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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, 10 October 14
U.S. PRODUCED 83.2 MMST OF COAL IN SEPTEMBER, SAYS EIA
COALspot.com – United States the world's one of largest coal producers, produced approximately 18.6 million short tons (mmst) of coal in ...
Thursday, 09 October 14
CAPESIZE MARKET HAS CONTINUED TO SHOW WEAKNESS - FEARNLEYS
Handy
We mentioned last week that after several weeks of rate increase for the Supras, the bigger Panamaxes started to snap up better paying Supr ...
Thursday, 09 October 14
SHIPPING REMAINS CHALLENGED AS GLOBAL GROWTH DISAPPOINTS - BIMCO
The global shipping industry finds no grace from much stronger economic activity going forward, as the global recovery remains fragile and uneven. ...
Wednesday, 08 October 14
CAPES RATE FOR THE W. AUSTRALIA TO CHINA VOYAGE MOVED TO BELOW $8/MT - INTERMODAL
The Dry Bulk market remained under pressure last week, with rates for Capes remaining on the red while those for Panamaxes managed to outperform th ...
Wednesday, 08 October 14
OIL COULD FALL TO USD80 BEFORE SHALE SUPPLY RESPONSE - FITCH
COALspot.com: Brent oil could fall as low as USD80 a barrel before triggering a self-correcting supply response with shale-oil drillers cutting inv ...
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- Port Waratah Coal Services - Australia
- Siam City Cement PLC, Thailand
- Tata Chemicals Ltd - India
- Lanco Infratech Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Thai Mozambique Logistica
- Jindal Steel & Power Ltd - India
- European Bulk Services B.V. - Netherlands
- Vijayanagar Sugar Pvt Ltd - India
- Africa Commodities Group - South Africa
- Binh Thuan Hamico - Vietnam
- Bhushan Steel Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Australian Commodity Traders Exchange
- Ministry of Mines - Canada
- Central Java Power - Indonesia
- Bayan Resources Tbk. - Indonesia
- Bukit Baiduri Energy - Indonesia
- Kumho Petrochemical, South Korea
- The State Trading Corporation of India Ltd
- Meenaskhi Energy Private Limited - India
- Parliament of New Zealand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Timah Investasi Mineral - Indoneisa
- Jorong Barutama Greston.PT - Indonesia
- Deloitte Consulting - India
- Energy Development Corp, Philippines
- Samtan Co., Ltd - South Korea
- CNBM International Corporation - China
- Merrill Lynch Commodities Europe
- Electricity Generating Authority of Thailand
- Meralco Power Generation, Philippines
- Bharathi Cement Corporation - India
- Bahari Cakrawala Sebuku - Indonesia
- San Jose City I Power Corp, Philippines
- Cement Manufacturers Association - India
- Malabar Cements Ltd - India
- Petron Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Riau Bara Harum - Indonesia
- Sakthi Sugars Limited - India
- Vedanta Resources Plc - India
- Orica Mining Services - Indonesia
- Kepco SPC Power Corporation, Philippines
- Singapore Mercantile Exchange
- Xindia Steels Limited - India
- SMC Global Power, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- SN Aboitiz Power Inc, Philippines
- McConnell Dowell - Australia
- Kartika Selabumi Mining - Indonesia
- Global Business Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Ceylon Electricity Board - Sri Lanka
- Krishnapatnam Port Company Ltd. - India
- Kohat Cement Company Ltd. - Pakistan
- Sinarmas Energy and Mining - Indonesia
- Maheswari Brothers Coal Limited - India
- Indonesian Coal Mining Association
- Coastal Gujarat Power Limited - India
- The Treasury - Australian Government
- Metalloyd Limited - United Kingdom
- Aditya Birla Group - India
- Alfred C Toepfer International GmbH - Germany
- Carbofer General Trading SA - India
- Miang Besar Coal Terminal - Indonesia
- Mercator Lines Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bangladesh Power Developement Board
- OPG Power Generation Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Ministry of Finance - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Power Finance Corporation Ltd., India
- GAC Shipping (India) Pvt Ltd
- Chettinad Cement Corporation Ltd - India
- Larsen & Toubro Limited - India
- GMR Energy Limited - India
- Coal and Oil Company - UAE
- International Coal Ventures Pvt Ltd - India
- Mjunction Services Limited - India
- Baramulti Group, Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Toyota Tsusho Corporation, Japan
- Borneo Indobara - Indonesia
- Commonwealth Bank - Australia
- Gujarat Sidhee Cement - India
- Gujarat Mineral Development Corp Ltd - India
- Indika Energy - Indonesia
- Global Green Power PLC Corporation, Philippines
- MS Steel International - UAE
- Eastern Energy - Thailand
- Indian Energy Exchange, India
- Wilmar Investment Holdings
- Intertek Mineral Services - Indonesia
- London Commodity Brokers - England
- Georgia Ports Authority, United States
- PNOC Exploration Corporation - Philippines
- Goldman Sachs - Singapore
- Banpu Public Company Limited - Thailand
- Thiess Contractors Indonesia
- White Energy Company Limited
- Interocean Group of Companies - India
- Minerals Council of Australia
- Salva Resources Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- SMG Consultants - Indonesia
- Medco Energi Mining Internasional
- Sarangani Energy Corporation, Philippines
- Australian Coal Association
- Aboitiz Power Corporation - Philippines
- Ind-Barath Power Infra Limited - India
- Energy Link Ltd, New Zealand
- Billiton Holdings Pty Ltd - Australia
- Sree Jayajothi Cements Limited - India
- CIMB Investment Bank - Malaysia
- Posco Energy - South Korea
- Ministry of Transport, Egypt
- Orica Australia Pty. Ltd.
