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Friday, 23 October 09
CIL PRICE HIKE LIKELY TO PUSH POWER RATES UP
 Business-Standard reported that, May squeeze cement companies’ margins, but the steel sector is unlikely to be affected much.
The upward revision of coal prices by government-owned Coal India Limited (CIL), which took place last week, is likely to have a divergent impact on the fossil fuel’s primary consumers such as cement, power and steel sectors. While cement makers’ margins will be under pressure, power producers will make a move to pass on the increased burden to consumers.The three sectors account for about 72 per cent of the total coal demand in the country.
On October 16, CIL increased the price of coal from Eastern Coalfields (ECL) and Bharat Coking Coal (BCCL) by 15 per cent, while all other subsidiary companies were permitted a hike of 10 per cent. This price increase is expected to swell CIL’s net profit by approximately Rs 2,000 crore this financial year and by about Rs 4,100 crore in the following year.
However, for the consuming sectors, especially the cement industry, the increase in coal prices will squeeze profit margins at a time when prices are already low due to rapid capacity augmentation.
Despite the fact that coal accounted for around two-thirds of the power and fuel cost, and 20 per cent of the total cost for cement manufacturers, firms would be unable to pass on the hike in coal prices to end users due to the current business environment, a report by Crisil Research suggested.
“The recent coal price hike will increase the cost of cement by Rs 3-4 a bag. However, this has been absorbed by manufacturers in the short-term. In the long run, though, if conditions are right, we could pass on the cost,” Cement Manufacturers Association President and Shree Cement Managing Director HM Bangur said. For the power sector, though, the impact of the upward revision of coal prices would be neutral, as the rise in cost of fuel would be passed on by the generators.
On an average, tariffs of power plants using domestic coal as fuel are expected to increase by 3-4 per cent. In rupee terms, the tariffs are expected to increase on an average by Rs 0.06 a unit. The rise is expected to increase the tariffs for final power consumers as the price hike will be passed on, the Crisil report further stated.
With the respective regulatory authorities of each state overseeing power tariffs, generators would first have to ascertain the increase in input costs and then approach the regulator for approval.
However, with the coal mixture of each generator differing, the choice being between CIL coal and that of the imported variety, it would take sometime before power utilities decide on the actual magnitude of the increase in tariff. “But 100 per cent, we will have to pass on the cost,” an official from the RPG’s power utility CESC said.
As for the steel industry, the Crisil report indicated that the coal price hike by CIL was not expected to have a significant impact on the steel industry as non-coking coal, which was primarily used by the sector, did not account for a significant portion of the total cost of steel manufacturing, except for steel made through the sponge iron route. Moreover, the dependence of domestic steel producers on CIL is only 25-35 per cent of their total requirement due to the availability of captive mines and imports. But Visa Steel Chairman and President of the Indian Chamber of Commerce Vishambhar Saran said the ex-pit head prices of CIL were already comparable to international prices, barring the freight factor cost. “The cost of setting-up a plant is higher if one is to use domestically available coal as compared to imported coal. This is because the former is of inferior quality and consequently extra costs such as ash disposal must be counted into the total project cost,” he added.
Source: Business-Standard
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Thursday, 12 November 09
GANGAVARAM PORT SETS RECORD BY DISCHARGING 80,514 TONNE OF COAL CARGO
Gangavaram Port, the deepest port in the country with water depth of 20 meters, has achieved an unprecedented milestone by discharging 80,514 metric ...
Thursday, 12 November 09
FOREIGN INVESTMENT IN RUSSIAN COAL SECTOR
Reuters reported that, Russia's coal mines, particularly in the Arctic and Far East, are attracting interest from foreign investors as commodity pr ...
Thursday, 12 November 09
BANPU TO INVEST US$ 466 M
Plan targets 33.5m tonnes of coal per year
Bangkok Post reported that, Banpu Plc, Asean's largest coal miner, is planning capital investments of ...
Wednesday, 11 November 09
NORTHSTAR TAKES 40 PER CENT OF INDONESIAN MINING COMPANY
AltAssets reported that, PT Northstar Pacific Partners, the Indonesian affiliate of US private equity firm TPG, has taken a 40 per cent stake in Ind ...
