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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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Friday, 28 August 09
JSW MAY BUY AFRICAN MINE FOR US$ 350
The Economic Times Reported that, The Sajjan Jindal-owned JSW Group is in advanced talks to acquire a coal mine in Swaziland, Africa, at an estimate ...
Friday, 28 August 09
COAL INDIA ALLOWED TO IMPORT COKING COAL
The government Thursday allowed the state-owned Coal India to import coking coal and high grade ash thermal coal by acquiring coal properties abroad ...
Thursday, 27 August 09
CIL TO SPEND US$ 1 - 1.5 BN TO ACQUIRE ASSETS IN 4 COUNTRIES
Business Standard reported that, "Coal India is looking to spend $1-1.5 billion in acquiring mining assets in Australia, Indonesia, South Afric ...
Wednesday, 26 August 09
INDIA'S JSW TO DOUBLE JAIGARH PORT CAPACITY TO 20 MT
Sea Trade Asia reported that, JSW Jaigarh Port, a wholly owned subsidiary of JSW Infrastructure & Logistics, plans to double cargo handling capa ...
Wednesday, 26 August 09
JSW ENERGY NEARS COAL-SUPPLY LINKAGE DEAL IN INDONESIA
Sajjan Jindal-owned JSW Energy is close to finalising a coal-supply linkage pact in Indonesia and is also exploring options of acquiring ...
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- PNOC Exploration Corporation - Philippines
- Intertek Mineral Services - Indonesia
- Samtan Co., Ltd - South Korea
- Petron Corporation, Philippines
- Karaikal Port Pvt Ltd - India
- Heidelberg Cement - Germany
- Maharashtra Electricity Regulatory Commission - India
- International Coal Ventures Pvt Ltd - India
- Energy Development Corp, Philippines
- Independent Power Producers Association of India
- Madhucon Powers Ltd - India
- Metalloyd Limited - United Kingdom
- Chettinad Cement Corporation Ltd - India
- IEA Clean Coal Centre - UK
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Thai Mozambique Logistica
- Attock Cement Pakistan Limited
- Videocon Industries ltd - India
- Cigading International Bulk Terminal - Indonesia
- Indian Oil Corporation Limited
- Wilmar Investment Holdings
- Australian Coal Association
- PetroVietnam Power Coal Import and Supply Company
- Siam City Cement - Thailand
- Aditya Birla Group - India
- Dalmia Cement Bharat India
- Straits Asia Resources Limited - Singapore
- Anglo American - United Kingdom
- South Luzon Thermal Energy Corporation
- Kapuas Tunggal Persada - Indonesia
- GAC Shipping (India) Pvt Ltd
- Salva Resources Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- Ministry of Finance - Indonesia
- Orica Australia Pty. Ltd.
- Borneo Indobara - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Baramulti Group, Indonesia
- Bukit Baiduri Energy - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Barasentosa Lestari - Indonesia
- Electricity Authority, New Zealand
- Central Java Power - Indonesia
- Agrawal Coal Company - India
- Bukit Makmur.PT - Indonesia
- Marubeni Corporation - India
- Energy Link Ltd, New Zealand
- Petrochimia International Co. Ltd.- Taiwan
- Kumho Petrochemical, South Korea
- Ambuja Cements Ltd - India
- Indogreen Group - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- MS Steel International - UAE
- Central Electricity Authority - India
- Minerals Council of Australia
- Mjunction Services Limited - India
- Vedanta Resources Plc - India
- Bahari Cakrawala Sebuku - Indonesia
- Holcim Trading Pte Ltd - Singapore
- SN Aboitiz Power Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- TeaM Sual Corporation - Philippines
- SMG Consultants - Indonesia
- San Jose City I Power Corp, Philippines
- Siam City Cement PLC, Thailand
- Binh Thuan Hamico - Vietnam
- Cement Manufacturers Association - India
- Gujarat Electricity Regulatory Commission - India
- Bhatia International Limited - India
- LBH Netherlands Bv - Netherlands
- Economic Council, Georgia
- Tata Chemicals Ltd - India
- CIMB Investment Bank - Malaysia
- Sree Jayajothi Cements Limited - India
- Grasim Industreis Ltd - India
- Chamber of Mines of South Africa
- Indian Energy Exchange, India
- Commonwealth Bank - Australia
- ICICI Bank Limited - India
- Miang Besar Coal Terminal - Indonesia
- Sarangani Energy Corporation, Philippines
- Deloitte Consulting - India
- Uttam Galva Steels Limited - India
- Carbofer General Trading SA - India
- Alfred C Toepfer International GmbH - Germany
- Coalindo Energy - Indonesia
- Parry Sugars Refinery, India
- Kepco SPC Power Corporation, Philippines
