Monday, 07 December 09
BLACK RIDGE MINING ENTERS AGREEMENT WITH INDONESIAN COAL PRODUCER
Australian-listed Black Ridge Mining has entered into an exclusive dealing and non-circumvention agreement with Indonesian coal producer PT. Inmas A ...
Sunday, 06 December 09
THE ECI / CHINA (S7) ROUTE SOFTENED AND WAS AT US$ 25,275 PER DAY - VISTAAR
COALspot.com (Singapore): "The market was bit soft in the beginning of the week, however towards mid week that market started to pick up and th ...
Sunday, 06 December 09
NEW MANGALORE PORT GETS UPCL'S FIRST COAL PARCEL FROM INDONESIA
The Lanco Group-promoted Udupi Power Corporation Ltd (UPCL) has received the first parcel of imported coal from Indonesia at the New Mangalore Port. ...
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- London Commodity Brokers - England
- Intertek Mineral Services - Indonesia
- Holcim Trading Pte Ltd - Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Eastern Coal Council - USA
- Sarangani Energy Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Makarim & Taira - Indonesia
- Aditya Birla Group - India
- Indogreen Group - Indonesia
- Videocon Industries ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Vizag Seaport Private Limited - India
- Wood Mackenzie - Singapore
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Orica Mining Services - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Indian Oil Corporation Limited
- Samtan Co., Ltd - South Korea
- Mercuria Energy - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Globalindo Alam Lestari - Indonesia
- Savvy Resources Ltd - HongKong
- Vijayanagar Sugar Pvt Ltd - India
- Standard Chartered Bank - UAE
- Chamber of Mines of South Africa
- Billiton Holdings Pty Ltd - Australia
- Meralco Power Generation, Philippines
- TeaM Sual Corporation - Philippines
- Commonwealth Bank - Australia
- Global Green Power PLC Corporation, Philippines
- Siam City Cement PLC, Thailand
- Krishnapatnam Port Company Ltd. - India
- Siam City Cement - Thailand
- Central Java Power - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Petron Corporation, Philippines
- Star Paper Mills Limited - India
- Alfred C Toepfer International GmbH - Germany
- Coalindo Energy - Indonesia
- Agrawal Coal Company - India
- SMC Global Power, Philippines
- Indika Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- Mercator Lines Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Parliament of New Zealand
- Deloitte Consulting - India
- Gujarat Mineral Development Corp Ltd - India
- Ambuja Cements Ltd - India
- Bhoruka Overseas - Indonesia
- Africa Commodities Group - South Africa
- Manunggal Multi Energi - Indonesia
- Simpson Spence & Young - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- India Bulls Power Limited - India
- Mintek Dendrill Indonesia
- Eastern Energy - Thailand
- Carbofer General Trading SA - India
- Wilmar Investment Holdings
- AsiaOL BioFuels Corp., Philippines
- Planning Commission, India
- Antam Resourcindo - Indonesia
- Bharathi Cement Corporation - India
- Uttam Galva Steels Limited - India
- Bukit Makmur.PT - Indonesia
- Formosa Plastics Group - Taiwan
- European Bulk Services B.V. - Netherlands
- Power Finance Corporation Ltd., India
- Jaiprakash Power Ventures ltd
- Global Business Power Corporation, Philippines
- Mjunction Services Limited - India
- Kumho Petrochemical, South Korea
- Attock Cement Pakistan Limited
- ASAPP Information Group - India
- Edison Trading Spa - Italy
- The Treasury - Australian Government
- Orica Australia Pty. Ltd.
