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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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Thursday, 02 March 23
DRY BULK MARKET: THE WAY CHINA GOES, SO GOES THE MARKET - BIMCO
We expect demand growth within the 1.5-2.5% range in 2023, driven by China’s economic recovery. Improvements in consumer sentiment should hel ...
Thursday, 02 March 23
INDIA, CHINA DEMAND BOOST LOW-RANK THERMAL COAL PRICES IN ASIA - RUSSELL, REUTERS
Signs of stronger import demand from India have arrested the decline in price of the thermal coal grades most commonly sought by the world’s ...
Thursday, 02 March 23
INDIA CHEERS THE RETURN OF ‘KING COAL’ AS INDUSTRY SEES BUOYANT FUTURE - REUTERS
India’s coal industry celebrated the return of its major conference after a three-year pandemic hiatus by presenting a bullish view of demand ...
Wednesday, 01 March 23
GEO CONNECT ASIA RETURNS IN MARCH TO ACCELERATE THE REGION’S GEOSPATIAL AND LOCATION INTELLIGENCE CAPABILITIES
Press Release: The third edition of GCA will be held in conjunction with Digital Construction Asia and the inaugural Drones Asia – an event d ...
Wednesday, 01 March 23
THE DECLINE IN THE COAL PRICE SINCE THE BEGINNING OF THE YEAR HAS BEEN SIGNIFICANT - INTERMODAL
Last week, the front-month API2 future rose by 3.5%, but since the beginning of the year the future has fallen by 39% to $136.65/t, while the Newca ...
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- Planning Commission, India
- Chettinad Cement Corporation Ltd - India
- Romanian Commodities Exchange
- Aditya Birla Group - India
- GMR Energy Limited - India
- Standard Chartered Bank - UAE
- Central Electricity Authority - India
- Eastern Coal Council - USA
- Meenaskhi Energy Private Limited - India
- Bayan Resources Tbk. - Indonesia
- Marubeni Corporation - India
- Tata Chemicals Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Kapuas Tunggal Persada - Indonesia
- TeaM Sual Corporation - Philippines
- Global Green Power PLC Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Alfred C Toepfer International GmbH - Germany
- European Bulk Services B.V. - Netherlands
- Australian Commodity Traders Exchange
- Savvy Resources Ltd - HongKong
- Miang Besar Coal Terminal - Indonesia
- The University of Queensland
- GAC Shipping (India) Pvt Ltd
- Kartika Selabumi Mining - Indonesia
- Bhoruka Overseas - Indonesia
- Jindal Steel & Power Ltd - India
- SMC Global Power, Philippines
- Sojitz Corporation - Japan
- Commonwealth Bank - Australia
- Australian Coal Association
- Vizag Seaport Private Limited - India
- Sarangani Energy Corporation, Philippines
- Ministry of Mines - Canada
- Kaltim Prima Coal - Indonesia
- Parry Sugars Refinery, India
- Indo Tambangraya Megah - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Manunggal Multi Energi - Indonesia
- PowerSource Philippines DevCo
- ASAPP Information Group - India
- Sakthi Sugars Limited - India
- MS Steel International - UAE
- Pipit Mutiara Jaya. PT, Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Deloitte Consulting - India
- Jorong Barutama Greston.PT - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Cement Manufacturers Association - India
- The Treasury - Australian Government
- Barasentosa Lestari - Indonesia
- SN Aboitiz Power Inc, Philippines
- Antam Resourcindo - Indonesia
- Ministry of Transport, Egypt
- Central Java Power - Indonesia
- IEA Clean Coal Centre - UK
- Directorate Of Revenue Intelligence - India
- Maharashtra Electricity Regulatory Commission - India
- Mercator Lines Limited - India
- Thiess Contractors Indonesia
- Makarim & Taira - Indonesia
- Wilmar Investment Holdings
- Agrawal Coal Company - India
- Interocean Group of Companies - India
- Bukit Makmur.PT - Indonesia
- PTC India Limited - India
- GVK Power & Infra Limited - India
- Bharathi Cement Corporation - India
- Semirara Mining Corp, Philippines
- Indonesian Coal Mining Association
- Jaiprakash Power Ventures ltd
- Georgia Ports Authority, United States
- Bank of Tokyo Mitsubishi UFJ Ltd
- Offshore Bulk Terminal Pte Ltd, Singapore
- Trasteel International SA, Italy
- VISA Power Limited - India
- Madhucon Powers Ltd - India
- Eastern Energy - Thailand
- Larsen & Toubro Limited - India
- Banpu Public Company Limited - Thailand
- White Energy Company Limited
- Coastal Gujarat Power Limited - India
- Renaissance Capital - South Africa
- Rashtriya Ispat Nigam Limited - India
- Cigading International Bulk Terminal - Indonesia
- Chamber of Mines of South Africa
- Lanco Infratech Ltd - India
