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Saturday, 25 April 09
MINING SECTOR IS STILL ON THE SURPLUS - THE JAKARTA POST
The global financial crisis is apparently also having an impact on the mining sector. People are thinking twice about investing in the mining sector, especially in companies that carry a high risk, such as those in the exploration business.
Stock prices in numerous countries, including in Indonesia, have declined. From the percentage point of view, the decline in the combined stock price index at the Indonesian Stock Exchange has been rather drastic. The financial crisis has also affected the energy and mineral resources sector.
As investors are reluctant to invest in exploration companies, the effects will be felt in three years when there are no new discovery or mining reserves. What then is the future of the mining sector in Indonesia after the worldwide economic downturn?
"The future of mining in Indonesia is still bright as no company here has experienced any losses due to the global financial crisis. This is quite a relief," said the vice chairman for energy and mineral resources of the Indonesian Chamber of Commerce and Industry (Kadin), Herman Afif Kusuma, in Jakarta on April 14.
According to Herman, it would be wrong to say that a number of mining companies have experienced losses due to the crisis when in fact they have simply made less profit. "Indeed, there is a reduction in profit during booming times, but there aren't any mining companies that have experienced losses due to the crisis," said Herman.
The chairman of the Indonesian Mining Community (MPI) said that there was no reason for mining companies here to lay off employees, even less so if they use the global financial crisis as a reason. "We must be on guard against such things," he stressed.
He acknowledged, however, that the mineral sector had received a hard blow, while the energy sector was experiencing no problems because selling prices were relatively normal.
The hardest hit companies are the major foreign investors, such as PT Freeport and PT Inco, but they have not experienced any losses.
Herman explained that mining companies that purchased concessions two or three years ago were experiencing problems amid the crisis as prices for mining products had significantly dropped.
He also admitted, however, that the global crisis had made most investors adverse to investing in the mining sector, so that infrastructure development had been shelved.
He also mentioned that the lack of legal certainty had a negative impact on investments in the mining sector. He explained that the Mineral and Coal Law leaves a number of questions unanswered for foreign investors, including the change in contract mechanism from government-to-business to business-to-business, meaning contracts will not be awarded by the government but by a business entity formed by the government. There is also a question regarding the continuation of contracts that were awarded to investors before the new Mineral and Coal Law comes into effect.
However, Herman was optimistic that after the Mineral and Coal Law comes into effect it would attract foreign investment in the domestic mining sector.
So far, at least three foreign investors have expressed interest in investing, namely Rio Tinto, BHP and a Russian company. The Mineral and Coal Law, which replaces Law No. 11/1967, can accommodate the interests of many parties and defines the authority of the central government and regional administrations.
Meanwhile, Indonesian Coal Mining Association (APBI) chairman Jeffrey Mulyon recently said that the global financial crisis was having an impact on the domestic mining sector and all parties needed to formulate the best solution so that domestic mining companies do not collapse.
Anticipation is important as the mining sector makes a huge contribution to the Indonesian economy by employing millions of people. Data as per September 2008 shows that the mining sector contributed 11.54 percent to the nation's Gross Domestic Product (GDP) amounting to Rp 142.1 trillion. If many mining companies go bankrupt, then the government would have another heavy burden as unemployment would increase.
He said that the crisis should not be taken too lightly or be regarded simply as a business matter. The decline of coal, oil and gas prices are not due to faults within the industry, and therefore mining companies should be saved for the benefit of regional economies.
Previously, Indonesian Statistics Agency (BPS) chairman Rusman Heriawan said that in the first quarter of 2009, there would be a decline in processing, mining and exploration activities. However, other sectors face brighter prospects, such as farming, finance, rental business and service companies.
In the meantime, PricewaterhouseCoopers Indonesia (PwC) reported that although the mining industry here recorded good financial results in 2007, new exploration projects were few.
"Indonesia has less geological attractiveness," said technical advisor of PwC for the mining sector Sacha Winzenried recently.
However, Winzenried stated that this sector had made a large contribution to state revenue. In 2007, the sharp increases in mining commodity prices generated huge profits.
What is unfortunate though is that the huge profits between 2002 and 2007 were mostly from sharp increases in commodity prices and not from the expansion of mining activities.
Source: http://www.thejakartapost.com/news/2009/04/24/mining-sector-still-surplus.html
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Sunday, 26 April 09
MITRA HOPES TO SECURE DEALS WITH TWO COAL FIRMS BY JUNE - THE JAKARTA POST
An integrated oil and gas services company, publicly listed PT Mitra Rajasa, is expecting to seal acquisition deals with two coal companies in June, ...
