risks and opportunities for mining,top 10 risks in mining macro financial risks permitting risk community relations and social license to operate economic downturn/uncertainty access to capital, including liquidity ability to access and replace reserves political instability regulatory and compliance changes/ burden controlling operating costs environmental risks, including new regulations.about - kideco,the company is recognized as a credible company that can produce over 40 million tonnes of coal and stably supply coal to any customer, anywhere in the world by upgrading inland transport system, expanding the kideco-only bay, and revising the mining system, as well as constructing infrastructure..effect of indonesia's new mining regulations already,some parallels could be drawn from the 2018 conversion of the mining license of the grasberg gold and copper mine, operated by freeport indonesia. upon the conversion of its contract of work to a special mining permit, its corporate income tax rate was reduced to 25%, from 35%, but an additional 10% levy was imposed on net profit, with the net impact remaining broadly neutral. the new.indonesia: downstream linkages - iisd,the national mine workers union. the indonesian mineral entrepreneurs association threatened to challenge the ban in the supreme court.11 accenture (2015) estimated that the ban led to a 20 per cent decline in indonesia’s mining revenues, with the bauxite and nickel sectors most impacted, and that the mining sector’s contribution to gdp.
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this year's coal production in indonesia is likely to top last year's figure of 461 million tons. in fact, coal production in 2018 may also exceed the production quota that was set by the indonesian government as the nation's coal miners are eager to boost coal production amid stronger coal prices. starting from 2015 coal prices have been in an upward trend; a trend that is continuing to date.
“the coal mining contract of a relatively small indonesian contractor (tanito harum, with 2-5 million tonnes per annum production) was revoked earlier this month. this has raised the perceived risk of a similar rejection for other coal producers with mining contracts coming up for renewal in the medium term,” analysts with jpmorgan wrote in a july
indonesia might limit coal production to 400 million tonnes per annum and prioritise the usage of output for domestic customers, according to vtb capital. indonesian coal output may be capped
because indonesia is one of the world’s top exporters of coal, proponents claim that local coal plants do not rely on foreign governments or companies. this ignores the financial structure
domestic market and coal exports, the coal mining sector faces many challenges. the sustainability of the recent price recovery and coal imports by china is not ensured. the prioritization of domestic coal as fuel for electricity production is therefore a lifeline for the indonesian coal industry. notably, it
adopt coal policies that exclude project finance for new coal mines and coal-fired power plants in indonesia. adopt coal policies that exclude general corporate financing and advisory services to indonesian companies that are highly dependent on coal power. end their exposure to indonesian companies involved in coal, creating a time bound plan
6. state-owned power companies play a dominant role in proposing new coal-fired plant projects in china, tur-key, indonesia, vietnam, south africa, czech republic and many other countries. 7. chinese, german, and indian power companies are notably increasingly active in transnational coal
an assertive policy to add value to indonesia’s metal industries by forcing mining companies to process their ores domestically aims to expedite investment in smelting and processing facilities. most bauxite, for example, is still exported to china, but the planned ban on raw exports will make the mineral more easily available for domestic aluminium producers.
according to data from the south kalimantan provincial government, there were 13 coal companies with mining contracts and 160 firms with mining permits in the province as of 2013. combined, concessions for mining and oil palm plantations occupy half of south kalimantan’s total area; 33 per cent of the land falls under mining concessions and 17 per cent under oil palm concessions,
in samarinda, farmers and residents say that open-pit coal mining has drained water tables — essential for rice farming — because of the large amounts of water used in the mining process, mining also has increased flooding because it denudes topsoil
these challenges apply to the holders of contracts of work (“cows”) and coal contracts of work (“ccows”) that were issued under the pre-2009 mining regime, as well as to the holders of mining business licences ( izin usaha pertambangan , or “iups”) that have been issued under
increases strongly as coal in indonesia has a higher reserve to production ratio compared to oil and gas. also, it can reduce the risk of current account deficit and inflation due to oil imports. careful manage-ment and utilization of fossil fuel resources are critical to overcoming this challenge. 2.2 coal in indonesia’s energy sector
up to mid 2008, the mining industry both in indonesia and globally experienced significantly high performance. ﾂ・/h1>. for indonesia, pricewaterhousecoopers reported that in the last there year ebitda margin, net profit margin, return on capital employed, return on shareholders fund, and net debt to equity ratio were above the sector global average.
is particularly the case in this low commodity price environment when mining companies are looking to improve operating efficiency and productivity, and are limiting capital spending. there is therefore a real opportunity for improvement in the regulatory climate for mining in indonesia as investors
andrew hickman, from the indonesian mining watchdog down to earth, said: 'the energy we consume in britain is dirty, but the profit that uk companies make from indonesia's coal is dirtier.
with new law, indonesia gives miners more power and fewer obligations. indonesia’s parliament has passed a mining bill that activists say will lead to unbridled exploitation by a mining
corruption is also a major issue linked to indonesia’s coal industry, and a key reason why mining wealth has not benefited local communities.
many have had to leave their homes to make way for coal mines, particularly in east kalimantan where indonesian company bumi resources runs a mining project with concessions covering 90,000 hectares. one dayak community, segading, has been displaced three times by the mines, and the local leader, gagay, says his people are fighting against attempts to force them to move yet again.
there are still challenges that demand the attention of the government, including falling commodity prices and the negative trend in the profitability of mining companies…
today indonesia is a leading mining country in asia for its tin, nickel, copper-gold and coalmines. this has been done with the help of foreign companies and foreign investment. the paradox is that today, regulated mining is well an organized industry, while small scale, mining is not. this fact is an irony of small-scale mining in indonesia to day.
the indonesian government is now opening up the region for coal mining, having issued exploration permits to at least 25 companies, as well as natural gas; bp is currently developing a us$10 billion gas field at bintuni bay in west papua.
first, the mozambique government said rio tinto would not be permitted to use the zambezi river to transport coal to the indian ocean for export, forcing the company to rely on underdeveloped railways, which could not carry the amount of coal rio tinto expected to mine. then in 2013, coal prices dropped to below $100 per tonne from a peak of $130 per tonne in 2011, severely undermining the
list of disadvantages of coal. 1. environmental impact. burning coal may produce useful by-products, but it can also emit harmful wastes, such as carbon dioxide, sulfuric acid, arsenic, ash, nitrogen oxide and sulfur dioxide.
the environmental challenges from coal mining include coal mine accidents, land subsidence, damage to the water environment, mining waste disposal and air pollution. these are either environmental pollution or landscape change. a conceptual framework for solving mine environmental issues is proposed.
the interview: pandu sjahrir’s leap from indonesia’s coal baron to tech kingmaker. sjahrir, an unknown figure 10 years ago, suddenly seems to be everywhere. chairman of sea indonesia. gojek board member. his breakthrough was taking a coal mining company public in 2012. now, he’s helping tech companies list on the indonesian stock exchange.
an absence of any central authority to issue licenses concerning natural resource development has led to a vast problem with overlapping licenses; at times up to four licenses for the same concession have been granted to palm oil, pulpwood, logging, and coal mining companies (the guardian, apr. 2016).
junior coal miners are supported by the government through the mining charter of 2016 which encourages 26% black ownership (broad based black-economic empowerment) in mining companies. on the other hand, junior coal miners are supported by eskom which wants them to supply 40% of thermal coal eskom( , 2016). based on
in addition, there are a number of smelting companies around the mines which use coal in the foundries (maya et al. 2015). the effect of the mining, electricity generation and smelting industry in the area is the release of coal related gasses in very high concentrations (pone et al. 2007).