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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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Monday, 08 January 24
KOSPO TO BUY 80000 MT OF INDONESIAN LOW CALORIFIC VALUE COAL FOR FEB 2024
Korea Southern Power Co., Ltd. (KOSPO), is inviting bids for the supply of Indonesian Low Calorific Value Coal from qualified suppliers for Korean ...
Monday, 08 January 24
SEABORNE TRADE REACHES 12.4BN TONNES - CLARKSONS
China will establish a back-up coal production system by 2027 to stabilise prices and secure coal supply, the state planner said on Wednesday, even ...
Monday, 08 January 24
CAPESIZES START THE NEW YEAR ON POSITIVE NOTE - BALTIC EXCHANGE
Capesize
This week the capsize market has been marked by a mix of activities and challenges. Despite a slow start following the Christmas and N ...
Friday, 05 January 24
MORGAN STANLEY SEES LOWER OIL PRICES IN 2024 ON OVERSUPPLY CONCERNS - REUTERS
Morgan Stanley sees Brent crude prices anchored near $80 per barrel in the first half in 2024 before declining towards the end of the year as it ex ...
Friday, 05 January 24
INDIA'S COAL OUTPUT RISES NEARLY 11 PC IN DEC TO 92.87 MT - PTI
India’s coal production increased by 10.75 per cent to 92.87 million tonne in December 2023 as compared to the year-ago period, an official s ...
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- Bhushan Steel Limited - India
- GAC Shipping (India) Pvt Ltd
- Jaiprakash Power Ventures ltd
- AsiaOL BioFuels Corp., Philippines
- Simpson Spence & Young - Indonesia
- Wood Mackenzie - Singapore
- Bhoruka Overseas - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Electricity Authority, New Zealand
- Uttam Galva Steels Limited - India
- Semirara Mining Corp, Philippines
- Maheswari Brothers Coal Limited - India
- Bhatia International Limited - India
- McConnell Dowell - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Bukit Makmur.PT - Indonesia
- Tata Chemicals Ltd - India
- Ministry of Mines - Canada
- Ind-Barath Power Infra Limited - India
- Savvy Resources Ltd - HongKong
- Aditya Birla Group - India
- Sarangani Energy Corporation, Philippines
- SMC Global Power, Philippines
- Rio Tinto Coal - Australia
- Ceylon Electricity Board - Sri Lanka
- Salva Resources Pvt Ltd - India
- Star Paper Mills Limited - India
- Kapuas Tunggal Persada - Indonesia
- Jindal Steel & Power Ltd - India
- Chamber of Mines of South Africa
- Indonesian Coal Mining Association
- MS Steel International - UAE
- Krishnapatnam Port Company Ltd. - India
- Cigading International Bulk Terminal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Mercuria Energy - Indonesia
- Port Waratah Coal Services - Australia
- Indika Energy - Indonesia
- Sakthi Sugars Limited - India
- Posco Energy - South Korea
- Mjunction Services Limited - India
- Agrawal Coal Company - India
- Metalloyd Limited - United Kingdom
- New Zealand Coal & Carbon
- Eastern Energy - Thailand
- IEA Clean Coal Centre - UK
- Independent Power Producers Association of India
- The State Trading Corporation of India Ltd
- Price Waterhouse Coopers - Russia
- Singapore Mercantile Exchange
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Eastern Coal Council - USA
- Parliament of New Zealand
- Petrochimia International Co. Ltd.- Taiwan
- Ministry of Transport, Egypt
- TNB Fuel Sdn Bhd - Malaysia
- Chettinad Cement Corporation Ltd - India
- India Bulls Power Limited - India
- Riau Bara Harum - Indonesia
- Edison Trading Spa - Italy
- Straits Asia Resources Limited - Singapore
- GVK Power & Infra Limited - India
- Binh Thuan Hamico - Vietnam
- White Energy Company Limited
- Videocon Industries ltd - India
- Sinarmas Energy and Mining - Indonesia
- Global Coal Blending Company Limited - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Dalmia Cement Bharat India
- Thiess Contractors Indonesia
- Siam City Cement PLC, Thailand
- Petron Corporation, Philippines
- Planning Commission, India
- SMG Consultants - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Global Business Power Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Orica Australia Pty. Ltd.
