CLSA mining law, regulatory update

Olie noted today that the govt could issue implementing regulation for the new mining law by Sept 09. We feel that the govt is considering inputs from various stakeholders, including from industry players. Hence, the regulation is likely to be more business friendly than the law.

But don’t hold your breadth. The govt change is just around the corner, so we are not sure whether Sept 09 schedule can be met.

Key points from the report:
We recently had a discussion with one of the directors at Department of Energy and Mineral Resources, mostly on the newly issued mining law.
We feel that the government is considering inputs from various stakeholders, including industry players, in formalizing implementing regulation or technical guidance for the new law, hence the regulation is likely to be more business friendly than the law.
However, question remains on (1) timing of the issuance as govt change is just around the corner (2) details of this implementing regulation, especially on issues such as mining contracting, DMO for coal, and licensing procedures.
At this juncture, we still feel that overall implication from new mining law on most of the listed mining companies is generally neutral. Antam (ANTM IJ) and United Tractors (UNTR IJ) are potential beneficiaries.