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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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Friday, 28 June 24
INDIAN POWER STATIONS STOCKED WITH BUMPER COAL SUPPLY AS TRANSPORT WOES EASE - BUSINESS STANDARD
Even as power demand has touched a historic high of 250 gigawatts (Gw) amid sweltering heat this June, India’s power stations are stocked wit ...
Friday, 28 June 24
INDIA'S CY23 COAL USE LARGER THAN NORTH AMERICA, EUROPE COMBINED - THE HINDU
For the first time, India’s coal consumption surpassed that of North America and Europe combined in the calendar year 2023, said Energy Insti ...
Monday, 24 June 24
PLN'S FINANCIAL SUSTAINABILITY RESTS ON ACCELERATED COAL RETIREMENT AND RENEWABLES DEPLOYMENT - MUTYA YUSTIKA
On 28 May 2024, Indonesia’s national electricity utility, PT Perusahaan Listrik Negara (PLN), released its financial report for 2023. Althoug ...
Monday, 24 June 24
INDIA'S COAL-BASED POWER DEMAND AT ALL-TIME HIGH, GOVERNMENT SAYS - REUTERS
India’s demand for coal-based power has risen by 7.3% this fiscal year to an all-time high, the government said in a statement on Wednesday.
...
Monday, 24 June 24
CHINA'S COAL INDUSTRY TURNS GREENER THROUGH INNOVATIVE APPROACHES - PEOPLE'S DAILY
At an opencast mine operated by Inner Mongolia Pingzhuang Coal Group Co. Ltd., a subsidiary of CHN Energy Investment Group (CHN Energy), a 14-meter ...
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Showing 11 to 15 news of total 6871 |
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- Agrawal Coal Company - India
- Alfred C Toepfer International GmbH - Germany
- Rashtriya Ispat Nigam Limited - India
- White Energy Company Limited
- Miang Besar Coal Terminal - Indonesia
- Riau Bara Harum - Indonesia
- VISA Power Limited - India
- Jindal Steel & Power Ltd - India
- Parry Sugars Refinery, India
- Bhatia International Limited - India
- Globalindo Alam Lestari - Indonesia
- LBH Netherlands Bv - Netherlands
- Merrill Lynch Commodities Europe
- ASAPP Information Group - India
- Semirara Mining Corp, Philippines
- Maharashtra Electricity Regulatory Commission - India
- European Bulk Services B.V. - Netherlands
- Makarim & Taira - Indonesia
- Georgia Ports Authority, United States
- TNB Fuel Sdn Bhd - Malaysia
- AsiaOL BioFuels Corp., Philippines
- Kepco SPC Power Corporation, Philippines
- Central Electricity Authority - India
- Aboitiz Power Corporation - Philippines
- Coal and Oil Company - UAE
- Sinarmas Energy and Mining - Indonesia
- Samtan Co., Ltd - South Korea
- Meralco Power Generation, Philippines
- Siam City Cement - Thailand
- Bahari Cakrawala Sebuku - Indonesia
- OPG Power Generation Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Minerals Council of Australia
- New Zealand Coal & Carbon
- IHS Mccloskey Coal Group - USA
- The Treasury - Australian Government
- Pipit Mutiara Jaya. PT, Indonesia
- Electricity Generating Authority of Thailand
- Neyveli Lignite Corporation Ltd, - India
- Timah Investasi Mineral - Indoneisa
- Savvy Resources Ltd - HongKong
- Central Java Power - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Vizag Seaport Private Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- SN Aboitiz Power Inc, Philippines
- PNOC Exploration Corporation - Philippines
- Eastern Energy - Thailand
- India Bulls Power Limited - India
- Parliament of New Zealand
- CNBM International Corporation - China
- Renaissance Capital - South Africa
- MS Steel International - UAE
- Energy Link Ltd, New Zealand
- Sree Jayajothi Cements Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Malabar Cements Ltd - India
- Larsen & Toubro Limited - India
- Ceylon Electricity Board - Sri Lanka
- Oldendorff Carriers - Singapore
- Videocon Industries ltd - India
- Rio Tinto Coal - Australia
- Australian Coal Association
- SMG Consultants - Indonesia
- ICICI Bank Limited - India
- Tamil Nadu electricity Board
- Chamber of Mines of South Africa
- Ministry of Finance - Indonesia
- The University of Queensland
- Thiess Contractors Indonesia
- Bangladesh Power Developement Board
- Kideco Jaya Agung - Indonesia
- Singapore Mercantile Exchange
- GVK Power & Infra Limited - India
- GAC Shipping (India) Pvt Ltd
- Port Waratah Coal Services - Australia
- Coastal Gujarat Power Limited - India
- Indian Oil Corporation Limited
- Goldman Sachs - Singapore
- Global Green Power PLC Corporation, Philippines
- Madhucon Powers Ltd - India
- Baramulti Group, Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- CIMB Investment Bank - Malaysia
- Leighton Contractors Pty Ltd - Australia
