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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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Monday, 12 March 18
DRY BULK MARKET: CAPESIZE MARKET FINDS ITS FOOTING - BALTIC BRIEFING
Capesize
Some relief for owners as the week closed out with the market finding a floor in the East. Rates on the key West Australia/China run loo ...
Monday, 12 March 18
COAL OUTPUT FROM PRIVATE MINERS UNLIKELY TO RISE IN MEDIUM TERM: ICRA
Coal output levels from private commercial miners are unlikely to go up considerably in the medium to short term, given the issues related to land ...
Saturday, 10 March 18
ENHANCED PRODUCTION BY COAL INDIA HELPS DECLINE IN COAL IMPORTS
As per the current import policy, coal is kept under Open General License (OGL) and consumers are free to import coal from the source of their choi ...
Saturday, 10 March 18
THE 'RENOS' - COURT OF APPEAL CLARIFIES CTL CALCULATION AND RIGHT OF ABANDONMENT - CLYDE & CO
KNOWLEDGE TO ELEVATE
In the matter of the “RENOS”, Mr Justice Knowles addressed a number of issues, at first instance, regarding t ...
Friday, 09 March 18
THE WORLD CANNOT KEEP IGNORING THE ASIAN COAL STORY - BENJAMIN SPORTON
There were significant changes in the global energy system in 2017, including the growth in electric vehicles, the rise of renewables and the conti ...
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Showing 1776 to 1780 news of total 6871 |
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- Bulk Trading Sa - Switzerland
- Tata Chemicals Ltd - India
- IEA Clean Coal Centre - UK
- Global Coal Blending Company Limited - Australia
- Miang Besar Coal Terminal - Indonesia
- Bhoruka Overseas - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Parliament of New Zealand
- Simpson Spence & Young - Indonesia
- Iligan Light & Power Inc, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Georgia Ports Authority, United States
- Binh Thuan Hamico - Vietnam
- LBH Netherlands Bv - Netherlands
- Timah Investasi Mineral - Indoneisa
- Thiess Contractors Indonesia
- Electricity Generating Authority of Thailand
- GN Power Mariveles Coal Plant, Philippines
- International Coal Ventures Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Star Paper Mills Limited - India
- Leighton Contractors Pty Ltd - Australia
- Essar Steel Hazira Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Orica Australia Pty. Ltd.
- The University of Queensland
- Meralco Power Generation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Directorate Of Revenue Intelligence - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ceylon Electricity Board - Sri Lanka
- Manunggal Multi Energi - Indonesia
- Africa Commodities Group - South Africa
- Deloitte Consulting - India
- Formosa Plastics Group - Taiwan
- Bukit Asam (Persero) Tbk - Indonesia
- Ministry of Mines - Canada
- Ministry of Finance - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- PTC India Limited - India
- Globalindo Alam Lestari - Indonesia
- Borneo Indobara - Indonesia
- Rio Tinto Coal - Australia
- Singapore Mercantile Exchange
- Lanco Infratech Ltd - India
- Mercuria Energy - Indonesia
- Minerals Council of Australia
- Eastern Coal Council - USA
- Mjunction Services Limited - India
- Renaissance Capital - South Africa
- London Commodity Brokers - England
- Asmin Koalindo Tuhup - Indonesia
- Indo Tambangraya Megah - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Aditya Birla Group - India
- Alfred C Toepfer International GmbH - Germany
- Eastern Energy - Thailand
- Ministry of Transport, Egypt
- Standard Chartered Bank - UAE
- Kalimantan Lumbung Energi - Indonesia
- Orica Mining Services - Indonesia
- Bukit Makmur.PT - Indonesia
- Price Waterhouse Coopers - Russia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- White Energy Company Limited
- Medco Energi Mining Internasional
- Salva Resources Pvt Ltd - India
- Vizag Seaport Private Limited - India
- McConnell Dowell - Australia
- Sarangani Energy Corporation, Philippines
- Interocean Group of Companies - India
- Petron Corporation, Philippines
- Wilmar Investment Holdings
- SN Aboitiz Power Inc, Philippines
- San Jose City I Power Corp, Philippines
- Rashtriya Ispat Nigam Limited - India
- New Zealand Coal & Carbon
- Maheswari Brothers Coal Limited - India
- Tamil Nadu electricity Board
- IHS Mccloskey Coal Group - USA
- Bangladesh Power Developement Board
- Riau Bara Harum - Indonesia
- Power Finance Corporation Ltd., India
- Australian Coal Association
- Coastal Gujarat Power Limited - India
- Parry Sugars Refinery, India
