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Thursday, 14 April 16
AUSTRALIAN MINING SERVICES SECTOR SQUEEZED BY MINERS' COST CUTS - FITCH RATINGS
 Fitch Ratings says mining services companies' revenues and margins will remain under pressure as miners continue to focus on reducing costs amid lower commodity prices.
Mining companies continue to move operations in-house, renegotiate service contracts to reduce value or scope, extend payment terms and limit further exploration as they seek to minimise costs and restore profitability. This directly impacts the work contracted to mining services companies, either squeezing margins, delaying cash inflows or reducing the pipeline of work available.
The decision last week by Fortescue Metals Group Limited not to renew its contract with Downer EDI Limited, as its moves to an owner-operator model at its Christmas Creek mines, highlights this trend. Fortescue had also reduced the scope of the contract in February 2015. In addition, Rio Tinto Ltd announced last week that it was extending its supplier payment terms to 90 days from 45 days for contracts greater than USD3m, and to 60 days for contracts under this threshold. Other solutions over the past year include Atlas Iron announcing a profit sharing arrangement linked to iron ore prices with its contractors to address the impact of price volatility on its returns.
Fitch expects mining service companies with limited operations outside the resources sector to be more affected by the mining companies' actions because they have fewer opportunities to replace lost revenues. Fitch downgraded Emeco Holding Limited's Issuer Default Rating by two notches to 'B-' in September 2015, which reflected the impact of the prolonged weakness in global commodity markets on its profitability, cash flows and scale. The recent insolvencies of Civil Australia Holdings and WDS Ltd. continue to highlight the increasing challenges smaller mining service companies face in this new environment.
Larger and more diversified engineering firms, such as Downer, are likely to be less affected by the miners' actions. Their exposure to other sectors, including infrastructure and civil sectors, allows them to mitigate any loss of mining services revenue.
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Friday, 29 May 15
SOUTH KOREAN STATE-OWNED UTILITY KOREA MIDLAND POWER INVITES BIDS FOR 780K MT OF COAL FOR H2' 15
COALspot.com: South Korean state-owned utility Korea Midland Power (KOMIPO) issued an new tender to buy total 780K Metric Tons (MT) of HCV and LCV ...
Thursday, 28 May 15
TIMEBAR FOR DEMURRAGE CLAIMS - SKULD
KNOWLEDGE TO ELEVATE
English law has traditionally had a strict approach to contractually agreed time bars between commercial parties as well ...
Wednesday, 27 May 15
MARKET INSIGHT - TIMOS PAPADIMITRIOU
Earlier in the year I looked at how the market was reacting to the prolonged fall of the price of oil. Back then it was still unclear if the fallin ...
Tuesday, 26 May 15
HOW HAS THE DROP IN OIL PRICES AFFECTED OTHER COMMODITIES? - CLYDE & CO
KNOWLEDGE TO ELEVATE
The effects of the dramatic drop in the price of both Ice March Brent, the international oil marker, and its US counterpa ...
Tuesday, 26 May 15
MINING ASSOCIATION PERHAPI PUSHES FOR 35,000 MEGAWATT ELECTRICITY PROGRAM - JG
The Indonesian Mining Professionals Association, or Perhapi, has announced its support for a 35,000-megawatt national electricity program, saying i ...
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- Jindal Steel & Power Ltd - India
- Goldman Sachs - Singapore
- Jorong Barutama Greston.PT - Indonesia
- Agrawal Coal Company - India
- Samtan Co., Ltd - South Korea
- Carbofer General Trading SA - India
- Pipit Mutiara Jaya. PT, Indonesia
- Economic Council, Georgia
- VISA Power Limited - India
- SMC Global Power, Philippines
- Jaiprakash Power Ventures ltd
- Therma Luzon, Inc, Philippines
- Grasim Industreis Ltd - India
- MS Steel International - UAE
- Straits Asia Resources Limited - Singapore
- Indonesian Coal Mining Association
- Orica Mining Services - Indonesia
- Karaikal Port Pvt Ltd - India
- Aditya Birla Group - India
- Kumho Petrochemical, South Korea
- Orica Australia Pty. Ltd.
