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MEMR issues regulation on supply, pricing of coal for mine-mouth power plants

  • Thursday, April 17, 2014
  • http://www.petromindo.com/

The Ministry of Energy and Mineral Resources (MEMR) has issued Regulation No 10/2014 on the mechanism for the supply and determination of price of coal for mine-mouth power plants.

The regulation stipulates that coal supply for mine-mouth power plants are made based on agreement between miners and mine mouth power companies. It also stipulates a number of requirements that must be met by miners to be eligible as the supplier of coal for mine-mouth power plants including having a clear and clean status of their mining permits.

Meanwhile, in terms of pricing, coal price for mine-mouth power plants is determined based on the floor price by taking into account price escalation. The regulation says that the floor price is equal to production cost plus margin.

The production cost is determined by the directorate general of coal and mineral by taking into account a number of factors, the regulation says. The floor price is proposed by the miners to the ministry via the directorate general. The regulation also stipulates a number of requirements that must be fulfilled when making the price proposal.

Posted by : admin [ 4/17/2014 1:36:00 AM ]