- Thursday, April 17, 2014
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.
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.
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.
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 ]