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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, 22 March 24
INDONESIA APPROVES 922.14 MLN T COAL PRODUCTION QUOTA FOR 2024, ABOVE TARGET - REUTERS
Indonesia has approved coal production quotas totalling 922.14 million metric tons for 2024, Bambang Suswantono, a senior official at the mining mi ...
Friday, 22 March 24
CHINA COAL INDUSTRY GROUP EXPECTS OUTPUT GROWTH TO SLOW IN 2024 - REUTERS
China’s coal output is expected to increase 36 million metric tons, or 0.8%, to about 4.7 billion tonnes in 2024, a Chinese coal industry gro ...
Monday, 18 March 24
THREE KEY TAKEAWAYS FROM OUR EUROPE GAS MARKETS SHORT-TERM OUTLOOK Q1 2024 - WOOD MACKENZIE
European gas prices are currently back to pre-crisis levels, but with a complex series of factors affecting future supply and demand, are they set ...
Wednesday, 06 March 24
INDONESIA AIMS TO FINISH MINING OUTPUT QUOTAS APPROVAL BY END-MARCH, OFFICIAL SAYS - REUTERS
Indonesia’s has approved the mining production quotarequests from more than 120mineral companies and aims to complete the approval process th ...
Monday, 04 March 24
IS YOUR GUARANTEE A GUARANTEE? NOTE TO SHIPOWNERS - GARD
KNOWLEDGE TO ELEVATE
The law of guarantees is not always obvious or easy to understand without proper guidance. This article clarifies the dif ...
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Showing 26 to 30 news of total 6871 |
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- Kartika Selabumi Mining - Indonesia
- Australian Commodity Traders Exchange
- Malabar Cements Ltd - India
- Indian Energy Exchange, India
- OPG Power Generation Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Intertek Mineral Services - Indonesia
- International Coal Ventures Pvt Ltd - India
- TeaM Sual Corporation - Philippines
- Mercator Lines Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Therma Luzon, Inc, Philippines
- Wilmar Investment Holdings
- Mjunction Services Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Manunggal Multi Energi - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Standard Chartered Bank - UAE
- Bhoruka Overseas - Indonesia
- Thai Mozambique Logistica
- Central Java Power - Indonesia
- Bharathi Cement Corporation - India
- Rio Tinto Coal - Australia
- Asmin Koalindo Tuhup - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- SN Aboitiz Power Inc, Philippines
- Siam City Cement - Thailand
- GVK Power & Infra Limited - India
- GN Power Mariveles Coal Plant, Philippines
- SMG Consultants - Indonesia
- Pendopo Energi Batubara - Indonesia
- Sical Logistics Limited - India
- Sarangani Energy Corporation, Philippines
- Central Electricity Authority - India
- Dalmia Cement Bharat India
- Sakthi Sugars Limited - India
- PowerSource Philippines DevCo
- Savvy Resources Ltd - HongKong
- Indo Tambangraya Megah - Indonesia
- Sindya Power Generating Company Private Ltd
- Cigading International Bulk Terminal - Indonesia
- Karaikal Port Pvt Ltd - India
- Global Coal Blending Company Limited - Australia
- Iligan Light & Power Inc, Philippines
- Tata Chemicals Ltd - India
- Straits Asia Resources Limited - Singapore
- Trasteel International SA, Italy
- Carbofer General Trading SA - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Rashtriya Ispat Nigam Limited - India
- Eastern Energy - Thailand
- New Zealand Coal & Carbon
- Billiton Holdings Pty Ltd - Australia
- Singapore Mercantile Exchange
- Maheswari Brothers Coal Limited - India
- Electricity Authority, New Zealand
- Globalindo Alam Lestari - Indonesia
- White Energy Company Limited
- Jorong Barutama Greston.PT - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Chettinad Cement Corporation Ltd - India
- Mintek Dendrill Indonesia
- Gujarat Mineral Development Corp Ltd - India
- MS Steel International - UAE
- Bhatia International Limited - India
- Gujarat Sidhee Cement - India
- Interocean Group of Companies - India
- Aditya Birla Group - India
- Star Paper Mills Limited - India
- San Jose City I Power Corp, Philippines
- The University of Queensland
- Global Green Power PLC Corporation, Philippines
- Barasentosa Lestari - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Timah Investasi Mineral - Indoneisa
- Bukit Makmur.PT - Indonesia
- Electricity Generating Authority of Thailand
- Simpson Spence & Young - Indonesia
- Banpu Public Company Limited - Thailand
- Wood Mackenzie - Singapore
- PNOC Exploration Corporation - Philippines
- Indian Oil Corporation Limited
- Planning Commission, India
- Salva Resources Pvt Ltd - India
- GMR Energy Limited - India
- The State Trading Corporation of India Ltd
