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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 June 12
GLOBAL ACTION NEEDED ON ENERGY POVERTY - WORLD COAL
Eradicating energy poverty is possibly the biggest challenge facing the world today. Like climate change it can only be addressed with a concerted g ...
Friday, 22 June 12
COAL: THE BACKBONE OF MODERN ELECTRICITY - ECOAL
Coal has been described as the "forgotten fuel," perhaps because many aren't aware of the huge role it plays in powering the global econo ...
Thursday, 21 June 12
DRY BULK MARKET ON THE RISE AGAIN - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market was on the rise once again yesterday, with the Baltic Dry Index (BDI), the industry’s benchmark, rising by 18 points, or 1 ...
Wednesday, 20 June 12
BDI MOVING HIGHER, PANAMAX AND SUPRAMAX VESSELS STRONGER, CAPESIZE RATES NEAR TO HISTORICAL LOWS OF DECEMBER 2008 - MARIA BERTZELETOU, HELLENIC SHIPPING
The dry market seems to follow the dynamic of the previous week with the Baltic Dry Index showing daily increases since June 8th, but is still stand ...
Tuesday, 19 June 12
SMALLER DRY BULK CARRIERS LIFT UP MARKET, PANAMAXES SET TO FALL SAYS ANALYST - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
Another rise for the dry bulk market was evident yesterday, as the industry’s benchmark, the BDI (Baltic Dry Index) was up for a ninth straigh ...
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- Independent Power Producers Association of India
- Pipit Mutiara Jaya. PT, Indonesia
- Ceylon Electricity Board - Sri Lanka
- Carbofer General Trading SA - India
- Asmin Koalindo Tuhup - Indonesia
- Eastern Energy - Thailand
- Ministry of Transport, Egypt
- Samtan Co., Ltd - South Korea
- Intertek Mineral Services - Indonesia
- Central Java Power - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Australian Commodity Traders Exchange
- OPG Power Generation Pvt Ltd - India
- The University of Queensland
- Trasteel International SA, Italy
- Gujarat Sidhee Cement - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Vizag Seaport Private Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Pendopo Energi Batubara - Indonesia
- Ministry of Mines - Canada
- Petrochimia International Co. Ltd.- Taiwan
- Posco Energy - South Korea
- PTC India Limited - India
- Electricity Authority, New Zealand
- Neyveli Lignite Corporation Ltd, - India
- Eastern Coal Council - USA
- Siam City Cement - Thailand
- Kaltim Prima Coal - Indonesia
- Bukit Makmur.PT - Indonesia
- Goldman Sachs - Singapore
- Toyota Tsusho Corporation, Japan
- Price Waterhouse Coopers - Russia
- GN Power Mariveles Coal Plant, Philippines
- CIMB Investment Bank - Malaysia
- Leighton Contractors Pty Ltd - Australia
- Star Paper Mills Limited - India
- Xindia Steels Limited - India
- Siam City Cement PLC, Thailand
- The State Trading Corporation of India Ltd
- Ambuja Cements Ltd - India
- VISA Power Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Therma Luzon, Inc, Philippines
- Malabar Cements Ltd - India
- ASAPP Information Group - India
- Indian Oil Corporation Limited
- Port Waratah Coal Services - Australia
- Kohat Cement Company Ltd. - Pakistan
- Africa Commodities Group - South Africa
- Ministry of Finance - Indonesia
- ICICI Bank Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Electricity Generating Authority of Thailand
- Timah Investasi Mineral - Indoneisa
- Petron Corporation, Philippines
- Lanco Infratech Ltd - India
- Energy Development Corp, Philippines
- Semirara Mining and Power Corporation, Philippines
- Oldendorff Carriers - Singapore
- GMR Energy Limited - India
- Gujarat Electricity Regulatory Commission - India
- Rashtriya Ispat Nigam Limited - India
- Miang Besar Coal Terminal - Indonesia
- South Luzon Thermal Energy Corporation
- MS Steel International - UAE
- PNOC Exploration Corporation - Philippines
- Energy Link Ltd, New Zealand
- LBH Netherlands Bv - Netherlands
- Riau Bara Harum - Indonesia
- Mjunction Services Limited - India
- GAC Shipping (India) Pvt Ltd
- Indian Energy Exchange, India
- Indonesian Coal Mining Association
- Parry Sugars Refinery, India
- Jaiprakash Power Ventures ltd
- Grasim Industreis Ltd - India
- Mercuria Energy - Indonesia
- Barasentosa Lestari - Indonesia
- Renaissance Capital - South Africa
- Indogreen Group - Indonesia
- Thiess Contractors Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Kapuas Tunggal Persada - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Rio Tinto Coal - Australia
- Standard Chartered Bank - UAE
- European Bulk Services B.V. - Netherlands
