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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 production. The divestment process would be arranged to gradually reach a total sum of 20% by the end of the 9th year. The technical arrangement for the divestment scheme has been included in the government regulation draft (RPP in its Indonesian abbreviation) as an implementation of the new Mining Law (Law No.4/2009).
S. Witoro Soelarno, Secretary of the Directorate General of Mineral, Coal and Geothermal – Ministry of Energy and Mineral Resources, explained that the divestment’s percentage sum and timetable would also take the interest of the related mining companies into account.
Article 112, Section 1, of the Mining Law stipulated that after 5 years of production, Mining Permit (IUP in its Indonesian abbreviation) and Special Mining Permit (IUPK in its Indonesian abbreviation) owner, whose shares owned by foreigners, are obliged to divest their shares to national entities. The national entities referred to are including central government, local government, state owned enterprises (BUMN in its Indonesian abbreviation), province owned enterprises (BUMD in its Indonesian abbreviation), or national private enterprises.
Some has considered that the regulation might be a threat for investors, since the mining business is long term in nature and that it would require extra budget. If investors must divest their shares in just five years period, they might face a financial trouble because no one would guarantee the expected return for their business.
“The condition would certainly caused difficulties and hesitation for the investors to invest their capital,” M Fadhil Hasan, an economist from the Institute for Development of Economic and Finance (INDEF), asserted.
Nevertheless, Witoro argued that the government would arrange the divestment scheme in the best manner, through the government regulation draft that is currently being prepared.
Source: http://www.majalahtambang.com/detail_berita.php?category=15&newsnr=1404
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Monday, 27 April 09
INDONESIA S.KALIMANTAN GETS COAL TRUCKS OFF PUBLIC ROADS - REUTERS
A local government in one of Indonesia's top coal-producing areas has banned coal and palm oil firms from using public roads because of the damage ...
Monday, 27 April 09
JSW ENERGY SET TO SNAP UP AFRICAN COAL MINE FOR $70 MN - ECONOMIC TIMES
Sajjan Jindal-led JSW Energy is close to acquiring a sub-Saharan African thermal coal mine, which has reserves of more than 200 million ...
Monday, 27 April 09
INDONESIA MINING RULES MAY DETER INVESTORS-OFFICIALS - REUTERS
Indonesia's rules on foreign divestment of mining projects must be revised to address issues such as finding buyers if Southeast Asia's biggest ec ...
Monday, 27 April 09
UNDERGROUND MINING IN FOREST AREAS NOT SO SIMPLE - THE JAKARTA POST
The government's plan to issue a presidential decree allowing mining companies to mine underground in protected forest concession areas has resulte ...
Monday, 27 April 09
COAL PRICES ABOVE FUNDAMENTALS - STUFF.CO.NZ
Coal prices have defied the gravity of fundamental factors, supported by stockpiling prompted by cheaper prompt prices rather than a reflextion of a ...
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- Dr Ramakrishna Prasad Power Pvt Ltd - India
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- Bank of Tokyo Mitsubishi UFJ Ltd
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- Minerals Council of Australia
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- Metalloyd Limited - United Kingdom
- IEA Clean Coal Centre - UK
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- Barasentosa Lestari - Indonesia
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- Savvy Resources Ltd - HongKong
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- Dalmia Cement Bharat India
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- Bulk Trading Sa - Switzerland
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- Sical Logistics Limited - India
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- Power Finance Corporation Ltd., India
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- Kalimantan Lumbung Energi - Indonesia
- Africa Commodities Group - South Africa
- Bukit Baiduri Energy - Indonesia
- Bangladesh Power Developement Board
- Sinarmas Energy and Mining - Indonesia
- Baramulti Group, Indonesia
- Port Waratah Coal Services - Australia
- Sojitz Corporation - Japan
- Alfred C Toepfer International GmbH - Germany
- Posco Energy - South Korea
- Wilmar Investment Holdings
- Economic Council, Georgia
- Independent Power Producers Association of India
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- Indian Energy Exchange, India
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- Intertek Mineral Services - Indonesia
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- Global Business Power Corporation, Philippines
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- Orica Mining Services - Indonesia
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- Miang Besar Coal Terminal - Indonesia
- The University of Queensland
- Pipit Mutiara Jaya. PT, Indonesia
- Goldman Sachs - Singapore
- Romanian Commodities Exchange
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- Gujarat Electricity Regulatory Commission - India
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- LBH Netherlands Bv - Netherlands
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- Siam City Cement PLC, Thailand
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- The Treasury - Australian Government
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- AsiaOL BioFuels Corp., Philippines
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- Chamber of Mines of South Africa
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- Renaissance Capital - South Africa
- European Bulk Services B.V. - Netherlands
- Eastern Energy - Thailand
- Eastern Coal Council - USA
- Oldendorff Carriers - Singapore
- Parliament of New Zealand
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- Trasteel International SA, Italy
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- Planning Commission, India
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- Central Java Power - Indonesia
- Sindya Power Generating Company Private Ltd
- CIMB Investment Bank - Malaysia
- Bukit Makmur.PT - Indonesia
- Ministry of Mines - Canada
- Grasim Industreis Ltd - India
- Iligan Light & Power Inc, Philippines
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- Attock Cement Pakistan Limited
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- CNBM International Corporation - China
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- Price Waterhouse Coopers - Russia
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