- Heidelberg Cement - Germany
- SMC Global Power, Philippines
- Antam Resourcindo - Indonesia
- Energy Development Corp, Philippines
- Ministry of Transport, Egypt
- Kapuas Tunggal Persada - Indonesia
- Indogreen Group - Indonesia
- Jaiprakash Power Ventures ltd
- Vijayanagar Sugar Pvt Ltd - India
- Bangladesh Power Developement Board
- Agrawal Coal Company - India
- Jindal Steel & Power Ltd - India
- Oldendorff Carriers - Singapore
- Parliament of New Zealand
- PetroVietnam Power Coal Import and Supply Company
- Meralco Power Generation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Riau Bara Harum - Indonesia
- Romanian Commodities Exchange
- Edison Trading Spa - Italy
- Directorate General of MIneral and Coal - Indonesia
- Africa Commodities Group - South Africa
- Kideco Jaya Agung - Indonesia
- Power Finance Corporation Ltd., India
- Global Business Power Corporation, Philippines
- Baramulti Group, Indonesia
- Bulk Trading Sa - Switzerland
- Formosa Plastics Group - Taiwan
- TNB Fuel Sdn Bhd - Malaysia
- Leighton Contractors Pty Ltd - Australia
- Semirara Mining Corp, Philippines
- Coastal Gujarat Power Limited - India
- LBH Netherlands Bv - Netherlands
- Metalloyd Limited - United Kingdom
- Eastern Coal Council - USA
- Minerals Council of Australia
- CNBM International Corporation - China
- Coalindo Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- India Bulls Power Limited - India
- Vizag Seaport Private Limited - India
- Bayan Resources Tbk. - Indonesia
- Price Waterhouse Coopers - Russia
- Bhushan Steel Limited - India
- Makarim & Taira - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Indonesian Coal Mining Association
- Samtan Co., Ltd - South Korea
- Alfred C Toepfer International GmbH - Germany
- European Bulk Services B.V. - Netherlands
- Commonwealth Bank - Australia
- Meenaskhi Energy Private Limited - India
- Aboitiz Power Corporation - Philippines
- Cement Manufacturers Association - India
- Kohat Cement Company Ltd. - Pakistan
- Directorate Of Revenue Intelligence - India
- Madhucon Powers Ltd - India
- Altura Mining Limited, Indonesia
- Georgia Ports Authority, United States
- Miang Besar Coal Terminal - Indonesia
- Larsen & Toubro Limited - India
- Sinarmas Energy and Mining - Indonesia
- Attock Cement Pakistan Limited
- Borneo Indobara - Indonesia
- Tamil Nadu electricity Board
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- VISA Power Limited - India
- Vedanta Resources Plc - India
- Thiess Contractors Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Grasim Industreis Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ambuja Cements Ltd - India
- Sojitz Corporation - Japan
- Renaissance Capital - South Africa
- Chamber of Mines of South Africa
- Medco Energi Mining Internasional
- Maharashtra Electricity Regulatory Commission - India
- Karbindo Abesyapradhi - Indoneisa
- Goldman Sachs - Singapore
- Bukit Asam (Persero) Tbk - Indonesia
- IHS Mccloskey Coal Group - USA
- Bukit Baiduri Energy - Indonesia
- Xindia Steels Limited - India
- Ind-Barath Power Infra Limited - India
- Parry Sugars Refinery, India
- Orica Mining Services - Indonesia
- ASAPP Information Group - India
- Kepco SPC Power Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Sree Jayajothi Cements Limited - India
- Uttam Galva Steels Limited - India
- Indika Energy - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Latin American Coal - Colombia
- The Treasury - Australian Government
- Neyveli Lignite Corporation Ltd, - India
- Orica Australia Pty. Ltd.
- Ministry of Finance - Indonesia
- Economic Council, Georgia
- IEA Clean Coal Centre - UK
- Siam City Cement PLC, Thailand
- Posco Energy - South Korea
- Energy Link Ltd, New Zealand
- Pipit Mutiara Jaya. PT, Indonesia
- Kaltim Prima Coal - Indonesia
- Port Waratah Coal Services - Australia
- Marubeni Corporation - India
- ICICI Bank Limited - India
- Independent Power Producers Association of India
- Petron Corporation, Philippines
- McConnell Dowell - Australia
- Essar Steel Hazira Ltd - India
- Lanco Infratech Ltd - India
- Ministry of Mines - Canada
- Toyota Tsusho Corporation, Japan
- Kobexindo Tractors - Indoneisa
- London Commodity Brokers - England
- Merrill Lynch Commodities Europe
- Videocon Industries ltd - India
- Gujarat Electricity Regulatory Commission - India
- Australian Coal Association
- Deloitte Consulting - India
- Kumho Petrochemical, South Korea
- PTC India Limited - India
- CIMB Investment Bank - Malaysia
- Ceylon Electricity Board - Sri Lanka
- Mercuria Energy - Indonesia
- Anglo American - United Kingdom
- Coal and Oil Company - UAE
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