Mining ministry turns down proposal to lower coal royalty
Monday, March 6 2000 - 04:00 AM WIB
The Ministry of Mines and Energy has turned down the demand of coal mining companies to reduce the 13.5 percent of coal royalty to the government, according to the director of coal at the ministry Soedjoko Tirtosoekotjo.
Soedjoko said that the current low price of coal was not strong enough to justify the reduction of the coal royalty.
He said that the coal mining companies had made the demand in a letter sent to his office.
He said that the final decision on the coal royalty was in the hands of the Ministry of Finance.
But he said that he would only send the letter if the coal producers have strong reason to demand the reduction in the royalty.
"The current price of coal is low, but what if the price move upward again. Should then we revise the royalty again," Soedjoko said.
He's convinced that the coal price would increase again following the rise in the oil price.
He said that he had urged the coal mining companies to be more efficient to survive the current low price of the commodity.(*)