Below is a list with tagged columns and company profiles.

Today's Headlines Mining

  • Sakari Resources Will IPO on Indonesia Stock Exchange When Coal Price Rises

    PTT Plc, a Thailand-based energy company which conducts coal mining activities in Sebuku, Jambayan and Laung (all on the island of Kalimantan), is planning to list its subsidiary, Sakari Resources, on the Indonesia Stock Exchange through an initial public offering (IPO). PTT Plc has been active in Indonesia's mining sector since 2008 when it acquired a 94 percent stake in (Singapore-listed) Sakari Resources. After the acquisition, Sakari Resources delisted from the Singapore Stock Exchange.

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  • Indonesia Records USD $430 Million Trade Deficit in January 2014

    After recording three months of consecutive trade surpluses at the end of 2013, Indonesia's trade balance slipped back into deficit in January 2014. Indonesia - Southeast Asia's largest economy - posted a USD $430.6 million deficit in the first month of 2014. Exports fell 5.79 percent (year-on-year) to USD $14.48 billion, while imports fell 3.46 percent to USD $14.92 billion. The decline in exports were caused by the implementation of the ban on raw minerals (per 12 January 2014). Mineral ore exports fell over 70 percent (month-to-month).

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  • Owners of Controversial Tujuh Bukit Plan IPO on Indonesia Stock Exchange

    The owners of Tujuh Bukit, a gold and copper project located near Banyuwangi (East Java), are planning to conduct an initial public offering on the Indonesia Stock Exchange in the third quarter of 2014. The project zone is estimated to contain at least 1.6 million ounces of gold and 60 million ounces of silver. If construction of the mine can be realized this year, then gold production can start in 2016. Construction of the copper mine is expected to start in 2019. Through the IPO, USD $75 million is targeted to be raised (used for concession development).

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  • Ministry: Coal Production of Indonesia Reaches 421 Million Tons in 2013

    Indonesia's Ministry of Energy and Mineral Resources stated that domestic production of coal in Southeast Asia's largest economy reached 421 million tons in 2013. This implies a 7.6 percent growth in production from the previous year (391 million tons). R. Sukhyar, General Director of Mineral and Coal within the Ministry said that Indonesia's production of coal in 2014 is likely to exceed 400 million tons again as global demand for this fossil fuel remains strong. Indonesia is one of the world's largest producers and exporters of coal.

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  • Weak Mining Sector: Production of Heavy Equipment in Indonesia Fell 30%

    In 2013, domestic production of heavy equipment in Indonesia fell 30 percent to 6,127 units from the previous year as commodity prices (such as crude palm oil and coal) were still down. This made Indonesian miners reluctant to ramp up production figures, thus having less need to purchase heavy equipment. According to Pratjojo Dewo, Chairman of the Indonesian Heavy Equipment Association (Hinabi), demand for heavy equipment in Indonesia started falling at the end of 2012 and continued into 2013.

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  • Government Tones Down Indonesia's Export Ban Unprocessed Minerals

    Only about one hour before the controversial new Mining Law No.4/2009 would take effect on early Sunday morning (12/01), President Susilo Bambang Yudhoyono signed a regulation that eases the impact of the new law. The aim of Mining Law No.4/2009 is to ban the export of certain unprocessed minerals (including concentrates) but the new regulation that was signed on Saturday evening (11/01) stipulates that concentrates can still be exported for the next three years, while exports of ore are prohibited since Sunday morning.

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  • Government Decision on Unprocessed Mineral Export Ban Expected Today

    Today (11/01), the government of Indonesia will announce its decision regarding the ban on exports of unrefined mineral ore. This ban, set in the controversial Mining Law No.4/2009, should become effective starting from Sunday 12 January 2014 unless the government will decide to delay full implementation. Industry Minister MS Hidayat stated that the government is still debating about the matter. The new law is controversial because it hollows regulatory certainty, miners's profitability and leads to increased unemployment.

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  • Indonesia Seeking Middle Way in Unprocessed Mineral Export Ban

    Indonesia's controversial Mining Law No.4/2009, which puts a ban on exports of unprocessed minerals from Southeast Asia's largest economy, is not expected to be implemented in full force on 12 January 2014 as the Ministry of Energy and Mineral Resources now proposes more flexibility for miners. Sukhyar, General Director of Coal and Minerals at the Ministry, said that the proposal would imply a continuation of the export of concentrate or minerals that have been processed to a certain degree until 2017.

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  • Indonesian Vertically Integrated Energy Producer: Exploitasi Energi Indonesia

    Indonesia Investments added the preliminary company profile of Exploitasi Energi Indonesia. The company, a vertically-integrated energy company, is engaged in coal production & trading, coal logistics & transportation, and power generation. Currently, most of its revenue is derived from its coal mining activities. However, in the years ahead it intends to focus more on turning electricity generation into its main source of revenue. It has a long-term coal supply contract with state electricity company Perusahaan Listrik Negara (PLN).

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  • Indonesia May Review its Ban on the Export of Unprocessed Minerals

    Indonesia's state news agency Antara reported that the government may review its Mining Law No.4/2009 which stipulates a ban on the export of raw minerals. This controversial new law, through which the government aims to raise more value-added revenues, caused a shockwave across Indonesia's mining sector because a significant amount of mineral exports constitute unprocessed ones. The law, which is set to be implemented on 12 January 2014, implies that minerals need to be processed domestically first before exports are allowed.