Sunday, 26 April 09
INDONESIAN GOVT SAYS COAL MINES CAUSE WEEKLONG FLOOD - THE JAKARTA POST
Samarinda administration in East Kalimantan admitted openly Thursday that the weeklong flood that paralyzed the city was caused by unruly management ...
Saturday, 25 April 09
FOREIGN SHARE DIVESTMENT STARTING THE 6TH YEAR OF PRODUCTION - MAJALAH TAMBANG
The government would set a divestment scheme for foreign miners, which would require companies to divest their ownership starting the 6th year of pr ...
Saturday, 25 April 09
INDO TAMBANGRAYA MEGAH ALLOCATED USD 126 MILLION FOR CAPITAL SPENDING - MAJALAH TAMBANG
Somyot Ruchirawat, President Director of PT Indo Tambangraya Megah, Tbk (ITMG), has announced the company's total dividend payment of Rp 1,345 per ...
Saturday, 25 April 09
ADARO RUNS CATARACT OPERATION PROGRAM - THE JAKARTA POST
As part of its CSR program, thermal coal producer PT Adaro Indonesia has made cataract operations available to residents of Tandjung district, South ...
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- PTC India Limited - India
- Power Finance Corporation Ltd., India
- Bhushan Steel Limited - India
- Kobexindo Tractors - Indoneisa
- Kepco SPC Power Corporation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Independent Power Producers Association of India
- ASAPP Information Group - India
- Toyota Tsusho Corporation, Japan
- Indo Tambangraya Megah - Indonesia
- Manunggal Multi Energi - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Samtan Co., Ltd - South Korea
- Africa Commodities Group - South Africa
- Bayan Resources Tbk. - Indonesia
- Antam Resourcindo - Indonesia
- Aboitiz Power Corporation - Philippines
- Agrawal Coal Company - India
- Parliament of New Zealand
- SMC Global Power, Philippines
- Larsen & Toubro Limited - India
- Energy Development Corp, Philippines
- Parry Sugars Refinery, India
- Jaiprakash Power Ventures ltd
- Kapuas Tunggal Persada - Indonesia
- Australian Commodity Traders Exchange
- Malabar Cements Ltd - India
- Borneo Indobara - Indonesia
- Australian Coal Association
- Riau Bara Harum - Indonesia
- Pendopo Energi Batubara - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Oldendorff Carriers - Singapore
- Siam City Cement PLC, Thailand
- Indian Oil Corporation Limited
- Directorate Of Revenue Intelligence - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ambuja Cements Ltd - India
- New Zealand Coal & Carbon
- AsiaOL BioFuels Corp., Philippines
- GVK Power & Infra Limited - India
- Interocean Group of Companies - India
- Intertek Mineral Services - Indonesia
- Indogreen Group - Indonesia
- IHS Mccloskey Coal Group - USA
- Global Business Power Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Vedanta Resources Plc - India
- Altura Mining Limited, Indonesia
- Semirara Mining Corp, Philippines
- Mjunction Services Limited - India
- Anglo American - United Kingdom
- Asmin Koalindo Tuhup - Indonesia
- Gujarat Sidhee Cement - India
- Wood Mackenzie - Singapore
- Baramulti Group, Indonesia
- Mintek Dendrill Indonesia
- Essar Steel Hazira Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Thiess Contractors Indonesia
- Madhucon Powers Ltd - India
- Straits Asia Resources Limited - Singapore
- Alfred C Toepfer International GmbH - Germany
- Merrill Lynch Commodities Europe
- ICICI Bank Limited - India
- Savvy Resources Ltd - HongKong
- Meenaskhi Energy Private Limited - India
- White Energy Company Limited
- International Coal Ventures Pvt Ltd - India
- The University of Queensland
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Thai Mozambique Logistica
- India Bulls Power Limited - India
- Planning Commission, India
- Global Green Power PLC Corporation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Bhatia International Limited - India
- GMR Energy Limited - India
- Gujarat Electricity Regulatory Commission - India
- Romanian Commodities Exchange
- Binh Thuan Hamico - Vietnam
- Bukit Makmur.PT - Indonesia
- Singapore Mercantile Exchange
- Trasteel International SA, Italy
- The Treasury - Australian Government
- Bharathi Cement Corporation - India
- Sree Jayajothi Cements Limited - India
- Ind-Barath Power Infra Limited - India
- Ministry of Transport, Egypt
- Metalloyd Limited - United Kingdom
- Posco Energy - South Korea
- Central Electricity Authority - India
- Uttam Galva Steels Limited - India
- Holcim Trading Pte Ltd - Singapore
- Salva Resources Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Eastern Energy - Thailand
- Simpson Spence & Young - Indonesia
- VISA Power Limited - India
- Port Waratah Coal Services - Australia
- Iligan Light & Power Inc, Philippines
- Price Waterhouse Coopers - Russia
- Medco Energi Mining Internasional
- Orica Australia Pty. Ltd.
