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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, 01 June 12
ADARO BUYS MAJORITY STAKE IN AFFILIATED BHAKTI ENERGI - INSIDER STORIES
Insider Stories reported that, PT Adaro Energy Tbk entered into an option to provide a convertible loan of up to US$500 million for a period of 3 ye ...
Thursday, 31 May 12
DRY BULK MARKET UNABLE TO FIND NEW SUPPORT TO REACH HIGHER LEVELS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market has been unable to find new support and recover to higher levels during these past few days. As a result, the Baltic Dry Index ( ...
Wednesday, 30 May 12
ORPHEUS RAISES $2.24M TO ADVANCE INDONESIAN COAL PRODUCTION ASSETS
• $2.24 million raised from a placement to new and existing institutional and sophisticated investors from Australia and overseas
• Funds ...
Wednesday, 30 May 12
ARPENI SECURES TRANSSHIPMENT CONTRACT FROM BARUNA DIRGA
Insider Stories reported that, shipping operator PT Arpeni Pratama Ocean Line Tbk (APOL) has secured a 1-year coal transhipment contract of 4 millio ...
Monday, 28 May 12
COAL EXPORTS ARE JUMPING HIGHER, BUT PRICES ARE FALLING LOWER
COALspot.com: Indonesia, the world largest coal exporter, shipped 31.86* million tons of coal in April 2012, compared to 30.64* million tons i ...
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- Heidelberg Cement - Germany
- The Treasury - Australian Government
- Sojitz Corporation - Japan
- Siam City Cement - Thailand
- Edison Trading Spa - Italy
- Rio Tinto Coal - Australia
- Rashtriya Ispat Nigam Limited - India
- Australian Coal Association
- Toyota Tsusho Corporation, Japan
- Bhoruka Overseas - Indonesia
- Independent Power Producers Association of India
- Attock Cement Pakistan Limited
- Agrawal Coal Company - India
- Georgia Ports Authority, United States
- AsiaOL BioFuels Corp., Philippines
- Kapuas Tunggal Persada - Indonesia
- Bukit Makmur.PT - Indonesia
- Tamil Nadu electricity Board
- Metalloyd Limited - United Kingdom
- Mercator Lines Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Coal and Oil Company - UAE
- Ind-Barath Power Infra Limited - India
- Eastern Energy - Thailand
- Essar Steel Hazira Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Lanco Infratech Ltd - India
- London Commodity Brokers - England
- GMR Energy Limited - India
- Bayan Resources Tbk. - Indonesia
- Merrill Lynch Commodities Europe
- Africa Commodities Group - South Africa
- Interocean Group of Companies - India
- Bukit Asam (Persero) Tbk - Indonesia
- Posco Energy - South Korea
- Savvy Resources Ltd - HongKong
- Miang Besar Coal Terminal - Indonesia
- Videocon Industries ltd - India
- Sinarmas Energy and Mining - Indonesia
- Sakthi Sugars Limited - India
- Coalindo Energy - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Parry Sugars Refinery, India
- Energy Link Ltd, New Zealand
- Billiton Holdings Pty Ltd - Australia
- Indo Tambangraya Megah - Indonesia
- Mintek Dendrill Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Global Coal Blending Company Limited - Australia
- Sical Logistics Limited - India
- Central Electricity Authority - India
- Singapore Mercantile Exchange
- Iligan Light & Power Inc, Philippines
- The University of Queensland
- Wilmar Investment Holdings
- Goldman Sachs - Singapore
- Gujarat Electricity Regulatory Commission - India
- SN Aboitiz Power Inc, Philippines
- TeaM Sual Corporation - Philippines
- Orica Mining Services - Indonesia
- Manunggal Multi Energi - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Trasteel International SA, Italy
- Larsen & Toubro Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Ministry of Finance - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- Kobexindo Tractors - Indoneisa
- Karaikal Port Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Price Waterhouse Coopers - Russia
- Romanian Commodities Exchange
- Sree Jayajothi Cements Limited - India
- Borneo Indobara - Indonesia
- Madhucon Powers Ltd - India
- Gujarat Sidhee Cement - India
- Ministry of Transport, Egypt
- Latin American Coal - Colombia
- Meralco Power Generation, Philippines
- Bukit Baiduri Energy - Indonesia
- Indogreen Group - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- PNOC Exploration Corporation - Philippines
- PetroVietnam Power Coal Import and Supply Company
- Antam Resourcindo - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Jaiprakash Power Ventures ltd
- Pipit Mutiara Jaya. PT, Indonesia
- Petron Corporation, Philippines
- Vedanta Resources Plc - India
