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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, 08 June 12
MINISTER DENIES COAL EXPORT TAX PLAN, ENDORSES RESTRICTIONS - THE JAKARTA POST
The Jakarta post, one of the leading english news paper in Indonesia reported that, Energy and Mineral Resources Minister Jero Wacik has denied that ...
Thursday, 07 June 12
DRY BULK MARKET FALLS FOR 10 STRAIGHT SESSION ON OVERSUPPLY PROBLEMS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
A resurgence of oversupply, coupled with national holidays in various parts of the world has contributed to yet another fall of the dry bulk market ...
Thursday, 07 June 12
COAL EXPORT TAX NOT RATIONAL: MINISTER - THE JAKARTA POST
Trade Minister Gita Wirjawan has criticized as irrational the idea to restrict coal exports by imposing an export tax, According to The Jakarta post ...
Thursday, 07 June 12
BY 2022 PLN IS EXPECTED TO BURN AROUND 125 MILLION TONS OF COAL
COALspot.com - Indonesia's state owned electricity company's (PLN) coal consumption is expected to reach 125.7 million tons by 2012.
Nur Pamudj ...
Wednesday, 06 June 12
INDONESIAN GOVERNMENT'S DECLARED COAL PRICES CONTINUING ITS DECLINE
COALspot.com - Indonesian HBA fell to lowest level since January 2011 in June 2012. The monthly coal reference price for coal sales this month ...
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- Antam Resourcindo - Indonesia
- Larsen & Toubro Limited - India
- Electricity Authority, New Zealand
- Mercator Lines Limited - India
- Siam City Cement - Thailand
- Binh Thuan Hamico - Vietnam
- TeaM Sual Corporation - Philippines
- Rio Tinto Coal - Australia
- Savvy Resources Ltd - HongKong
- Global Coal Blending Company Limited - Australia
- Rashtriya Ispat Nigam Limited - India
- Directorate Of Revenue Intelligence - India
- Price Waterhouse Coopers - Russia
- Vedanta Resources Plc - India
- Xindia Steels Limited - India
- Ind-Barath Power Infra Limited - India
- Edison Trading Spa - Italy
- Billiton Holdings Pty Ltd - Australia
- Salva Resources Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- PetroVietnam Power Coal Import and Supply Company
- Gujarat Electricity Regulatory Commission - India
- Medco Energi Mining Internasional
- Bukit Asam (Persero) Tbk - Indonesia
- Oldendorff Carriers - Singapore
- Orica Mining Services - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Pendopo Energi Batubara - Indonesia
- Commonwealth Bank - Australia
- Essar Steel Hazira Ltd - India
- Indika Energy - Indonesia
- Renaissance Capital - South Africa
- IEA Clean Coal Centre - UK
- Metalloyd Limited - United Kingdom
- Lanco Infratech Ltd - India
- Latin American Coal - Colombia
- London Commodity Brokers - England
- Grasim Industreis Ltd - India
- Australian Commodity Traders Exchange
- Carbofer General Trading SA - India
- Georgia Ports Authority, United States
- Madhucon Powers Ltd - India
- Toyota Tsusho Corporation, Japan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bangladesh Power Developement Board
- Eastern Energy - Thailand
- Mintek Dendrill Indonesia
- IHS Mccloskey Coal Group - USA
- Neyveli Lignite Corporation Ltd, - India
- Timah Investasi Mineral - Indoneisa
- Sarangani Energy Corporation, Philippines
- Semirara Mining Corp, Philippines
- Romanian Commodities Exchange
- Samtan Co., Ltd - South Korea
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- McConnell Dowell - Australia
- Indian Energy Exchange, India
- Coal and Oil Company - UAE
- New Zealand Coal & Carbon
- Marubeni Corporation - India
- OPG Power Generation Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Cigading International Bulk Terminal - Indonesia
- GVK Power & Infra Limited - India
- Jindal Steel & Power Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Formosa Plastics Group - Taiwan
- Bhushan Steel Limited - India
- Chamber of Mines of South Africa
- Bhatia International Limited - India
- SN Aboitiz Power Inc, Philippines
- The University of Queensland
- Gujarat Sidhee Cement - India
- Wood Mackenzie - Singapore
- Kartika Selabumi Mining - Indonesia
- Wilmar Investment Holdings
- Energy Link Ltd, New Zealand
- Miang Besar Coal Terminal - Indonesia
- Deloitte Consulting - India
- Bayan Resources Tbk. - Indonesia
- Indonesian Coal Mining Association
- Singapore Mercantile Exchange
- India Bulls Power Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Bulk Trading Sa - Switzerland
- Alfred C Toepfer International GmbH - Germany
- Baramulti Group, Indonesia
- Jaiprakash Power Ventures ltd
- Karaikal Port Pvt Ltd - India
- Bharathi Cement Corporation - India
- Heidelberg Cement - Germany
- Pipit Mutiara Jaya. PT, Indonesia
- Bhoruka Overseas - Indonesia
- Altura Mining Limited, Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Port Waratah Coal Services - Australia
- Posco Energy - South Korea
- Uttam Galva Steels Limited - India
- Orica Australia Pty. Ltd.
