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Friday, 16 March 18
INDONESIA COAL PRICE CAP POSES LIMITED RISKS TO PRODUCERS : FITCH
 Indonesia’s cap on the benchmark price of coal sold to the domestic electricity sector is unlikely to have a significant impact on the credit profiles of Fitch-rated mining firms, which export most of their production, says Fitch Ratings. In any case, our ratings are based on average benchmark price forecasts that are broadly in line with the cap of USD70/tonne imposed until end-2019, and so will not be affected.
The price cap, announced last week and set to apply from mid-March, is part of the government’s strategy to ensure low prices for electricity consumers as it looks to support industrial competitiveness and household disposable incomes. It froze electricity prices charged to industrial consumers earlier in the year, preventing Perusahaan Listrik Negara (PLN), the state-owned monopoly distributor, from passing on rising costs as coal prices were pushed up by an unusually cold Chinese winter. The Indonesian coal price benchmark, Harga Batubara Acuan (HBA), has exceeded USD95/tonne since January 2018, which might have necessitated an increase in government subsidies to PLN if the price cap had not been imposed.
The new regulations will mean coal miners miss out on some of the short-term upside from high prevailing coal prices, to the extent that they sell production to the domestic market. The government sets domestic market obligations for miners to ensure they meet local demand, which prevents them from simply diverting output toward the overseas market.
That said, only around one-fifth of Indonesia’s 461 million tonnes of coal production was sold in the domestic market in 2017, which suggests any loss of revenue will be limited. Indika would be the most affected among our rated coal miners, as around 15% of its volumes are sold to the domestic power sector. GEO Energy, Golden Energy Resources, ABM Investama and PT Toba Bara sell less than 10% of volumes to the domestic power sector. Domestic market obligations are likely to increase over the medium term, as the government looks to contain production and conserve coal resources for local power needs, but a sharp rise next year is unlikely.
Coal firms will therefore continue to receive the market price for the majority of their production. As a result, their financial performance might still exceed our expectations at the start of the year, when we had forecast an average Newcastle benchmark (6000 kcal) price of USD72/tonne in 2018 and USD67/tonne in 2019. The HBA on which the regulations are based broadly reflect Newcastle prices.
The new price regime does not include a floor on prices, and so provides no benefit to the mining firms in the event of a downturn. Prices will continue to fluctuate as before if the market price drops below USD70/tonne.
The price ceiling is unlikely to have any meaningful impact on PLN’s standalone credit profile. We would have expected the government to compensate PLN for losses through subsidies if high coal prices and fixed electricity prices had caused under recoveries. PLN’s IDR of ‘BBB’ is equalised with the sovereign rating due to its very strong government linkages.
Source: Fitch Ratings
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Friday, 06 April 18
TOP MINER BHP QUITS WORLD COAL ASSOCIATION OVER CLIMATE CLASH - BLOOMBERG
BHP Billiton Ltd. has severed ties with the World Coal Association over a clash of views on how to combat climate change, with the mining giant say ...
Thursday, 05 April 18
INDONESIA TO POSTPONE NEW COAL, PALM OIL SHIPPING RULES TO 2020 - REUTERS
Indonesia will delay until 2020 trade rules requiring exporters of coal and crude palm oil to use only Indonesian-flagged vessels, government offic ...
Tuesday, 03 April 18
MARKET ANALYSIS - GEORGE LAZARIDIS
In the midst of a relatively quiet week for markets, with disruptions being caused by the Christian holidays, it seems as though we find ourselves ...
Monday, 02 April 18
THE FREIGHT RATES ARE EXPECTED TO BE FLAT TO SOFT, SAYS VISTAAR
The freight market softening to continue. Thursday, March 29, 2018, the Baltic Dry Index decreased by 42 points, reaching 1080 points.
T ...
Monday, 02 April 18
THIESS TO DELIVER $150M SENAKIN CONTRACT EXTENSION
Thiess has secured a $150 million contract extension to provide mine services at Arutmin’s Senakin coal mine in South Kalimantan, Indonesia.