- Pipit Mutiara Jaya. PT, Indonesia
- PowerSource Philippines DevCo
- GAC Shipping (India) Pvt Ltd
- Eastern Coal Council - USA
- Mercuria Energy - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- CIMB Investment Bank - Malaysia
- Kideco Jaya Agung - Indonesia
- Siam City Cement - Thailand
- Heidelberg Cement - Germany
- Vijayanagar Sugar Pvt Ltd - India
- Meralco Power Generation, Philippines
- Timah Investasi Mineral - Indoneisa
- Coastal Gujarat Power Limited - India
- Formosa Plastics Group - Taiwan
- Coal and Oil Company - UAE
- Bank of Tokyo Mitsubishi UFJ Ltd
- Electricity Generating Authority of Thailand
- Minerals Council of Australia
- MS Steel International - UAE
- Marubeni Corporation - India
- Bukit Asam (Persero) Tbk - Indonesia
- Indian Energy Exchange, India
- Makarim & Taira - Indonesia
- OPG Power Generation Pvt Ltd - India
- Goldman Sachs - Singapore
- Star Paper Mills Limited - India
- LBH Netherlands Bv - Netherlands
- Sakthi Sugars Limited - India
- Bhoruka Overseas - Indonesia
- Maheswari Brothers Coal Limited - India
- Sinarmas Energy and Mining - Indonesia
- Ministry of Mines - Canada
- Commonwealth Bank - Australia
- IEA Clean Coal Centre - UK
- Therma Luzon, Inc, Philippines
- South Luzon Thermal Energy Corporation
- Rashtriya Ispat Nigam Limited - India
- Edison Trading Spa - Italy
- Petrochimia International Co. Ltd.- Taiwan
- Sojitz Corporation - Japan
- Indika Energy - Indonesia
- Tata Chemicals Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Globalindo Alam Lestari - Indonesia
- Xindia Steels Limited - India
- Kartika Selabumi Mining - Indonesia
- Karaikal Port Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- CNBM International Corporation - China
- Indonesian Coal Mining Association
- Bahari Cakrawala Sebuku - Indonesia
- Central Java Power - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Electricity Authority, New Zealand
- Leighton Contractors Pty Ltd - Australia
- Aditya Birla Group - India
- Economic Council, Georgia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- European Bulk Services B.V. - Netherlands
- Mercator Lines Limited - India
- Vizag Seaport Private Limited - India
- Latin American Coal - Colombia
- Global Coal Blending Company Limited - Australia
- SMG Consultants - Indonesia
- Rio Tinto Coal - Australia
- TeaM Sual Corporation - Philippines
- San Jose City I Power Corp, Philippines
- Tamil Nadu electricity Board
- Dalmia Cement Bharat India
- Sical Logistics Limited - India
- Videocon Industries ltd - India
- Deloitte Consulting - India
- Grasim Industreis Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Wilmar Investment Holdings
- Miang Besar Coal Terminal - Indonesia
- Jindal Steel & Power Ltd - India
- Ministry of Finance - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Coalindo Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- Jorong Barutama Greston.PT - Indonesia
- Carbofer General Trading SA - India
- Petron Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Bangladesh Power Developement Board
- Orica Mining Services - Indonesia
- Kumho Petrochemical, South Korea
- SN Aboitiz Power Inc, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Standard Chartered Bank - UAE
- PNOC Exploration Corporation - Philippines
- The State Trading Corporation of India Ltd
- Bukit Baiduri Energy - Indonesia
- Bulk Trading Sa - Switzerland
- Barasentosa Lestari - Indonesia
- McConnell Dowell - Australia
- Chettinad Cement Corporation Ltd - India
- London Commodity Brokers - England
- Lanco Infratech Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Kaltim Prima Coal - Indonesia
- Attock Cement Pakistan Limited
- Chamber of Mines of South Africa
- Cement Manufacturers Association - India
- Kohat Cement Company Ltd. - Pakistan
- Georgia Ports Authority, United States
- Sarangani Energy Corporation, Philippines
- Renaissance Capital - South Africa
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