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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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- Electricity Authority, New Zealand
- Dalmia Cement Bharat India
- Power Finance Corporation Ltd., India
- Meenaskhi Energy Private Limited - India
- OPG Power Generation Pvt Ltd - India
- Eastern Energy - Thailand
- Independent Power Producers Association of India
- Tata Chemicals Ltd - India
- Renaissance Capital - South Africa
- Salva Resources Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Global Business Power Corporation, Philippines
- Coal and Oil Company - UAE
- ASAPP Information Group - India
- CNBM International Corporation - China
- Therma Luzon, Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- LBH Netherlands Bv - Netherlands
- Manunggal Multi Energi - Indonesia
- Deloitte Consulting - India
- Jaiprakash Power Ventures ltd
- Ministry of Finance - Indonesia
- Electricity Generating Authority of Thailand
- Pendopo Energi Batubara - Indonesia
- Simpson Spence & Young - Indonesia
- Economic Council, Georgia
- Kapuas Tunggal Persada - Indonesia
- Banpu Public Company Limited - Thailand
- Anglo American - United Kingdom
- Siam City Cement PLC, Thailand
- Planning Commission, India
- The Treasury - Australian Government
- Kalimantan Lumbung Energi - Indonesia
- Coastal Gujarat Power Limited - India
- Malabar Cements Ltd - India
- Attock Cement Pakistan Limited
- Makarim & Taira - Indonesia
- Trasteel International SA, Italy
- Sindya Power Generating Company Private Ltd
- Bhoruka Overseas - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- SMC Global Power, Philippines
- Krishnapatnam Port Company Ltd. - India
- Cigading International Bulk Terminal - Indonesia
- Global Coal Blending Company Limited - Australia
- Semirara Mining Corp, Philippines
- Barasentosa Lestari - Indonesia
- Directorate Of Revenue Intelligence - India
- PetroVietnam Power Coal Import and Supply Company
- GVK Power & Infra Limited - India
- Heidelberg Cement - Germany
- Alfred C Toepfer International GmbH - Germany
- Orica Australia Pty. Ltd.
- Vedanta Resources Plc - India
- Sakthi Sugars Limited - India
- SMG Consultants - Indonesia
- Uttam Galva Steels Limited - India
- Star Paper Mills Limited - India
- Minerals Council of Australia
- ICICI Bank Limited - India
- Kohat Cement Company Ltd. - Pakistan
- TeaM Sual Corporation - Philippines
- CIMB Investment Bank - Malaysia
- Oldendorff Carriers - Singapore
- Formosa Plastics Group - Taiwan
- New Zealand Coal & Carbon
- The State Trading Corporation of India Ltd
- Karbindo Abesyapradhi - Indoneisa
- Kartika Selabumi Mining - Indonesia
- Kaltim Prima Coal - Indonesia
- Africa Commodities Group - South Africa
- Vijayanagar Sugar Pvt Ltd - India
- Madhucon Powers Ltd - India
- Riau Bara Harum - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Tamil Nadu electricity Board
- Iligan Light & Power Inc, Philippines
- Bukit Makmur.PT - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Mercuria Energy - Indonesia
- Energy Link Ltd, New Zealand
- Kideco Jaya Agung - Indonesia
- Aboitiz Power Corporation - Philippines
- Thai Mozambique Logistica
- Samtan Co., Ltd - South Korea
- Meralco Power Generation, Philippines
- Eastern Coal Council - USA
- Mercator Lines Limited - India
- Essar Steel Hazira Ltd - India
- Bhatia International Limited - India
- London Commodity Brokers - England
- Globalindo Alam Lestari - Indonesia
- Posco Energy - South Korea
- Chamber of Mines of South Africa
- Sical Logistics Limited - India
- IEA Clean Coal Centre - UK
- Ministry of Mines - Canada
- Altura Mining Limited, Indonesia
- Videocon Industries ltd - India
- Jindal Steel & Power Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Intertek Mineral Services - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Coalindo Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Mintek Dendrill Indonesia
