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Friday, 08 June 12
NO IMMEDIATE IMPACT ON ADARO'S RATING FROM BEP TRANSACTION - FITCH RATINGS
 Fitch Ratings has said that PT Adaro Indonesia's (Adaro, 'BB+'/ Stable) ratings are not immediately affected by its parent PT Adaro Energy Tbk's (Adaro Energy) planned investment in greenfield coal miner PT Bhakti Energi Persada (BEP).
Adaro Energy recently signed an agreement for the right to acquire up to 51% of BEP over three years for up to USD500m through a convertible loan or to issue a pre-specified number of shares of Adaro Energy to the shareholders of BEP (participating in this agreement) in exchange for 79.8% of BEP. Adaro Energy currently owns 10.22% of BEP.
BEP has seven coal concessions, all IUPs (Izin Usaha Pertambangans - mining business licences), with estimated Australasian Joint Ore Reserves Committee (JORC)-compliant coal resources of 9.53 billion tonnes. Fitch expects that a large part of the investment required before bringing these resources to production will relate to the coal hauling road connecting the mines to barging and shipping points. Coal resources of BEP are of low energy content (3,379kcal on a gross as received basis) and as such will trade at a substantial discount to benchmark thermal coal prices. However, the favourable geology of BEP mines will allow the extraction of coal at an extremely low strip ratio (i.e., units of overburden to be removed on per unit of coal extracted) over the average life of a mine of below 0.5x as estimated by Adaro Energy, supporting the economic viability of these operations. The materially shorter supply chain of BEP's mines at 130km (versus 320km for Adaro's existing mines) would provide further support.
However, BEP coal mines have substantially lower cash margins than Adaro Energy's currently main cash generating mine, Tutupan, and are more susceptible to low coal prices. There is also uncertainty relating to coal mining regulations in Indonesia at present, such as restrictions on coal exports and a resource export tax. Any unfavourable regulatory developments can affect the commerciality of BEP's operations. However, Adaro Energy's options to invest in rather than an outright purchase of BEP resources provide a meaningful level of flexibility and safety. Fitch believes that any investments in the first half of the three-year option period will not be significant and can be funded from Adaro Energy's projected internal cash generation.
If successfully executed, BEP can over time contribute to the increasing diversity of Adaro Energy's mining operations. The limited diversity of Adaro Energy's existing mine sites is one of the factors currently constraining its ratings.
The ratings of Adaro are based on the credit profile of Adaro Energy given their strong rating linkages as per Fitch's parent-subsidiary linkage methodology. At end-March 2012 Adaro Energy's funds from operations (FFO)-adjusted gross leverage was 2.4x and FFO interest coverage 7.0x.
Negative rating action may result from FFO gross leverage rising above 2.75x or FFO interest coverage falling below 5x for two consecutive years. Other negative rating guidelines are material deviation from its policy of maintaining strong liquidity; adverse regulatory developments that will significantly impair Adaro Energy's financial profile; further substantial investments that weaken Adaro's financial or operating risk profile and a sustained weakening of coal prices.
Source: Fitch (Hong Kong) Limited
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Wednesday, 31 January 24
CHINA'S INNER MONGOLIA COAL OUTPUT HIT 1.21B TONS IN 2023 - XINHUA
North China’s Inner Mongolia autonomous region churned out 1.21 billion tons of coal in 2023 as it strives to guarantee the country’s e ...
Wednesday, 31 January 24
GAS EXPORTS COST U.S. CONSUMERS MORE THAN $100 BILLION OVER 16-MONTH PERIOD - IEEFA
Limited Demand Growth Could Dampen the Dry Bulk Market in the Coming Months BIMCOStarting in late 2021—before its invasion of Ukraine—R ...
Tuesday, 30 January 24
LIMITED DEMAND GROWTH COULD DAMPEN THE DRY BULK MARKET IN THE COMING MONTHS - BIMCO
Demand
In our base scenario, we expect cargo demand to grow by 0-1% in 2024 and 0.5-1.5% in 2025. This is a 0.5 percentage point reduction for ...
