The price of this market report covers 4 quarterly reports on this sector. This quarterly report will be downloadable instantly as a PDF document, with the 3 remaining reports delivered at regular intervals throughout the year.

We expect Indonesias mining industry value to reach US$147bn in real terms by 2015, almost double that of 2010. The country will remain a dominant player in the coal and tin mining industries given the countrys position as the largest global exporter in both commodities. Coal mining will continue to drive growth in the industry given the aggressive expansion and acquisition plans of the coal miners in the country. Indeed, we expect coal production to reach 816mnt by 2015, an annual average growth of 17.8% from 2010 levels. Nickel and bauxite mining will see growth in refining capacities given the impending 2014 export ban.

Positive regulatory developments in recent years include the passage of the 2009 Mining Law, which streamlines and improves upon the 1967 Mining Law. However, key implementation guidelines with reference to benchmark pricing and asset divestment procedures have yet to be announced, which is a source of uncertainty for investors.

We expect foreign investments into Indonesia to remain strong in the coming years. In the South East Asia region, Indonesia remains the top place for new mining projects, followed by the Philippines and Vietnam. A large number of these are green field and brown field exploration projects for coal and copper-gold prospects.

Indonesias mining sector is dominated by Bumi Resources, which owns the countrys largest and fourth-largest coal miners, Kaltim Prima Coal (KPC) and Arutmin. State-owned PT Timah is the worlds largest integrated tin mining company. It is the tin-rich Bangka regions biggest operator, followed by PT Koba Tin. Timah has a 25% share in Koba Tin, while the remaining stake is held by the Malaysian Smelting Corporation. PT Freeport Indonesia and PT Newmont Nusa Tenggara are essentially the only copper mining players in Indonesia, carrying out mining activities at the Grasberg and Batu Hijau mines.