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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, 26 January 23
AUSTRALIA'S CORONADO GLOBAL SEES COAL PRICES RISING ON RESUMING CHINA IMPORTS - REUTERS
Australia’s Coronado Global Resources said on Tuesday resuming metallurgical coal imports to China would likely push sea-borne coal prices hi ...
Monday, 23 January 23
CHINA'S MAJOR COAL-PRODUCING PROVINCE ACCELERATES DIGITAL TRANSFORMATION - XINHUA
At Chindata Group’s big-data industrial park in Lingqiu County of Datong City, hundreds of thousands of servers are running round-the-clock t ...
Monday, 23 January 23
CHINA'S COAL-RICH PROVINCE SEES COAL PRODUCTION INCREASE IN 2022 - XINHUA
North China’s coal-rich province of Shanxi saw its coal production hit 1.31 billion tonnes in 2022, up 8.7 percent year on year, local author ...
Wednesday, 18 January 23
MARKET INSIGHT - INTERMODAL
From Feb 5, another price cap will be introduced to Russian fuels and oil products, adding to the one for crude oil, already in place from Dec. 3. ...
Tuesday, 17 January 23
FRAUD IS THE BIGGEST THREAT TO CARGO LOSSES - TT CLUB
The almost exclusive use of online facilities to process business transactions allows a myriad of fraudulent pursuits to find opportunities within ...
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- Dalmia Cement Bharat India
- ICICI Bank Limited - India
- Thai Mozambique Logistica
- Bukit Makmur.PT - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Toyota Tsusho Corporation, Japan
- Meralco Power Generation, Philippines
- Economic Council, Georgia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Siam City Cement - Thailand
- Maharashtra Electricity Regulatory Commission - India
- Vizag Seaport Private Limited - India
- Deloitte Consulting - India
- LBH Netherlands Bv - Netherlands
- Global Coal Blending Company Limited - Australia
- Kartika Selabumi Mining - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Coalindo Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Sarangani Energy Corporation, Philippines
- MS Steel International - UAE
- Meenaskhi Energy Private Limited - India
- European Bulk Services B.V. - Netherlands
- Malabar Cements Ltd - India
- Australian Commodity Traders Exchange
- Carbofer General Trading SA - India
- Cigading International Bulk Terminal - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Indian Energy Exchange, India
- Intertek Mineral Services - Indonesia
- Krishnapatnam Port Company Ltd. - India
- PNOC Exploration Corporation - Philippines
- India Bulls Power Limited - India
- Savvy Resources Ltd - HongKong
- Petrochimia International Co. Ltd.- Taiwan
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- Antam Resourcindo - Indonesia
- Sakthi Sugars Limited - India
- Medco Energi Mining Internasional
- Edison Trading Spa - Italy
- SMG Consultants - Indonesia
- ASAPP Information Group - India
- Siam City Cement PLC, Thailand
- Altura Mining Limited, Indonesia
- Agrawal Coal Company - India
- Power Finance Corporation Ltd., India
- Pendopo Energi Batubara - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- GVK Power & Infra Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Miang Besar Coal Terminal - Indonesia
- SMC Global Power, Philippines
- Riau Bara Harum - Indonesia
- Bukit Baiduri Energy - Indonesia
- Orica Australia Pty. Ltd.
