Below is a list with tagged columns and company profiles.

Today's Headlines Mining

  • Indonesian Banks’ Non-Performing Loans Rising Sharply in Four Sectors

    Although Deputy Governor of the central bank of Indonesia (Bank Indonesia), Halim Alamsyah, said that the non-performing loan (NPL) level in Indonesia’s banking sector is currently safe at 2.24 percent (well below the five percent threshold which is considered safe), the institution has been monitoring the high level of NPLs in four sectors: construction, trade, mining and social services. The bank will study why the ratio has been growing - whether it is a temporary phenomenon or not - and search the correct policy approach to address this issue.

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  • Newmont Nusa Tenggara and Indonesian Government Signed MoU

    The Chief Executive at Newmont Nusa Tenggara, Martiono Hadianto, said that on Wednesday evening (03/09) a Memorandum of Understanding (MoU) has been signed between the USA- based mining giant and the Indonesian government after an 8-month dispute over the country’s ban on exports of mineral ore (implemented on 12 January 2014). The mining company can now resume copper concentrate exports next week. Earlier this week it had been announced that both sides would come to an agreement.

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  • Mining in Indonesia: Newmont and Government Agree on Renegotiations

    The Indonesian government and Newmont Nusa Tenggara (NNT) have reportedly agreed on the content of a renegotiation package after an 8-month dispute over the mineral ore export ban. NNT, subsidiary of the USA-based Newmont Mining Corporation, will be allowed to resume copper concentrate exports up to 200,000 tons (with a value of about USD $400 million) until the end of 2014. Last week, NNT already announced it would not seek international arbitration over this matter.

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  • Mining in Indonesia: Impact of Mineral Export Ban on Aneka Tambang

    State-controlled mining company Aneka Tambang (Antam) feels the negative impact of the Indonesian government’s new mining law (Law No. 4 of 2009 on Mineral and Coal Mining) which replaced its 1967 predecessor. This new mining law is controversial because it contains a number of provisions that are negative for foreign investment in Indonesia’s mining sector. However, domestic players also feel the impact because of the mineral ore export ban, part of the mining law, which was implemented on 12 January 2014.

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  • Cipta Kridatama Plans Initial Public Offering on Indonesia Stock Exchange

    Cipta Kridatama, one of Indonesia leading mining contractor companies, plans to conduct an initial public offering on the Indonesia Stock Exchange (IDX) after 2015. The company believes that this corporate action will enhance transparency and good corporate management. Chief Executive officer (CEO) Irfan Setiaputri said that the company is eager to conduct the IPO but needs to wait until after 2015 in order to be fully prepared for this step. The company is currently busy expanding into other business sectors.

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  • New Bill Opens Room for Geothermal Power Development in Indonesia

    Indonesia’s House of Representatives (DPR) passed an important geothermal bill in a plenary session on Tuesday (26/08). This new bill is expected to be a great leap in the development of geothermal power in Southeast Asia’s largest economy. Indonesia contains the world's largest geothermal energy reserves. However the country only uses a small fraction of this geothermal potential. Meanwhile, amid robust economic growth, the country is in serious need to provide more electricity and power to its people and businesses.

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  • Geothermal Energy in Indonesia: Yudhoyono Opens New Power Plants

    Indonesian President Susilo Bambang Yudhoyono will be present at the official launch of four geothermal power plants (the Ulumbu, Ropa, Ndunga and Mataloko plants) on 11 September 2014 on Flores (East Nusa Tenggara). These plants will supply 20 megawatts of electricity to eight regencies on the island (West Manggarai, Manggarai, East Manggarai, Ngada, Nagekeo, Ende, Sikka and East Flores). Indonesia is estimated to have the world's largest geothermal energy reserves. However, the country only uses a fraction of its geothermal potential.

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  • Freeport Indonesia Can Resume Copper Concentrate Exports from Indonesia

    Contrary to Newmont Nusa Tenggara (which has been in a heated dispute with the Indonesian government), Freeport Indonesia obtained a permit to resume copper concentrate exports from Indonesia after these had ceased since January 2014 when the government implemented the ban on exports of unprocessed minerals. Freeport Indonesia Chief Executive Rozik Sutjipto announced that the memorandum of understanding between both sides has been signed. The miner is the Indonesian unit of US based Freeport-McMoRan Copper & Gold.

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  • Heavy Equipment Market in Indonesia Burdened by Low Commodity Prices

    The production of heavy equipment in Indonesia in the first half of 2014 fell by 25 percent (year-on-year) to 2,292 units. The decline in production is due to the still weak state of the mining and construction sectors in Southeast Asia’s largest economy. Main reasons being the implementation of the mineral ore export ban in January 2014 and low commodity prices, for example coal. Limited construction projects have been undertaken in the first half of 2014 as investors wanted to wait for the results of Indonesia’s legislative and presidential elections first.

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  • Coal Mining in Indonesia: Coal Production Grows in First Half of 2014

    Indonesian coal production reached 213 million tons in the first half of 2014, a 7.6 percentage point growth from the same period in the previous year (198 million tons), as coal miners have been boosting coal output amid sluggish international coal prices. Approximately 75 percent of this output (158 million tons) was exported abroad. Indonesia is the world’s largest thermal coal producer and exporter. The country’s coal primarily consists of the medium-quality type (between 5100 and 6100 cal/gram) and the low-quality type (below 5100 cal/gram).

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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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