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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, 26 February 23
MAWANI AND JEDDAH CHAMBER SIGN AN AGREEMENT TO BUILD INTEGRATED LOGISTICS PARK
Press Release: The Saudi Ports Authority (Mawani) and Jeddah Chamber of Commerce and Industry have today inked an agreement to set up an integrated ...
Saturday, 25 February 23
INDONESIA IS STILL BY FAR THE TOP SUPPLIER OF COAL TO CHINA - BANCHERO COSTA
After a slow start in the first quarter, global coal trade has really picked up pace last year, and is now fully back to pre-Covid levels, said ban ...
Wednesday, 22 February 23
MARKET INSIGHT - INTERMODAL
The short-term outlook of the global soybean market is currently pivoted by a combination of weather patterns that are affecting the harvest progre ...
Saturday, 18 February 23
OIL UNLIKELY TO BREAK ABOVE $100/BBL THIS YEAR, J.P.MORGAN SAYS –- REUTERS
Brent oil prices are unlikely to breach the $100 a barrel level this year, barring any significant geopolitical drivers, with OPEC+ potentially add ...
Saturday, 18 February 23
CHINA'S COAL PRICES FALL TO 1 YR-LOW, CLOUDING DEMAND AND IMPORT OUTLOOK - REUTERS
China’s thermal coal prices hit their lowest levels in a year this week on rising inventories as domestic mine production is recovering faste ...
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- Cement Manufacturers Association - India
- Trasteel International SA, Italy
- Global Business Power Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Jindal Steel & Power Ltd - India
- London Commodity Brokers - England
- Posco Energy - South Korea
- Siam City Cement PLC, Thailand
- Vedanta Resources Plc - India
- Minerals Council of Australia
- McConnell Dowell - Australia
- Deloitte Consulting - India
- Port Waratah Coal Services - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Bulk Trading Sa - Switzerland
- Borneo Indobara - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Essar Steel Hazira Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Directorate Of Revenue Intelligence - India
- International Coal Ventures Pvt Ltd - India
- PTC India Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Coalindo Energy - Indonesia
- Ind-Barath Power Infra Limited - India
- Kapuas Tunggal Persada - Indonesia
- The Treasury - Australian Government
- The University of Queensland
- Bahari Cakrawala Sebuku - Indonesia
- Mjunction Services Limited - India
- Bhatia International Limited - India
- Globalindo Alam Lestari - Indonesia
- Barasentosa Lestari - Indonesia
- Grasim Industreis Ltd - India
- Renaissance Capital - South Africa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Agrawal Coal Company - India
- Eastern Energy - Thailand
- IEA Clean Coal Centre - UK
- Rashtriya Ispat Nigam Limited - India
- Kobexindo Tractors - Indoneisa
- Toyota Tsusho Corporation, Japan
- Karbindo Abesyapradhi - Indoneisa
- Straits Asia Resources Limited - Singapore
- Mercuria Energy - Indonesia
- Meralco Power Generation, Philippines
- Mercator Lines Limited - India
- Holcim Trading Pte Ltd - Singapore
- Binh Thuan Hamico - Vietnam
- Savvy Resources Ltd - HongKong
- Pipit Mutiara Jaya. PT, Indonesia
- Marubeni Corporation - India
- Planning Commission, India
- OPG Power Generation Pvt Ltd - India
- MS Steel International - UAE
- Ceylon Electricity Board - Sri Lanka
- Iligan Light & Power Inc, Philippines
- Central Java Power - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Medco Energi Mining Internasional
- Standard Chartered Bank - UAE
- Riau Bara Harum - Indonesia
- Petron Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Carbofer General Trading SA - India
- Electricity Generating Authority of Thailand
- CIMB Investment Bank - Malaysia
- Bharathi Cement Corporation - India
- Makarim & Taira - Indonesia
- Semirara Mining Corp, Philippines
- ASAPP Information Group - India
- Sindya Power Generating Company Private Ltd
- The State Trading Corporation of India Ltd
- Merrill Lynch Commodities Europe
- Videocon Industries ltd - India
- Goldman Sachs - Singapore
- Bukit Baiduri Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Gujarat Electricity Regulatory Commission - India
- Indian Oil Corporation Limited
- Altura Mining Limited, Indonesia
- Indo Tambangraya Megah - Indonesia
- Parry Sugars Refinery, India
- Romanian Commodities Exchange
- Latin American Coal - Colombia
- Semirara Mining and Power Corporation, Philippines
- SMC Global Power, Philippines
- Indika Energy - Indonesia
- Sojitz Corporation - Japan