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Latest Columns Mining

  • What about Indonesia's Coal Mining Sector? A Short Overview and Analysis

    Coal is one of the most important commodities for Indonesia in terms of state revenue as it accounts for about 85 percent of the country's total mining revenue. Therefore, when global coal prices fell sharply from 2011 (amid a slowing global economy), Indonesia felt the impact. In a response to lower coal prices, Indonesian miners actually increased coal output thus placing more downward pressure on coal prices and profit margins. Although the coal industry will remain frail for some time to come, long-term prospects are still strong.

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  • Government of Indonesia Plans to Raise Royalties for Coal Miners

    Indonesia's Ministry of Energy and Mineral Resources plans to set royalties for all types of coal at 13.5 percent (of net sales) as part of a revision of Government Regulation No. 9 - 2012 on Tariff and Types of Non-Tax Revenue. Currently, the percentage of royalty depends on the quality of the coal that is extracted as well as the type of permit that is issued to the coal miner. Apart from higher coal royalties, the Indonesian government also proposes a windfall profits tax in case there is a sharp upward price correction.

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  • Bank Indonesia: Export Ban Causes Slowing Economy Eastern Regions

    The central bank of Indonesia (Bank Indonesia) believes that Indonesia's recently introduced ban on the export of unprocessed minerals, in effect since 12 January 2014, will result in slowing economic growth in several regions in the eastern part of Indonesia as these regions are main sources of mineral production. Doddy Zulverdi, Head of the Economic Assessment Group in Bank Indonesia's Department of Economic and Monetary Policy, said that Sulawesi and Kalimantan will post slowing economic growth this year.

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  • Trade Deficit of Indonesia in 2014 Expected to Remain USD $4 Billion

    Statistics Indonesia (BPS), a non-departmental government institute, expects that Indonesia's trade balance will post a deficit of around USD $4 billion in 2014. The key question is whether increased manufacturing and agricultural exports can replace reduced raw mineral exports. The forecast of BPS is approximately similar to the country's trade deficit in 2013. Last year, Southeast Asia's largest economy recorded a deficit of USD $4.06 billion as the total value of exports amounted to USD $182.57 billion, while imports reached USD $186.63 billion.

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  • New Mining Law of Indonesia: 3 New Smelters Ready for Production in 2014

    The BKPM announced that three processing and mineral concentrate refineries (smelters) are in the construction phase and expected to be ready for production in Indonesia this year. Two of the three smelters will process and purify iron ore while the third will process bauxite ore into chemical grade alumina. The three smelters are owned by Indonesia Chemical Alumina. This company, a joint venture between Aneka Tambang (Antam) and Japan, operates in West Kalimantan.

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  • Softer Rules but Unclarity Remains about Indonesia's Ore Export Ban

    On Sunday (12/01), one of the most important new laws in the recent history of Indonesia came in force. Mining Law Nr.4/2009, which prohibits the export of unprocessed minerals from Southeast Asia's largest economy, was implemented. However, it was not implemented in its original form. The president of Indonesia, Susilo Bambang Yudhoyono, signed a last-minute regulation which softens the impact of the new law by allowing mining companies to continue exports of copper, manganese, zinc, lead and iron ore concentrate until 2017.

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  • Indonesia's Mining Export Ban Impacts on Current Account Deficit in 2014

    Indonesia's ban on the export of unprocessed minerals, which is scheduled to take effect on 12 January 2014, is expected to lead to a temporary slowdown of Indonesia's total exports and thus will put more pressure on the country's current account deficit. Despite two consecutive months with trade surpluses (October and November 2013), Indonesia's wide current account deficit is still a concern to investors as well as the government although the deficit has shown an easing trend in recent quarters.

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  • Indonesia Might Delay Implementation of Mineral Export Ban by 3 Years

    After having reported yesterday (26/12) that Indonesia's ban on the export of unprocessed minerals, stipulated in Mining Law No.4/2009 (which is set to become in force from 12 January 2014), may be delayed, more and more signs are pointing towards a postponement of this law. Minister of Energy and Mineral Resources, Jero Wacik, said that the government is considering to delay the implementation of the law by two or three years as the ban will cause increased unemployment and the cease of mining operations.

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  • Paving the Way for Geothermal Energy Development in Indonesia

    Asep Sugiharta, an official at the Ministry of Forestry, said that a new bill has been submitted to Indonesia's parliament (DPR) which is expected to open up the potential for geothermal power development in Indonesia. Currently, geothermal exploitation is lawfully defined as a 'mining activity' (Law No. 27 2003) and therefore prohibited to be conducted in protected forest and conservation areas (Law No. 41 1999), even though geothermal mining activities have a relatively small impact on the environment (compared to other mining activities).

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  • Go-Ahead for Indonesia's Controversial Ban on Unprocessed Mineral Exports

    Starting from 12 January 2014, the export of all mineral-ores are banned in Indonesia. This controversial new policy, stipulated by the 2009 Mining Law (on Minerals and Coal Mining), was agreed upon by the nine fractions in Commission VII of the Indonesian parliament (DPR). Through this new law, the government intends to increase the value of exports while reducing dependence on raw exports and thus becoming less vulnerable to price downswings on the global commodities market.

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