Friday, 26 January 24
RED SEA DIVERSIONS ADD NEARLY A MILLION DOLLARS PER VOYAGE TO SHIPPING COSTS WHILE DOUBLING TRANSIT TIME - LSEG
The incremental costs of diverting a tanker from Asia to NW Europe via the Cape of Good Hope is accounting for an extra $932,905 USD per voyage whi ...
Friday, 26 January 24
HARD COAL GUARDIAN ANGEL OF THE ENERGY SUPPLY - GERMANY COAL IMPORTERS ASSOCIATION
- No security of supply without hard coal
- The Substitute Power Plant Provision Act (EKBG) must be extended
- Higher grid fees due to the ...
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Showing 46 to 50 news of total 6871 |
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- Wood Mackenzie - Singapore
- Gujarat Sidhee Cement - India
- Manunggal Multi Energi - Indonesia
- PowerSource Philippines DevCo
- Malabar Cements Ltd - India
- Parry Sugars Refinery, India
- Sarangani Energy Corporation, Philippines
- Trasteel International SA, Italy
- Meenaskhi Energy Private Limited - India
- Bangladesh Power Developement Board
- Leighton Contractors Pty Ltd - Australia
- SN Aboitiz Power Inc, Philippines
- MS Steel International - UAE
- Jindal Steel & Power Ltd - India
- McConnell Dowell - Australia
- European Bulk Services B.V. - Netherlands
- Sojitz Corporation - Japan
- Bulk Trading Sa - Switzerland
- IHS Mccloskey Coal Group - USA
- Baramulti Group, Indonesia
- Siam City Cement PLC, Thailand
- GVK Power & Infra Limited - India
- Orica Mining Services - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ministry of Finance - Indonesia
- Sindya Power Generating Company Private Ltd
- Indian Energy Exchange, India
- Ambuja Cements Ltd - India
- London Commodity Brokers - England
- PNOC Exploration Corporation - Philippines
- Makarim & Taira - Indonesia
- Videocon Industries ltd - India
- Madhucon Powers Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- IEA Clean Coal Centre - UK
- Ind-Barath Power Infra Limited - India
- GAC Shipping (India) Pvt Ltd
- Star Paper Mills Limited - India
- Chamber of Mines of South Africa
- Directorate General of MIneral and Coal - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Energy Development Corp, Philippines
- Banpu Public Company Limited - Thailand
- Holcim Trading Pte Ltd - Singapore
- Vedanta Resources Plc - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kohat Cement Company Ltd. - Pakistan
- VISA Power Limited - India
- New Zealand Coal & Carbon
- Orica Australia Pty. Ltd.
- Deloitte Consulting - India
- Borneo Indobara - Indonesia
- Renaissance Capital - South Africa
- Asmin Koalindo Tuhup - Indonesia
- Port Waratah Coal Services - Australia
- Interocean Group of Companies - India
- Eastern Energy - Thailand
- ICICI Bank Limited - India
- Uttam Galva Steels Limited - India
- Dalmia Cement Bharat India
- Binh Thuan Hamico - Vietnam
- OPG Power Generation Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Ministry of Mines - Canada
- Minerals Council of Australia
- Globalindo Alam Lestari - Indonesia
- Planning Commission, India
- Jorong Barutama Greston.PT - Indonesia
- Latin American Coal - Colombia
- Romanian Commodities Exchange
- Cement Manufacturers Association - India
- Coalindo Energy - Indonesia
- The Treasury - Australian Government
- GN Power Mariveles Coal Plant, Philippines
- Independent Power Producers Association of India
- Bahari Cakrawala Sebuku - Indonesia
- Cigading International Bulk Terminal - Indonesia
- GMR Energy Limited - India
- TeaM Sual Corporation - Philippines
- Agrawal Coal Company - India
- Marubeni Corporation - India
- Tamil Nadu electricity Board
- Indogreen Group - Indonesia
- Directorate Of Revenue Intelligence - India
- Samtan Co., Ltd - South Korea
- Indian Oil Corporation Limited
- Maharashtra Electricity Regulatory Commission - India
- Electricity Generating Authority of Thailand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Formosa Plastics Group - Taiwan
- Bharathi Cement Corporation - India
- Larsen & Toubro Limited - India
- Energy Link Ltd, New Zealand
- Australian Coal Association
- Karbindo Abesyapradhi - Indoneisa
