Business Plan
Manganese Mining &; Trading
Of East Nusa Tenggara- Indonesia
West Timor : Republic Of Manganese
Overview: Along with the rapid development of steel industry in China, Korea, India, Japan and Australia led to join the growing international market demand will need a stone manganese / manganese ore, as a raw material mix of steel processing from Indonesia that had been mined in West and South Sumatra, Lampung, Tasikmalaya, East Java, and Sulawesi. But the area for deposits and the quality is not in accordance with international standards, is finally doing more intense research in West Nusa Tenggara and East Nusa Tenggara.
Since its start late 2007 to early 2008, began to unfold from the research results are found in almost all areas ranging from Flores ,Sumba ang West Timor-NTT , all contain manganese stone with quality levels above 44% Mn and by 90%Mn, and deposits are evenly distributed. (Standard international markets / China ranging from 44% Mn).
As an illustration, according to the International Manganese Institute / IMNI total world manganese production in 2008 of 15 million tonnes and then fell only 12 million tons in 2009 and then increased again in 2010 to around 15 million tonnes. Of the total production, China as a major consumer have to import 11 million mines manganese reserves and their quality is declining.
While the international market price of manganese ore reached a peak in August 2010 ie for 44% Mn content is U.S. $ .383/ton (China market) and then decreased through 2011 of approximately U.S. $ .286/ton. This means that for manganese ore with Mn content above 44% as contained in West Timor, it costs more competitve to the international market.
That's why since 2008, investors began to arrive China, Korea, India, Japan and Australia in the province to try to explore the content of manganese in the province to meet international market demand and they have been exporting hundreds of thousands of tons of manganese to China, before the release of Minister of Energy and Mineral Resources.Regulation No. 7/th.2012 on tightening export of mineral raw materials as well as liability for mineral processing and refining,.
Manganese at a glance overview of the potential spread evenly in four districts inWest Timor- NTT province : Kupang Regency, Timor South Central Regency, Timor North Central Regency and Belu Regency with above average quality of 44% Mn s / d 70% Mn.
NTT previous lack of experience in the mining sector. Some time ago there are some companies that try to explore a marble quarry in the district of Kupang, TTS and TTU a very small contribution to regional governments and local communities. Because of the mining sector this is something new "in NTT.
Regulation and Licensing:
Along with the discovery of manganese great potential in the region and the arrival of investors in 2008, the local government both provincial and district levels are encouraged to send in pursuit to publish a lot of licensing revenue targets. Release of the data between 2008/2009 of hundreds of Mining permits have been issued by local governments in the province to mining entrepreneur who is now a lot of trouble.
After the publication of Act .No.4/Th.2009 on mineral and coal mining/IUP in January 2009 in conjunction with Government Regulation or PP. No.23/Th.2010 junction PP. No.22/Th.2010 no longer issuing new licenses and began the licensing sector reform and adjustment mining in the province in accordance with the mandate of the new laws and guidelines that the Department of Energy is still proceeds today to acquire the status of "Clear & Cleance" / C & C.
Because it permits almost all IUP Exploration and Production Operation in NTT is now permits the adjustment of last Mining permitt / Kuasa Pertambangan/KP issued before the enactment of new legislation. And unfortunately dominated by the license permits the broker / mafia licenses that are not backed by capital and experience in the mining sector.
As a result, now that there is a "business permit" or a business on paper between the brokers who hold licenses IUP with the entrepreneurs / investors who really serious to conduct mining activities is good and right with exorbitant prices.
As an illustration, in four districts in West Timor, of which there are so many hundreds of IUP, there are only two companies that really do that manganese exploration activities PT.Soe Resourchis Mining Corporation / SMR in Niki Niki South Central Timor Regency, and PT.Elang Perkasa Kencana in North Central Timor Regency at Bakitolas . While others, only to trade around by buying manganese stone excavated from the local community.
In terms of regulation, which is still open space for a new license is the license IUP Special to the private sector in cooperation with local enterprises as well as cooperation with local communities / cooperatives for IPR. As for the IUP can only be done in several ways that take over an existing IUP, or Joint Operation / JO.
Current Conditions:
Although many companies in the NTT IUP, but that really did a good mining activities and is just a few, as the concession holder is a broker is a broker that is not supported by capital and experience, in addition to licensing problems unresolved by the local government.
Another factor that is also a constraint is the land where all is the status of land in the province of customary rights / indigenous and non-certified, making it difficult for the exemption because tunpang claims overlap and mutual interest among members of the clan. For it must use the local people who really understand about this. On the other hand there are also issues of spatial problems, because of the overlap between the forest, residential, agriculture and others.
Since 2011 there began a new trend in which large-scale enterprises to foreign mining companies from China, Korea and Australia, which had gone public in the country began to acquire companies in the NTT IUP, although not followed by actual mining activities in the field. These companies include: Bligh Mining PTY Ltd of Australia has JO by Mighty Eagle group in Timor and Flores, Western Manganese Ltd, Shanghai Yuanneng Energy, Mining International Rakhsa PT, PT Benakat Petroleum Corporation, Grace Group. Interchina Holdings Company Ltd, Nickelore Ltd, Killara Resources Ltd, Soil Sub Technologies Ltd 3D Resources Ltd and others.
