Draft Coal Value Added Regulation
Author | William A. Sullivan/Christian Teo Purwono & Partners |
Profession | Licensed Foreign Advocate in Indonesia as well as a Solicitor of the Supreme Court of New South Wales |
Pages | 373-381 |
CHAPTER 26
Draft Coal Value Added Regulation
I.Executive Summary
1. Overview
1.1 An advanced draft of the Coal Value Added Regulation (otherwise
known as the “Draft CVA Regulation”) has been circulated by way
of the intended eventual implementation of Article 96 of GR 23/2010.
1.2 At this time, it is not possible to say when the Draft CVA Regulation
will be finalized and issued.
2. Approach
2.1Determination of Processing Requirements: Processing require-
ments for coal are to be based on the following considerations:
a. Availability of coal resources and reserves in large quantities;
b. Existence of proven processing and refining technologies;
c. Need for the final product of processing and refining activities as
raw materials for domestic industry;
d. Suitability of coal resources and reserves as a source of domestic
energy;
e. Dual economic and social impact; and
f. Potential to increase state revenues.
2.2Carrying Out of Processing Requirements: Processing of coal, as
a mineral product, is to be carried out through the following activities:
a. Coal crushing;
b. Coal washing;
c. Coal blending;
d. Coal upgrading; and/or
e. Processing of low-ranked coal to become active carbon.
373
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