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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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Sunday, 10 September 23
CHINA AUGUST COAL IMPORTS OF 44.3 MLN T HIT RECORD - REUTERS
China, the world’s top coal consumer, imported 44.3 million metric tons of the fuel last month, customs data showed, the highest amount in an ...
Tuesday, 22 August 23
CHINA'S COAL PRODUCTION LOGS STEADY GROWTH IN JANUARY-JULY: XINHUA
China’s output of raw coal went up 3.6 percent year on year in the first seven months of this year, official data showed.
The ...
Sunday, 13 August 23
THE COMMODITIES FEED: LNG SUPPLY RISKS LINGER - ING
Energy – OPEC sees deficit over remainder of 2023
Oil prices came under some pressure yesterday with ICE Brent settling a litt ...
Wednesday, 09 August 23
COAL TRADE TO RETURN TO 2019 LEVELS - BALTIC EXCHANGE
The International Energy Agency’s mid-year Coal Market Update for 2023 brings both positive and concerning news for the global coal industry. ...
Sunday, 23 July 23
ANALYSIS-INDIA'S COAL MINING BET STUMBLES AS WARY BANKS WEIGH RISING RISKS - REUTERS
India’s drive to ramp up coal output to meet growing energy demand is faltering due to banks’ reluctance to finance newly auctioned min ...
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- Attock Cement Pakistan Limited
- Uttam Galva Steels Limited - India
- Mintek Dendrill Indonesia
- Orica Mining Services - Indonesia
- Renaissance Capital - South Africa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Meralco Power Generation, Philippines
- Lanco Infratech Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Pendopo Energi Batubara - Indonesia
- IEA Clean Coal Centre - UK
- Timah Investasi Mineral - Indoneisa
- Meenaskhi Energy Private Limited - India
- Metalloyd Limited - United Kingdom
- Medco Energi Mining Internasional
- Xindia Steels Limited - India
- Mercator Lines Limited - India
- Semirara Mining Corp, Philippines
- Electricity Generating Authority of Thailand
- SN Aboitiz Power Inc, Philippines
- Directorate Of Revenue Intelligence - India
- Coastal Gujarat Power Limited - India
- Thiess Contractors Indonesia
- Bukit Baiduri Energy - Indonesia
- GVK Power & Infra Limited - India
- Minerals Council of Australia
- Tamil Nadu electricity Board
- GAC Shipping (India) Pvt Ltd
- ICICI Bank Limited - India
- Chettinad Cement Corporation Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Miang Besar Coal Terminal - Indonesia
- Gujarat Sidhee Cement - India
- Star Paper Mills Limited - India
- Ind-Barath Power Infra Limited - India
- Sree Jayajothi Cements Limited - India
- The Treasury - Australian Government
- Price Waterhouse Coopers - Russia
- Rashtriya Ispat Nigam Limited - India
- Edison Trading Spa - Italy
- Kumho Petrochemical, South Korea
- Kobexindo Tractors - Indoneisa
- Kartika Selabumi Mining - Indonesia
- Mercuria Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Anglo American - United Kingdom
- Intertek Mineral Services - Indonesia
- Ministry of Finance - Indonesia
- Oldendorff Carriers - Singapore
- GMR Energy Limited - India
- Madhucon Powers Ltd - India
- Ministry of Transport, Egypt
- Karbindo Abesyapradhi - Indoneisa
- Parry Sugars Refinery, India
- Binh Thuan Hamico - Vietnam
- OPG Power Generation Pvt Ltd - India
- Independent Power Producers Association of India
- Essar Steel Hazira Ltd - India
- Riau Bara Harum - Indonesia
- Sindya Power Generating Company Private Ltd
- Borneo Indobara - Indonesia
- Aboitiz Power Corporation - Philippines
- Straits Asia Resources Limited - Singapore
- Jaiprakash Power Ventures ltd
- Simpson Spence & Young - Indonesia
- Barasentosa Lestari - Indonesia
- Global Coal Blending Company Limited - Australia
- IHS Mccloskey Coal Group - USA
- Makarim & Taira - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Jindal Steel & Power Ltd - India
- Thai Mozambique Logistica
- Sakthi Sugars Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Alfred C Toepfer International GmbH - Germany
- VISA Power Limited - India
- Bharathi Cement Corporation - India
- Videocon Industries ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- Interocean Group of Companies - India
- Sojitz Corporation - Japan
- PetroVietnam Power Coal Import and Supply Company
- Banpu Public Company Limited - Thailand
- Cement Manufacturers Association - India
- Coal and Oil Company - UAE
- Kohat Cement Company Ltd. - Pakistan
- Port Waratah Coal Services - Australia
