Govt set to revise coal miners? sales contracts

The Ministry of Energy and Mineral Resources will soon revise sales contracts between coal miners and their buyers to ensure that the government will be able to receive additional state revenues from the surge in the coal prices in the world market.

The ministry?s Director General of Mineral, Coal and Geothermal, Simon F. Sembiring said in Jakarta on Thursday that most of the existing sales contracts signed by coal miners and their buyers were based on fixed prices.

?We will revise all the existing contracts,? he said, adding that with the new policy, the coal prices either in the existing contracts or in the future contracts should be floated to the price fluctuation in the market so that the government would also be able to enjoy the windfall from the rise in the coal prices in the world market.

Aside from revising the contracts, Simon said his office would also collect the lists of Mining Contracts (KP) issued by regional governments in order to get accurate information on their outputs and sales and to ensure that they pay their non-tax obligations.

The government expects to produce 232 million tonnes and 261 million tonnes of coal in 2008 and 2009, respectively. It expects to earn Rp 10.937 trillion in coal sales and production funds (DPHB) next year and Rp 10.2 trillion this year.(bernard)