- Bharathi Cement Corporation - India
- Mercator Lines Limited - India
- SMC Global Power, Philippines
- Larsen & Toubro Limited - India
- PowerSource Philippines DevCo
- Binh Thuan Hamico - Vietnam
- Karaikal Port Pvt Ltd - India
- International Coal Ventures Pvt Ltd - India
- Commonwealth Bank - Australia
- Marubeni Corporation - India
- Global Green Power PLC Corporation, Philippines
- Thai Mozambique Logistica
- Sakthi Sugars Limited - India
- Billiton Holdings Pty Ltd - Australia
- Minerals Council of Australia
- Georgia Ports Authority, United States
- Sical Logistics Limited - India
- Wilmar Investment Holdings
- Merrill Lynch Commodities Europe
- Offshore Bulk Terminal Pte Ltd, Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- New Zealand Coal & Carbon
- TeaM Sual Corporation - Philippines
- Salva Resources Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Iligan Light & Power Inc, Philippines
- Baramulti Group, Indonesia
- Alfred C Toepfer International GmbH - Germany
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Coalindo Energy - Indonesia
- Metalloyd Limited - United Kingdom
- IHS Mccloskey Coal Group - USA
- Chettinad Cement Corporation Ltd - India
- Interocean Group of Companies - India
- Kartika Selabumi Mining - Indonesia
- Altura Mining Limited, Indonesia
- Cigading International Bulk Terminal - Indonesia
- Medco Energi Mining Internasional
- Manunggal Multi Energi - Indonesia
- Meenaskhi Energy Private Limited - India
- Parliament of New Zealand
- Wood Mackenzie - Singapore
- Sojitz Corporation - Japan
- The Treasury - Australian Government
- AsiaOL BioFuels Corp., Philippines
- Dalmia Cement Bharat India
- Deloitte Consulting - India
- Orica Australia Pty. Ltd.
- Formosa Plastics Group - Taiwan
- GVK Power & Infra Limited - India
- Sinarmas Energy and Mining - Indonesia
- Bhoruka Overseas - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Sindya Power Generating Company Private Ltd
- Heidelberg Cement - Germany
- Planning Commission, India
- Power Finance Corporation Ltd., India
- Anglo American - United Kingdom
- Straits Asia Resources Limited - Singapore
- Bangladesh Power Developement Board
- Coal and Oil Company - UAE
- Uttam Galva Steels Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Kumho Petrochemical, South Korea
- Australian Coal Association
- Coastal Gujarat Power Limited - India
- Kepco SPC Power Corporation, Philippines
- Cement Manufacturers Association - India
- Essar Steel Hazira Ltd - India
- Economic Council, Georgia
- IEA Clean Coal Centre - UK
- White Energy Company Limited
- Bayan Resources Tbk. - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Tata Chemicals Ltd - India
- Kobexindo Tractors - Indoneisa
- Holcim Trading Pte Ltd - Singapore
- Savvy Resources Ltd - HongKong
- Bhatia International Limited - India
- Kalimantan Lumbung Energi - Indonesia
- McConnell Dowell - Australia
- Vedanta Resources Plc - India
- Latin American Coal - Colombia
- Bulk Trading Sa - Switzerland
- Meralco Power Generation, Philippines
- Chamber of Mines of South Africa
- Tamil Nadu electricity Board
- SN Aboitiz Power Inc, Philippines
- SMG Consultants - Indonesia
- Singapore Mercantile Exchange
- Central Electricity Authority - India
- Orica Mining Services - Indonesia
- Globalindo Alam Lestari - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Simpson Spence & Young - Indonesia
- Bhushan Steel Limited - India
- Edison Trading Spa - Italy
- Bahari Cakrawala Sebuku - Indonesia
- Attock Cement Pakistan Limited
- Maheswari Brothers Coal Limited - India
- Aboitiz Power Corporation - Philippines
- India Bulls Power Limited - India
- Ind-Barath Power Infra Limited - India
- Jindal Steel & Power Ltd - India
- Borneo Indobara - Indonesia
- Videocon Industries ltd - India
- Indika Energy - Indonesia
- Semirara Mining Corp, Philippines
- Directorate Of Revenue Intelligence - India
- London Commodity Brokers - England
- Agrawal Coal Company - India
- Karbindo Abesyapradhi - Indoneisa
- Romanian Commodities Exchange
- Madhucon Powers Ltd - India
- Makarim & Taira - Indonesia
- Antam Resourcindo - Indonesia
- Indo Tambangraya Megah - Indonesia
- Sarangani Energy Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- San Jose City I Power Corp, Philippines
- Bukit Baiduri Energy - Indonesia
- CNBM International Corporation - China
- Global Coal Blending Company Limited - Australia
- Mintek Dendrill Indonesia
- Global Business Power Corporation, Philippines
- Aditya Birla Group - India
- Sree Jayajothi Cements Limited - India
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