- Formosa Plastics Group - Taiwan
- Ceylon Electricity Board - Sri Lanka
- Semirara Mining and Power Corporation, Philippines
- Global Coal Blending Company Limited - Australia
- Vizag Seaport Private Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- New Zealand Coal & Carbon
- SMC Global Power, Philippines
- Krishnapatnam Port Company Ltd. - India
- Kalimantan Lumbung Energi - Indonesia
- Mercator Lines Limited - India
- Ministry of Mines - Canada
- Jindal Steel & Power Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Essar Steel Hazira Ltd - India
- Eastern Energy - Thailand
- Riau Bara Harum - Indonesia
- McConnell Dowell - Australia
- Kobexindo Tractors - Indoneisa
- Lanco Infratech Ltd - India
- Interocean Group of Companies - India
- Australian Commodity Traders Exchange
- Sical Logistics Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bayan Resources Tbk. - Indonesia
- Orica Mining Services - Indonesia
- Bhoruka Overseas - Indonesia
- OPG Power Generation Pvt Ltd - India
- Coastal Gujarat Power Limited - India
- GVK Power & Infra Limited - India
- Coal and Oil Company - UAE
- Sakthi Sugars Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Mintek Dendrill Indonesia
- Singapore Mercantile Exchange
- Indika Energy - Indonesia
- Larsen & Toubro Limited - India
- The University of Queensland
- Bulk Trading Sa - Switzerland
- Globalindo Alam Lestari - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Maheswari Brothers Coal Limited - India
- Mercuria Energy - Indonesia
- Manunggal Multi Energi - Indonesia
- GMR Energy Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Global Green Power PLC Corporation, Philippines
- Bhushan Steel Limited - India
- Merrill Lynch Commodities Europe
- India Bulls Power Limited - India
- Goldman Sachs - Singapore
- Rio Tinto Coal - Australia
- The Treasury - Australian Government
- Global Business Power Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- Bharathi Cement Corporation - India
- London Commodity Brokers - England
- CNBM International Corporation - China
- Edison Trading Spa - Italy
- Trasteel International SA, Italy
- TNB Fuel Sdn Bhd - Malaysia
- Indo Tambangraya Megah - Indonesia
- Savvy Resources Ltd - HongKong
- PowerSource Philippines DevCo
- Makarim & Taira - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Meralco Power Generation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Jaiprakash Power Ventures ltd
- Meenaskhi Energy Private Limited - India
- VISA Power Limited - India
- Pendopo Energi Batubara - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Electricity Generating Authority of Thailand
- Aboitiz Power Corporation - Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Gujarat Mineral Development Corp Ltd - India
- Wood Mackenzie - Singapore
- PTC India Limited - India
- Star Paper Mills Limited - India
- Posco Energy - South Korea
- Banpu Public Company Limited - Thailand
- Semirara Mining Corp, Philippines
- Altura Mining Limited, Indonesia
- Power Finance Corporation Ltd., India
- Parliament of New Zealand
- Oldendorff Carriers - Singapore
- Latin American Coal - Colombia
- Gujarat Sidhee Cement - India
- Sindya Power Generating Company Private Ltd
- Planning Commission, India
- Ministry of Transport, Egypt
- Bangladesh Power Developement Board
- Georgia Ports Authority, United States
- Directorate Of Revenue Intelligence - India
- Toyota Tsusho Corporation, Japan
- ASAPP Information Group - India
- Malabar Cements Ltd - India
- White Energy Company Limited
- Ind-Barath Power Infra Limited - India
- Medco Energi Mining Internasional
- Iligan Light & Power Inc, Philippines
- Eastern Coal Council - USA
- Kaltim Prima Coal - Indonesia
- Xindia Steels Limited - India
- Thiess Contractors Indonesia
- Africa Commodities Group - South Africa
- Tamil Nadu electricity Board
- Billiton Holdings Pty Ltd - Australia
- Romanian Commodities Exchange
- Renaissance Capital - South Africa
- Standard Chartered Bank - UAE
- Leighton Contractors Pty Ltd - Australia
- IHS Mccloskey Coal Group - USA
- Indonesian Coal Mining Association
- Price Waterhouse Coopers - Russia
- The State Trading Corporation of India Ltd
- Sojitz Corporation - Japan
- Pipit Mutiara Jaya. PT, Indonesia
- European Bulk Services B.V. - Netherlands
- Asmin Koalindo Tuhup - Indonesia
- Kideco Jaya Agung - Indonesia
- Antam Resourcindo - Indonesia
- Therma Luzon, Inc, Philippines
- Port Waratah Coal Services - Australia
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