Six percent royalty for low rank coal contractors: Official
Tuesday, September 19 2006 - 01:53 AM WIB
Director General for Minerals, Coal and Geothermal at the Energy and Mineral Resources Ministry Simon Felix Sembiring said in Jakarta over the weekend that the ministry would propose the incentive to the Ministry of Finance.
?The policy is set to support the government?s plan to build coal-fired power plants (under the crash program) to provide additional 10,000 MW,? he said.
In terms of coal production, a state-owned electricity firm PT Perusahaan Listrik Negara (PLN) had no reason to worry about because 19 contractors now entering production stage can fulfill the need for low and medium rank coal to fire power plants in 2010 until 2015, Simon said.
?More supply (of low and medium coal) will be provided by a number of companies currently entering the construction stage,? he said, adding that at least 22 companies entering the construction stage scattered in Sumatra and Kalimantan.
?They (the companies) have already discovered reserves of up to 2.5 billion tons of low rank coal,? he said.
The companies now entering the construction stage include Arutmin (for mine Mulia, Asam-Asam and Sarongga) Adaro, Kideo Jaya Agung, Meruwai Coal, Mantimin Coal, Delma Mining Corp, Bara Pramulia Abadi, Multi Tambang Jaya. Others are operated in Sumatra, including Bukit Asam (for mining Asahan, Banko, Muara Tiga Besar, Suban Jerji and Banjarsari), Pendopo Energy Batubara, Mifa Bersaudara, Astaka Dodol, Benakat Energy, Hulubalang Inti Bumi and Trimatra Coal Perkasa.
The Ministry of Energy and Mineral Resources estimated that the annual need for high calorie coal starting 2009 until 2010 would reach around 30 million tons. Meanwhile, the need for low rank coal under the crash program would reach around 55 million tons per year. ?The domestic need for coal is expected to grow by between 3 and 5 percent per year,? Simon said. (*)