Current state of manganese mining in particular NTT West Timor is still far from princip princip mining is good and right. Because mining is mostly done by people and not by the company IUP. As a result only damage the environment because there is no post-mining reclamation, there is no assurance on the work of labor accidents, no corporate contributions to local communities as a social corporate social responsibility, and further compounded by the lack of supervision by local government because of the lack of HR mining dissector.
Since 2008 that occurred in the province is really just practice good trading manganese delivery to Java as well as the direct exports to China, Korea and Australia. Practice of employers just bought mine from the local community and the manual or inter stockpile at the port of the great collectors collectors. This model can be done by anyone who has the capital, without having to have IUP, where he can only hire "flag" / permission of the owners of the IUP to meet trading requirements such as holding a license, permit the transfer of goods, to the port and the last permit or export shipments.
One side also has been happening in the trading manganese is a matter of "coordination" with law enforcement officials are very difficult the perpetrators of trading, which is considered very burdensome because it starts from the lowest level that is from the mouth of the mine, to a stockpile, and then in the harbor and the last in the sea. Lots of "post post stealth" that must be coordinated “ for the safe delivery of goods.
It is also a problem is the issue of port infrastructure is still very minimal in NTT. Where the loading of infrastructure limitations, haulage capasity administration and limited ship. Only the port of Kupang Tenau can disandari ship with a carrying capacity of 10,000 tons and above, while the other ports such as Wini / TTU and Belu Atapupu less than 5000 tons. Although there is no valid data on the amount of manganese that has been explored from NTT, but from the media since the data recorded from 2008 to present before the enactment of the Minister of Energy and Mineral Resources No.7/Th, 2012 on the processing and refining the requirements for holders of IUP and tightening export of raw materials minerals and coal, which has millions of tons of manganese from NTT explored both for domestic and export purposes.
Prospects & Opportunities
Still open to mining prospects and opportunities in particular IUP Special concessions to do with the pattern of cooperation with local government (enterprises/ BUMD)
With the ongoing verification process of IUP in the province to obtain the status of C & C will abort many of IUP who do not qualify, then the open space of the issuance of new issuance by local governments
There are still wide open space, which is woven in collaboration with local communities / cooperatives to work on the communities mining sector r/ IPR, because the potential is huge. Almost part of production of manganese mining in the province comes from the excavation of the people.
Business Strategy
Business strategies that can be applied here is the incorporation pattern of trading and mining. That is, companies are required to have some of the IUP for mining activities. However, cooperation should also be trading with or buying the mining mined people. This will speed up production and sales target desired by the company.
Trading on a large scale can also be made between the owner of the stockpile at the port of the port. Because not all hoarders in the port stockpile has a license and adequate capital to make deliveries to or export of Java. Because it's usually a great player, just buy from the stockpile stockpile loading which then directly to the ship to be sent / export.
Given the necessity of IUP for processing and refining and tightening export, making it difficult for speculators to trade as long as this occurs. Because they have to send to Java because there is only smelter processing in Java.
For the NTT until now no single plant manganese ore processing and refining. Because it is prospective if in one district in western Timor established smelters processing and refining of manganese stone, because it will automatically accommodate all existing production.
Manganese prices up 45% Mn in the country (in Attack & Cikampek plant) is in the range of Rp.2600 -3200/kg. Export prices for China's international market is U.S. $ 286/ton - U.S. $ 383/ton. Prices are very volatile prices in accordance with the international steel market ups and downs. Production costs for exports of around U.S. $ .50-80/ton and shipping costs around U.S. $ .35/ton.
Trading & Mining Experience
To trade in the domestic / export should be in large numbers, a minimum of 3000 tons. When 3000 tons were collected only from the purchase of the mine people take about 2 months and capital expenditure of about US.$.400.000-450.000. is included for the coordination and transport in the local districts to stockpile, coordination, unloading and taxes of about US. 50000-65000. Factory price in Jakarta around US.$285 – US$.350. /MT.)
To mine after having IUP, it should free up land either rent or cooperate. To lease the land range from Rp 5 million - 10 million / area or fee for landowners and Rp.100/kg Rp.100.kg again to the village administration fee. By using 2 heavy equipment excavator and 4 units of dump trucks, as well as an approximately 20-openfit labor system then generated a month is about 1500-4000 MT. Operating cost component is salaries, and the solar industry prices. Will be effective for the long term.
Dual System
Merger is an ideal pattern. This means that in addition to mine own also done trading / purchase of the mining and trading among communities stockpile.Pola can produce upwards of 5000 tons a month minimum and will be highly prospective for export. This pattern can be done by working with people mining cooperative groups are fostered through the capital, management and marketing.
Network and local access.
All of these can be run as the creation of good relations and access to various local stakeholders, namely local government officials, law enforcement officials, as well as component parts of local communities. Because if not it will display a variety of problems and obstacles. Many cases of national entrepreneurs entrepreneurs / or foreigners from outside the NTT which suffered heavy losses, because of staffing local staff, who do not properly understand the ins and outs of the world kharakteristik mines and workshops. It must be recognized that the world is a new mine in the province. Because it is still very much its limitations. For example, the lack of human resources who do not understand the bureaucratic world of mine / business / private sector, so often clashed about the regulations, labor issues are also very minimal skills in the mining sector / industry, and also in regard to indigenous land status and so on, not to mention the onslaught onslaught of environmental activists. Nevertheless the prospects and opportunities manganese mining sector in the province, especially in West Timor is still very wide open and promising in terms of profit.
. For Information : Ronny Abi (ronnyabi@yahoo.com)