- Intertek Mineral Services - Indonesia
- Ind-Barath Power Infra Limited - India
- New Zealand Coal & Carbon
- ICICI Bank Limited - India
- OPG Power Generation Pvt Ltd - India
- Mercuria Energy - Indonesia
- London Commodity Brokers - England
- Global Coal Blending Company Limited - Australia
- Africa Commodities Group - South Africa
- Indian Energy Exchange, India
- TNB Fuel Sdn Bhd - Malaysia
- The State Trading Corporation of India Ltd
- Indika Energy - Indonesia
- Heidelberg Cement - Germany
- Siam City Cement PLC, Thailand
- Mjunction Services Limited - India
- Indian Oil Corporation Limited
- Independent Power Producers Association of India
- Merrill Lynch Commodities Europe
- IHS Mccloskey Coal Group - USA
- Kobexindo Tractors - Indoneisa
- Malabar Cements Ltd - India
- Videocon Industries ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Kepco SPC Power Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- South Luzon Thermal Energy Corporation
- SMG Consultants - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Posco Energy - South Korea
- LBH Netherlands Bv - Netherlands
- Coalindo Energy - Indonesia
- Riau Bara Harum - Indonesia
- Sical Logistics Limited - India
- San Jose City I Power Corp, Philippines
- Salva Resources Pvt Ltd - India
- India Bulls Power Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Bhushan Steel Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Sree Jayajothi Cements Limited - India
- Baramulti Group, Indonesia
- Carbofer General Trading SA - India
- Electricity Generating Authority of Thailand
- Sindya Power Generating Company Private Ltd
- Toyota Tsusho Corporation, Japan
- McConnell Dowell - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Rio Tinto Coal - Australia
- Wood Mackenzie - Singapore
- Leighton Contractors Pty Ltd - Australia
- Straits Asia Resources Limited - Singapore
- Kideco Jaya Agung - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Edison Trading Spa - Italy
- Attock Cement Pakistan Limited
- Price Waterhouse Coopers - Russia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Globalindo Alam Lestari - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Electricity Authority, New Zealand
- Altura Mining Limited, Indonesia
- Goldman Sachs - Singapore
- Iligan Light & Power Inc, Philippines
- Ministry of Finance - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Krishnapatnam Port Company Ltd. - India
- Bukit Baiduri Energy - Indonesia
- Binh Thuan Hamico - Vietnam
- Semirara Mining and Power Corporation, Philippines
- Parliament of New Zealand
- Uttam Galva Steels Limited - India
- Economic Council, Georgia
- Bulk Trading Sa - Switzerland
- Kumho Petrochemical, South Korea
- Thai Mozambique Logistica
- Star Paper Mills Limited - India
- Vedanta Resources Plc - India
- Bangladesh Power Developement Board
- PNOC Exploration Corporation - Philippines
- Mintek Dendrill Indonesia
- Karaikal Port Pvt Ltd - India
- Borneo Indobara - Indonesia
- Meralco Power Generation, Philippines
- Orica Australia Pty. Ltd.
- Pendopo Energi Batubara - Indonesia
- Anglo American - United Kingdom
- PetroVietnam Power Coal Import and Supply Company
- Oldendorff Carriers - Singapore
- Therma Luzon, Inc, Philippines
- Aboitiz Power Corporation - Philippines
- Simpson Spence & Young - Indonesia
- Petron Corporation, Philippines
- Global Business Power Corporation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Indogreen Group - Indonesia
- Orica Mining Services - Indonesia
- Metalloyd Limited - United Kingdom
- Timah Investasi Mineral - Indoneisa
- Billiton Holdings Pty Ltd - Australia
- Gujarat Sidhee Cement - India
- Coal and Oil Company - UAE
- Tamil Nadu electricity Board
- Kalimantan Lumbung Energi - Indonesia
- CNBM International Corporation - China
- Grasim Industreis Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Ambuja Cements Ltd - India
- Essar Steel Hazira Ltd - India
- Maheswari Brothers Coal Limited - India
- International Coal Ventures Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Medco Energi Mining Internasional
- Singapore Mercantile Exchange
- CIMB Investment Bank - Malaysia
- Latin American Coal - Colombia
- Energy Development Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Power Finance Corporation Ltd., India
- Minerals Council of Australia
- Dalmia Cement Bharat India
- Siam City Cement - Thailand
- Port Waratah Coal Services - Australia
- Formosa Plastics Group - Taiwan
- Bhatia International Limited - India
- Samtan Co., Ltd - South Korea
- Xindia Steels Limited - India
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