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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, 16 April 23
CHINA JUGGLES FOUR MAJOR ECONOMIC CHANGES IN 2023 - WOOD MACKENZIE
Change is afoot in China. Economic growth is slowing, while rising political tensions between China and the US, coupled with global supply chain re ...
Sunday, 16 April 23
CHINA'S MARCH COAL IMPORTS JUMP TO 3-YEAR HIGH - REUTERS
China’s coal imports surged in March to their highest in any month over the past three years as utilities increased purchases on expectations ...
Sunday, 16 April 23
OPEC KEEPS WORLD OIL DEMAND GROWTH OUTLOOK UNCHANGED
The OPEC Reference Basket (ORB) declined in March by $3.43, or 4.2%, m-o-m to average $78.45/b. The ICE Brent first-month contract fell by $4.33, o ...
Sunday, 16 April 23
CHEAPER SPOT LNG PRICES TEMPT SOME ASIAN BUYERS AMID SUPPLY GAINS - REUTERS
Cheaper spot prices for liquefied natural gas (LNG) are luring price-sensitive buyers back in Asia, with China and India recording rising imports i ...
Tuesday, 11 April 23
COAL USE CLIMBS WORLDWIDE DESPITE PROMISES TO SLASH IT - AAP
The burning of coal for electricity, cement, steel and other uses went up in 2022 despite global promises to phase down the fuel that is the bigges ...
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- TNB Fuel Sdn Bhd - Malaysia
- Salva Resources Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Medco Energi Mining Internasional
- Star Paper Mills Limited - India
- Eastern Coal Council - USA
- Vijayanagar Sugar Pvt Ltd - India
- Attock Cement Pakistan Limited
- South Luzon Thermal Energy Corporation
- Ambuja Cements Ltd - India
- Uttam Galva Steels Limited - India
- Samtan Co., Ltd - South Korea
- Standard Chartered Bank - UAE
- Pipit Mutiara Jaya. PT, Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bukit Baiduri Energy - Indonesia
- Heidelberg Cement - Germany
- Kumho Petrochemical, South Korea
- Ind-Barath Power Infra Limited - India
- Riau Bara Harum - Indonesia
- Thai Mozambique Logistica
- Bhushan Steel Limited - India
- Tata Chemicals Ltd - India
- Altura Mining Limited, Indonesia
- Power Finance Corporation Ltd., India
- Latin American Coal - Colombia
- Vedanta Resources Plc - India
- Indian Energy Exchange, India
- Gujarat Mineral Development Corp Ltd - India
- Kartika Selabumi Mining - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Ministry of Transport, Egypt
- Formosa Plastics Group - Taiwan
- Binh Thuan Hamico - Vietnam
- MS Steel International - UAE
- White Energy Company Limited
- Energy Link Ltd, New Zealand
- Intertek Mineral Services - Indonesia
- Jindal Steel & Power Ltd - India
- Manunggal Multi Energi - Indonesia
- Africa Commodities Group - South Africa
- CNBM International Corporation - China
- Interocean Group of Companies - India
- ASAPP Information Group - India
- Semirara Mining Corp, Philippines
- AsiaOL BioFuels Corp., Philippines
- Wilmar Investment Holdings
- Marubeni Corporation - India
- Sical Logistics Limited - India
- Iligan Light & Power Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Jorong Barutama Greston.PT - Indonesia
- Australian Coal Association
- Coastal Gujarat Power Limited - India
- India Bulls Power Limited - India
- Central Electricity Authority - India
- Indonesian Coal Mining Association
- Sinarmas Energy and Mining - Indonesia
- TeaM Sual Corporation - Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indo Tambangraya Megah - Indonesia
- Globalindo Alam Lestari - Indonesia
- Oldendorff Carriers - Singapore
- Miang Besar Coal Terminal - Indonesia
- Cement Manufacturers Association - India
- Rio Tinto Coal - Australia
- International Coal Ventures Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Indian Oil Corporation Limited
- Renaissance Capital - South Africa
- Georgia Ports Authority, United States
- IHS Mccloskey Coal Group - USA
- Eastern Energy - Thailand
- Aditya Birla Group - India
- Kaltim Prima Coal - Indonesia
- Kideco Jaya Agung - Indonesia
- Banpu Public Company Limited - Thailand
- OPG Power Generation Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Makarim & Taira - Indonesia
- Metalloyd Limited - United Kingdom
- Vizag Seaport Private Limited - India
- Mjunction Services Limited - India
- Therma Luzon, Inc, Philippines
- Sojitz Corporation - Japan
- Mercuria Energy - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Parry Sugars Refinery, India
- Videocon Industries ltd - India
- Malabar Cements Ltd - India
- The University of Queensland