Wednesday, 11 November 09
INDONESIAN COAL MINERS SOLD BIG VOLUMES OF 2010 TO CHINA
* China has scooped up large volumes of Indonesian coal
* Total exports to China in 2010 seen to exceed 20 million T
* Chinese, Indian demand may ...
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- Kartika Selabumi Mining - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- European Bulk Services B.V. - Netherlands
- IEA Clean Coal Centre - UK
- Neyveli Lignite Corporation Ltd, - India
- Coalindo Energy - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Anglo American - United Kingdom
- Cigading International Bulk Terminal - Indonesia
- Indogreen Group - Indonesia
- Baramulti Group, Indonesia
- International Coal Ventures Pvt Ltd - India
- Merrill Lynch Commodities Europe
- Krishnapatnam Port Company Ltd. - India
- Parry Sugars Refinery, India
- Siam City Cement PLC, Thailand
- GMR Energy Limited - India
- Coastal Gujarat Power Limited - India
- Alfred C Toepfer International GmbH - Germany
- Posco Energy - South Korea
- Ministry of Finance - Indonesia
- Riau Bara Harum - Indonesia
- Commonwealth Bank - Australia
- Tamil Nadu electricity Board
- Billiton Holdings Pty Ltd - Australia
- Miang Besar Coal Terminal - Indonesia
- Chamber of Mines of South Africa
- Bukit Makmur.PT - Indonesia
- Ministry of Mines - Canada
- Antam Resourcindo - Indonesia
- Agrawal Coal Company - India
- Deloitte Consulting - India
- Kobexindo Tractors - Indoneisa
- Heidelberg Cement - Germany
- White Energy Company Limited
- GAC Shipping (India) Pvt Ltd
- ASAPP Information Group - India
- Standard Chartered Bank - UAE
- Metalloyd Limited - United Kingdom
- Bayan Resources Tbk. - Indonesia
- Australian Commodity Traders Exchange
- Salva Resources Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Wood Mackenzie - Singapore
- Xindia Steels Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Vedanta Resources Plc - India
- Marubeni Corporation - India
- SN Aboitiz Power Inc, Philippines
- Makarim & Taira - Indonesia
- Coal and Oil Company - UAE
- Timah Investasi Mineral - Indoneisa
- Vijayanagar Sugar Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Rashtriya Ispat Nigam Limited - India
- Videocon Industries ltd - India
- AsiaOL BioFuels Corp., Philippines
- Siam City Cement - Thailand
- Jaiprakash Power Ventures ltd
- TeaM Sual Corporation - Philippines
- Bharathi Cement Corporation - India
- Kapuas Tunggal Persada - Indonesia
- Bulk Trading Sa - Switzerland
- Jorong Barutama Greston.PT - Indonesia
- Power Finance Corporation Ltd., India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Renaissance Capital - South Africa
- Goldman Sachs - Singapore
- Cement Manufacturers Association - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- The State Trading Corporation of India Ltd
- Sarangani Energy Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Aboitiz Power Corporation - Philippines
- Independent Power Producers Association of India
- Attock Cement Pakistan Limited
- Global Coal Blending Company Limited - Australia
- Altura Mining Limited, Indonesia
- Bhatia International Limited - India
- Chettinad Cement Corporation Ltd - India
- The Treasury - Australian Government
- Sojitz Corporation - Japan
- Global Business Power Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- Sindya Power Generating Company Private Ltd
- Thai Mozambique Logistica
- Borneo Indobara - Indonesia
- The University of Queensland
- Parliament of New Zealand
- PowerSource Philippines DevCo
- Indian Energy Exchange, India
- Mintek Dendrill Indonesia
- Madhucon Powers Ltd - India
- Mercator Lines Limited - India
- Karaikal Port Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Price Waterhouse Coopers - Russia
- Eastern Energy - Thailand
- Gujarat Sidhee Cement - India
- Larsen & Toubro Limited - India
- Simpson Spence & Young - Indonesia
- Sical Logistics Limited - India
- Carbofer General Trading SA - India
- Rio Tinto Coal - Australia
- Energy Development Corp, Philippines
- Kumho Petrochemical, South Korea
- Kepco SPC Power Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Oldendorff Carriers - Singapore
- Mjunction Services Limited - India
- Straits Asia Resources Limited - Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Jindal Steel & Power Ltd - India
- PNOC Exploration Corporation - Philippines
- Central Java Power - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Tata Chemicals Ltd - India
- Energy Link Ltd, New Zealand
- Essar Steel Hazira Ltd - India
- Indonesian Coal Mining Association
- Romanian Commodities Exchange
- Banpu Public Company Limited - Thailand
- Interocean Group of Companies - India
- India Bulls Power Limited - India
- Semirara Mining Corp, Philippines
- IHS Mccloskey Coal Group - USA
- Singapore Mercantile Exchange
- Electricity Generating Authority of Thailand
- LBH Netherlands Bv - Netherlands
- Iligan Light & Power Inc, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Star Paper Mills Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Maharashtra Electricity Regulatory Commission - India
- Intertek Mineral Services - Indonesia
- Bangladesh Power Developement Board
- Orica Australia Pty. Ltd.