- Vijayanagar Sugar Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Leighton Contractors Pty Ltd - Australia
- Attock Cement Pakistan Limited
- Heidelberg Cement - Germany
- Asmin Koalindo Tuhup - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Ministry of Finance - Indonesia
- Samtan Co., Ltd - South Korea
- Orica Mining Services - Indonesia
- Baramulti Group, Indonesia
- Cigading International Bulk Terminal - Indonesia
- Bhushan Steel Limited - India
- IHS Mccloskey Coal Group - USA
- Tata Chemicals Ltd - India
- Interocean Group of Companies - India
- Sinarmas Energy and Mining - Indonesia
- Meenaskhi Energy Private Limited - India
- Metalloyd Limited - United Kingdom
- Therma Luzon, Inc, Philippines
- Timah Investasi Mineral - Indoneisa
- Power Finance Corporation Ltd., India
- Edison Trading Spa - Italy
- GMR Energy Limited - India
- Kepco SPC Power Corporation, Philippines
- Australian Coal Association
- Sakthi Sugars Limited - India
- PNOC Exploration Corporation - Philippines
- Maharashtra Electricity Regulatory Commission - India
- VISA Power Limited - India
- Formosa Plastics Group - Taiwan
- PowerSource Philippines DevCo
- TeaM Sual Corporation - Philippines
- Kumho Petrochemical, South Korea
- Wood Mackenzie - Singapore
- Energy Link Ltd, New Zealand
- Aboitiz Power Corporation - Philippines
- AsiaOL BioFuels Corp., Philippines
- Anglo American - United Kingdom
- Kohat Cement Company Ltd. - Pakistan
- Antam Resourcindo - Indonesia
- Indonesian Coal Mining Association
- South Luzon Thermal Energy Corporation
- Manunggal Multi Energi - Indonesia
- Electricity Authority, New Zealand
- Malabar Cements Ltd - India
- Global Green Power PLC Corporation, Philippines
- Parliament of New Zealand
- Salva Resources Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- Jorong Barutama Greston.PT - Indonesia
- Coal and Oil Company - UAE
- Lanco Infratech Ltd - India
- Africa Commodities Group - South Africa
- Gujarat Mineral Development Corp Ltd - India
- GAC Shipping (India) Pvt Ltd
- Coastal Gujarat Power Limited - India
- Madhucon Powers Ltd - India
- Oldendorff Carriers - Singapore
- Alfred C Toepfer International GmbH - Germany
- Dalmia Cement Bharat India
- Karaikal Port Pvt Ltd - India
- Independent Power Producers Association of India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ambuja Cements Ltd - India
- Chettinad Cement Corporation Ltd - India
- New Zealand Coal & Carbon
- Ministry of Transport, Egypt
- Vizag Seaport Private Limited - India
- Mintek Dendrill Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Georgia Ports Authority, United States
- Kartika Selabumi Mining - Indonesia
- Wilmar Investment Holdings
- Xindia Steels Limited - India
- Aditya Birla Group - India
- Eastern Coal Council - USA
- Ministry of Mines - Canada
- LBH Netherlands Bv - Netherlands
- Larsen & Toubro Limited - India
- Simpson Spence & Young - Indonesia
- Tamil Nadu electricity Board
- Billiton Holdings Pty Ltd - Australia
- Bhoruka Overseas - Indonesia
- Thai Mozambique Logistica
- Indogreen Group - Indonesia
- Rio Tinto Coal - Australia
- Global Coal Blending Company Limited - Australia
- Economic Council, Georgia
- Kideco Jaya Agung - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- SN Aboitiz Power Inc, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Bangladesh Power Developement Board
- Energy Development Corp, Philippines
- San Jose City I Power Corp, Philippines
- GVK Power & Infra Limited - India
- Thiess Contractors Indonesia
- White Energy Company Limited
- Australian Commodity Traders Exchange
- Intertek Mineral Services - Indonesia
- Banpu Public Company Limited - Thailand
- CNBM International Corporation - China
- Sarangani Energy Corporation, Philippines
- Central Electricity Authority - India
- Petrochimia International Co. Ltd.- Taiwan
- ICICI Bank Limited - India
- Jaiprakash Power Ventures ltd
- SMG Consultants - Indonesia
- Singapore Mercantile Exchange
- Maheswari Brothers Coal Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Sical Logistics Limited - India
- Uttam Galva Steels Limited - India
- Gujarat Sidhee Cement - India
- GN Power Mariveles Coal Plant, Philippines
- Bayan Resources Tbk. - Indonesia
- Star Paper Mills Limited - India
- European Bulk Services B.V. - Netherlands
- Chamber of Mines of South Africa
- Commonwealth Bank - Australia
- India Bulls Power Limited - India
- Pendopo Energi Batubara - Indonesia
- Indian Energy Exchange, India
- Siam City Cement - Thailand
- Orica Australia Pty. Ltd.
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