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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, 17 January 23
CHINA'S SHANXI TARGETS 2023 COAL PRODUCTION OF NEARLY 1.37B TONS - XINHUA
China’s coal-rich province of Shanxi has set a coal production target of nearly 1.37 billion metric tons for 2023, according to a government ...
Tuesday, 17 January 23
MARKET INSIGHT - INTERMODAL
Rumor has it that the New Year has come, to set the pace in, for Russia to continue hostilities against Ukraine. Ten months on the go, into Russia& ...
Tuesday, 17 January 23
INDONESIA IS ACCOUNTING FOR 32.3% OF THE GLOBAL SEABORNE COAL MARKET IN 2022 - BENCHERO 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, Benchero ...
Tuesday, 10 January 23
INDONESIAN HBA IS SEEING A SPIKE IN JANUARY 2023 INSTEAD OF A SIGNIFICANT FALL IN DECEMBER 2022
COALspot.com: Indonesian Coal Price Reference up 8.43% in January 2023.
HBA is seeing a dramatic spike in January 2023 i ...
Sunday, 08 January 23
INDIAN COAL POWER PLANTS SHOULD BE COMPENSATED FOR 2022 FORCED GENERATION – REGULATOR : REUTERS
Indian power plants that rely on imported coal should be fully compensated when forced to supply electricity, the country’s power regulator s ...
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- Singapore Mercantile Exchange
- Miang Besar Coal Terminal - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Energy Link Ltd, New Zealand
- The State Trading Corporation of India Ltd
- Sical Logistics Limited - India
- Vedanta Resources Plc - India
- Central Java Power - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Ind-Barath Power Infra Limited - India
- Madhucon Powers Ltd - India
- Wilmar Investment Holdings
- Riau Bara Harum - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Karbindo Abesyapradhi - Indoneisa
- Gujarat Electricity Regulatory Commission - India
- The University of Queensland
- Sree Jayajothi Cements Limited - India
- Merrill Lynch Commodities Europe
- Tata Chemicals Ltd - India
- Essar Steel Hazira Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Sojitz Corporation - Japan
- The Treasury - Australian Government
- Central Electricity Authority - India
- Agrawal Coal Company - India
- Therma Luzon, Inc, Philippines
- Antam Resourcindo - Indonesia
- Jindal Steel & Power Ltd - India
- Power Finance Corporation Ltd., India
- India Bulls Power Limited - India
- Ministry of Finance - Indonesia
- Globalindo Alam Lestari - Indonesia
- Indonesian Coal Mining Association
- MS Steel International - UAE
- Independent Power Producers Association of India
- Petrochimia International Co. Ltd.- Taiwan
- Indian Energy Exchange, India
- Price Waterhouse Coopers - Russia
- Coal and Oil Company - UAE
- Altura Mining Limited, Indonesia
- Lanco Infratech Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Intertek Mineral Services - Indonesia
- Ministry of Transport, Egypt
- OPG Power Generation Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Cement Manufacturers Association - India
- Alfred C Toepfer International GmbH - Germany
- Vizag Seaport Private Limited - India
- Baramulti Group, Indonesia
- Kalimantan Lumbung Energi - Indonesia
- CNBM International Corporation - China
- Energy Development Corp, Philippines
- CIMB Investment Bank - Malaysia
- PetroVietnam Power Coal Import and Supply Company
- Toyota Tsusho Corporation, Japan
- Australian Commodity Traders Exchange
- Wood Mackenzie - Singapore
- New Zealand Coal & Carbon
- Borneo Indobara - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Salva Resources Pvt Ltd - India
- Ambuja Cements Ltd - India
- Uttam Galva Steels Limited - India
- Sakthi Sugars Limited - India
- Kumho Petrochemical, South Korea
- Videocon Industries ltd - India
- Coastal Gujarat Power Limited - India
- SMG Consultants - Indonesia
- Electricity Authority, New Zealand
- Indika Energy - Indonesia
- Marubeni Corporation - India
- Bangladesh Power Developement Board
- Economic Council, Georgia
- Edison Trading Spa - Italy
- Port Waratah Coal Services - Australia
- Commonwealth Bank - Australia
- Karaikal Port Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Kartika Selabumi Mining - Indonesia
- Goldman Sachs - Singapore
- Bharathi Cement Corporation - India
- Barasentosa Lestari - Indonesia
- Georgia Ports Authority, United States
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Deloitte Consulting - India
- Indogreen Group - Indonesia
- ICICI Bank Limited - India
- Jaiprakash Power Ventures ltd
- Bhushan Steel Limited - India