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- Coastal Gujarat Power Limited - India
- Indo Tambangraya Megah - Indonesia
- Altura Mining Limited, Indonesia
- Ceylon Electricity Board - Sri Lanka
- Heidelberg Cement - Germany
- Eastern Coal Council - USA
- Independent Power Producers Association of India
- Toyota Tsusho Corporation, Japan
- Coalindo Energy - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Carbofer General Trading SA - India
- Ministry of Mines - Canada
- CIMB Investment Bank - Malaysia
- Binh Thuan Hamico - Vietnam
- Manunggal Multi Energi - Indonesia
- Bharathi Cement Corporation - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ministry of Finance - Indonesia
- Lanco Infratech Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Eastern Energy - Thailand
- Wilmar Investment Holdings
- LBH Netherlands Bv - Netherlands
- Kideco Jaya Agung - Indonesia
- Sojitz Corporation - Japan
- Oldendorff Carriers - Singapore
- Petrochimia International Co. Ltd.- Taiwan
- Alfred C Toepfer International GmbH - Germany
- PetroVietnam Power Coal Import and Supply Company
- Planning Commission, India
- Banpu Public Company Limited - Thailand
- Bhoruka Overseas - Indonesia
- Antam Resourcindo - Indonesia
- Malabar Cements Ltd - India
- Makarim & Taira - Indonesia
- The Treasury - Australian Government
- Standard Chartered Bank - UAE
- Borneo Indobara - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Kartika Selabumi Mining - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Tamil Nadu electricity Board
- Goldman Sachs - Singapore
- Therma Luzon, Inc, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Kalimantan Lumbung Energi - Indonesia
- Ind-Barath Power Infra Limited - India
- Maheswari Brothers Coal Limited - India
- London Commodity Brokers - England
- Jindal Steel & Power Ltd - India
- Baramulti Group, Indonesia
- Energy Link Ltd, New Zealand
- Meralco Power Generation, Philippines
- Singapore Mercantile Exchange
- Aboitiz Power Corporation - Philippines
- Ambuja Cements Ltd - India
- Straits Asia Resources Limited - Singapore
- Larsen & Toubro Limited - India
- Indogreen Group - Indonesia
- Bangladesh Power Developement Board
- San Jose City I Power Corp, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Electricity Generating Authority of Thailand
- Madhucon Powers Ltd - India
- Economic Council, Georgia
- South Luzon Thermal Energy Corporation
- Globalindo Alam Lestari - Indonesia
- Ministry of Transport, Egypt
- Cement Manufacturers Association - India
- Edison Trading Spa - Italy
- Bhushan Steel Limited - India
- Siam City Cement PLC, Thailand
- Gujarat Mineral Development Corp Ltd - India
- Cigading International Bulk Terminal - Indonesia
- ASAPP Information Group - India
- Medco Energi Mining Internasional
- Latin American Coal - Colombia
- Rio Tinto Coal - Australia
- Thiess Contractors Indonesia
- Global Green Power PLC Corporation, Philippines
- The University of Queensland
- Bank of Tokyo Mitsubishi UFJ Ltd
- Karbindo Abesyapradhi - Indoneisa
- Agrawal Coal Company - India
- Kaltim Prima Coal - Indonesia
- Renaissance Capital - South Africa
- Sical Logistics Limited - India
- Sree Jayajothi Cements Limited - India
- Anglo American - United Kingdom
- Kapuas Tunggal Persada - Indonesia
- Attock Cement Pakistan Limited
- Energy Development Corp, Philippines
- Posco Energy - South Korea
- Sindya Power Generating Company Private Ltd
- Mercuria Energy - Indonesia
- Bhatia International Limited - India
- VISA Power Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- PowerSource Philippines DevCo
- Gujarat Electricity Regulatory Commission - India
- Bulk Trading Sa - Switzerland
- Semirara Mining and Power Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Orica Australia Pty. Ltd.
