Currently 25 contractors Oil and Gas Production Projected Fill

A total of 25 contractors contracts (KKKS) has yet to reach oil production targets.

Nine of them received a yellow card because it could only achieve 95% production target, while 14 others received a red card because the achievement of production is still below 95%.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro explained, there are several obstacles that hamper the achievement KKKS production.

Among them is limited rigs and production facilities, land acquisition, to fumble seismic prediction.

"Most of the problems that hamper the operational problems. There are estimates that if this problem continues, might not achieve its production targets.'s Why we are here to solve the problem," said Purnomo.

He put it in a press conference after the evaluation of oil and gas production KKKS at the Department of Energy and Mineral Resources Building, Jakarta, Friday (19/6/2008).

Meanwhile, according to the BP Migas chief R Priyono, if it is difficult to obtain rental rigs (derrick), he suggested KKKS to buy it.

"Maybe if you could buy a better chance. Moreover, more long-term impact," he said.

In total there are 37 oil and gas companies operating in Indonesia. Outside the 25 KKKS who have not reached the production targets, production of 12 other KKKS can cover the lack of production.

This is evident from the production of crude oil and condensate national to June 15, 2008 reached 978 thousand barrels per day. Thin on top APBNP target for 2008 is 977 thousand barrels per day.

Purnomo, however did not explain what sanctions will be imposed on KKKS who failed to reach production targets. "We do need to see why, too," he said.

Coal Contract Price Adjusted Market Mechanism

The Government will evaluate all coal sales contracts there. All contracts are still using fixed price (fixed / flat) will be revamped with fluctuating prices.

This was conveyed by the Director General Simon Sembiring Minerbapabum interrupted a hearing with House Commission VII on the MPR / DPR, Jakarta, Thursday (19/6/2008).

"Sales contracts that we now evaluate gimana. It's not that the sales contract must fix the rate. For example, 5-year agreement contrived, OK U.S. $ 30 dollars per ton to 5 years. I can not then," he said.

Simon emphasized that the government wanted the price stated in the coal sales contract is a fluctuation formula. So that the sales price of coal could follow market prices.

"So if you take U.S. $ 1 at the market price then what percentage of the price rises. And so if you come down to U.S. $ 1, what percentage of the decline," he said.

With such a formula, according to Simon, will benefit both parties, both sellers and buyers. So when prices rise, sellers would benefit. And when prices fall, buyers will also benefit.

"That way you can to protect the seller and buyer. Hence, there should be a clause that," he said.

So far, there are some contracts that are still using fixed price. If anyone intends to use the escalation clause to include only 'can be reviewed every year'.

Simon emphasized, using a fixed price is justified by a business for both parties agree. But on the other hand, if the price remained low in the contract when market prices are high, the state also lost potential profits.

Because the government owns 13.5% of the sale of coal. So if coal is sold at below market prices, the government is also a loss. Not to mention the potential loss of tax because the seller to get a low price.

"The business is okay, but it's ours 13.5%. And then if he is less income, the income tax he was also less," said Simon.

But Simon did not specify when the obligation fluctuating prices will apply.

BP Migas Prepare Share Option Expense

Head of BP Migas R Priyono in Jakarta, Friday (13 / 6) says, a number of options discussed include additional gains tax, export tax, changes to the results, or changes in the calculation of operating costs refunded (cost recovery). "We prepared a number of options, the Ministry of Finance will decide," he said.

Prefer it changes the calculation for cost recovery does not need to change the employment contract with him. Another option was a last option because it had to change the contract.

Coal and Uranium Mining Company, Atomic Resources To Explore Coal Mine In Tanzania

Coal and uranium exploration company Atom Resources has secured the concession rights to two key new exploration include the extension of the northern coalfield in western Tanzania Ngaka.

Mr. David Holden, MD of Atomic Resources said that "a new concession twice the size of exploration area in the Ngaka coalfield, increasing the potential for atomic resources, and provide Atom dominant position in the coal industry in Tanzania."

He said that the new concessions are also strengthening the company's position in the center of the coal industry of Tanzania, and its relationship with joint venture partner, National Development Corporation in Tanzania.

Atom reported that the Tanzanian government recently announced its intention to build a new 400 MW coal thermal power plant in 2011, which will form the basis of the domestic power supply.

Mr. Holden said that "tanzania is growing rapidly and require substantial, inexpensive and reliable source of energy to fuel economic development. Atomic's substantial thermal coal fields in western Tanzania are ideally situated to provide raw materials for coal power plants are being planned for Tanzania and we are at the forefront of this rapidly growing new industry.

Source: SteelGuru

Coal Mine Exploration Accident in China, 74 Killed Mine Workers

At least 74 miners were killed and some trapped under the ground - and feared dead - after a gas explosion rocked a large coal mine in Shanxi province Sunday morning.

The explosion occurred at 2:17 pm while 436 employees Tunlan Coal Mine were working underground at Gujiao, 60 km west of Taiyuan, the provincial capital of the rich coal.

