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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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Friday, 05 January 24
BANGLADESH’S 2023 COAL-FIRED POWER OUTPUT TRIPLED, EASING SHORTAGES - REUTERS
Bangladesh nearly tripled its coal-fired power output in 2023, a Reuters analysis of government data showed, helping it tide over the worst power s ...
Tuesday, 02 January 24
COAL TRADE CONTINUES TO HEAD EAST - BALTIC EXCHANGE
The global coal trade, once concentrated in the Pacific and Atlantic basins, is undergoing a significant transformation, as highlighted in the Inte ...
Tuesday, 02 January 24
COAL CARGOES: AVOIDING EXPLOSION AND SELF-HEATING - GARD
KNOWLEDGE TO ELEVATE
Despite its contribution to greenhouse gas emissions, global coal consumption climbed to an all-time high in 2022 and is ...
Tuesday, 02 January 24
SINOPEC FORECASTS CHINA’S COAL CONSUMPTION TO PEAK AROUND 2025 - REUTERS
China Petrochemical Corp, or Sinopec, expects coal consumption to peak around 2025 at 4.37 billion metric tons, the state energy group said in an o ...
Thursday, 07 December 23
CHINA TO SET UP COAL PRODUCTION RESERVE TO STABILISE PRICES - REUTERS
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 ...
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- Baramulti Group, Indonesia
- The Treasury - Australian Government
- Iligan Light & Power Inc, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Dalmia Cement Bharat India
- Straits Asia Resources Limited - Singapore
- Formosa Plastics Group - Taiwan
- IHS Mccloskey Coal Group - USA
- TNB Fuel Sdn Bhd - Malaysia
- Eastern Coal Council - USA
- Sinarmas Energy and Mining - Indonesia
- Meenaskhi Energy Private Limited - India
- Goldman Sachs - Singapore
- Mintek Dendrill Indonesia
- Ind-Barath Power Infra Limited - India
- Central Java Power - Indonesia
- Kideco Jaya Agung - Indonesia
- Marubeni Corporation - India
- Grasim Industreis Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Chettinad Cement Corporation Ltd - India
- Heidelberg Cement - Germany
- Riau Bara Harum - Indonesia
- Posco Energy - South Korea
- Karbindo Abesyapradhi - Indoneisa
- Global Green Power PLC Corporation, Philippines
- Thiess Contractors Indonesia
- Standard Chartered Bank - UAE
- Price Waterhouse Coopers - Russia
- Therma Luzon, Inc, Philippines
- Semirara Mining and Power Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Aditya Birla Group - India
- Sarangani Energy Corporation, Philippines
- Madhucon Powers Ltd - India
- Makarim & Taira - Indonesia
- Antam Resourcindo - Indonesia
- Carbofer General Trading SA - India
- Gujarat Sidhee Cement - India
- Neyveli Lignite Corporation Ltd, - India
- Savvy Resources Ltd - HongKong
- Ministry of Transport, Egypt
- Parry Sugars Refinery, India
- International Coal Ventures Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Videocon Industries ltd - India
- Kobexindo Tractors - Indoneisa
- Renaissance Capital - South Africa
- GVK Power & Infra Limited - India
- Vedanta Resources Plc - India
- Coal and Oil Company - UAE
- ASAPP Information Group - India
- San Jose City I Power Corp, Philippines
- Binh Thuan Hamico - Vietnam
- Bukit Baiduri Energy - Indonesia
- Oldendorff Carriers - Singapore
- Kumho Petrochemical, South Korea
- PNOC Exploration Corporation - Philippines
- India Bulls Power Limited - India
- OPG Power Generation Pvt Ltd - India
- Mercator Lines Limited - India
- Kepco SPC Power Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- AsiaOL BioFuels Corp., Philippines
- Central Electricity Authority - India
- Maharashtra Electricity Regulatory Commission - India
- Jindal Steel & Power Ltd - India
- Bhoruka Overseas - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Uttam Galva Steels Limited - India
- Timah Investasi Mineral - Indoneisa
- Karaikal Port Pvt Ltd - India
- Energy Development Corp, Philippines
- Attock Cement Pakistan Limited
- Gujarat Mineral Development Corp Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- VISA Power Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- Ministry of Finance - Indonesia
- SN Aboitiz Power Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Manunggal Multi Energi - Indonesia
- Australian Coal Association
- Indo Tambangraya Megah - Indonesia
- Cement Manufacturers Association - India
- Wilmar Investment Holdings
- Minerals Council of Australia
- Siam City Cement - Thailand
- Romanian Commodities Exchange
- Indika Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- Pendopo Energi Batubara - Indonesia
- ICICI Bank Limited - India
- New Zealand Coal & Carbon
- Anglo American - United Kingdom
- Africa Commodities Group - South Africa
- Parliament of New Zealand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indogreen Group - Indonesia
- The State Trading Corporation of India Ltd
- Cigading International Bulk Terminal - Indonesia
- Banpu Public Company Limited - Thailand
- Tamil Nadu electricity Board
- Coastal Gujarat Power Limited - India
- Malabar Cements Ltd - India
- Australian Commodity Traders Exchange
- Coalindo Energy - Indonesia
- The University of Queensland
- Semirara Mining Corp, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Merrill Lynch Commodities Europe
- Interocean Group of Companies - India
- Gujarat Electricity Regulatory Commission - India
- Power Finance Corporation Ltd., India
- GMR Energy Limited - India
- Orica Australia Pty. Ltd.
