UPDATE 1-Indonesia completes contract amendments with coal miners – by Wilda Asmarini (Reuters U.S. – January 17, 2018)

https://www.reuters.com/

JAKARTA, Jan 17 (Reuters) – Indonesia’s mining ministry on Wednesday signed amended contracts with 18 coal mining companies, including PT Adaro Indonesia, as part of a shift towards a new mining permit system it expects to boost government revenue.

Indonesia, the world’s biggest thermal coal exporter, has now amended the contracts of all of its 68 coal mining companies, marking a victory for the government after earlier resistance from some miners to adopt the new terms.

Indonesia’s 2009 mining law requires companies to transfer from so-called contracts of work, long-term agreements with specific rules including on taxes, to newer special mining permits that generally follow the prevailing law.

Along with Adaro, Indonesia’s second-biggest coal miner, the other companies that signed included PT Santan Batubara, a unit of Indika Energy, and PT Pendopo Energi Batubara, a unit of Bumi Resources.

“With these amendments companies will also benefit in the long run, if we sign while the coal price is high. If (prices are) low, it’s harder to sign,” Minister for Energy and Mineral Resources Ignasius Jonan said at the signing ceremony.

For the rest of this article: https://www.reuters.com/article/indonesia-coal/update-1-indonesia-completes-contract-amendments-with-coal-miners-idUSL3N1PC3GG

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