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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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Monday, 24 June 24
PHILIPPINES COAL SUPPLY ENOUGH UNTIL 2030 - PHILSTAR GLOBAL
The country’s existing coal-fired power plants are sufficient to ensure enough base load capacity in the next six years, Energy Secretary Rap ...
Friday, 14 June 24
NEXTDECADE, SAUDI ARAMCO SIGN 20-YEAR LNG SUPPLY DEAL - REUTERS
U.S. liquefied natural gas (LNG) provider NextDecade has signed a non-binding agreement with Saudi Aramco 2222.SE to supply 1.2 million tonnes per ...
Friday, 14 June 24
NEWBUILDING PRICES CLIMB 3% TO HIGHEST LEVEL IN 16 YEARS - NIELS RASMUSSEN
“Since the start of the year, newbuilding prices have risen 3% to their highest level since 2008. Compared to their most recent low in late 2 ...
Friday, 14 June 24
INDIA TARGETS HIGHER DOMESTIC COAL PRODUCTION, REDUCED IMPORTS: GOVT - REUTERS
India wants to reduce coal imports and increase domestic production, federal coal minister G. Kishan Reddy said on Thursday.
The cou ...
Thursday, 13 June 24
US LNG TO ASIA FOR POWER GENERATION EXPECTED TO CUT EMISSIONS VERSUS COAL - RYSTAD ENERGY
The value-chain emissions of liquified natural gas (LNG) are lower on average than for coal-fired power generation, even when the fuel is shipp ...
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- Billiton Holdings Pty Ltd - Australia
- Mintek Dendrill Indonesia
- Eastern Coal Council - USA
- Independent Power Producers Association of India
- Tata Chemicals Ltd - India
- Coalindo Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- Edison Trading Spa - Italy
- Intertek Mineral Services - Indonesia
- Barasentosa Lestari - Indonesia
- Ministry of Finance - Indonesia
- Xindia Steels Limited - India
- Ceylon Electricity Board - Sri Lanka
- ASAPP Information Group - India
- OPG Power Generation Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Bukit Baiduri Energy - Indonesia
- Wood Mackenzie - Singapore
- Indian Energy Exchange, India
- Manunggal Multi Energi - Indonesia
- Indo Tambangraya Megah - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Commonwealth Bank - Australia
- Vijayanagar Sugar Pvt Ltd - India
- Wilmar Investment Holdings
- Chettinad Cement Corporation Ltd - India
- Star Paper Mills Limited - India
- Antam Resourcindo - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Pendopo Energi Batubara - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Riau Bara Harum - Indonesia
- Madhucon Powers Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Dalmia Cement Bharat India
- Bhoruka Overseas - Indonesia
- Lanco Infratech Ltd - India
- Vizag Seaport Private Limited - India
- Latin American Coal - Colombia
- Economic Council, Georgia
- San Jose City I Power Corp, Philippines
- Indian Oil Corporation Limited
- London Commodity Brokers - England
- White Energy Company Limited
- Ambuja Cements Ltd - India
- Electricity Authority, New Zealand
- CNBM International Corporation - China
- Baramulti Group, Indonesia
- McConnell Dowell - Australia
- VISA Power Limited - India
- Iligan Light & Power Inc, Philippines
- Mjunction Services Limited - India
- Deloitte Consulting - India
- ICICI Bank Limited - India
- Ind-Barath Power Infra Limited - India
- Indika Energy - Indonesia
- Parliament of New Zealand
- Bukit Makmur.PT - Indonesia
- SMC Global Power, Philippines
- Meralco Power Generation, Philippines
- Sarangani Energy Corporation, Philippines
- Chamber of Mines of South Africa
- Rio Tinto Coal - Australia
- Gujarat Mineral Development Corp Ltd - India
- Marubeni Corporation - India
- Leighton Contractors Pty Ltd - Australia
- GN Power Mariveles Coal Plant, Philippines
- Planning Commission, India
- Goldman Sachs - Singapore
- Jaiprakash Power Ventures ltd
- Sinarmas Energy and Mining - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Siam City Cement - Thailand
- Bhushan Steel Limited - India
- Coastal Gujarat Power Limited - India
- Port Waratah Coal Services - Australia
- Vedanta Resources Plc - India
- Semirara Mining and Power Corporation, Philippines
- Electricity Generating Authority of Thailand
- European Bulk Services B.V. - Netherlands
- New Zealand Coal & Carbon
- Salva Resources Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Coal and Oil Company - UAE
- IEA Clean Coal Centre - UK
- Indogreen Group - Indonesia
- Ministry of Mines - Canada
- Romanian Commodities Exchange
- Jindal Steel & Power Ltd - India
- Power Finance Corporation Ltd., India
- Kartika Selabumi Mining - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Karbindo Abesyapradhi - Indoneisa