- South Luzon Thermal Energy Corporation
- Meralco Power Generation, Philippines
- Economic Council, Georgia
- Kapuas Tunggal Persada - Indonesia
- International Coal Ventures Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Mintek Dendrill Indonesia
- Global Coal Blending Company Limited - Australia
- Bhoruka Overseas - Indonesia
- Kideco Jaya Agung - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sakthi Sugars Limited - India
- Lanco Infratech Ltd - India
- Central Electricity Authority - India
- Georgia Ports Authority, United States
- Kalimantan Lumbung Energi - Indonesia
- White Energy Company Limited
- Global Business Power Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Carbofer General Trading SA - India
- Sinarmas Energy and Mining - Indonesia
- San Jose City I Power Corp, Philippines
- Bhatia International Limited - India
- Kumho Petrochemical, South Korea
- Essar Steel Hazira Ltd - India
- Savvy Resources Ltd - HongKong
- Parliament of New Zealand
- Karaikal Port Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Vizag Seaport Private Limited - India
- Antam Resourcindo - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- SMC Global Power, Philippines
- Central Java Power - Indonesia
- Kartika Selabumi Mining - Indonesia
- Kobexindo Tractors - Indoneisa
- Rio Tinto Coal - Australia
- Billiton Holdings Pty Ltd - Australia
- Merrill Lynch Commodities Europe
- Edison Trading Spa - Italy
- Power Finance Corporation Ltd., India
- Kaltim Prima Coal - Indonesia
- Tata Chemicals Ltd - India
- CIMB Investment Bank - Malaysia
- Timah Investasi Mineral - Indoneisa
- Pendopo Energi Batubara - Indonesia
- Africa Commodities Group - South Africa
- Coastal Gujarat Power Limited - India
- Mjunction Services Limited - India
- Standard Chartered Bank - UAE
- Petron Corporation, Philippines
- Grasim Industreis Ltd - India
- Intertek Mineral Services - Indonesia
- Riau Bara Harum - Indonesia
- Heidelberg Cement - Germany
- LBH Netherlands Bv - Netherlands
- Electricity Authority, New Zealand
- Bayan Resources Tbk. - Indonesia
- Iligan Light & Power Inc, Philippines
- Indonesian Coal Mining Association
- Aboitiz Power Corporation - Philippines
- PTC India Limited - India
- Xindia Steels Limited - India
- Goldman Sachs - Singapore
- Thai Mozambique Logistica
- Siam City Cement - Thailand
- TNB Fuel Sdn Bhd - Malaysia
- Metalloyd Limited - United Kingdom
- Attock Cement Pakistan Limited
- Anglo American - United Kingdom
- India Bulls Power Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Simpson Spence & Young - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Toyota Tsusho Corporation, Japan
- Oldendorff Carriers - Singapore
- Chettinad Cement Corporation Ltd - India
- The University of Queensland
- The State Trading Corporation of India Ltd
- Thiess Contractors Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Wilmar Investment Holdings
- Singapore Mercantile Exchange
- Coal and Oil Company - UAE
- Indika Energy - Indonesia
- Indo Tambangraya Megah - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Bhushan Steel Limited - India
- Barasentosa Lestari - Indonesia
- SMG Consultants - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Sree Jayajothi Cements Limited - India
- Therma Luzon, Inc, Philippines
- Ministry of Transport, Egypt
- Mercuria Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Gujarat Electricity Regulatory Commission - India
- Bukit Baiduri Energy - Indonesia
- ASAPP Information Group - India
- Posco Energy - South Korea
- Australian Commodity Traders Exchange
- Altura Mining Limited, Indonesia
- Aditya Birla Group - India
- Eastern Coal Council - USA
- Kepco SPC Power Corporation, Philippines
- CNBM International Corporation - China
- Commonwealth Bank - Australia
- Mercator Lines Limited - India
- Medco Energi Mining Internasional
- Semirara Mining Corp, Philippines
- Straits Asia Resources Limited - Singapore
- Sical Logistics Limited - India
- Global Green Power PLC Corporation, Philippines
- Salva Resources Pvt Ltd - India
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