- Thai Mozambique Logistica
- Formosa Plastics Group - Taiwan
- Parliament of New Zealand
- Pendopo Energi Batubara - Indonesia
- Samtan Co., Ltd - South Korea
- Bukit Baiduri Energy - Indonesia
- Petron Corporation, Philippines
- Sarangani Energy Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Global Business Power Corporation, Philippines
- VISA Power Limited - India
- Anglo American - United Kingdom
- Maheswari Brothers Coal Limited - India
- European Bulk Services B.V. - Netherlands
- Posco Energy - South Korea
- Grasim Industreis Ltd - India
- Iligan Light & Power Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- GN Power Mariveles Coal Plant, Philippines
- Leighton Contractors Pty Ltd - Australia
- Latin American Coal - Colombia
- Oldendorff Carriers - Singapore
- Simpson Spence & Young - Indonesia
- Parry Sugars Refinery, India
- International Coal Ventures Pvt Ltd - India
- Eastern Coal Council - USA
- Aboitiz Power Corporation - Philippines
- Indian Oil Corporation Limited
- PNOC Exploration Corporation - Philippines
- Trasteel International SA, Italy
- Medco Energi Mining Internasional
- Kobexindo Tractors - Indoneisa
- Jorong Barutama Greston.PT - Indonesia
- Timah Investasi Mineral - Indoneisa
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ministry of Mines - Canada
- Minerals Council of Australia
- Orica Australia Pty. Ltd.
- PowerSource Philippines DevCo
- Mintek Dendrill Indonesia
- Eastern Energy - Thailand
- Siam City Cement - Thailand
- Orica Mining Services - Indonesia
- Bhatia International Limited - India
- Kideco Jaya Agung - Indonesia
- Makarim & Taira - Indonesia
- Savvy Resources Ltd - HongKong
- Chamber of Mines of South Africa
- Bukit Asam (Persero) Tbk - Indonesia
- Interocean Group of Companies - India
- Aditya Birla Group - India
- Malabar Cements Ltd - India
- Coalindo Energy - Indonesia
- Banpu Public Company Limited - Thailand
- Kohat Cement Company Ltd. - Pakistan
- South Luzon Thermal Energy Corporation
- ASAPP Information Group - India
- Xindia Steels Limited - India
- AsiaOL BioFuels Corp., Philippines
- Attock Cement Pakistan Limited
- Standard Chartered Bank - UAE
- London Commodity Brokers - England
- Directorate Of Revenue Intelligence - India
- Kepco SPC Power Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Asmin Koalindo Tuhup - Indonesia
- Mercator Lines Limited - India
- Larsen & Toubro Limited - India
- GVK Power & Infra Limited - India
- Romanian Commodities Exchange
- IHS Mccloskey Coal Group - USA
- Kaltim Prima Coal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Cigading International Bulk Terminal - Indonesia
- Binh Thuan Hamico - Vietnam
- Straits Asia Resources Limited - Singapore
- Planning Commission, India
- Sinarmas Energy and Mining - Indonesia
- Global Coal Blending Company Limited - Australia
- Africa Commodities Group - South Africa
- Tamil Nadu electricity Board
- Manunggal Multi Energi - Indonesia
- Meenaskhi Energy Private Limited - India
- Renaissance Capital - South Africa
- Chettinad Cement Corporation Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bhoruka Overseas - Indonesia
- Meralco Power Generation, Philippines
- McConnell Dowell - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mercuria Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Sindya Power Generating Company Private Ltd
- PTC India Limited - India
- GMR Energy Limited - India
- Ceylon Electricity Board - Sri Lanka
- Vijayanagar Sugar Pvt Ltd - India
- Mjunction Services Limited - India
- Krishnapatnam Port Company Ltd. - India
- Carbofer General Trading SA - India
- Heidelberg Cement - Germany
- SMC Global Power, Philippines
- Bayan Resources Tbk. - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Semirara Mining and Power Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- IEA Clean Coal Centre - UK
- Rashtriya Ispat Nigam Limited - India
- Australian Coal Association
- Thiess Contractors Indonesia
- Rio Tinto Coal - Australia
- Metalloyd Limited - United Kingdom
- TNB Fuel Sdn Bhd - Malaysia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Star Paper Mills Limited - India
- Siam City Cement PLC, Thailand
- Electricity Generating Authority of Thailand
- White Energy Company Limited
- Directorate General of MIneral and Coal - Indonesia
- San Jose City I Power Corp, Philippines
- Dalmia Cement Bharat India
- Bukit Makmur.PT - Indonesia
- Semirara Mining Corp, Philippines
- Gujarat Sidhee Cement - India
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