S. Kalimantan?s Tanbu raises coal port tariff and royalty

Tanah Tumbu, one of regencies in South Kalimantan, has doubled the handling tariff of coal at the local ports to Rp 4,000 (1$=Rp8,400) per ton from Rp 2,000 per ton to cope with the increase in the operational cost, Banjarmasin Post reported on Tuesday.

Coal produced from the regency is shipped through ?special? ports which are jointly operated by the local government and the ministry of transportation because the regency has yet to build its own coal port. About 50 percent of the port income go to the government and the other 50 percent go to port operators.

The regency also announced the increase in royalty that has to be paid by coal producers.

Under the new royalty regulation, which is imposed on all local coal producers except PT Arutmin Indonesia, the royalty for coal with calorie of up to 5,100 is set at three percent of the sales, with minimum price of Rp 50,000 per ton.

The royalty for coal with calorie of between 5,100 and 6,100 is set at five percent, with minimum price of 80,000 per ton, while the royalty of those with calorie of above 6,100 is fixed at seven percent, with minimum price of Rp 100,000 per ton.

The royalty is based on FOB price, not including certain costs as referred to the local government?s tariff regulation. (*)