- Antam Resourcindo - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Binh Thuan Hamico - Vietnam
- Mjunction Services Limited - India
- Gujarat Electricity Regulatory Commission - India
- Coalindo Energy - Indonesia
- Banpu Public Company Limited - Thailand
- Toyota Tsusho Corporation, Japan
- Directorate General of MIneral and Coal - Indonesia
- Deloitte Consulting - India
- Indogreen Group - Indonesia
- Lanco Infratech Ltd - India
- Ministry of Mines - Canada
- Eastern Coal Council - USA
- Bukit Asam (Persero) Tbk - Indonesia
- The State Trading Corporation of India Ltd
- Meenaskhi Energy Private Limited - India
- Kartika Selabumi Mining - Indonesia
- Cement Manufacturers Association - India
- Trasteel International SA, Italy
- Star Paper Mills Limited - India
- Attock Cement Pakistan Limited
- Salva Resources Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Krishnapatnam Port Company Ltd. - India
- Simpson Spence & Young - Indonesia
- Thai Mozambique Logistica
- Iligan Light & Power Inc, Philippines
- Metalloyd Limited - United Kingdom
- Bulk Trading Sa - Switzerland
- Gujarat Mineral Development Corp Ltd - India
- Intertek Mineral Services - Indonesia
- Petron Corporation, Philippines
- Medco Energi Mining Internasional
- Bhoruka Overseas - Indonesia
- Uttam Galva Steels Limited - India
- Interocean Group of Companies - India
- Bukit Baiduri Energy - Indonesia
- Straits Asia Resources Limited - Singapore
- Indian Energy Exchange, India
- Mintek Dendrill Indonesia
- Power Finance Corporation Ltd., India
- Electricity Authority, New Zealand
- Commonwealth Bank - Australia
- Vijayanagar Sugar Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Kaltim Prima Coal - Indonesia
- Standard Chartered Bank - UAE
- Sindya Power Generating Company Private Ltd
- PTC India Limited - India
- Sarangani Energy Corporation, Philippines
- Tata Chemicals Ltd - India
- International Coal Ventures Pvt Ltd - India
- Marubeni Corporation - India
- Siam City Cement PLC, Thailand
- Posco Energy - South Korea
- Kobexindo Tractors - Indoneisa
- GMR Energy Limited - India
- TeaM Sual Corporation - Philippines
- South Luzon Thermal Energy Corporation
- Maheswari Brothers Coal Limited - India
- Africa Commodities Group - South Africa
- IEA Clean Coal Centre - UK
- Xindia Steels Limited - India
- Borneo Indobara - Indonesia
- Wilmar Investment Holdings
- Offshore Bulk Terminal Pte Ltd, Singapore
- Petrochimia International Co. Ltd.- Taiwan
- Australian Commodity Traders Exchange
- Global Coal Blending Company Limited - Australia
- Latin American Coal - Colombia
- Mercuria Energy - Indonesia
- Ind-Barath Power Infra Limited - India
- Economic Council, Georgia
- Chettinad Cement Corporation Ltd - India
- Ministry of Transport, Egypt
- Jaiprakash Power Ventures ltd
- Kapuas Tunggal Persada - Indonesia
- Sical Logistics Limited - India
- Bayan Resources Tbk. - Indonesia
- Bhushan Steel Limited - India
- Planning Commission, India
- Dalmia Cement Bharat India
- London Commodity Brokers - England
- McConnell Dowell - Australia
- Vedanta Resources Plc - India
- Orica Australia Pty. Ltd.
- Barasentosa Lestari - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Therma Luzon, Inc, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Independent Power Producers Association of India
- Essar Steel Hazira Ltd - India
- Wood Mackenzie - Singapore
- Aditya Birla Group - India
- Energy Development Corp, Philippines
- Ambuja Cements Ltd - India
- Pendopo Energi Batubara - Indonesia
- Bharathi Cement Corporation - India
- Mercator Lines Limited - India
- Edison Trading Spa - Italy
- PowerSource Philippines DevCo
- Karaikal Port Pvt Ltd - India
- Sojitz Corporation - Japan
- San Jose City I Power Corp, Philippines
- Orica Mining Services - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Holcim Trading Pte Ltd - Singapore
- Grasim Industreis Ltd - India
- Kumho Petrochemical, South Korea
- Global Business Power Corporation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- Heidelberg Cement - Germany
- Romanian Commodities Exchange
- Anglo American - United Kingdom
- Price Waterhouse Coopers - Russia
- Formosa Plastics Group - Taiwan
- Indika Energy - Indonesia
- Carbofer General Trading SA - India
- Manunggal Multi Energi - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- SMC Global Power, Philippines
- Sakthi Sugars Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Gujarat Sidhee Cement - India
- PetroVietnam Power Coal Import and Supply Company
- Directorate Of Revenue Intelligence - India
- Bukit Makmur.PT - Indonesia
- Indonesian Coal Mining Association
- Jorong Barutama Greston.PT - Indonesia
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