- Simpson Spence & Young - Indonesia
- Petron Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Sojitz Corporation - Japan
- Metalloyd Limited - United Kingdom
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- Pipit Mutiara Jaya. PT, Indonesia
- Mjunction Services Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Borneo Indobara - Indonesia
- Tamil Nadu electricity Board
- Bhatia International Limited - India
- International Coal Ventures Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Mintek Dendrill Indonesia
- Aboitiz Power Corporation - Philippines
- Globalindo Alam Lestari - Indonesia
- Jaiprakash Power Ventures ltd
- Coastal Gujarat Power Limited - India
- Semirara Mining Corp, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Kaltim Prima Coal - Indonesia
- Eastern Coal Council - USA
- Aditya Birla Group - India
- Jindal Steel & Power Ltd - India
- Chamber of Mines of South Africa
- Heidelberg Cement - Germany
- The Treasury - Australian Government
- Romanian Commodities Exchange
- Maheswari Brothers Coal Limited - India
- Rashtriya Ispat Nigam Limited - India
- Chettinad Cement Corporation Ltd - India
- Formosa Plastics Group - Taiwan
- Rio Tinto Coal - Australia
- San Jose City I Power Corp, Philippines
- SN Aboitiz Power Inc, Philippines
- Mercator Lines Limited - India
- CIMB Investment Bank - Malaysia
- The University of Queensland
- Eastern Energy - Thailand
- Indonesian Coal Mining Association
- Africa Commodities Group - South Africa
- Holcim Trading Pte Ltd - Singapore
- Posco Energy - South Korea
- Indogreen Group - Indonesia
- Goldman Sachs - Singapore
- Gujarat Electricity Regulatory Commission - India
- Georgia Ports Authority, United States
- Cement Manufacturers Association - India
- VISA Power Limited - India
- Trasteel International SA, Italy
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Global Business Power Corporation, Philippines
- Vedanta Resources Plc - India
- Minerals Council of Australia
- Karaikal Port Pvt Ltd - India
- Ministry of Mines - Canada
- Australian Coal Association
- Sindya Power Generating Company Private Ltd
- Indika Energy - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Bulk Trading Sa - Switzerland
- Mercuria Energy - Indonesia
- Coal and Oil Company - UAE
- CNBM International Corporation - China
- Baramulti Group, Indonesia
- IHS Mccloskey Coal Group - USA
- Merrill Lynch Commodities Europe
- Global Green Power PLC Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Essar Steel Hazira Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
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- New Zealand Coal & Carbon
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- Marubeni Corporation - India
- PowerSource Philippines DevCo
- Asmin Koalindo Tuhup - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- London Commodity Brokers - England
- South Luzon Thermal Energy Corporation
- Kohat Cement Company Ltd. - Pakistan
- Parliament of New Zealand
- Electricity Authority, New Zealand
- AsiaOL BioFuels Corp., Philippines
- TeaM Sual Corporation - Philippines
- Makarim & Taira - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Manunggal Multi Energi - Indonesia
- Independent Power Producers Association of India
- Central Electricity Authority - India
- Directorate Of Revenue Intelligence - India
- Madhucon Powers Ltd - India
- Sical Logistics Limited - India
- Therma Luzon, Inc, Philippines
- Electricity Generating Authority of Thailand
- McConnell Dowell - Australia
- Ambuja Cements Ltd - India
- Kideco Jaya Agung - Indonesia
- Bayan Resources Tbk. - Indonesia
- Iligan Light & Power Inc, Philippines
- Latin American Coal - Colombia
- Oldendorff Carriers - Singapore
- Binh Thuan Hamico - Vietnam
- Grasim Industreis Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Standard Chartered Bank - UAE
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Thiess Contractors Indonesia
- Bhoruka Overseas - Indonesia
- Orica Mining Services - Indonesia
- Planning Commission, India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Vijayanagar Sugar Pvt Ltd - India
- Attock Cement Pakistan Limited
- Parry Sugars Refinery, India
- Bangladesh Power Developement Board
- Videocon Industries ltd - India
- PTC India Limited - India
- Ministry of Transport, Egypt
- Bhushan Steel Limited - India
- IEA Clean Coal Centre - UK
- Energy Link Ltd, New Zealand
- Tata Chemicals Ltd - India
- Lanco Infratech Ltd - India
- Energy Development Corp, Philippines
- Port Waratah Coal Services - Australia
- White Energy Company Limited
- Billiton Holdings Pty Ltd - Australia
- Price Waterhouse Coopers - Russia
- Semirara Mining and Power Corporation, Philippines
- Star Paper Mills Limited - India
- Wood Mackenzie - Singapore
- Commonwealth Bank - Australia
- Indian Oil Corporation Limited
- Barasentosa Lestari - Indonesia
- Kepco SPC Power Corporation, Philippines
- Anglo American - United Kingdom
- Ministry of Finance - Indonesia
- Timah Investasi Mineral - Indoneisa
- Singapore Mercantile Exchange
- Larsen & Toubro Limited - India
- Indo Tambangraya Megah - Indonesia
- Renaissance Capital - South Africa
- Banpu Public Company Limited - Thailand
- Xindia Steels Limited - India
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- The State Trading Corporation of India Ltd
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- Samtan Co., Ltd - South Korea
- Kobexindo Tractors - Indoneisa
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