2012-08-31 13:55:42 - Recently published research from Business Monitor International, "Indonesia Mining Report Q3 2012", is now available at Fast Market Research

We expect Indonesia's mining industry value to almost double from US$82.6bn in 2010 to US$143.0bn in 2016. Growth will be driven by coal and nickel production, with annual average growth rates of 10.4% and 9.1% respectively. Despite our low production growth rate forecasts for other metals, the country will remain a dominant mineral exporter in the region and will retain its status as the largest thermal coal and tin exporter in the world.

Positive regulatory developments in recent years include the passage of the 2009 Mining Law, which streamlines and improves upon the 1967 Mining Law. However, key implementation guidelines with reference to benchmark pricing and asset divestment procedures have yet to be announced, which is a source of uncertainty for

investors. Two new mining laws were signed into law during Q112 that give more clarity to previous statements by the Indonesian government. Going into Q212, we became more concerned regarding policy continuity in the country as the government imposed a 20% export tax on all ores in a bid to spur domestic processing (effective May 6 2012).


Full Report Details at
- www.fastmr.com/prod/451283_indonesia_mining_report_q3_2012.aspx


Firstly, actual threshold specifications for raw material exports have now been revealed through the passing of Law No. 7 of 2012. Secondly, a new law was also passed that will require foreign investors to divest at least 51% of their ownership in Indonesian mining assets 10 years after initial production. The key risk for these two rulings is whether they will be applied retroactively or partially to existing contracts. Another risk is that thermal coal exports have been left alone so far and have the risk of additional taxes in the future.

Nevertheless, we expect foreign investment into Indonesia to remain strong in the coming years. Despite additional regulations, the country's geological resources and geographical location continue to make it an attractive destination for investment. In South East Asia, Indonesia remains the top location for new mining projects, followed by the Philippines and Vietnam. A large number of these are greenfield and brownfield exploration projects for coal and copper-gold prospects.

Report Table of Contents:

SWOT Analysis
- Indonesia Mining SWOT
Global Mining Outlook
- Table: Recent Tax Increases
- Table: Largest Coal Projects
- Table: Major Frontier Mining Projects
Asia Mining Sector Outlook
- Table: Key Asia Pacific Legislative Changes
Industry Trend Analysis
- Table: Indonesia's Mining Industry Value & Production
Industry Forecasts
- Tin: Anaemic Growth Due To Supply Controls
- Table: Indonesia's Tin Production Forecast
- Nickel: Investment To Continue Despite Heavier Divestment Obligation
- Table: Indonesia - Largest Nickel Projects
- Table: Indonesia's Nickel Production
- Copper: Industrial Action To Take Big Toll On Production In 2012
- Table: Indonesia's Largest Copper Projects
- Table: Indonesia's Copper Production
- Coal: Domestic Demand To Drive Growth
- Table: Indonesia's Largest Coal Projects
- Table: Indonesia's Coal Production Forecast
Regulatory Structure
- Table: Divestment Rulings
- Table: Export Thresholds In Law No. 7 of 2012
Business Environment
- Table: Asia Mining Risk-Reward Ratings
Competitive Landscape
- Table: Indonesia - Comparative Metrics
Company Profiles
- PT Antam
- Table: Pt Antam's Financial Results
- Bumi Resources
- Table: Bumi Resources's Financial Results
- PT Timah
- Table: Pt Timah's Financial Results
Commodities Forecasts
- Monthly Metals Update
- Steel Prices Have Topped Out
- Copper: Relative Outperformer But Still Weak
- Tin To Outperform
- Aluminium: Substantial Support Around US$1,900/tonne
- Nickel: Oversupply Pushing Prices Lower
- Break Of Support On The Cards For Lead
- Zinc: Downward Trend Continues
- Table: Select Commodities - Performance & BMI Forecasts
Business Environment Ratings Methodology
- Table: Mining Business Environment Indicators
- Table: Weighting Of Components

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