- Energy Link Ltd, New Zealand
- Gujarat Mineral Development Corp Ltd - India
- Indian Oil Corporation Limited
- Offshore Bulk Terminal Pte Ltd, Singapore
- The University of Queensland
- Bharathi Cement Corporation - India
- Renaissance Capital - South Africa
- Mercator Lines Limited - India
- Gujarat Sidhee Cement - India
- GMR Energy Limited - India
- Parry Sugars Refinery, India
- Australian Coal Association
- Central Electricity Authority - India
- Neyveli Lignite Corporation Ltd, - India
- Deloitte Consulting - India
- Power Finance Corporation Ltd., India
- Attock Cement Pakistan Limited
- Altura Mining Limited, Indonesia
- Indogreen Group - Indonesia
- Commonwealth Bank - Australia
- Cement Manufacturers Association - India
- Billiton Holdings Pty Ltd - Australia
- Maharashtra Electricity Regulatory Commission - India
- Grasim Industreis Ltd - India
- Heidelberg Cement - Germany
- Australian Commodity Traders Exchange
- Sree Jayajothi Cements Limited - India
- Vedanta Resources Plc - India
- Indian Energy Exchange, India
- Larsen & Toubro Limited - India
- Sindya Power Generating Company Private Ltd
- Orica Mining Services - Indonesia
- Bulk Trading Sa - Switzerland
- Anglo American - United Kingdom
- Directorate General of MIneral and Coal - Indonesia
- London Commodity Brokers - England
- Jorong Barutama Greston.PT - Indonesia
- International Coal Ventures Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- Alfred C Toepfer International GmbH - Germany
- PowerSource Philippines DevCo
- Thai Mozambique Logistica
- OPG Power Generation Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Rashtriya Ispat Nigam Limited - India
- Sojitz Corporation - Japan
- Merrill Lynch Commodities Europe
- Latin American Coal - Colombia
- Indo Tambangraya Megah - Indonesia
- PTC India Limited - India
- Kaltim Prima Coal - Indonesia
- Lanco Infratech Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Sical Logistics Limited - India
- Marubeni Corporation - India
- SN Aboitiz Power Inc, Philippines
- Formosa Plastics Group - Taiwan
- Intertek Mineral Services - Indonesia
- The Treasury - Australian Government
- Barasentosa Lestari - Indonesia
- Goldman Sachs - Singapore
- European Bulk Services B.V. - Netherlands
- Energy Development Corp, Philippines
- Manunggal Multi Energi - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- IHS Mccloskey Coal Group - USA
- Therma Luzon, Inc, Philippines
- Africa Commodities Group - South Africa
- Xindia Steels Limited - India
- Electricity Generating Authority of Thailand
- San Jose City I Power Corp, Philippines
- Holcim Trading Pte Ltd - Singapore
- Meenaskhi Energy Private Limited - India
- Baramulti Group, Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Carbofer General Trading SA - India
- South Luzon Thermal Energy Corporation
- LBH Netherlands Bv - Netherlands
- Semirara Mining and Power Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Wilmar Investment Holdings
- Samtan Co., Ltd - South Korea
- Mintek Dendrill Indonesia
- Standard Chartered Bank - UAE
- Trasteel International SA, Italy
- Essar Steel Hazira Ltd - India
- Tamil Nadu electricity Board
- Kideco Jaya Agung - Indonesia
- Global Green Power PLC Corporation, Philippines
- Oldendorff Carriers - Singapore
- Toyota Tsusho Corporation, Japan
- Meralco Power Generation, Philippines
- Ambuja Cements Ltd - India
- ASAPP Information Group - India
- Karaikal Port Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- Borneo Indobara - Indonesia
- Interocean Group of Companies - India
- Ministry of Finance - Indonesia
- Timah Investasi Mineral - Indoneisa
- Makarim & Taira - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- PNOC Exploration Corporation - Philippines
- Economic Council, Georgia
- Directorate Of Revenue Intelligence - India
- Georgia Ports Authority, United States
- Coal and Oil Company - UAE
- Coastal Gujarat Power Limited - India
- Minerals Council of Australia
- Asmin Koalindo Tuhup - Indonesia
- Coalindo Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Vizag Seaport Private Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- TeaM Sual Corporation - Philippines
- Bayan Resources Tbk. - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kartika Selabumi Mining - Indonesia
- Bangladesh Power Developement Board
- ICICI Bank Limited - India
- Kepco SPC Power Corporation, Philippines
- Medco Energi Mining Internasional
- Aboitiz Power Corporation - Philippines
- Bukit Baiduri Energy - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Bank of Tokyo Mitsubishi UFJ Ltd
- Romanian Commodities Exchange
- VISA Power Limited - India
- Central Java Power - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- CIMB Investment Bank - Malaysia
- Iligan Light & Power Inc, Philippines
- Siam City Cement - Thailand
- Antam Resourcindo - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kumho Petrochemical, South Korea
- Madhucon Powers Ltd - India
- CNBM International Corporation - China
- Malabar Cements Ltd - India
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