- Semirara Mining and Power Corporation, Philippines
- Essar Steel Hazira Ltd - India
- IHS Mccloskey Coal Group - USA
- Savvy Resources Ltd - HongKong
- Grasim Industreis Ltd - India
- LBH Netherlands Bv - Netherlands
- Dalmia Cement Bharat India
- Therma Luzon, Inc, Philippines
- AsiaOL BioFuels Corp., Philippines
- Agrawal Coal Company - India
- Siam City Cement - Thailand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Latin American Coal - Colombia
- Central Electricity Authority - India
- Directorate General of MIneral and Coal - Indonesia
- PowerSource Philippines DevCo
- Globalindo Alam Lestari - Indonesia
- Global Coal Blending Company Limited - Australia
- Directorate Of Revenue Intelligence - India
- Rashtriya Ispat Nigam Limited - India
- Rio Tinto Coal - Australia
- Maharashtra Electricity Regulatory Commission - India
- Chamber of Mines of South Africa
- VISA Power Limited - India
- Parry Sugars Refinery, India
- Anglo American - United Kingdom
- Edison Trading Spa - Italy
- Bhatia International Limited - India
- Vizag Seaport Private Limited - India
- Sojitz Corporation - Japan
- Kideco Jaya Agung - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- Uttam Galva Steels Limited - India
- Star Paper Mills Limited - India
- PTC India Limited - India
- Pendopo Energi Batubara - Indonesia
- ASAPP Information Group - India
- South Luzon Thermal Energy Corporation
- Ambuja Cements Ltd - India
- Tamil Nadu electricity Board
- Holcim Trading Pte Ltd - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Wood Mackenzie - Singapore
- Standard Chartered Bank - UAE
- Renaissance Capital - South Africa
- Attock Cement Pakistan Limited
- Sical Logistics Limited - India
- Price Waterhouse Coopers - Russia
- Gujarat Electricity Regulatory Commission - India
- Marubeni Corporation - India
- The University of Queensland
- Mintek Dendrill Indonesia
- Formosa Plastics Group - Taiwan
- Mercuria Energy - Indonesia
- Bukit Makmur.PT - Indonesia
- Electricity Authority, New Zealand
- Bhoruka Overseas - Indonesia
- Economic Council, Georgia
- Kaltim Prima Coal - Indonesia
- Eastern Coal Council - USA
- Videocon Industries ltd - India
- Leighton Contractors Pty Ltd - Australia
- Altura Mining Limited, Indonesia
- GVK Power & Infra Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sindya Power Generating Company Private Ltd
- Asmin Koalindo Tuhup - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Semirara Mining Corp, Philippines
- Barasentosa Lestari - Indonesia
- Antam Resourcindo - Indonesia
- Iligan Light & Power Inc, Philippines
- Heidelberg Cement - Germany
- Trasteel International SA, Italy
- Romanian Commodities Exchange
- India Bulls Power Limited - India
- Planning Commission, India
- Pipit Mutiara Jaya. PT, Indonesia
- Karaikal Port Pvt Ltd - India
- ICICI Bank Limited - India
- Oldendorff Carriers - Singapore
- Simpson Spence & Young - Indonesia
- IEA Clean Coal Centre - UK
- Bukit Asam (Persero) Tbk - Indonesia
- Kobexindo Tractors - Indoneisa
- Makarim & Taira - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Indian Oil Corporation Limited
- Coalindo Energy - Indonesia
- Indogreen Group - Indonesia
- Independent Power Producers Association of India
- TeaM Sual Corporation - Philippines
- New Zealand Coal & Carbon
- Karbindo Abesyapradhi - Indoneisa
- Jaiprakash Power Ventures ltd
- Madhucon Powers Ltd - India
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