- Semirara Mining Corp, Philippines
- Central Java Power - Indonesia
- Georgia Ports Authority, United States
- Formosa Plastics Group - Taiwan
- CIMB Investment Bank - Malaysia
- Posco Energy - South Korea
- Interocean Group of Companies - India
- Thai Mozambique Logistica
- Global Green Power PLC Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Energy Development Corp, Philippines
- Tamil Nadu electricity Board
- Indonesian Coal Mining Association
- Minerals Council of Australia
- Holcim Trading Pte Ltd - Singapore
- Anglo American - United Kingdom
- Bukit Asam (Persero) Tbk - Indonesia
- Aboitiz Power Corporation - Philippines
- Maharashtra Electricity Regulatory Commission - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Renaissance Capital - South Africa
- Petron Corporation, Philippines
- Bhatia International Limited - India
- Sakthi Sugars Limited - India
- Medco Energi Mining Internasional
- Thiess Contractors Indonesia
- Standard Chartered Bank - UAE
- TeaM Sual Corporation - Philippines
- India Bulls Power Limited - India
- Carbofer General Trading SA - India
- Samtan Co., Ltd - South Korea
- Sical Logistics Limited - India
- PetroVietnam Power Coal Import and Supply Company
- International Coal Ventures Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Central Electricity Authority - India
- Toyota Tsusho Corporation, Japan
- MS Steel International - UAE
- Makarim & Taira - Indonesia
- SN Aboitiz Power Inc, Philippines
- Kideco Jaya Agung - Indonesia
- GMR Energy Limited - India
- The State Trading Corporation of India Ltd
- Videocon Industries ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Mercator Lines Limited - India
- Kapuas Tunggal Persada - Indonesia
- The University of Queensland
- Bayan Resources Tbk. - Indonesia
- Savvy Resources Ltd - HongKong
- Timah Investasi Mineral - Indoneisa
- Trasteel International SA, Italy
- Altura Mining Limited, Indonesia
- Sindya Power Generating Company Private Ltd
- Parry Sugars Refinery, India
- Singapore Mercantile Exchange
- Borneo Indobara - Indonesia
- GVK Power & Infra Limited - India
- Global Coal Blending Company Limited - Australia
- Australian Coal Association
- South Luzon Thermal Energy Corporation
- Directorate Of Revenue Intelligence - India
- Krishnapatnam Port Company Ltd. - India
- Orica Mining Services - Indonesia
- Kumho Petrochemical, South Korea
- Cigading International Bulk Terminal - Indonesia
- Binh Thuan Hamico - Vietnam
- Energy Link Ltd, New Zealand
- Agrawal Coal Company - India
- Maheswari Brothers Coal Limited - India
- Mercuria Energy - Indonesia
- Price Waterhouse Coopers - Russia
- Attock Cement Pakistan Limited
- LBH Netherlands Bv - Netherlands
- Kepco SPC Power Corporation, Philippines
- Global Business Power Corporation, Philippines
- Ministry of Transport, Egypt
- Siam City Cement PLC, Thailand
- Bharathi Cement Corporation - India
- Kalimantan Lumbung Energi - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Kobexindo Tractors - Indoneisa
- TNB Fuel Sdn Bhd - Malaysia
- Kaltim Prima Coal - Indonesia
- Eastern Energy - Thailand
- PTC India Limited - India
- The Treasury - Australian Government
- Offshore Bulk Terminal Pte Ltd, Singapore
- Malabar Cements Ltd - India
- Oldendorff Carriers - Singapore
- Grasim Industreis Ltd - India
- Larsen & Toubro Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Merrill Lynch Commodities Europe
- Sojitz Corporation - Japan
- Aditya Birla Group - India
- Gujarat Electricity Regulatory Commission - India
- Orica Australia Pty. Ltd.
- Banpu Public Company Limited - Thailand
- Africa Commodities Group - South Africa
- Karaikal Port Pvt Ltd - India
- IHS Mccloskey Coal Group - USA
- Cement Manufacturers Association - India
- Australian Commodity Traders Exchange
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bangladesh Power Developement Board
- Rashtriya Ispat Nigam Limited - India
- Gujarat Sidhee Cement - India
- Heidelberg Cement - Germany
- AsiaOL BioFuels Corp., Philippines
- PowerSource Philippines DevCo
- SMG Consultants - Indonesia
- Sree Jayajothi Cements Limited - India
- Simpson Spence & Young - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Essar Steel Hazira Ltd - India
- Straits Asia Resources Limited - Singapore
- Bulk Trading Sa - Switzerland
- Globalindo Alam Lestari - Indonesia
- Meenaskhi Energy Private Limited - India
- Metalloyd Limited - United Kingdom
- PNOC Exploration Corporation - Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Miang Besar Coal Terminal - Indonesia
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