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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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Tuesday, 21 April 09
INDONESIAN GOVT TO ALLOW UNDERGROUND MINING IN PROTECTED FORESTS - THE JAKARTA POST
The government will issue a regulation allowing mining companies to carry out underground mining in protected forests.
"This regulation will ...
Tuesday, 21 April 09
INDONESIAN GOVT LIKELY TO MISS INVESTMENT TARGETS FOR ENERGY, MINING - THE JAKARTA POST
The total value of investments in energy and mining sectors by the end of the year is likely to be below the government’s target, as a result of ...
Monday, 20 April 09
INDONESIAN COAL MINING ASSOCIATION CALLED TO CONTROL MINERS - MAJALA TAMBANG
The Indonesian Coal Mining Association (ICMA) is called to expand its membership further in view of controlling the conduct of miners in the nationa ...
Monday, 20 April 09
BANPU PLANS TO SHIP 2 MLN T COAL TO CHINA IN 09 - REUTERS
Banpu, Thailand's largest coal miner, plans to increase coal shipments to China by about 30 percent to 2 million tonnes in 2009, company officials ...
Monday, 20 April 09
INDO TAMBANGRAYA 2009 OUTPUT TO GO UP 16% - THE JAKARTA POST
Indonesia's third largest coal producer, publicly listed PT Indo Tambangraya Megah (ITM), is targeting to raise production by 16 percent this year ...
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- Africa Commodities Group - South Africa
- Maharashtra Electricity Regulatory Commission - India
- Sinarmas Energy and Mining - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Standard Chartered Bank - UAE
- Chettinad Cement Corporation Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Indian Oil Corporation Limited
- Mercator Lines Limited - India
- Videocon Industries ltd - India
- OPG Power Generation Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Aditya Birla Group - India
- Ceylon Electricity Board - Sri Lanka
- Savvy Resources Ltd - HongKong
- Kideco Jaya Agung - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Trasteel International SA, Italy
- London Commodity Brokers - England
- PowerSource Philippines DevCo
- Billiton Holdings Pty Ltd - Australia
- CIMB Investment Bank - Malaysia
- GVK Power & Infra Limited - India
- Ministry of Mines - Canada
- Sindya Power Generating Company Private Ltd
- Simpson Spence & Young - Indonesia
- Intertek Mineral Services - Indonesia
- Wood Mackenzie - Singapore
- Rio Tinto Coal - Australia
- Singapore Mercantile Exchange
- LBH Netherlands Bv - Netherlands
- Electricity Generating Authority of Thailand
- Rashtriya Ispat Nigam Limited - India
- Independent Power Producers Association of India
- Meralco Power Generation, Philippines
- India Bulls Power Limited - India
- ICICI Bank Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Makarim & Taira - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Uttam Galva Steels Limited - India
- Carbofer General Trading SA - India
- Indika Energy - Indonesia
- Global Business Power Corporation, Philippines
- Planning Commission, India
- Mintek Dendrill Indonesia
- Central Java Power - Indonesia
- Georgia Ports Authority, United States
- Orica Mining Services - Indonesia
- Siam City Cement - Thailand
- Formosa Plastics Group - Taiwan
- The University of Queensland
- Meenaskhi Energy Private Limited - India
- Eastern Coal Council - USA
- GAC Shipping (India) Pvt Ltd
- Commonwealth Bank - Australia
- Globalindo Alam Lestari - Indonesia
- International Coal Ventures Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Mjunction Services Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Energy Development Corp, Philippines
- The State Trading Corporation of India Ltd
- Kumho Petrochemical, South Korea
- Borneo Indobara - Indonesia
- Karaikal Port Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Oldendorff Carriers - Singapore
- San Jose City I Power Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Bhoruka Overseas - Indonesia
- ASAPP Information Group - India
- South Luzon Thermal Energy Corporation
- Interocean Group of Companies - India
- Indo Tambangraya Megah - Indonesia
- Power Finance Corporation Ltd., India
- Banpu Public Company Limited - Thailand
- SMG Consultants - Indonesia
- Gujarat Sidhee Cement - India
- New Zealand Coal & Carbon
- Directorate Of Revenue Intelligence - India
- Jindal Steel & Power Ltd - India
- Latin American Coal - Colombia
- Coalindo Energy - Indonesia
- Ind-Barath Power Infra Limited - India
- Energy Link Ltd, New Zealand
- Edison Trading Spa - Italy
- Cement Manufacturers Association - India
- Sojitz Corporation - Japan
- Eastern Energy - Thailand
- Ministry of Finance - Indonesia
- Therma Luzon, Inc, Philippines
- Orica Australia Pty. Ltd.
