With just over two months left before the end of this year, coal miner PT Baramulti Suksessarana (BSSR) is poised on increasing production and diversifying its export market to improve its bottom line.
Bangka Belitung Governor Erzaldi Rosman Djohan announced his decision on moratorium in tin mining license to improve control of the mining of the mineral in the province.
Indigenous peoples in Papua are seeking a role in the next stage of negotiations between the central government and United States mining giant Freeport McMoRan (FCX) with the latter set to relinquish its controlling stake in gold and copper miner PT Freeport Indonesia (PTFI).
Indonesian firm Intra Asia Indonesia has entered a deal to build a coal import port in southern Vietnam, local reports said. The project will involve a $1bn investment to build a port with capacity of 15m to 20m tons of coal per year.
The government has requested that gold and copper miner PT Freeport Indonesia, a subsidiary of United States-based Freeport McMoRan.inc, sell its shares to Indonesian state-owned enterprises after the company agreed to divest 51 percent of its shares.
Outnumbered and outflanked, Freeport-McMoRan Inc. Chief Executive Officer Richard Adkerson made an about-face.
Freeport McMoran (FCX) has stated that it still controls Grasberg mine in Papua, even after the company divested 51 percent of its shares in its subsidiary, PT Freeport Indonesia, as required by Indonesian law. Freeport McMoran CEO Richard Adkerson said his company would concentrate in underground mining next year because of the depletion of reserves resulting from its open mining activities.
A recent report warns that Indonesia's coal-based electricity strategy risks wasting $76 billion over the next 25 years. The country's economic ambitions and its substantial coal reserves have encouraged developers to rely on big, centralized, coal-fired power plants.
PLN has proposed limiting coal prices by implementing a cost-based pricing policy, through which PLN will be able to buy coal under the domestic market obligation (DMO) based on the calculation of mining costs plus profit margin, while ignoring volatility in global prices.
“Total lack of interest inside the government of carrying out any form of exploration and poor infrastructure <are> the key factors holding the industry back” said Colin Singer, chairman of energy consultancy TIGA-I, who has 30 years of experience in the Indonesian oil industry.