- Sree Jayajothi Cements Limited - India
- Independent Power Producers Association of India
- Ministry of Mines - Canada
- International Coal Ventures Pvt Ltd - India
- Essar Steel Hazira Ltd - India
- Salva Resources Pvt Ltd - India
- Energy Development Corp, Philippines
- Ministry of Transport, Egypt
- Energy Link Ltd, New Zealand
- Asmin Koalindo Tuhup - Indonesia
- Posco Energy - South Korea
- Maheswari Brothers Coal Limited - India
- Latin American Coal - Colombia
- Semirara Mining Corp, Philippines
- CNBM International Corporation - China
- Parry Sugars Refinery, India
- Larsen & Toubro Limited - India
- Indian Energy Exchange, India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- SMG Consultants - Indonesia
- Port Waratah Coal Services - Australia
- Toyota Tsusho Corporation, Japan
- Sindya Power Generating Company Private Ltd
- Cigading International Bulk Terminal - Indonesia
- Singapore Mercantile Exchange
- Sojitz Corporation - Japan
- Dalmia Cement Bharat India
- Electricity Authority, New Zealand
- Directorate Of Revenue Intelligence - India
- Metalloyd Limited - United Kingdom
- Indo Tambangraya Megah - Indonesia
- Australian Commodity Traders Exchange
- Borneo Indobara - Indonesia
- Lanco Infratech Ltd - India
- PNOC Exploration Corporation - Philippines
- Altura Mining Limited, Indonesia
- Banpu Public Company Limited - Thailand
- PetroVietnam Power Coal Import and Supply Company
- GMR Energy Limited - India
- Riau Bara Harum - Indonesia
- Straits Asia Resources Limited - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kepco SPC Power Corporation, Philippines
- White Energy Company Limited
- Baramulti Group, Indonesia
- LBH Netherlands Bv - Netherlands
- Kartika Selabumi Mining - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- McConnell Dowell - Australia
- Bulk Trading Sa - Switzerland
- Maharashtra Electricity Regulatory Commission - India
- Sinarmas Energy and Mining - Indonesia
- Goldman Sachs - Singapore
- Thiess Contractors Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Price Waterhouse Coopers - Russia
- Rio Tinto Coal - Australia
- Tamil Nadu electricity Board
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Medco Energi Mining Internasional
- Trasteel International SA, Italy
- Thai Mozambique Logistica
- Kapuas Tunggal Persada - Indonesia
- Gujarat Sidhee Cement - India
- CIMB Investment Bank - Malaysia
- San Jose City I Power Corp, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Coastal Gujarat Power Limited - India
- OPG Power Generation Pvt Ltd - India
- Renaissance Capital - South Africa
- Indonesian Coal Mining Association
- Georgia Ports Authority, United States
- Kobexindo Tractors - Indoneisa
- Cement Manufacturers Association - India
- Binh Thuan Hamico - Vietnam
- Gujarat Electricity Regulatory Commission - India
- Iligan Light & Power Inc, Philippines
- Therma Luzon, Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- MS Steel International - UAE
- Leighton Contractors Pty Ltd - Australia
- Karaikal Port Pvt Ltd - India
- Global Coal Blending Company Limited - Australia
- Bangladesh Power Developement Board
- Oldendorff Carriers - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Marubeni Corporation - India
- Bhushan Steel Limited - India
- Timah Investasi Mineral - Indoneisa
- Vedanta Resources Plc - India
- Coal and Oil Company - UAE
- ICICI Bank Limited - India
- SN Aboitiz Power Inc, Philippines
- The University of Queensland
- Jindal Steel & Power Ltd - India
- The State Trading Corporation of India Ltd
- Sakthi Sugars Limited - India
- Grasim Industreis Ltd - India
- Ind-Barath Power Infra Limited - India
- Bhatia International Limited - India
- VISA Power Limited - India
- Heidelberg Cement - Germany
- New Zealand Coal & Carbon
- IEA Clean Coal Centre - UK
- Rashtriya Ispat Nigam Limited - India
- Bayan Resources Tbk. - Indonesia
- Economic Council, Georgia
- Anglo American - United Kingdom
- PowerSource Philippines DevCo
- Tata Chemicals Ltd - India
- GVK Power & Infra Limited - India
- Australian Coal Association
- Neyveli Lignite Corporation Ltd, - India
- Merrill Lynch Commodities Europe
- Kohat Cement Company Ltd. - Pakistan
- Kaltim Prima Coal - Indonesia
- Barasentosa Lestari - Indonesia
- Interocean Group of Companies - India
- Chettinad Cement Corporation Ltd - India
- Meenaskhi Energy Private Limited - India
- Kideco Jaya Agung - Indonesia
- Romanian Commodities Exchange
- Central Electricity Authority - India
- South Luzon Thermal Energy Corporation
- PTC India Limited - India
- Madhucon Powers Ltd - India
- Malabar Cements Ltd - India
- Electricity Generating Authority of Thailand
- Sical Logistics Limited - India
- Ministry of Finance - Indonesia
- Xindia Steels Limited - India
- Pendopo Energi Batubara - Indonesia
- Bukit Baiduri Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- Minerals Council of Australia
- Aboitiz Power Corporation - Philippines
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