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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, 11 April 23
OIL RISES ON CHINA STIMULUS EXPECTATIONS, WEAKER DOLLAR - REUTERS
Oil prices rose on Tuesday on expectations of potential economic stimulus by China, healthy demand in the rest of Asia and a drop in U.S. crude sto ...
Sunday, 09 April 23
CHINA’S BUSINESS INCOME REBOUND POINTS TO IMPROVING ECONOMY: OFFICIAL - XINHUA
Chinese businesses have posted a strong rebound in sales revenue since the beginning of this year in the latest signal of an improving economy.
...
Sunday, 09 April 23
COAL INDIA TO BOOST SUPPLIES TO INDUSTRIES AS UTILITIES’ INVENTORIES RISE - REUTERS
Coal India Ltd will increase supplies to industries, the world’s largest coal miner said on Wednesday as fuel inventories at utilities run by ...
Thursday, 06 April 23
MARKET INSIGHT - INTERMODAL
LNG Current Supply/Demand Dynamics
This year, LNG supply will likely exceed demand, so prices will need to decline to levels that will encourag ...
Sunday, 26 March 23
EUROPE’S RUSH TO LNG COULD TURN INTO 'WORLD’S MOST EXPENSIVE AND UNNECESSARY INSURANCE POLICY'- CNBC
Europe’s rapid buildout of liquefied natural gas infrastructure is on track to far exceed demand by the end of the decade, according to new r ...
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- Billiton Holdings Pty Ltd - Australia
- Barasentosa Lestari - Indonesia
- Bayan Resources Tbk. - Indonesia
- The Treasury - Australian Government
- Parliament of New Zealand
- San Jose City I Power Corp, Philippines
- The University of Queensland
- Deloitte Consulting - India
- Independent Power Producers Association of India
- Straits Asia Resources Limited - Singapore
- Electricity Generating Authority of Thailand
- Kobexindo Tractors - Indoneisa
- PTC India Limited - India
- Globalindo Alam Lestari - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- LBH Netherlands Bv - Netherlands
- Price Waterhouse Coopers - Russia
- Coal and Oil Company - UAE
- Bharathi Cement Corporation - India
- Economic Council, Georgia
- ICICI Bank Limited - India
- Kartika Selabumi Mining - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Holcim Trading Pte Ltd - Singapore
- SMC Global Power, Philippines
- Indo Tambangraya Megah - Indonesia
- Trasteel International SA, Italy
- Salva Resources Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Orica Australia Pty. Ltd.
- Toyota Tsusho Corporation, Japan
- Uttam Galva Steels Limited - India
- Binh Thuan Hamico - Vietnam
- Kalimantan Lumbung Energi - Indonesia
- Tamil Nadu electricity Board
- Ministry of Finance - Indonesia
- Therma Luzon, Inc, Philippines
- Gujarat Sidhee Cement - India
- Kapuas Tunggal Persada - Indonesia
- Wood Mackenzie - Singapore
- Manunggal Multi Energi - Indonesia
- Sindya Power Generating Company Private Ltd
- OPG Power Generation Pvt Ltd - India
- Global Coal Blending Company Limited - Australia
- Bulk Trading Sa - Switzerland
- IEA Clean Coal Centre - UK
- Renaissance Capital - South Africa
- Gujarat Mineral Development Corp Ltd - India
- Thai Mozambique Logistica
- Coastal Gujarat Power Limited - India
- Bhatia International Limited - India
- Georgia Ports Authority, United States
- Xindia Steels Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Indika Energy - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Krishnapatnam Port Company Ltd. - India
- Power Finance Corporation Ltd., India
- GMR Energy Limited - India
- Karaikal Port Pvt Ltd - India
- Attock Cement Pakistan Limited
- Semirara Mining Corp, Philippines
- Pendopo Energi Batubara - Indonesia
- Oldendorff Carriers - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bangladesh Power Developement Board
- TNB Fuel Sdn Bhd - Malaysia
- Miang Besar Coal Terminal - Indonesia
- Madhucon Powers Ltd - India
- Energy Link Ltd, New Zealand
- Coalindo Energy - Indonesia
- Altura Mining Limited, Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Energy Development Corp, Philippines
- Aboitiz Power Corporation - Philippines
- Chettinad Cement Corporation Ltd - India
- Kideco Jaya Agung - Indonesia
- Sojitz Corporation - Japan
- Electricity Authority, New Zealand
- Banpu Public Company Limited - Thailand
- Eastern Energy - Thailand
- Sarangani Energy Corporation, Philippines
- Posco Energy - South Korea
- Sical Logistics Limited - India
- European Bulk Services B.V. - Netherlands
- Cement Manufacturers Association - India
- New Zealand Coal & Carbon
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- London Commodity Brokers - England