- OPG Power Generation Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- European Bulk Services B.V. - Netherlands
- Cement Manufacturers Association - India
- Rio Tinto Coal - Australia
- Energy Link Ltd, New Zealand
- Simpson Spence & Young - Indonesia
- Ambuja Cements Ltd - India
- TeaM Sual Corporation - Philippines
- SN Aboitiz Power Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- ICICI Bank Limited - India
- Maheswari Brothers Coal Limited - India
- Kaltim Prima Coal - Indonesia
- Manunggal Multi Energi - Indonesia
- Banpu Public Company Limited - Thailand
- Uttam Galva Steels Limited - India
- Antam Resourcindo - Indonesia
- PTC India Limited - India
- Independent Power Producers Association of India
- Thiess Contractors Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Gujarat Mineral Development Corp Ltd - India
- GAC Shipping (India) Pvt Ltd
- Sarangani Energy Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Sindya Power Generating Company Private Ltd
- Makarim & Taira - Indonesia
- Indogreen Group - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Kepco SPC Power Corporation, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Toyota Tsusho Corporation, Japan
- Petron Corporation, Philippines
- Parliament of New Zealand
- Sakthi Sugars Limited - India
- Bulk Trading Sa - Switzerland
- Baramulti Group, Indonesia
- Dalmia Cement Bharat India
- Global Business Power Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Renaissance Capital - South Africa
- Bukit Makmur.PT - Indonesia
- IHS Mccloskey Coal Group - USA
- The State Trading Corporation of India Ltd
- White Energy Company Limited
- Standard Chartered Bank - UAE
- Deloitte Consulting - India
- The Treasury - Australian Government
- Thai Mozambique Logistica
- Indian Oil Corporation Limited
- Bhushan Steel Limited - India
- PowerSource Philippines DevCo
- TNB Fuel Sdn Bhd - Malaysia
- Marubeni Corporation - India
- Wilmar Investment Holdings
- Sical Logistics Limited - India
- Ceylon Electricity Board - Sri Lanka
- Planning Commission, India
- Chettinad Cement Corporation Ltd - India
- Salva Resources Pvt Ltd - India
- Vedanta Resources Plc - India
- CNBM International Corporation - China
- Tamil Nadu electricity Board
- Singapore Mercantile Exchange
- Bahari Cakrawala Sebuku - Indonesia
- LBH Netherlands Bv - Netherlands
- Energy Development Corp, Philippines
- Edison Trading Spa - Italy
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Global Coal Blending Company Limited - Australia
- New Zealand Coal & Carbon
- Kalimantan Lumbung Energi - Indonesia
- Eastern Energy - Thailand
- Videocon Industries ltd - India
- Bangladesh Power Developement Board
- Interocean Group of Companies - India
- GMR Energy Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- SMG Consultants - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Indian Energy Exchange, India
- Attock Cement Pakistan Limited
- Miang Besar Coal Terminal - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Ministry of Mines - Canada
- GN Power Mariveles Coal Plant, Philippines
- Meenaskhi Energy Private Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Petrochimia International Co. Ltd.- Taiwan
- Directorate Of Revenue Intelligence - India
- Sree Jayajothi Cements Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Global Green Power PLC Corporation, Philippines
- Trasteel International SA, Italy
- PetroVietnam Power Coal Import and Supply Company
- Wood Mackenzie - Singapore
- Electricity Generating Authority of Thailand
- Parry Sugars Refinery, India
- Madhucon Powers Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Binh Thuan Hamico - Vietnam
- Indo Tambangraya Megah - Indonesia
- Eastern Coal Council - USA
- Mjunction Services Limited - India
- Riau Bara Harum - Indonesia
- Siam City Cement - Thailand
- Malabar Cements Ltd - India
- Xindia Steels Limited - India
- GVK Power & Infra Limited - India
- Tata Chemicals Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Romanian Commodities Exchange
- Barasentosa Lestari - Indonesia
- Africa Commodities Group - South Africa
- Alfred C Toepfer International GmbH - Germany
- The University of Queensland
- Rashtriya Ispat Nigam Limited - India
- Altura Mining Limited, Indonesia
- Semirara Mining and Power Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Ministry of Finance - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Bharathi Cement Corporation - India
- Power Finance Corporation Ltd., India
- Indika Energy - Indonesia
- Coastal Gujarat Power Limited - India
- Siam City Cement PLC, Thailand
- Essar Steel Hazira Ltd - India
- Bayan Resources Tbk. - Indonesia
- Mercuria Energy - Indonesia
- Georgia Ports Authority, United States
- India Bulls Power Limited - India
- Pendopo Energi Batubara - Indonesia
- Bhoruka Overseas - Indonesia
- Ind-Barath Power Infra Limited - India
- Larsen & Toubro Limited - India
- Bhatia International Limited - India
- Sinarmas Energy and Mining - Indonesia
- Semirara Mining Corp, Philippines
- McConnell Dowell - Australia
- Meralco Power Generation, Philippines
- ASAPP Information Group - India
- Lanco Infratech Ltd - India
- Mintek Dendrill Indonesia
- Oldendorff Carriers - Singapore
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- IEA Clean Coal Centre - UK
- Central Electricity Authority - India
- Savvy Resources Ltd - HongKong
- Star Paper Mills Limited - India
- Chamber of Mines of South Africa
- Central Java Power - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Commonwealth Bank - Australia
- Karbindo Abesyapradhi - Indoneisa
- Coalindo Energy - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Heidelberg Cement - Germany
- Vizag Seaport Private Limited - India
- Anglo American - United Kingdom
- Aboitiz Power Corporation - Philippines
- Leighton Contractors Pty Ltd - Australia
- Intertek Mineral Services - Indonesia
- Gujarat Sidhee Cement - India
- Australian Coal Association
- Formosa Plastics Group - Taiwan
- Mercator Lines Limited - India
- Medco Energi Mining Internasional
- South Luzon Thermal Energy Corporation
- Globalindo Alam Lestari - Indonesia
- PNOC Exploration Corporation - Philippines
- Kartika Selabumi Mining - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Minerals Council of Australia
- Merrill Lynch Commodities Europe
- Port Waratah Coal Services - Australia
- Latin American Coal - Colombia
- Krishnapatnam Port Company Ltd. - India
- International Coal Ventures Pvt Ltd - India
- Posco Energy - South Korea
- London Commodity Brokers - England
- Sojitz Corporation - Japan
- Australian Commodity Traders Exchange
- Kobexindo Tractors - Indoneisa
- Electricity Authority, New Zealand
- Neyveli Lignite Corporation Ltd, - India
- Borneo Indobara - Indonesia
- San Jose City I Power Corp, Philippines
- Ministry of Transport, Egypt
- Timah Investasi Mineral - Indoneisa
- Coal and Oil Company - UAE
- Price Waterhouse Coopers - Russia
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