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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, 02 August 24
COAL MARKET DEVELOPMENTS: FALLING PRICES AMID RECORD-HIGH OUTPUT - WORLD BANK
Coal prices inched up in May (m/m) following an 8 percent decline in 2024Q1. The Australian and South African benchmarks have plummeted more ...
Friday, 26 July 24
FUELEU MARITME IS COMING. IS YOUR CHARTERPARTY READY? - GARD
With less than six months to implementation of FuelEU Maritime in EU and EEA trades, there has been little published advice regarding how to alloca ...
Thursday, 04 July 24
INDIA'S COAL PRODUCTION RISES 14% IN JUNE - PTI
The country’s coal production rose by 14.49% to 84.63 million tonne (MT) in June. The country’s coal output was 73.92 MT in June last f ...
Tuesday, 02 July 24
NTPC CAPTIVE COAL OUTPUT GROWS 15% IN Q1; DESPATCH RISES 17%
State-owned NTPC on Monday reported a 15 per cent year-on-year increase in the production of coal from captives mines to 9.862 metric million tonne ...
Friday, 28 June 24
KOSPO INVITED BIDS FOR 400,000 MT OF MINIMUM 4000 NCV COAL FOR FIVE YEARS
Korea Southern Power Co., Ltd. (KOSPO), is inviting bids for total 400,000 MT of Low Calorific Value Coal for 5 years starting from July 2024 until ...
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- Metalloyd Limited - United Kingdom
- Sical Logistics Limited - India
- Africa Commodities Group - South Africa
- Malabar Cements Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Ministry of Mines - Canada
- Videocon Industries ltd - India
- Coastal Gujarat Power Limited - India
- ICICI Bank Limited - India
- Siam City Cement PLC, Thailand
- GN Power Mariveles Coal Plant, Philippines
- Borneo Indobara - Indonesia
- Mercuria Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Barasentosa Lestari - Indonesia
- European Bulk Services B.V. - Netherlands
- South Luzon Thermal Energy Corporation
- Latin American Coal - Colombia
- Semirara Mining and Power Corporation, Philippines
- Kumho Petrochemical, South Korea
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Eastern Coal Council - USA
- PNOC Exploration Corporation - Philippines
- Indogreen Group - Indonesia
- Meenaskhi Energy Private Limited - India
- Kalimantan Lumbung Energi - Indonesia
- CIMB Investment Bank - Malaysia
- Commonwealth Bank - Australia
- Simpson Spence & Young - Indonesia
- Tata Chemicals Ltd - India
- Coal and Oil Company - UAE
- The University of Queensland
- Heidelberg Cement - Germany
- Australian Commodity Traders Exchange
- AsiaOL BioFuels Corp., Philippines
- Global Green Power PLC Corporation, Philippines
- SMC Global Power, Philippines
- Independent Power Producers Association of India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Chamber of Mines of South Africa
- Edison Trading Spa - Italy
- White Energy Company Limited
- Directorate General of MIneral and Coal - Indonesia
- Intertek Mineral Services - Indonesia
- IEA Clean Coal Centre - UK
- Kideco Jaya Agung - Indonesia
- CNBM International Corporation - China
- Jorong Barutama Greston.PT - Indonesia
- Coalindo Energy - Indonesia
- Maheswari Brothers Coal Limited - India
- The State Trading Corporation of India Ltd
- Iligan Light & Power Inc, Philippines
- Sree Jayajothi Cements Limited - India
- Timah Investasi Mineral - Indoneisa
- Bayan Resources Tbk. - Indonesia
- IHS Mccloskey Coal Group - USA
- Bhoruka Overseas - Indonesia
- Antam Resourcindo - Indonesia
- Ambuja Cements Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Kartika Selabumi Mining - Indonesia
- Oldendorff Carriers - Singapore
- Rashtriya Ispat Nigam Limited - India
- Bharathi Cement Corporation - India
- International Coal Ventures Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Lanco Infratech Ltd - India
- Petron Corporation, Philippines
- Baramulti Group, Indonesia
- Bangladesh Power Developement Board
- Meralco Power Generation, Philippines
- Price Waterhouse Coopers - Russia
- India Bulls Power Limited - India
- Tamil Nadu electricity Board
- Asmin Koalindo Tuhup - Indonesia
- Siam City Cement - Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bukit Baiduri Energy - Indonesia
- Port Waratah Coal Services - Australia
- Thai Mozambique Logistica
- Australian Coal Association
- Standard Chartered Bank - UAE
- Thiess Contractors Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- New Zealand Coal & Carbon
- Grasim Industreis Ltd - India
- Global Coal Blending Company Limited - Australia