- Grasim Industreis Ltd - India
- Bukit Makmur.PT - Indonesia
- Marubeni Corporation - India
- Cigading International Bulk Terminal - Indonesia
- Semirara Mining Corp, Philippines
- Kaltim Prima Coal - Indonesia
- Economic Council, Georgia
- Global Coal Blending Company Limited - Australia
- Xindia Steels Limited - India
- Bharathi Cement Corporation - India
- Kartika Selabumi Mining - Indonesia
- Attock Cement Pakistan Limited
- Thiess Contractors Indonesia
- Madhucon Powers Ltd - India
- Heidelberg Cement - Germany
- Parliament of New Zealand
- Miang Besar Coal Terminal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- White Energy Company Limited
- Kalimantan Lumbung Energi - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Coal and Oil Company - UAE
- Parry Sugars Refinery, India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ministry of Transport, Egypt
- Anglo American - United Kingdom
- PTC India Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Coastal Gujarat Power Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Deloitte Consulting - India
- VISA Power Limited - India
- Minerals Council of Australia
- Pendopo Energi Batubara - Indonesia
- McConnell Dowell - Australia
- SMC Global Power, Philippines
- Petron Corporation, Philippines
- Larsen & Toubro Limited - India
- Gujarat Electricity Regulatory Commission - India
- Kepco SPC Power Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- IHS Mccloskey Coal Group - USA
- Mercuria Energy - Indonesia
- Lanco Infratech Ltd - India
- IEA Clean Coal Centre - UK
- Port Waratah Coal Services - Australia
- CNBM International Corporation - China
- Dalmia Cement Bharat India
- Jaiprakash Power Ventures ltd
- Bangladesh Power Developement Board
- Sakthi Sugars Limited - India
- Kobexindo Tractors - Indoneisa
- Straits Asia Resources Limited - Singapore
- Malabar Cements Ltd - India
- Indian Energy Exchange, India
- Holcim Trading Pte Ltd - Singapore
- Samtan Co., Ltd - South Korea
- Vizag Seaport Private Limited - India
- Posco Energy - South Korea
- GMR Energy Limited - India
- Toyota Tsusho Corporation, Japan
- Kohat Cement Company Ltd. - Pakistan
- Indonesian Coal Mining Association
- Antam Resourcindo - Indonesia
- Bukit Baiduri Energy - Indonesia
- The Treasury - Australian Government
- Maheswari Brothers Coal Limited - India
- Australian Coal Association
- Kapuas Tunggal Persada - Indonesia
- Aboitiz Power Corporation - Philippines
- Gujarat Mineral Development Corp Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Agrawal Coal Company - India
- Sical Logistics Limited - India
- Ambuja Cements Ltd - India
- Australian Commodity Traders Exchange
- Thai Mozambique Logistica
- Directorate General of MIneral and Coal - Indonesia
- Central Electricity Authority - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sree Jayajothi Cements Limited - India
- Siam City Cement PLC, Thailand
- AsiaOL BioFuels Corp., Philippines
- Bhushan Steel Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Global Green Power PLC Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Salva Resources Pvt Ltd - India
- Goldman Sachs - Singapore
- Metalloyd Limited - United Kingdom
- MS Steel International - UAE
- GN Power Mariveles Coal Plant, Philippines
- SN Aboitiz Power Inc, Philippines
- Bulk Trading Sa - Switzerland
- Merrill Lynch Commodities Europe
- Sarangani Energy Corporation, Philippines
- Essar Steel Hazira Ltd - India
- European Bulk Services B.V. - Netherlands
- Iligan Light & Power Inc, Philippines
- Tamil Nadu electricity Board
- Medco Energi Mining Internasional
- PetroVietnam Power Coal Import and Supply Company
- Renaissance Capital - South Africa
- Leighton Contractors Pty Ltd - Australia
- Manunggal Multi Energi - Indonesia
- Vedanta Resources Plc - India
- Binh Thuan Hamico - Vietnam
- Vijayanagar Sugar Pvt Ltd - India
- Romanian Commodities Exchange
- Chamber of Mines of South Africa
- Star Paper Mills Limited - India
- Wilmar Investment Holdings
- Bhatia International Limited - India
- Riau Bara Harum - Indonesia
- Electricity Authority, New Zealand
- Indogreen Group - Indonesia
- Bayan Resources Tbk. - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Baramulti Group, Indonesia
- TeaM Sual Corporation - Philippines
- Tata Chemicals Ltd - India
- PNOC Exploration Corporation - Philippines
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