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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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Tuesday, 23 May 23
INDIA: COAL OUTPUT UP 8.9%, SUPPLY RISES 11.7% IN APRIL - FINANCIAL EXPRESS
India’s coal production jumped 8.85% to 73.14 million tonne (MT) in April 2023 and the total coal despatch during the month went up 11.66% to ...
Tuesday, 23 May 23
CHINA COAL OUTPUT UP 4.5 PCT IN APRIL - XINHUA
China’s raw coal output posted stable expansion in April, official data showed.
The country produced 380 million tonnes of raw ...
Saturday, 20 May 23
NON-OPEC OIL SUPPLY DEVELOPMENT - OPEC
In 2022, non-OPEC supply is estimated to have increased by 1.9 mb/d y-o-y. Out of this, US liquids production increased by 1.2 mb/d, mainly on the ...
Saturday, 20 May 23
GLOBAL COAL TRADE HAS REALLY PICKED UP PACE IN RECENT MONTHS, NOW FULLY BACK TO PRE-COVID LEVELS - BANCHERO COSTA
Global coal trade has really picked up pace in recent months, and is now fully back to pre-Covid levels. In Jan-Apr 2023, total global seaborne coa ...
Saturday, 20 May 23
MARKET INSIGHT - INTERMODAL
India is one of the world's largest coal producers and one of the world's largest importers of coal. The country uses coal mainly for power ...
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Showing 101 to 105 news of total 6871 |
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- South Luzon Thermal Energy Corporation
- Indogreen Group - Indonesia
- Gujarat Sidhee Cement - India
- Banpu Public Company Limited - Thailand
- Vedanta Resources Plc - India
- Indian Oil Corporation Limited
- McConnell Dowell - Australia
- Thai Mozambique Logistica
- Jindal Steel & Power Ltd - India
- Ind-Barath Power Infra Limited - India
- White Energy Company Limited
- Bahari Cakrawala Sebuku - Indonesia
- Iligan Light & Power Inc, Philippines
- Kepco SPC Power Corporation, Philippines
- Mercator Lines Limited - India
- Alfred C Toepfer International GmbH - Germany
- SMG Consultants - Indonesia
- Merrill Lynch Commodities Europe
- Directorate Of Revenue Intelligence - India
- Global Coal Blending Company Limited - Australia
- MS Steel International - UAE
- GN Power Mariveles Coal Plant, Philippines
- Savvy Resources Ltd - HongKong
- Chamber of Mines of South Africa
- Bangladesh Power Developement Board
- Pipit Mutiara Jaya. PT, Indonesia
- Mintek Dendrill Indonesia
- Central Electricity Authority - India
- Bukit Baiduri Energy - Indonesia
- Therma Luzon, Inc, Philippines
- San Jose City I Power Corp, Philippines
- Kartika Selabumi Mining - Indonesia
- Siam City Cement PLC, Thailand
- Pendopo Energi Batubara - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Uttam Galva Steels Limited - India
- Holcim Trading Pte Ltd - Singapore
- Petrochimia International Co. Ltd.- Taiwan
- Jorong Barutama Greston.PT - Indonesia
- Port Waratah Coal Services - Australia
- Kaltim Prima Coal - Indonesia
- Bulk Trading Sa - Switzerland
- Meralco Power Generation, Philippines
- New Zealand Coal & Carbon
- Agrawal Coal Company - India
- Minerals Council of Australia
- SMC Global Power, Philippines
- Gujarat Electricity Regulatory Commission - India
- Makarim & Taira - Indonesia
- Anglo American - United Kingdom
- Bank of Tokyo Mitsubishi UFJ Ltd
- Coalindo Energy - Indonesia
- Energy Link Ltd, New Zealand
- PowerSource Philippines DevCo
- Latin American Coal - Colombia
- Rio Tinto Coal - Australia
- Rashtriya Ispat Nigam Limited - India
- Chettinad Cement Corporation Ltd - India
- Star Paper Mills Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Goldman Sachs - Singapore
- OPG Power Generation Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Cigading International Bulk Terminal - Indonesia
- Kideco Jaya Agung - Indonesia
- Coal and Oil Company - UAE
- TeaM Sual Corporation - Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indian Energy Exchange, India
- Standard Chartered Bank - UAE
- Xindia Steels Limited - India
- Manunggal Multi Energi - Indonesia
- Planning Commission, India
- Karbindo Abesyapradhi - Indoneisa
- Wilmar Investment Holdings
- Heidelberg Cement - Germany
- Bukit Makmur.PT - Indonesia
- Parry Sugars Refinery, India
- Orica Mining Services - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Sarangani Energy Corporation, Philippines
- Sical Logistics Limited - India
- Thiess Contractors Indonesia
- Georgia Ports Authority, United States
- Sindya Power Generating Company Private Ltd
- Commonwealth Bank - Australia
- Mercuria Energy - Indonesia
- LBH Netherlands Bv - Netherlands
- Kalimantan Lumbung Energi - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Intertek Mineral Services - Indonesia
- Siam City Cement - Thailand
- Krishnapatnam Port Company Ltd. - India
- Petron Corporation, Philippines
- Economic Council, Georgia
- The State Trading Corporation of India Ltd
- IHS Mccloskey Coal Group - USA
- Indika Energy - Indonesia
- Sojitz Corporation - Japan
- Ambuja Cements Ltd - India
- Indo Tambangraya Megah - Indonesia
- Samtan Co., Ltd - South Korea
- Cement Manufacturers Association - India
- Antam Resourcindo - Indonesia
- Videocon Industries ltd - India
- Vizag Seaport Private Limited - India
- Dalmia Cement Bharat India
- PTC India Limited - India
- Meenaskhi Energy Private Limited - India
- Coastal Gujarat Power Limited - India
- European Bulk Services B.V. - Netherlands
- Straits Asia Resources Limited - Singapore
- Ministry of Transport, Egypt
- Jaiprakash Power Ventures ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Karaikal Port Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- GVK Power & Infra Limited - India
- Eastern Coal Council - USA
- CNBM International Corporation - China
- Orica Australia Pty. Ltd.