- PTC India Limited - India
- Siam City Cement - Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Kepco SPC Power Corporation, Philippines
- Sakthi Sugars Limited - India
- Billiton Holdings Pty Ltd - Australia
- Vedanta Resources Plc - India
- Holcim Trading Pte Ltd - Singapore
- Tata Chemicals Ltd - India
- Metalloyd Limited - United Kingdom
- Parliament of New Zealand
- Australian Coal Association
- Star Paper Mills Limited - India
- Kumho Petrochemical, South Korea
- Global Coal Blending Company Limited - Australia
- Salva Resources Pvt Ltd - India
- Thai Mozambique Logistica
- New Zealand Coal & Carbon
- Chamber of Mines of South Africa
- Sarangani Energy Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- European Bulk Services B.V. - Netherlands
- Grasim Industreis Ltd - India
- Romanian Commodities Exchange
- Savvy Resources Ltd - HongKong
- Marubeni Corporation - India
- Bukit Makmur.PT - Indonesia
- Simpson Spence & Young - Indonesia
- Uttam Galva Steels Limited - India
- Merrill Lynch Commodities Europe
- Commonwealth Bank - Australia
- Bahari Cakrawala Sebuku - Indonesia
- Formosa Plastics Group - Taiwan
- Semirara Mining Corp, Philippines
- Power Finance Corporation Ltd., India
- Directorate General of MIneral and Coal - Indonesia
- Timah Investasi Mineral - Indoneisa
- Global Business Power Corporation, Philippines
- Miang Besar Coal Terminal - Indonesia
- Port Waratah Coal Services - Australia
- Neyveli Lignite Corporation Ltd, - India
- Indian Energy Exchange, India
- Jaiprakash Power Ventures ltd
- Leighton Contractors Pty Ltd - Australia
- Trasteel International SA, Italy
- Central Java Power - Indonesia
- SMC Global Power, Philippines
- Price Waterhouse Coopers - Russia
- International Coal Ventures Pvt Ltd - India
- Minerals Council of Australia
- GVK Power & Infra Limited - India
- Rashtriya Ispat Nigam Limited - India
- The State Trading Corporation of India Ltd
- IHS Mccloskey Coal Group - USA
- Asmin Koalindo Tuhup - Indonesia
- Kobexindo Tractors - Indoneisa
- Aditya Birla Group - India
- Sinarmas Energy and Mining - Indonesia
- Mjunction Services Limited - India
- MS Steel International - UAE
- Iligan Light & Power Inc, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Meenaskhi Energy Private Limited - India
- Bukit Baiduri Energy - Indonesia
- Coal and Oil Company - UAE
- TeaM Sual Corporation - Philippines
- SMG Consultants - Indonesia
- Electricity Authority, New Zealand
- Wood Mackenzie - Singapore
- Indonesian Coal Mining Association
- Videocon Industries ltd - India
- Directorate Of Revenue Intelligence - India
- GAC Shipping (India) Pvt Ltd
- ICICI Bank Limited - India
- India Bulls Power Limited - India
- Deloitte Consulting - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- McConnell Dowell - Australia
- Parry Sugars Refinery, India
- Samtan Co., Ltd - South Korea
- White Energy Company Limited
- Pendopo Energi Batubara - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Dalmia Cement Bharat India
- Barasentosa Lestari - Indonesia
- SN Aboitiz Power Inc, Philippines
- CNBM International Corporation - China
- Mintek Dendrill Indonesia
- Indian Oil Corporation Limited
- Indika Energy - Indonesia
- Xindia Steels Limited - India
- Mercator Lines Limited - India
- Bayan Resources Tbk. - Indonesia
- Chettinad Cement Corporation Ltd - India
- Riau Bara Harum - Indonesia
- IEA Clean Coal Centre - UK
- Orica Mining Services - Indonesia
- Africa Commodities Group - South Africa
- Krishnapatnam Port Company Ltd. - India
- Karaikal Port Pvt Ltd - India
- GMR Energy Limited - India
- Gujarat Sidhee Cement - India
- Essar Steel Hazira Ltd - India
- Vizag Seaport Private Limited - India
- Intertek Mineral Services - Indonesia
- Petron Corporation, Philippines
- Interocean Group of Companies - India
- OPG Power Generation Pvt Ltd - India
- Georgia Ports Authority, United States
- Central Electricity Authority - India
- Australian Commodity Traders Exchange
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