Indonesia Plan for Higher Coal Royalties to Hurt Low Rank Miners
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Indonesia, the world’s biggest exporter of thermal coal, proposed doubling royalties for some miners next year, threatening margins at companies that produce about 20 percent of the nation’s supplies.
The plan to raise charges to between 10 percent and 13 percent will apply to coal producers with permits issued by local authorities known as Ijin Usaha Pertambangan licenses, or IUPs, Susilo Siswoutomo, the deputy energy minister, told reporters yesterday. The proposal was first made last year.