- Semirara Mining and Power Corporation, Philippines
- The Treasury - Australian Government
- Meralco Power Generation, Philippines
- Mintek Dendrill Indonesia
- Independent Power Producers Association of India
- Mercator Lines Limited - India
- Toyota Tsusho Corporation, Japan
- Romanian Commodities Exchange
- The State Trading Corporation of India Ltd
- Pendopo Energi Batubara - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Larsen & Toubro Limited - India
- Siam City Cement - Thailand
- Maheswari Brothers Coal Limited - India
- IEA Clean Coal Centre - UK
- Energy Development Corp, Philippines
- Gujarat Sidhee Cement - India
- SN Aboitiz Power Inc, Philippines
- Chamber of Mines of South Africa
- Baramulti Group, Indonesia
- Timah Investasi Mineral - Indoneisa
- Wood Mackenzie - Singapore
- Carbofer General Trading SA - India
- Price Waterhouse Coopers - Russia
- Holcim Trading Pte Ltd - Singapore
- Karbindo Abesyapradhi - Indoneisa
- Kalimantan Lumbung Energi - Indonesia
- Bayan Resources Tbk. - Indonesia
- PNOC Exploration Corporation - Philippines
- Lanco Infratech Ltd - India
- New Zealand Coal & Carbon
- Coal and Oil Company - UAE
- Directorate Of Revenue Intelligence - India
- Karaikal Port Pvt Ltd - India
- Thiess Contractors Indonesia
- Global Business Power Corporation, Philippines
- GMR Energy Limited - India
- Ministry of Mines - Canada
- Tamil Nadu electricity Board
- Leighton Contractors Pty Ltd - Australia
- Posco Energy - South Korea
- PetroVietnam Power Coal Import and Supply Company
- CIMB Investment Bank - Malaysia
- Minerals Council of Australia
- Port Waratah Coal Services - Australia
- Sree Jayajothi Cements Limited - India
- Orica Mining Services - Indonesia
- Economic Council, Georgia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Simpson Spence & Young - Indonesia
- Sakthi Sugars Limited - India
- Bangladesh Power Developement Board
- Electricity Generating Authority of Thailand
- Global Coal Blending Company Limited - Australia
- GN Power Mariveles Coal Plant, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Savvy Resources Ltd - HongKong
- SMG Consultants - Indonesia
- Parliament of New Zealand
- Xindia Steels Limited - India
- Trasteel International SA, Italy
- Chettinad Cement Corporation Ltd - India
- GAC Shipping (India) Pvt Ltd
- Grasim Industreis Ltd - India
- Indika Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Merrill Lynch Commodities Europe
- Krishnapatnam Port Company Ltd. - India
- London Commodity Brokers - England
- Bahari Cakrawala Sebuku - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Kepco SPC Power Corporation, Philippines
- Barasentosa Lestari - Indonesia
- ICICI Bank Limited - India
- Australian Commodity Traders Exchange
- McConnell Dowell - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Edison Trading Spa - Italy
- Bharathi Cement Corporation - India
- Sarangani Energy Corporation, Philippines
- Commonwealth Bank - Australia
- Ministry of Finance - Indonesia
- Siam City Cement PLC, Thailand
- Goldman Sachs - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Jaiprakash Power Ventures ltd
- European Bulk Services B.V. - Netherlands
- Maharashtra Electricity Regulatory Commission - India
- Directorate General of MIneral and Coal - Indonesia
- Electricity Authority, New Zealand
- Gujarat Electricity Regulatory Commission - India
- Anglo American - United Kingdom
- LBH Netherlands Bv - Netherlands
- Dalmia Cement Bharat India
- PTC India Limited - India
- Bhatia International Limited - India
- Aboitiz Power Corporation - Philippines
- Petron Corporation, Philippines
- Deloitte Consulting - India
- Essar Steel Hazira Ltd - India
- Planning Commission, India
- Bukit Makmur.PT - Indonesia
- Madhucon Powers Ltd - India
- Antam Resourcindo - Indonesia
- GVK Power & Infra Limited - India
- SMC Global Power, Philippines
- Rashtriya Ispat Nigam Limited - India
- Ceylon Electricity Board - Sri Lanka
- Bhoruka Overseas - Indonesia
- Agrawal Coal Company - India
- Kobexindo Tractors - Indoneisa
- Sindya Power Generating Company Private Ltd
- Straits Asia Resources Limited - Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- San Jose City I Power Corp, Philippines
- VISA Power Limited - India
- Indogreen Group - Indonesia
- PowerSource Philippines DevCo
- Global Green Power PLC Corporation, Philippines
- Singapore Mercantile Exchange
- Coalindo Energy - Indonesia
- Borneo Indobara - Indonesia
- Orica Australia Pty. Ltd.
- Central Java Power - Indonesia
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