Of 114 miners in the hospital, 26 were in critical condition last night, officials said.

More than 300 are believed to have escaped from a hole in the first hour of the explosion, including a lot of people treated in hospital, an employee who records the flow of workers to the China Daily.

He said the first batch of rescuers reached the site at around 3:20.

As many as 57 rescue teams, some from other places, including Taiyuan, involved in rescue operations, local police said.

But residents say Gujiao, the number was not enough.

"The rescue team here in this mine is very short as the headquarters based in Taiyuan," Kang Changqing, a former miner who lives in Tunlan nearby, told China Daily.

Although his village, Liangzhuang, is 3.5 km away, Kang, 46, said people there were the first to know about the explosion and called the police.

"The two intake portions of the hole - which links to the outside and provides fresh air into the mine - was built by the road outside my house," he said, adding that most of the village was awakened by "two huge explosions" at 2: 18 am.

When the explosion occurred more than 400 m below the ground, the mine was not the first observer to know about the accident, according to other villagers.

"The parts on the ground that consumed completely destroyed. Lucky for us, the explosion occurred at night when no one was around," said Kang.

After saving suspended for the day at 6 pm yesterday, the rescue headquarters confirmed that the death toll stood at 74, without announcing the number of miners were still trapped - or whether there had been trapped at all.

President Hu Jintao and Prime Minister Wen Jiabao issued instructions to all things that might be done to save those still trapped in the mine, CCTV reported.

Three days before the explosion, Wang Jun, the Governor of Shanxi, when reviewing the safety procedures for working in Taiyuan, the provincial warning - which often witness coal mine disaster - "had run out of tears to shed".

After climbing out of the hole off, several rescue teams wasted no time calling home on their mobile device.

"If I do not call them immediately, they will begin to worry about the safety and mental health," surnamed Zhao told China Daily the savior. "My family probably thought I was crazy after going through all this every time," he said.

Zhao, part of the provincial mine rescue team, started work immediately after reaching the hole in the morning and not come out until 5:30.

The Tunlan mine, which has a capacity of 5 million tons, operated by Jiaomei Shanxi Group.

The death toll yesterday made the most deadly accidents reported in the mining industry after 276 people died in the collapse of iron ore that does not have permission reservoir last September, also in Shanxi.

China Coal Mine Producer, Xinjiang Plans Increase Coal Mine Production To Reach 150 Million Tonnes in 2010

The level of mechanization of the main Chinese coal-producing zone has reached 90.57%, and China's raw coal production remained at 62.2 million tons increased 24% YoY. Xinjiang Autonomous Region is expected to produce more than 80 million tons of coal in 2009 and 150 million tons in 2010.

According to the sources of the coal industry administration bureau of Xinjiang, Xinjiang has in recent years really pushing forward the process of upgrading and optimizing industrial structure, and has closed the coal mines with less than 30,000 tonnes per annum capacity. There were 298 coal mines in Xinjiang today, compared with the number 1798 in 1998.

Source: SteelGuru

Canadian Embassy Mining Opportunities Seminar Held in Indonesia

JAKARTA. Minister of Energy and Mineral Resources on Monday (16 / 3) opened the seminar titled "Seminar on Indonesia's Mining Opportunities", organized by the embassies of Canada and in collaboration with the Indonesian Mining Association (IMA). The seminar took place in Bimasena is scheduled to be held until March 17. This activity is part of a series of Canadian mining mission to seek opportunities for mining companies in the world of Canadian mining in Indonesia.

In his speech, Officials revealed that this activity shows that there is a large concern of mine in the Canadian actors on the business opportunities of natural resources in Indonesia, especially mineral and coal mining are entering a new era with Minerba Act. "Act Minerba intended to benefit all stakeholders, that is the responsibility of us all to cooperate in the mining sector to create a more modern and profitable".

In addition to seminars, mining missions are also filled by networking event with members of the Indonesian Mining Association (API), and a series of visits to the field. Canadian mining companies attend the event consisted of Barrick Gold, East Asia Minerals Corp., Kalimantan Gold Corp., Southern Arc Minerals, Sheritt International, Sierra Geological Corporation, and South East Asia Mining Corporation. Event mining mission will last until March 19, 2009.

LG Corp Sign Agreement Joint Venture With Canadian Energy Firim To Develop Coal Mine Exploration

South Korean trading house Nokia Corp. said on Wednesday it has set up a joint venture with Canadian energy companies and a Japanese trading house to develop coal mines in Canada.

The $ 11 million Comox Joint Venture with Canada's Compliance Energy Corp (CEC.V) and Japan's Itochu (8001.T) was established to enter Raven coal projects in Canada, Nokia Corp. said.

"Itochu Corp. and LG each have 20 percent stake in joint ventures. Adherence to have a break," said a spokesman at the South Korean company.

The Raven Coal Project, located in Vancouver, has 59 million tonnes of inferred coal resources, about 90 percent of South Korea's 64 million tons of coal from the total imports last year.

This joint venture is expected to begin production around 2012.