- Meralco Power Generation, Philippines
- Star Paper Mills Limited - India
- Kideco Jaya Agung - Indonesia
- Kaltim Prima Coal - Indonesia
- Minerals Council of Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- Aboitiz Power Corporation - Philippines
- Standard Chartered Bank - UAE
- CNBM International Corporation - China
- Global Business Power Corporation, Philippines
- Australian Coal Association
- CIMB Investment Bank - Malaysia
- Tata Chemicals Ltd - India
- LBH Netherlands Bv - Netherlands
- Offshore Bulk Terminal Pte Ltd, Singapore
- Indian Oil Corporation Limited
- PowerSource Philippines DevCo
- GAC Shipping (India) Pvt Ltd
- Videocon Industries ltd - India
- Thiess Contractors Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Ministry of Finance - Indonesia
- MS Steel International - UAE
- ICICI Bank Limited - India
- PTC India Limited - India
- Energy Development Corp, Philippines
- Coastal Gujarat Power Limited - India
- Kapuas Tunggal Persada - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Parliament of New Zealand
- European Bulk Services B.V. - Netherlands
- Central Java Power - Indonesia
- Dalmia Cement Bharat India
- Kumho Petrochemical, South Korea
- Tamil Nadu electricity Board
- Bahari Cakrawala Sebuku - Indonesia
- International Coal Ventures Pvt Ltd - India
- Goldman Sachs - Singapore
- Kepco SPC Power Corporation, Philippines
- Eastern Coal Council - USA
- GMR Energy Limited - India
- Riau Bara Harum - Indonesia
- San Jose City I Power Corp, Philippines
- Electricity Generating Authority of Thailand
- Maheswari Brothers Coal Limited - India
- Aditya Birla Group - India
- Siam City Cement PLC, Thailand
- Sinarmas Energy and Mining - Indonesia
- Thai Mozambique Logistica
- Simpson Spence & Young - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Indogreen Group - Indonesia
- SMC Global Power, Philippines
- Bukit Baiduri Energy - Indonesia
- Intertek Mineral Services - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Attock Cement Pakistan Limited
- Chettinad Cement Corporation Ltd - India
- Coalindo Energy - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Independent Power Producers Association of India
- Indo Tambangraya Megah - Indonesia
- ASAPP Information Group - India
- Malabar Cements Ltd - India
- Planning Commission, India
- Africa Commodities Group - South Africa
- Sojitz Corporation - Japan
- Banpu Public Company Limited - Thailand
- SMG Consultants - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Parry Sugars Refinery, India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Mercuria Energy - Indonesia
- Vizag Seaport Private Limited - India
- Manunggal Multi Energi - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Sakthi Sugars Limited - India
- South Luzon Thermal Energy Corporation
- Borneo Indobara - Indonesia
- Trasteel International SA, Italy
- Meenaskhi Energy Private Limited - India
- The Treasury - Australian Government
- Ambuja Cements Ltd - India
- White Energy Company Limited
- Agrawal Coal Company - India
- Cement Manufacturers Association - India
- GN Power Mariveles Coal Plant, Philippines
- Sree Jayajothi Cements Limited - India
- Interocean Group of Companies - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- PNOC Exploration Corporation - Philippines
- Ministry of Transport, Egypt
- Economic Council, Georgia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Globalindo Alam Lestari - Indonesia
- Iligan Light & Power Inc, Philippines
- Mjunction Services Limited - India
- VISA Power Limited - India
- AsiaOL BioFuels Corp., Philippines
- The State Trading Corporation of India Ltd
- Power Finance Corporation Ltd., India
- Central Electricity Authority - India
- Sical Logistics Limited - India
- Barasentosa Lestari - Indonesia
- Merrill Lynch Commodities Europe
- Therma Luzon, Inc, Philippines
- Petron Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Makarim & Taira - Indonesia
- Ministry of Mines - Canada
- Sindya Power Generating Company Private Ltd
- Anglo American - United Kingdom
- Bukit Makmur.PT - Indonesia
- Leighton Contractors Pty Ltd - Australia
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