Ministry publishes 2014 coal production cost reference
Wednesday, June 11 2014 - 06:13 AM WIB
The Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources has issued a new Decree No 479/K/30/DJB/2014 on the 2014 coal production cost reference for open-pit miners to be used among others as a basis to determine coal price for mine-mouth power plants, and to calculate coal royalty.
According to the decree, issued on May 30, the copy of which was obtained Wednesday, coal price used in calculating coal royalty is a sum of production cost and a margin of 25 percent. It said that open pit miners must follow the production cost structure, while under-ground miners can propose their own production cost structure to the Director General of Mineral and Coal.
Currency used in the 2014 coal production cost reference is US dollar with exchange rate based on the Bank Indonesia average rate from January 1-December 31 of the earlier year.
Following is the coal production cost reference for open-pit miners.
| NO | Type of cost | Unit | Cost |
| Direct Production Costs | |||
| 1 | Overburden Removal | USD/BCM/km | 2.41 |
| 2 | Coal extraction | USD/ton | 1.70 |
| 3 | Coal transport from mine location to processing facility | USD/ton/km | 0.28 |
| Indirect Production Costs | |||
| 4 | Coal Processing | USD/ton | 1.98 |
| 5 | Amortization and Depreciation | USD/ton | 1.17 |
| General and Administration Costs | |||
| 6 | Environmental Monitoring and Management, Reclamation and Post Mining | USD/ton | 0.27 |
| 7 | Health and Work Safety | USD/ton | 0.07 |
| 8 | Community Development | USD/ton | 0.2 1 |
| 9 | Land Acquisition | USD/ton | 1.99 |
| 10 | Overhead | USD/ton | 2.07 |
| 11 | Land Rent | USD/ton | 0.11 |
| 12 | Royalty (assumption) | USD/ton | 16,9% |
| 13 | Margin | USD/ton | 25 % |
Editing by Reiner Simanjuntak