PT.JAYA NUSA COMMODITY, ENERGY AND MINING

Timah in search of new coal market

MiningIndo.com on 11/02/2009 at 3:51pm (UTC)

Timah in search of new coal market

PT Timah Tbk (TINS) is currently seeking for new additional markets of coal following the acquisition of a coal company named PT Tanjung Alam Jaya. The company’s coal production has so far been marketed to Malaysia and the Philippines. Timah conducts diversification by acquiring the company whose coalmine is located in South Kalimantan.

“We acquired the coal company for less than US$10 million. With the acquisition as estimated PT Timah would receive additional revenue from coal production of US$11 million,” said president director of PT Timah Tbk Thobrani Alwi as quoted from Bisnis Indonesia daily.

Timah will also allocate US$5 million for the improvement of infrastructures in effort to increase the coal production. In year 2004 Timah targets an increase of coal production from 300,000 tons to 1 million tons a year. With the production increase Timah expected to earn additional revenue of US$11 million.

“When we made the acquisition the company’s production capacity was only 300,000 tons a year. After having been evaluated, we estimated that the production could increase to 1 million tons a year,” he said prior to a hearing with the national parliamentary commission VIII in Jakarta on Dec. 2.

Next year the production will have increased. At world’s price of US$22 per ton and production capacity of, say, 500,000 tons a year, Timah would earn additional revenue of US$11 million.

Alwi admitted that the coal production from the coalminer--which was acquired by TINS’ affiliate PT Timah Investasi Mineral as part of the corporate diversification program--was not considerably bulky at maximal 1 million tons, but the mine life can be as long as 7 years. *

The XVIII Perhapi Annual Meet & VII Perhapi Congress

Business Indonesia on 11/02/2009 at 3:48pm (UTC)

Mining Experts – The Chairman of the Indonesian Mining Experts or Perhapi, Irwandy Arif (left) is discussing the book along with President Director & CEO PT Freeport Indonesia, Armando Mahler (center) and the Director Executive of the Indonesian Mining Association (IMA), Priyo Pribadi Soemarno during the XVIII Perhapi Annual Meet & VII Perhapi Congress in Jakarta, yesterday.

The book, written by Armando Mahler is entitled: The Art of Practical Leadership, A compilation of Geotechnical Papers.

Source : Bisnis Indonesia, October 27, 2009

Mining Companies Say Govt Delay in Regulations Could Hurt Investment

JakartaGlobe, on 11/02/2009 at 3:46pm (UTC)

News, From the Press
Thursday, October 29, 2009

By Yessar Rosendar

Investment in the mining sector could suffer as the implementing regulations for the Mining Law passed in December are now likely to be delayed until March due to “technical problems,” a legislator said on Monday.

“The government has confirmed that the new regulations on mineral and coal resources will be completed by the end of March,” said Teukeu Riefky Harsya, chairman of the House of Representatives’ energy commission. “We had hoped they would be ready by the end of the year.”

He said various technical problems were behind the delay. These included the coordination of the new regulations with other legislation and the need to hold further hearings with industry players.

Teukeu said the delay could stall investment in the mining sector as the Mining Law could not be implemented until the regulations were issued.
Mining industry players were not pleased by the delay.

“We hope that the government will finalize the regulations as soon as possible,” said Priyo Pribadi Soemarno, the executive director of the Indonesian Mining Association. “If they keep being delayed, this could disrupt investment in the mining sector.”

Priyo said the delay would hold up the issuing of mining concessions by local governments because they could not proceed without the regulations.
“There is as yet no interdepartmental or local government synchronization,” he said, referring to overlap between the Mining Law and the environmental and forestry laws.

“Under the Mining Law, the power rests with the central government. If the regulations aren’t finished, then the government should issue interim government regulations to fill the vacuum.”

Four sets of implementing regulations are currently being drafted by the House. These rules cover the granting of mining concessions, the operation of mining firms, mine management, and supervision and post-mining environmental rehabilitation.

Industry representatives this month said that they were confused by recently issued regulations restricting the work contractors were allowed to perform for mining concessionaires. They added that the regulations failed to clearly explain what contractors were permitted to do and what they were barred from.

They said Article 10 of the Sept. 30 regulations, which provides that “the holder of a mining concession or special mining concession must itself perform mining, processing and refining work,” was particularly problematic, as much of this work was currently being carried out by contractors.

Source : JakartaGlobe, October 27, 2009

The Mining Issue Requires Bravery

Kompas on 11/02/2009 at 3:43pm (UTC)

News, From the Press
Thursday, October 29, 2009

The Mining Issue Requires Bravery

License restrictions not explicit

JAKARTA, KOMPAS – The current environmental laws do not guarantee a quick fix for environmental damage caused by mining exploitations. What are needed are political will, courage and determination on the part of the government.

Environmental observer and former minister of the environment, Sonny Keraf, said on Monday (26/10) that in order to put restrictions on mining licenses the government needs to have the political will and courage to do so. The legal foundation to pursue this is actually already available in the form of Law No. 32 of 2009; the only thing lacking is implementation.

“Till now license restrictions are not firmly established and lack explicitness due to the absence of legislation and a strategic environmental study. The envornmental impact analysis (AmdaL) portion is oftentimes not more than a project,” he said. With such a law, before the Energy Department issues a license, it should carry out a strategic environmental study first.

If it declares the project feasible, only then the Amdal is to be carried out and the environmental license issued. As for exploitations currently in progress, they should be temporarily halted if these supportive capacities are considered inadequate.

“Strict oversight and legal measures will act as a deterence to “naughty” companies. So, it all depends on commitment, integrity and political will and not just obeying the law as a formality. Because environmental damage resulting from mining exploitations might be massive,” Sonny explained.

Another factor needed is political support from the President in the form of strategic studies, consumption and the amount of unrenewable energy needs per year in addition to the shift to renewable energy. Let’s not apply the same mistake made with oil management to coal.

Another mistake according to Siti Maemunah, coordinator of the Network of Mining Adovcate (Jatam), is the wrong paradigm of mining management practiced by the government. The system thus far practised was fast selling and low cost oriented totally ignoring envornmental damage.

Mining exploitation is a massive energy and water consuming activity often at the expense of the forest, causing river pollution and floodings.

“Our nation is surrounded by water, which will virtually become the disposal site for mining waste and in turn causing destruction to the ecosystem,” says Siti.

Source : Kompas, October 27, 2009

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