- Bangladesh Power Developement Board
- Timah Investasi Mineral - Indoneisa
- Petron Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Commonwealth Bank - Australia
- SN Aboitiz Power Inc, Philippines
- Savvy Resources Ltd - HongKong
- GMR Energy Limited - India
- Merrill Lynch Commodities Europe
- Central Java Power - Indonesia
- Toyota Tsusho Corporation, Japan
- PTC India Limited - India
- Maheswari Brothers Coal Limited - India
- Indika Energy - Indonesia
- Chettinad Cement Corporation Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Pipit Mutiara Jaya. PT, Indonesia
- Rio Tinto Coal - Australia
- GAC Shipping (India) Pvt Ltd
- Orica Mining Services - Indonesia
- San Jose City I Power Corp, Philippines
- Mjunction Services Limited - India
- Goldman Sachs - Singapore
- MS Steel International - UAE
- Ind-Barath Power Infra Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kobexindo Tractors - Indoneisa
- PNOC Exploration Corporation - Philippines
- Carbofer General Trading SA - India
- Kumho Petrochemical, South Korea
- Neyveli Lignite Corporation Ltd, - India
- Indogreen Group - Indonesia
- Billiton Holdings Pty Ltd - Australia
- White Energy Company Limited
- Bharathi Cement Corporation - India
- Australian Commodity Traders Exchange
- Cement Manufacturers Association - India
- Bhushan Steel Limited - India
- Thiess Contractors Indonesia
- VISA Power Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sree Jayajothi Cements Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Maharashtra Electricity Regulatory Commission - India
- Gujarat Electricity Regulatory Commission - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Miang Besar Coal Terminal - Indonesia
- PowerSource Philippines DevCo
- Bayan Resources Tbk. - Indonesia
- Ambuja Cements Ltd - India
- Agrawal Coal Company - India
- Siam City Cement - Thailand
- Karaikal Port Pvt Ltd - India
- Energy Development Corp, Philippines
- IHS Mccloskey Coal Group - USA
- Latin American Coal - Colombia
- Marubeni Corporation - India
- Port Waratah Coal Services - Australia
- Wilmar Investment Holdings
- McConnell Dowell - Australia
- Grasim Industreis Ltd - India
- Binh Thuan Hamico - Vietnam
- Semirara Mining and Power Corporation, Philippines
- Indonesian Coal Mining Association
- Ministry of Transport, Egypt
- Standard Chartered Bank - UAE
- Indian Energy Exchange, India
- International Coal Ventures Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Indian Oil Corporation Limited
- Australian Coal Association
- South Luzon Thermal Energy Corporation
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bulk Trading Sa - Switzerland
- Bukit Baiduri Energy - Indonesia
- The University of Queensland
- Xindia Steels Limited - India
- Interocean Group of Companies - India
- Borneo Indobara - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Georgia Ports Authority, United States
- European Bulk Services B.V. - Netherlands
- Edison Trading Spa - Italy
- Medco Energi Mining Internasional
- Parry Sugars Refinery, India
- Sojitz Corporation - Japan
- GN Power Mariveles Coal Plant, Philippines
- India Bulls Power Limited - India
- Baramulti Group, Indonesia
- Romanian Commodities Exchange
- Lanco Infratech Ltd - India
- Singapore Mercantile Exchange
- Sarangani Energy Corporation, Philippines
- Antam Resourcindo - Indonesia
- Indo Tambangraya Megah - Indonesia
- Aditya Birla Group - India
- Directorate General of MIneral and Coal - Indonesia
- Gujarat Sidhee Cement - India
- Straits Asia Resources Limited - Singapore
- Metalloyd Limited - United Kingdom
- Parliament of New Zealand
- Central Electricity Authority - India
- Wood Mackenzie - Singapore
- Larsen & Toubro Limited - India
- Price Waterhouse Coopers - Russia
- Vizag Seaport Private Limited - India
- Global Green Power PLC Corporation, Philippines
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