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Sunday, 28 March 10
DEMAND FROM INDIA RESHAPING THE GLOBAL COAL MARKET - DAVE FOREST
 Attention international coal industry. There's a new kid on the block.
The nation of India.
India is emerging as a major re-shaping force for the global coal market. With in-country coal supplies flagging, Indian buyers are increasingly turning to imports to meet demand.
The situation at many of the nation's power plants is dire. The federal Central Electricity Authority monitors coal stockpiles at 79 plants throughout India. As of yesterday, 19 of those plants (25%) were running at "critical" levels, with less than 7 days worth of coal on hand.
In fact, 9 of those plants are operating with less than 4 days of coal supply. Meaning that 11% of national generating capacity is teetering on the edge of shutdown. These plants are completely reliant on new coal deliveries. If coal shipping is disrupted for any reason, there's no back-up.
There are a few factors at play here. Firstly, India's coal production is lagging demand. Due to fixed government pricing that makes it difficult for coal miners to turn a profit. There's simply not much economic incentive to build new mines (although the government is trying to horse-whip producers into increasing output, even at low prices.)
The other problem is that India's coal-producing regions are distant from many of the electricity demand centers, especially along the coast. Bottlenecks in rail transport make it difficult to get coal to many of the power plants that need supply most.
A clear solution seems to be emerging amongst many of India's biggest coal buyers. Go international.
Yesterday, Maharashtra State Power Generation Co. (the firm that supplies power to Mumbai, among other places) announced it will seek to import 3.35 million tons of thermal coal in the year beginning April 1.
This is a big jump in Maharashtra's foreign coal use. Up 40% from the 2.4 million tons imported in the year ended March 31.
The company's managing director Subrat Ratho made it clear this is a decision coming from the highest levels in India. As he noted, "We would like to import as little as we can because overseas coal is six-times more expensive than Indian coal. But it appears the Ministry of Power has made an assessment of how much coal the domestic companies will be able to supply to various states and have given us this target."
The decision is changing the face of coal imports across the country. India's thermal coal imports surged 100% in 2009, to 60 million tons. Up from just 30 million tons in 2008.
With India's focus now shifting to coal imports, a question is arising. Where will this international supply come from?
Nations like China and Japan have been competing hard for years to secure coal supplies in many of the world's richest regions like Indonesia and Australia. Being late to the party, India is now making its own push to capture supplies. By going forth and buying mines.
Last year, the Indian government gave explicit instructions to many of the nation's largest coal companies to buy overseas coal mines in the interest of nailing down import supply.
One such acquisition materialized this week, with major coal miner and power plant operator Essar Group announcing its purchase of the Aries coal mine in East Kalimantan, Indonesia. The project is reported to hold 100 million tons of thermal coal.
This follows on the heels of Essar's recently-announced $600 million purchase of West Virginia's Trinity Coal Corp. Signaling that Essar (and other groups like it) are moving fast to secure coal assets globally.
The coal industry is already a crowded space, with several nations competing for imports and to buy mines. The sudden addition of an aggressive and deep-pocketed buyer like India could end up being like trying to drive a bulldozer through a mousehole. Putting upward pressure on both coal trade prices and the price tag for purchasing deposits.
We saw this movie once before in 2005 when China turned from a net exporter of coal to a net importer. Prices soared and coal producers had a great run in the stock market.
India may be the only other nation on the planet with the ability to do same.
Source: OilPrice
Dave Forest, dforest@piercepoints.com, www.piercepoints.com
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Wednesday, 17 February 10
JORONG COULD COST BANPU 5%
Banpu Plc, Asean's biggest coal miner, forecasts a 5% drop in revenue if its suspended coal mine in Indonesia is closed for one year, says presiden ...
Wednesday, 17 February 10
RUSSIA KRU JAN COAL EXPORTS DOWN 4 PCT
Kuzbassrazrezugol, Russia's second largest steam coal producer, exported 1.859 million tonnes of coal last month, down 80,000 tonnes or 4 percent f ...
Wednesday, 17 February 10
VEDANTA SET FOR PORTS ENTRY WITH VIZAG TENDER
Vedanta, along with Leighton Contractors India, quoted a revenue share of 38.1% to win the 30-year contract
Mining and metals conglomerate Vedant ...