- Altura Mining Limited, Indonesia
- Medco Energi Mining Internasional
- GN Power Mariveles Coal Plant, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Tata Chemicals Ltd - India
- Billiton Holdings Pty Ltd - Australia
- PowerSource Philippines DevCo
- Barasentosa Lestari - Indonesia
- Deloitte Consulting - India
- Samtan Co., Ltd - South Korea
- Commonwealth Bank - Australia
- Agrawal Coal Company - India
- Rashtriya Ispat Nigam Limited - India
- Indonesian Coal Mining Association
- Sojitz Corporation - Japan
- Energy Link Ltd, New Zealand
- Metalloyd Limited - United Kingdom
- Ambuja Cements Ltd - India
- Port Waratah Coal Services - Australia
- Miang Besar Coal Terminal - Indonesia
- MS Steel International - UAE
- Bahari Cakrawala Sebuku - Indonesia
- European Bulk Services B.V. - Netherlands
- Siam City Cement PLC, Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bangladesh Power Developement Board
- Bukit Makmur.PT - Indonesia
- Eastern Energy - Thailand
- Petrochimia International Co. Ltd.- Taiwan
- Globalindo Alam Lestari - Indonesia
- Borneo Indobara - Indonesia
- IEA Clean Coal Centre - UK
- Krishnapatnam Port Company Ltd. - India
- Mercuria Energy - Indonesia
- Chamber of Mines of South Africa
- Meralco Power Generation, Philippines
- London Commodity Brokers - England
- Aboitiz Power Corporation - Philippines
- Lanco Infratech Ltd - India
- Indian Energy Exchange, India
- Kartika Selabumi Mining - Indonesia
- Jaiprakash Power Ventures ltd
- Orica Mining Services - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kaltim Prima Coal - Indonesia
- Essar Steel Hazira Ltd - India
- Salva Resources Pvt Ltd - India
- Economic Council, Georgia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Maheswari Brothers Coal Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Coal Blending Company Limited - Australia
- Bulk Trading Sa - Switzerland
- Global Business Power Corporation, Philippines
- Xindia Steels Limited - India
- Planning Commission, India
- McConnell Dowell - Australia
- Kohat Cement Company Ltd. - Pakistan
- Ministry of Mines - Canada
- Bhatia International Limited - India
- Mjunction Services Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Bhushan Steel Limited - India
- PTC India Limited - India
- Sakthi Sugars Limited - India
- Alfred C Toepfer International GmbH - Germany
- Star Paper Mills Limited - India
- Sical Logistics Limited - India
- Singapore Mercantile Exchange
- SMG Consultants - Indonesia
- Georgia Ports Authority, United States
- Rio Tinto Coal - Australia
- Independent Power Producers Association of India
- White Energy Company Limited
- Trasteel International SA, Italy
- Edison Trading Spa - Italy
- South Luzon Thermal Energy Corporation
- Wood Mackenzie - Singapore
- Electricity Generating Authority of Thailand
- Sindya Power Generating Company Private Ltd
- Petron Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Leighton Contractors Pty Ltd - Australia
- Sree Jayajothi Cements Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Latin American Coal - Colombia
- SMC Global Power, Philippines
- Indian Oil Corporation Limited
- Intertek Mineral Services - Indonesia
- Bharathi Cement Corporation - India
- Vizag Seaport Private Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Directorate Of Revenue Intelligence - India
- LBH Netherlands Bv - Netherlands
- CIMB Investment Bank - Malaysia
- Thai Mozambique Logistica
- Electricity Authority, New Zealand
- CNBM International Corporation - China
- TeaM Sual Corporation - Philippines
- Larsen & Toubro Limited - India
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