- MS Steel International - UAE
- Larsen & Toubro Limited - India
- Carbofer General Trading SA - India
- Commonwealth Bank - Australia
- Gujarat Electricity Regulatory Commission - India
- Grasim Industreis Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Samtan Co., Ltd - South Korea
- Rio Tinto Coal - Australia
- Kapuas Tunggal Persada - Indonesia
- London Commodity Brokers - England
- Leighton Contractors Pty Ltd - Australia
- Aditya Birla Group - India
- Bayan Resources Tbk. - Indonesia
- Marubeni Corporation - India
- Indika Energy - Indonesia
- Heidelberg Cement - Germany
- Petrochimia International Co. Ltd.- Taiwan
- Vedanta Resources Plc - India
- Directorate General of MIneral and Coal - Indonesia
- Petron Corporation, Philippines
- Agrawal Coal Company - India
- Chamber of Mines of South Africa
- Gujarat Mineral Development Corp Ltd - India
- Romanian Commodities Exchange
- Bangladesh Power Developement Board
- TeaM Sual Corporation - Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Krishnapatnam Port Company Ltd. - India
- Central Java Power - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Energy Development Corp, Philippines
- Toyota Tsusho Corporation, Japan
- San Jose City I Power Corp, Philippines
- The State Trading Corporation of India Ltd
- Maharashtra Electricity Regulatory Commission - India
- New Zealand Coal & Carbon
- Posco Energy - South Korea
- Bulk Trading Sa - Switzerland
- Kalimantan Lumbung Energi - Indonesia
- Africa Commodities Group - South Africa
- Electricity Authority, New Zealand
- CNBM International Corporation - China
- Antam Resourcindo - Indonesia
- Parliament of New Zealand
- Bhoruka Overseas - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Sical Logistics Limited - India
- Energy Link Ltd, New Zealand
- Globalindo Alam Lestari - Indonesia
- Georgia Ports Authority, United States
- Wood Mackenzie - Singapore
- SMG Consultants - Indonesia
- Orica Australia Pty. Ltd.
- Indian Energy Exchange, India
- Global Business Power Corporation, Philippines
- Indogreen Group - Indonesia
- Vizag Seaport Private Limited - India
- Malabar Cements Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Wilmar Investment Holdings
- McConnell Dowell - Australia
- Baramulti Group, Indonesia
- Karaikal Port Pvt Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Holcim Trading Pte Ltd - Singapore
- South Luzon Thermal Energy Corporation
- Cigading International Bulk Terminal - Indonesia
- Bhatia International Limited - India
- Ambuja Cements Ltd - India
- Australian Coal Association
- European Bulk Services B.V. - Netherlands
- Indian Oil Corporation Limited
- Ministry of Mines - Canada
- Indo Tambangraya Megah - Indonesia
- Merrill Lynch Commodities Europe
- Economic Council, Georgia
- PTC India Limited - India
- Billiton Holdings Pty Ltd - Australia
- Tata Chemicals Ltd - India
- Bhushan Steel Limited - India
- Ceylon Electricity Board - Sri Lanka
- Eastern Energy - Thailand
- The University of Queensland
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Mjunction Services Limited - India
- PowerSource Philippines DevCo
- Kaltim Prima Coal - Indonesia
- Sarangani Energy Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- ASAPP Information Group - India
- Central Electricity Authority - India
- Standard Chartered Bank - UAE
- Power Finance Corporation Ltd., India
- Bahari Cakrawala Sebuku - Indonesia
- Indonesian Coal Mining Association
- TNB Fuel Sdn Bhd - Malaysia
- Therma Luzon, Inc, Philippines
- Altura Mining Limited, Indonesia
- Savvy Resources Ltd - HongKong
- Global Green Power PLC Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- Goldman Sachs - Singapore
- Bukit Makmur.PT - Indonesia
- Formosa Plastics Group - Taiwan
- Kideco Jaya Agung - Indonesia
- Trasteel International SA, Italy
- White Energy Company Limited
- Planning Commission, India
- Salva Resources Pvt Ltd - India
- Singapore Mercantile Exchange
- International Coal Ventures Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- SMC Global Power, Philippines
- LBH Netherlands Bv - Netherlands
- India Bulls Power Limited - India
- PNOC Exploration Corporation - Philippines
- Dalmia Cement Bharat India
- Eastern Coal Council - USA
- Siam City Cement - Thailand
- Deloitte Consulting - India
- Australian Commodity Traders Exchange
- Latin American Coal - Colombia
- Maheswari Brothers Coal Limited - India
- Coalindo Energy - Indonesia
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