Wednesday, 29 Feb 2012
According to the China Electricity Council, China coal demand will reach 4.3 billion tons by 2015 an increase of 970 million tons compared to the year 2010 and an annual increase of 5.2%.
An expert told the paper that as the cost of coal supply and labor increases and the coal resource tax rises, China may see higher coal prices and shortage in supply during the 12th Five-Year Plan period.
The paper cited an official with the Ministry of Industry and Information Technology that resource shortages may affect the nation economic development.
In 2011, China consumed 3.7 billion tons of coal with domestic coal output of 3.52 billion tons and imports of 170 million tons. The amount was almost half of the world's total coal consumption.
(Sourced from Shanghai Securities News)
Showing posts with label coal resource tax. Show all posts
Showing posts with label coal resource tax. Show all posts
Wednesday, February 29, 2012
Monday, November 14, 2011
India likely to raise coal tax issue with Australia and Indonesia
Monday, 14 Nov 2011
Live Mint reported that India may raise with Australia and Indonesia the issue of policy changes that has made coal imports expensive for Indian companies that own mines in the two countries.
Indian coal minister Mr Sriprakash Jaiswal said that “We shall try to initiate talks with Australia and Indonesia. The Indian government will most certainly take up this issue. We have also raised it and will request MEA also to take it up. But we need to know with some authority that this has been done for sure. We need an authentic letter and then we will tell the MEA that due to this there will be a big impact on coal imports so kindly look into it and ask for some relaxation so that imports are not impacted.”
These interventions will affect the financial viability of imported coal based power projects such as TATA Power Ltd’s Mundra project and Reliance Power Ltd’s Krishnapatnam project both of 4,000MW each because their fuel costs are set to overshoot expectations.
Rising demand at home prompted Indian and Chinese companies to invest in the coal sector in Australia and Indonesia, causing prices of thermal and metallurgical coal to rise and leading governments there to seek a greater share of revenue. While Indonesia has implemented price benchmarking to capture higher royalty and income taxes, which are pegged to the price of coal, Australia has imposed a Minerals Resource Rent Tax a tax on profits generated from the exploitation of non renewable resources, levied on 30% of so called super profits accruing from the mining of iron ore and coal in Australia.
(Sourced from Livemint.com)
Live Mint reported that India may raise with Australia and Indonesia the issue of policy changes that has made coal imports expensive for Indian companies that own mines in the two countries.
Indian coal minister Mr Sriprakash Jaiswal said that “We shall try to initiate talks with Australia and Indonesia. The Indian government will most certainly take up this issue. We have also raised it and will request MEA also to take it up. But we need to know with some authority that this has been done for sure. We need an authentic letter and then we will tell the MEA that due to this there will be a big impact on coal imports so kindly look into it and ask for some relaxation so that imports are not impacted.”
These interventions will affect the financial viability of imported coal based power projects such as TATA Power Ltd’s Mundra project and Reliance Power Ltd’s Krishnapatnam project both of 4,000MW each because their fuel costs are set to overshoot expectations.
Rising demand at home prompted Indian and Chinese companies to invest in the coal sector in Australia and Indonesia, causing prices of thermal and metallurgical coal to rise and leading governments there to seek a greater share of revenue. While Indonesia has implemented price benchmarking to capture higher royalty and income taxes, which are pegged to the price of coal, Australia has imposed a Minerals Resource Rent Tax a tax on profits generated from the exploitation of non renewable resources, levied on 30% of so called super profits accruing from the mining of iron ore and coal in Australia.
(Sourced from Livemint.com)
Thursday, January 27, 2011
China may impost 5pct coal resource tax
Thursday, 27 Jan 2011
According to the latest statistics of Michael Cooper at Qin Huangdao port, China largest coal terminal, power coal with caloric value of 6,000 kilocalories per kilogram has recently stood at CNY 835 per tonne to CNY 845 per ton and that with caloric value of 5,500 Kilocalories per kilogram at CNY 785 per tonne to CNY 795 per tonne.
The FOB price of power coal at Australia and The Richards Bay remains at USD 113 per tonne and that at Indonesian ports USD 114 per tonne.
With the 17% VAT and all other charges considered, foreign coal is not at all competitive to domestic coal consumers. However, if domestic coal prices are 5% higher, things may take a turn and that’s exactly what the coal resource tax will probably cause.
Mr Xiexu minister of The Ministry of Finance said in an interview recently that the coal resource tax policy will be fully put into force in the coming five years. This raise concerns in the industry that the tax will add to resource costs and lead to increases of coal price. One obvious result may be that this may endear foreign resource to domestic coal consumers.
An expert from platts, an energy service provider, revealed that China was originally planning to impose 5 % coal resource tax from January 1st 2011, yet no announcement had been received from China’s National Development and Reform Commission so far. On that occasion there were coal dealers predicting that this may come to pass after the spring festival.
According to the above coal dealers, this may lead to a 5% rise in coal price and consequently foreign coal may suddenly become appealing to Chinese buyers.
Nevertheless, coal demand is sluggish now. Power groups had filled their warehouses with coal for further consumption. From a broader perspective, China’s economy is witnessing a shift in development mode, and this determines, on a broader sense, the growth of energy consumption will be milder. (Sourced from MySteel.net)Visit www.Mysteel.net for real time access to China steel news!
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