Tuesday, 16 February 10
TRENDS DRY BULK MARKET ... TRENDS - BRS
The start of the Chinese New Year had an immediate impact on rates and for once all the dry bulk segments lost similar ground.
The BDI fell 5%, a ...
Tuesday, 16 February 10
LAW POSES THREAT TO INDONESIA'S COAL INDUSTRY
A zoning law could cost coal miners billions of dollars this year alone, hurt investment in the industry and disrupt the supply of the fuel to the c ...
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- Sree Jayajothi Cements Limited - India
- Indian Energy Exchange, India
- Global Green Power PLC Corporation, Philippines
- Agrawal Coal Company - India
- Coastal Gujarat Power Limited - India
- Attock Cement Pakistan Limited
- Price Waterhouse Coopers - Russia
- Thai Mozambique Logistica
- IHS Mccloskey Coal Group - USA
- Jaiprakash Power Ventures ltd
- Wilmar Investment Holdings
- Anglo American - United Kingdom
- Medco Energi Mining Internasional
- Ceylon Electricity Board - Sri Lanka
- Asmin Koalindo Tuhup - Indonesia
- Maheswari Brothers Coal Limited - India
- South Luzon Thermal Energy Corporation
- Essar Steel Hazira Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- GMR Energy Limited - India
- Aditya Birla Group - India
- Carbofer General Trading SA - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sojitz Corporation - Japan
- Marubeni Corporation - India
- San Jose City I Power Corp, Philippines
- Borneo Indobara - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Antam Resourcindo - Indonesia
- Orica Australia Pty. Ltd.
- White Energy Company Limited
- Energy Link Ltd, New Zealand
- ASAPP Information Group - India
- Singapore Mercantile Exchange
- Eastern Energy - Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- India Bulls Power Limited - India
- Petron Corporation, Philippines
- Heidelberg Cement - Germany
- European Bulk Services B.V. - Netherlands
- Indian Oil Corporation Limited
- Larsen & Toubro Limited - India
- Australian Coal Association
- The State Trading Corporation of India Ltd
- Siam City Cement - Thailand
- Star Paper Mills Limited - India
- Vedanta Resources Plc - India
- Krishnapatnam Port Company Ltd. - India
- Central Java Power - Indonesia
- Lanco Infratech Ltd - India
- Latin American Coal - Colombia
- Karaikal Port Pvt Ltd - India
- Trasteel International SA, Italy
- Aboitiz Power Corporation - Philippines
- Eastern Coal Council - USA
- Tamil Nadu electricity Board
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Rio Tinto Coal - Australia
- LBH Netherlands Bv - Netherlands
- Bukit Asam (Persero) Tbk - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Directorate General of MIneral and Coal - Indonesia
- London Commodity Brokers - England
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Cement Manufacturers Association - India
- New Zealand Coal & Carbon
- Alfred C Toepfer International GmbH - Germany
- SN Aboitiz Power Inc, Philippines
- OPG Power Generation Pvt Ltd - India
- Bhushan Steel Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- SMG Consultants - Indonesia
- Romanian Commodities Exchange
- PetroVietnam Power Coal Import and Supply Company
- Banpu Public Company Limited - Thailand
- CNBM International Corporation - China
- Altura Mining Limited, Indonesia
- Posco Energy - South Korea
- Makarim & Taira - Indonesia
- Meralco Power Generation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Semirara Mining Corp, Philippines
- The Treasury - Australian Government
- Economic Council, Georgia
- Baramulti Group, Indonesia
- Bhoruka Overseas - Indonesia
- TeaM Sual Corporation - Philippines
- Therma Luzon, Inc, Philippines
- Kalimantan Lumbung Energi - Indonesia
- PNOC Exploration Corporation - Philippines
- Kepco SPC Power Corporation, Philippines
- Bukit Baiduri Energy - Indonesia
- International Coal Ventures Pvt Ltd - India
- Sical Logistics Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Kartika Selabumi Mining - Indonesia
- Chamber of Mines of South Africa
- Pendopo Energi Batubara - Indonesia
- Deloitte Consulting - India
- Ministry of Mines - Canada
- Port Waratah Coal Services - Australia