- Indogreen Group - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- GVK Power & Infra Limited - India
- Barasentosa Lestari - Indonesia
- Chamber of Mines of South Africa
- MS Steel International - UAE
- Central Electricity Authority - India
- Neyveli Lignite Corporation Ltd, - India
- Sical Logistics Limited - India
- Antam Resourcindo - Indonesia
- European Bulk Services B.V. - Netherlands
- Central Java Power - Indonesia
- Oldendorff Carriers - Singapore
- Sakthi Sugars Limited - India
- Posco Energy - South Korea
- Sojitz Corporation - Japan
- Kepco SPC Power Corporation, Philippines
- Wood Mackenzie - Singapore
- Straits Asia Resources Limited - Singapore
- Vedanta Resources Plc - India
- Mintek Dendrill Indonesia
- Marubeni Corporation - India
- OPG Power Generation Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bayan Resources Tbk. - Indonesia
- Indonesian Coal Mining Association
- Romanian Commodities Exchange
- Baramulti Group, Indonesia
- Global Green Power PLC Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Bhushan Steel Limited - India
- Gujarat Sidhee Cement - India
- GAC Shipping (India) Pvt Ltd
- Bhatia International Limited - India
- Therma Luzon, Inc, Philippines
- Merrill Lynch Commodities Europe
- Coalindo Energy - Indonesia
- Banpu Public Company Limited - Thailand
- Indian Energy Exchange, India
- Goldman Sachs - Singapore
- Energy Development Corp, Philippines
- India Bulls Power Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kideco Jaya Agung - Indonesia
- Sree Jayajothi Cements Limited - India
- The Treasury - Australian Government
- TeaM Sual Corporation - Philippines
- Toyota Tsusho Corporation, Japan
- Metalloyd Limited - United Kingdom
- Jaiprakash Power Ventures ltd
- Altura Mining Limited, Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Sindya Power Generating Company Private Ltd
- Economic Council, Georgia
- PetroVietnam Power Coal Import and Supply Company
- Australian Commodity Traders Exchange
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Coal and Oil Company - UAE
- Gujarat Electricity Regulatory Commission - India
- Intertek Mineral Services - Indonesia
- Electricity Authority, New Zealand
- ICICI Bank Limited - India
- Madhucon Powers Ltd - India
- PowerSource Philippines DevCo
- South Luzon Thermal Energy Corporation
- Semirara Mining Corp, Philippines
- Attock Cement Pakistan Limited
- Holcim Trading Pte Ltd - Singapore
- Chettinad Cement Corporation Ltd - India
- Bukit Baiduri Energy - Indonesia
- ASAPP Information Group - India
- SMG Consultants - Indonesia
- Dalmia Cement Bharat India
- CIMB Investment Bank - Malaysia
- Karaikal Port Pvt Ltd - India
- Larsen & Toubro Limited - India
- Ind-Barath Power Infra Limited - India
- Commonwealth Bank - Australia
- Cigading International Bulk Terminal - Indonesia
- CNBM International Corporation - China
- The State Trading Corporation of India Ltd
- Siam City Cement - Thailand
- Indian Oil Corporation Limited
- Cement Manufacturers Association - India
- VISA Power Limited - India
- Kaltim Prima Coal - Indonesia
- Latin American Coal - Colombia
- Indika Energy - Indonesia
- Thai Mozambique Logistica
- Port Waratah Coal Services - Australia
- Pendopo Energi Batubara - Indonesia
- Makarim & Taira - Indonesia
- Sinarmas Energy and Mining - Indonesia
- GMR Energy Limited - India
- Mercator Lines Limited - India
- Grasim Industreis Ltd - India
- Savvy Resources Ltd - HongKong
- Edison Trading Spa - Italy
- Videocon Industries ltd - India
- Xindia Steels Limited - India
- Siam City Cement PLC, Thailand
- Billiton Holdings Pty Ltd - Australia
- Agrawal Coal Company - India
- Independent Power Producers Association of India
- Kartika Selabumi Mining - Indonesia
- Bharathi Cement Corporation - India
- Jorong Barutama Greston.PT - Indonesia
- Heidelberg Cement - Germany
- Uttam Galva Steels Limited - India
- Ambuja Cements Ltd - India
- PNOC Exploration Corporation - Philippines
- Semirara Mining and Power Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Energy Link Ltd, New Zealand
- Malabar Cements Ltd - India
- Jindal Steel & Power Ltd - India
- Kumho Petrochemical, South Korea
- Directorate General of MIneral and Coal - Indonesia
- Samtan Co., Ltd - South Korea
- Aboitiz Power Corporation - Philippines
- SMC Global Power, Philippines
- Carbofer General Trading SA - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Planning Commission, India
- Trasteel International SA, Italy
- Global Business Power Corporation, Philippines
- Anglo American - United Kingdom
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