- GMR Energy Limited - India
- Power Finance Corporation Ltd., India
- Posco Energy - South Korea
- Africa Commodities Group - South Africa
- Directorate General of MIneral and Coal - Indonesia
- VISA Power Limited - India
- Leighton Contractors Pty Ltd - Australia
- Timah Investasi Mineral - Indoneisa
- Attock Cement Pakistan Limited
- Tamil Nadu electricity Board
- Marubeni Corporation - India
- Parliament of New Zealand
- Interocean Group of Companies - India
- Bharathi Cement Corporation - India
- Essar Steel Hazira Ltd - India
- Medco Energi Mining Internasional
- Bayan Resources Tbk. - Indonesia
- Binh Thuan Hamico - Vietnam
- Simpson Spence & Young - Indonesia
- Wood Mackenzie - Singapore
- ICICI Bank Limited - India
- Globalindo Alam Lestari - Indonesia
- Global Business Power Corporation, Philippines
- Borneo Indobara - Indonesia
- Global Green Power PLC Corporation, Philippines
- Grasim Industreis Ltd - India
- The Treasury - Australian Government
- Salva Resources Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Carbofer General Trading SA - India
- Kumho Petrochemical, South Korea
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Lanco Infratech Ltd - India
- IEA Clean Coal Centre - UK
- Oldendorff Carriers - Singapore
- Eastern Energy - Thailand
- Singapore Mercantile Exchange
- Renaissance Capital - South Africa
- GAC Shipping (India) Pvt Ltd
- Bhatia International Limited - India
- Romanian Commodities Exchange
- Madhucon Powers Ltd - India
- Baramulti Group, Indonesia
- Semirara Mining Corp, Philippines
- London Commodity Brokers - England
- SN Aboitiz Power Inc, Philippines
- Energy Development Corp, Philippines
- PNOC Exploration Corporation - Philippines
- Australian Commodity Traders Exchange
- Ministry of Finance - Indonesia
- Electricity Generating Authority of Thailand
- Bhoruka Overseas - Indonesia
- Mjunction Services Limited - India
- Tata Chemicals Ltd - India
- India Bulls Power Limited - India
- Altura Mining Limited, Indonesia
- Malabar Cements Ltd - India
- ASAPP Information Group - India
- Central Java Power - Indonesia
- Price Waterhouse Coopers - Russia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bhushan Steel Limited - India
- CIMB Investment Bank - Malaysia
- Deloitte Consulting - India
- Kapuas Tunggal Persada - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Ministry of Mines - Canada
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Maheswari Brothers Coal Limited - India
- Formosa Plastics Group - Taiwan
- Edison Trading Spa - Italy
- PetroVietnam Power Coal Import and Supply Company
- Sree Jayajothi Cements Limited - India
- Australian Coal Association
- Electricity Authority, New Zealand
- Kohat Cement Company Ltd. - Pakistan
- Kobexindo Tractors - Indoneisa
- Riau Bara Harum - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Indonesian Coal Mining Association
- Aboitiz Power Corporation - Philippines
- International Coal Ventures Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Larsen & Toubro Limited - India
- Trasteel International SA, Italy
- Ceylon Electricity Board - Sri Lanka
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sinarmas Energy and Mining - Indonesia
- Sakthi Sugars Limited - India
- Barasentosa Lestari - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Aditya Birla Group - India
- Independent Power Producers Association of India
- The University of Queensland
- Semirara Mining and Power Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
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