- Timah Investasi Mineral - Indoneisa
- Bharathi Cement Corporation - India
- Kumho Petrochemical, South Korea
- Gujarat Electricity Regulatory Commission - India
- Jindal Steel & Power Ltd - India
- MS Steel International - UAE
- Standard Chartered Bank - UAE
- Chettinad Cement Corporation Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Directorate Of Revenue Intelligence - India
- Sakthi Sugars Limited - India
- Straits Asia Resources Limited - Singapore
- Ambuja Cements Ltd - India
- Sindya Power Generating Company Private Ltd
- Ministry of Finance - Indonesia
- Simpson Spence & Young - Indonesia
- Ministry of Transport, Egypt
- Commonwealth Bank - Australia
- IEA Clean Coal Centre - UK
- Toyota Tsusho Corporation, Japan
- Bhatia International Limited - India
- Kaltim Prima Coal - Indonesia
- Renaissance Capital - South Africa
- GVK Power & Infra Limited - India
- Central Electricity Authority - India
- Binh Thuan Hamico - Vietnam
- Mercator Lines Limited - India
- Kapuas Tunggal Persada - Indonesia
- Coal and Oil Company - UAE
- Minerals Council of Australia
- SMC Global Power, Philippines
- Manunggal Multi Energi - Indonesia
- Xindia Steels Limited - India
- Indo Tambangraya Megah - Indonesia
- The University of Queensland
- Bahari Cakrawala Sebuku - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Indogreen Group - Indonesia
- Malabar Cements Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Iligan Light & Power Inc, Philippines
- VISA Power Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Grasim Industreis Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Madhucon Powers Ltd - India
- Indika Energy - Indonesia
- Mercuria Energy - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Mjunction Services Limited - India
- Uttam Galva Steels Limited - India
- Globalindo Alam Lestari - Indonesia
- Orica Mining Services - Indonesia
- CIMB Investment Bank - Malaysia
- Global Coal Blending Company Limited - Australia
- Intertek Mineral Services - Indonesia
- Vizag Seaport Private Limited - India
- Coalindo Energy - Indonesia
- GAC Shipping (India) Pvt Ltd
- Gujarat Mineral Development Corp Ltd - India
- Savvy Resources Ltd - HongKong
- Barasentosa Lestari - Indonesia
- Electricity Authority, New Zealand
- Indonesian Coal Mining Association
- Riau Bara Harum - Indonesia
- Interocean Group of Companies - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mintek Dendrill Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Formosa Plastics Group - Taiwan
- Thiess Contractors Indonesia
- Merrill Lynch Commodities Europe
- McConnell Dowell - Australia
- Power Finance Corporation Ltd., India
- Meenaskhi Energy Private Limited - India
- PTC India Limited - India
- Metalloyd Limited - United Kingdom
- Leighton Contractors Pty Ltd - Australia
- PowerSource Philippines DevCo
- Oldendorff Carriers - Singapore
- TNB Fuel Sdn Bhd - Malaysia
- ICICI Bank Limited - India
- Kideco Jaya Agung - Indonesia
- Wood Mackenzie - Singapore
- Africa Commodities Group - South Africa
- Videocon Industries ltd - India
- Ind-Barath Power Infra Limited - India
- Parliament of New Zealand
- Goldman Sachs - Singapore
- Parry Sugars Refinery, India
- Kobexindo Tractors - Indoneisa
- Siam City Cement PLC, Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Tata Chemicals Ltd - India
- Gujarat Sidhee Cement - India
- Maharashtra Electricity Regulatory Commission - India
- Sarangani Energy Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Dalmia Cement Bharat India
- Planning Commission, India
- Bayan Resources Tbk. - Indonesia
- Electricity Generating Authority of Thailand
- Australian Commodity Traders Exchange
- Energy Development Corp, Philippines
- Miang Besar Coal Terminal - Indonesia
- Bangladesh Power Developement Board
- AsiaOL BioFuels Corp., Philippines
- Samtan Co., Ltd - South Korea
- Jorong Barutama Greston.PT - Indonesia
- Edison Trading Spa - Italy
- Global Business Power Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Georgia Ports Authority, United States
- Independent Power Producers Association of India
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