- Meralco Power Generation, Philippines
- Africa Commodities Group - South Africa
- OPG Power Generation Pvt Ltd - India
- Bhushan Steel Limited - India
- Indika Energy - Indonesia
- Aditya Birla Group - India
- New Zealand Coal & Carbon
- Mercuria Energy - Indonesia
- Georgia Ports Authority, United States
- GVK Power & Infra Limited - India
- Gujarat Electricity Regulatory Commission - India
- Electricity Authority, New Zealand
- TNB Fuel Sdn Bhd - Malaysia
- Bank of Tokyo Mitsubishi UFJ Ltd
- ICICI Bank Limited - India
- Petron Corporation, Philippines
- Grasim Industreis Ltd - India
- Sinarmas Energy and Mining - Indonesia
- SMC Global Power, Philippines
- Indian Oil Corporation Limited
- Pendopo Energi Batubara - Indonesia
- Indo Tambangraya Megah - Indonesia
- Bukit Baiduri Energy - Indonesia
- San Jose City I Power Corp, Philippines
- VISA Power Limited - India
- Trasteel International SA, Italy
- Kideco Jaya Agung - Indonesia
- London Commodity Brokers - England
- McConnell Dowell - Australia
- Samtan Co., Ltd - South Korea
- Edison Trading Spa - Italy
- Latin American Coal - Colombia
- Dalmia Cement Bharat India
- Bukit Asam (Persero) Tbk - Indonesia
- Port Waratah Coal Services - Australia
- Ministry of Transport, Egypt
- Global Green Power PLC Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Bahari Cakrawala Sebuku - Indonesia
- MS Steel International - UAE
- Toyota Tsusho Corporation, Japan
- Formosa Plastics Group - Taiwan
- Globalindo Alam Lestari - Indonesia
- Eastern Coal Council - USA
- Ceylon Electricity Board - Sri Lanka
- Ind-Barath Power Infra Limited - India
- Wilmar Investment Holdings
- Medco Energi Mining Internasional
- Thiess Contractors Indonesia
- Binh Thuan Hamico - Vietnam
- Ambuja Cements Ltd - India
- Planning Commission, India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Vizag Seaport Private Limited - India
- Sree Jayajothi Cements Limited - India
- Malabar Cements Ltd - India
- Meenaskhi Energy Private Limited - India
- Economic Council, Georgia
- Minerals Council of Australia
- PetroVietnam Power Coal Import and Supply Company
- CIMB Investment Bank - Malaysia
- PTC India Limited - India
- Lanco Infratech Ltd - India
- Australian Coal Association
- Therma Luzon, Inc, Philippines
- Semirara Mining and Power Corporation, Philippines
- Central Electricity Authority - India
- Savvy Resources Ltd - HongKong
- South Luzon Thermal Energy Corporation
- Bhoruka Overseas - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- SMG Consultants - Indonesia
- Uttam Galva Steels Limited - India
- CNBM International Corporation - China
- Directorate General of MIneral and Coal - Indonesia
- Sakthi Sugars Limited - India
- Orica Mining Services - Indonesia
- Manunggal Multi Energi - Indonesia
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