- Indian Energy Exchange, India
- Merrill Lynch Commodities Europe
- Semirara Mining Corp, Philippines
- Holcim Trading Pte Ltd - Singapore
- Madhucon Powers Ltd - India
- Kepco SPC Power Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- ASAPP Information Group - India
- Sojitz Corporation - Japan
- Straits Asia Resources Limited - Singapore
- MS Steel International - UAE
- Orica Mining Services - Indonesia
- San Jose City I Power Corp, Philippines
- VISA Power Limited - India
- McConnell Dowell - Australia
- Xindia Steels Limited - India
- Aditya Birla Group - India
- London Commodity Brokers - England
- Kaltim Prima Coal - Indonesia
- PTC India Limited - India
- Interocean Group of Companies - India
- Sakthi Sugars Limited - India
- Star Paper Mills Limited - India
- Kobexindo Tractors - Indoneisa
- Krishnapatnam Port Company Ltd. - India
- Energy Development Corp, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Aboitiz Power Corporation - Philippines
- TeaM Sual Corporation - Philippines
- Therma Luzon, Inc, Philippines
- Anglo American - United Kingdom
- Wilmar Investment Holdings
- Altura Mining Limited, Indonesia
- Pendopo Energi Batubara - Indonesia
- Planning Commission, India
- SMG Consultants - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Riau Bara Harum - Indonesia
- Samtan Co., Ltd - South Korea
- Romanian Commodities Exchange
- Medco Energi Mining Internasional
- Ind-Barath Power Infra Limited - India
- Singapore Mercantile Exchange
- Gujarat Sidhee Cement - India
- Minerals Council of Australia
- Attock Cement Pakistan Limited
- Manunggal Multi Energi - Indonesia
- Mintek Dendrill Indonesia
- Directorate Of Revenue Intelligence - India
- Globalindo Alam Lestari - Indonesia
- Deloitte Consulting - India
- Posco Energy - South Korea
- Savvy Resources Ltd - HongKong
- Jaiprakash Power Ventures ltd
- Indika Energy - Indonesia
- Agrawal Coal Company - India
- Cement Manufacturers Association - India
- Karaikal Port Pvt Ltd - India
- Marubeni Corporation - India
- Wood Mackenzie - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Goldman Sachs - Singapore
- Gujarat Electricity Regulatory Commission - India
- Central Electricity Authority - India
- Banpu Public Company Limited - Thailand
- GAC Shipping (India) Pvt Ltd
- Indonesian Coal Mining Association
- Central Java Power - Indonesia
- Salva Resources Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Larsen & Toubro Limited - India
- Orica Australia Pty. Ltd.
- Petrochimia International Co. Ltd.- Taiwan
- PowerSource Philippines DevCo
- Miang Besar Coal Terminal - Indonesia
- Formosa Plastics Group - Taiwan
- Dalmia Cement Bharat India
- Electricity Authority, New Zealand
- Energy Link Ltd, New Zealand
- Indian Oil Corporation Limited
- Indo Tambangraya Megah - Indonesia
- Ministry of Finance - Indonesia
- Rio Tinto Coal - Australia
- Ministry of Transport, Egypt
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sindya Power Generating Company Private Ltd
- Power Finance Corporation Ltd., India
- Sinarmas Energy and Mining - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Alfred C Toepfer International GmbH - Germany
- The Treasury - Australian Government
- Binh Thuan Hamico - Vietnam
- Maharashtra Electricity Regulatory Commission - India
- Ceylon Electricity Board - Sri Lanka
- LBH Netherlands Bv - Netherlands
- Uttam Galva Steels Limited - India
- Georgia Ports Authority, United States
- Essar Steel Hazira Ltd - India
- Parliament of New Zealand
- Bukit Asam (Persero) Tbk - Indonesia
- Chettinad Cement Corporation Ltd - India
- Mjunction Services Limited - India
- Eastern Energy - Thailand
- OPG Power Generation Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- Economic Council, Georgia
- Makarim & Taira - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Vedanta Resources Plc - India
- Trasteel International SA, Italy
- GMR Energy Limited - India
- GVK Power & Infra Limited - India
- Electricity Generating Authority of Thailand
- Carbofer General Trading SA - India
- Toyota Tsusho Corporation, Japan
- Mercator Lines Limited - India
- Vizag Seaport Private Limited - India
- Bulk Trading Sa - Switzerland
- Parry Sugars Refinery, India
- PetroVietnam Power Coal Import and Supply Company
- Global Business Power Corporation, Philippines
- Bhatia International Limited - India
- Leighton Contractors Pty Ltd - Australia
- Renaissance Capital - South Africa
- Bhushan Steel Limited - India
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