- Bulk Trading Sa - Switzerland
- Kartika Selabumi Mining - Indonesia
- IEA Clean Coal Centre - UK
- Planning Commission, India
- Baramulti Group, Indonesia
- Global Business Power Corporation, Philippines
- Electricity Authority, New Zealand
- Kalimantan Lumbung Energi - Indonesia
- San Jose City I Power Corp, Philippines
- VISA Power Limited - India
- Meenaskhi Energy Private Limited - India
- Aboitiz Power Corporation - Philippines
- Maheswari Brothers Coal Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Bahari Cakrawala Sebuku - Indonesia
- Mercuria Energy - Indonesia
- Power Finance Corporation Ltd., India
- Eastern Coal Council - USA
- SMG Consultants - Indonesia
- Intertek Mineral Services - Indonesia
- Commonwealth Bank - Australia
- Barasentosa Lestari - Indonesia
- Central Java Power - Indonesia
- White Energy Company Limited
- Salva Resources Pvt Ltd - India
- Jindal Steel & Power Ltd - India
- Cement Manufacturers Association - India
- SMC Global Power, Philippines
- Parliament of New Zealand
- ICICI Bank Limited - India
- Timah Investasi Mineral - Indoneisa
- Australian Commodity Traders Exchange
- Petrochimia International Co. Ltd.- Taiwan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Samtan Co., Ltd - South Korea
- Therma Luzon, Inc, Philippines
- Makarim & Taira - Indonesia
- Semirara Mining Corp, Philippines
- Malabar Cements Ltd - India
- IHS Mccloskey Coal Group - USA
- Standard Chartered Bank - UAE
- Chettinad Cement Corporation Ltd - India
- Xindia Steels Limited - India
- Tata Chemicals Ltd - India
- Uttam Galva Steels Limited - India
- Energy Development Corp, Philippines
- Thai Mozambique Logistica
- GVK Power & Infra Limited - India
- Electricity Generating Authority of Thailand
- Anglo American - United Kingdom
- Bangladesh Power Developement Board
- Alfred C Toepfer International GmbH - Germany
- India Bulls Power Limited - India
- Deloitte Consulting - India
- The State Trading Corporation of India Ltd
- Kaltim Prima Coal - Indonesia
- Indian Oil Corporation Limited
- Kideco Jaya Agung - Indonesia
- Mjunction Services Limited - India
- Thiess Contractors Indonesia
- Pendopo Energi Batubara - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Orica Australia Pty. Ltd.
- Ceylon Electricity Board - Sri Lanka
- ASAPP Information Group - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sarangani Energy Corporation, Philippines
- Indian Energy Exchange, India
- Altura Mining Limited, Indonesia
- Bhushan Steel Limited - India
- GAC Shipping (India) Pvt Ltd
- Jorong Barutama Greston.PT - Indonesia
- Sindya Power Generating Company Private Ltd
- South Luzon Thermal Energy Corporation
- Banpu Public Company Limited - Thailand
- Indika Energy - Indonesia
- Oldendorff Carriers - Singapore
- Dalmia Cement Bharat India
- Gujarat Mineral Development Corp Ltd - India
- Simpson Spence & Young - Indonesia
- Bhatia International Limited - India
- Formosa Plastics Group - Taiwan
- OPG Power Generation Pvt Ltd - India
- Renaissance Capital - South Africa
- Minerals Council of Australia
- Vizag Seaport Private Limited - India
- Coastal Gujarat Power Limited - India
- PTC India Limited - India
- Aditya Birla Group - India
- Binh Thuan Hamico - Vietnam
- Kumho Petrochemical, South Korea
- Economic Council, Georgia
- CIMB Investment Bank - Malaysia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Grasim Industreis Ltd - India
- New Zealand Coal & Carbon
- Ambuja Cements Ltd - India
- Indonesian Coal Mining Association
- Port Waratah Coal Services - Australia
- Directorate Of Revenue Intelligence - India
- Siam City Cement PLC, Thailand
- McConnell Dowell - Australia
- Chamber of Mines of South Africa
- International Coal Ventures Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Marubeni Corporation - India
- GN Power Mariveles Coal Plant, Philippines
- CNBM International Corporation - China
- Cigading International Bulk Terminal - Indonesia
- PowerSource Philippines DevCo
- LBH Netherlands Bv - Netherlands
- Carbofer General Trading SA - India
- Star Paper Mills Limited - India
- Global Green Power PLC Corporation, Philippines
- Wood Mackenzie - Singapore
- European Bulk Services B.V. - Netherlands
- Straits Asia Resources Limited - Singapore
- Medco Energi Mining Internasional
- Semirara Mining and Power Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Ministry of Mines - Canada
- Kepco SPC Power Corporation, Philippines
- MS Steel International - UAE
- Bharathi Cement Corporation - India
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