Coal royalty proposal is ill-timed
- Details
- Published: Tuesday, 27 August 2013 04:03
- Written by John Miller
The Indonesian Government’s proposal to increase coal mining royalties to 13.5% of net sales in 2014 from the current rate of 5-7% is aimed at equating the payments of every coal miner in the archipelago, the timing is questionable as is the likely impact on small mining companies. Globally the industry is struggling from a number of factors, including low prices, rising supply and lack of capital, and Indonesia’s producers are being hit hard.