- Lanco Infratech Ltd - India
- ASAPP Information Group - India
- Commonwealth Bank - Australia
- Simpson Spence & Young - Indonesia
- Heidelberg Cement - Germany
- Dalmia Cement Bharat India
- Ministry of Transport, Egypt
- Sree Jayajothi Cements Limited - India
- Vizag Seaport Private Limited - India
- Aditya Birla Group - India
- Mercuria Energy - Indonesia
- Metalloyd Limited - United Kingdom
- Anglo American - United Kingdom
- Rio Tinto Coal - Australia
- GN Power Mariveles Coal Plant, Philippines
- The State Trading Corporation of India Ltd
- TeaM Sual Corporation - Philippines
- Jindal Steel & Power Ltd - India
- Global Green Power PLC Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Siam City Cement - Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- SN Aboitiz Power Inc, Philippines
- Orica Mining Services - Indonesia
- Mjunction Services Limited - India
- Indian Oil Corporation Limited
- Parry Sugars Refinery, India
- Indogreen Group - Indonesia
- McConnell Dowell - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- AsiaOL BioFuels Corp., Philippines
- Latin American Coal - Colombia
- Mintek Dendrill Indonesia
- Kumho Petrochemical, South Korea
- Kaltim Prima Coal - Indonesia
- Edison Trading Spa - Italy
- GVK Power & Infra Limited - India
- Malabar Cements Ltd - India
- Star Paper Mills Limited - India
- IHS Mccloskey Coal Group - USA
- MS Steel International - UAE
- Ministry of Mines - Canada
- Maheswari Brothers Coal Limited - India
- Ambuja Cements Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Australian Commodity Traders Exchange
- Wilmar Investment Holdings
- Meenaskhi Energy Private Limited - India
- Borneo Indobara - Indonesia
- Samtan Co., Ltd - South Korea
- Rashtriya Ispat Nigam Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Maharashtra Electricity Regulatory Commission - India
- Savvy Resources Ltd - HongKong
- Vedanta Resources Plc - India
- Gujarat Electricity Regulatory Commission - India
- International Coal Ventures Pvt Ltd - India
- Makarim & Taira - Indonesia
- Antam Resourcindo - Indonesia
- Essar Steel Hazira Ltd - India
- Romanian Commodities Exchange
- Intertek Mineral Services - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Bukit Baiduri Energy - Indonesia
- Agrawal Coal Company - India
- VISA Power Limited - India
- CIMB Investment Bank - Malaysia
- Eastern Coal Council - USA
- Mercator Lines Limited - India
- Videocon Industries ltd - India
- White Energy Company Limited
- Central Electricity Authority - India
- Medco Energi Mining Internasional
- Port Waratah Coal Services - Australia
- Cigading International Bulk Terminal - Indonesia
- Formosa Plastics Group - Taiwan
- Iligan Light & Power Inc, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bukit Makmur.PT - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Bukit Asam (Persero) Tbk - Indonesia
- Australian Coal Association
- Planning Commission, India
- Tata Chemicals Ltd - India
- Riau Bara Harum - Indonesia
- Directorate Of Revenue Intelligence - India
- Carbofer General Trading SA - India
- Marubeni Corporation - India
- GAC Shipping (India) Pvt Ltd
- Larsen & Toubro Limited - India
- Indonesian Coal Mining Association
- Pipit Mutiara Jaya. PT, Indonesia
- Thiess Contractors Indonesia
- Indian Energy Exchange, India
- CNBM International Corporation - China
- Kepco SPC Power Corporation, Philippines
- Baramulti Group, Indonesia
- Goldman Sachs - Singapore
- PNOC Exploration Corporation - Philippines
- Sakthi Sugars Limited - India
- Petron Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- SMG Consultants - Indonesia
- India Bulls Power Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Standard Chartered Bank - UAE
- Merrill Lynch Commodities Europe
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ind-Barath Power Infra Limited - India
- Central Java Power - Indonesia
- PowerSource Philippines DevCo
- Chamber of Mines of South Africa
- Bhoruka Overseas - Indonesia
- Semirara Mining and Power Corporation, Philippines
- South Luzon Thermal Energy Corporation
- Ceylon Electricity Board - Sri Lanka
- Kohat Cement Company Ltd. - Pakistan
- Jaiprakash Power Ventures ltd
- Singapore Mercantile Exchange
- Meralco Power Generation, Philippines
- Grasim Industreis Ltd - India
- Timah Investasi Mineral - Indoneisa
- Minerals Council of Australia
- Siam City Cement PLC, Thailand
- Bhushan Steel Limited - India
- Interocean Group of Companies - India
- Africa Commodities Group - South Africa
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