Adaro to renegotiate coal cooperation agreement
Adaro Energy has announced that on September 18, 2014, PT Adaro Indonesia (AI), entered into a Memorandum of Understanding (MoU) with the Director General of Minerals and Coal, of the Ministry of Energy and Mineral Resources of the government of the Republic of Indonesia.
Coal Cooperation Agreement
The MoU was signed in the framework of the renegotiation process to adjust the Coal Cooperation Agreement (CCA) as mandated by Article 169 of Law No. 4 of 2009 on Mineral and Coal Mining, which is preceded by an agreement of six strategic issues:
- CCA area
- The continuation of Mining Operations
- State Revenue
- Obligations of Domestic Processing
- Obligations to Divest
- Use of Local Labor, Goods, and Domestic Services
For example, AI has agreed to reduce its concession area to 31,379.8 hectares.
Comments
President Director of Adaro Energy, Garibaldi Thohir, commented: “The signing of the MoU is evidence the Adaro Energy Group continues to fulfill the mandate and obligations of Indonesian law as part of the normal course of conducting our business.
“The MoU is consistent with our main goal of creating maximum sustainable value from Indonesian coal. The key terms are in line with our desire to be an asset to our country. We will continue to deliver positive energy to all of our stakeholders for many years to come and in doing so help build the nation.”
Adapted from press release by Katie Woodward
Read the article online at: https://www.worldcoal.com/mining/24092014/adaro-energy-to-renegotiate-coal-agreement-1343/
You might also like
FutureCoal welcomes global shift toward technology-neutral, energy-secure pathways at COP30 and G20
FutureCoal has welcomed the outcomes of the G20 Leaders’ Summit in Johannesburg and the COP30 climate negotiations in Belém, noting that both major global forums reinforced the needs of many emerging economies requiring balanced, methodical, technology-neutral energy pathways.
