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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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Saturday, 02 May 09
COAL PRICES TO RISE ON CHINESE SUPPLY, INDIAN DEMAND, UBS SAYS
Peter Hickson, an analyst with UBS AG in London, comments on prices for thermal coal, burned to generate power. He commented in a report today.
& ...
Friday, 01 May 09
DEUTSCHE, BECKKETT CLAIMING ADARO WIN - THE JAKARTA GLOBE
Both Deutsche Bank AG and Beckkett, an investment firm controlled by Indonesian tycoon Sukanto Tanoto, claimed victory on Tuesday after Singapore&rs ...
Thursday, 30 April 09
SAN MIGUEL IN TALKS TO BUY STAKE IN ADARO - REUTERS
San Miguel Corp is in talks to buy a stake worth about $500 million in Adaro Energy , Indonesia's largest coal producer by market value, the Philip ...
Wednesday, 29 April 09
BAYAN READY TO OPERATE WORLD'S LARGEST COAL QUALITY IMPROVEMENT FACILITY - MAJALAH TAMBANG
PT. Bayan Resources Tbk. (hereinafter referred to as Bayan), an Indonesian coal manufacturer, announced that they are ready to operate the world's ...
Wednesday, 29 April 09
NEW GOV'T REGULATION SHOULD INCORPORATE CONFLICT SETTLEMENT BODY - ICMA (MAJALAH TAMBANG)
A draft government regulation on mineral and coal is currently in a process of completion. The Indonesian Coal Mining Association (ICMA) proposed th ...
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- Bharathi Cement Corporation - India
- Metalloyd Limited - United Kingdom
- Jorong Barutama Greston.PT - Indonesia
- Bukit Baiduri Energy - Indonesia
- Maheswari Brothers Coal Limited - India
- Wilmar Investment Holdings
- OPG Power Generation Pvt Ltd - India
- CNBM International Corporation - China
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Coal and Oil Company - UAE
- Mercuria Energy - Indonesia
- Uttam Galva Steels Limited - India
- Chamber of Mines of South Africa
- Indonesian Coal Mining Association
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Parry Sugars Refinery, India
- Iligan Light & Power Inc, Philippines
- Merrill Lynch Commodities Europe
- Standard Chartered Bank - UAE
- Essar Steel Hazira Ltd - India
- Global Business Power Corporation, Philippines
- Power Finance Corporation Ltd., India
- Lanco Infratech Ltd - India
- Independent Power Producers Association of India
- IEA Clean Coal Centre - UK
- Ministry of Mines - Canada
- Economic Council, Georgia
- Sinarmas Energy and Mining - Indonesia
- Tamil Nadu electricity Board
- Mintek Dendrill Indonesia
- Sakthi Sugars Limited - India
- Sojitz Corporation - Japan
- GMR Energy Limited - India
- Karaikal Port Pvt Ltd - India
- Deloitte Consulting - India
- Carbofer General Trading SA - India
- The Treasury - Australian Government
- Alfred C Toepfer International GmbH - Germany
- Tata Chemicals Ltd - India
- Meenaskhi Energy Private Limited - India
- Latin American Coal - Colombia
- Eastern Coal Council - USA
- Bukit Makmur.PT - Indonesia
- Romanian Commodities Exchange
- Petrochimia International Co. Ltd.- Taiwan
- McConnell Dowell - Australia
- Trasteel International SA, Italy
- Formosa Plastics Group - Taiwan
- Riau Bara Harum - Indonesia
- SMG Consultants - Indonesia
- Electricity Generating Authority of Thailand
- Madhucon Powers Ltd - India
- Parliament of New Zealand
- IHS Mccloskey Coal Group - USA
- Heidelberg Cement - Germany
- Bangladesh Power Developement Board
- Goldman Sachs - Singapore
- Banpu Public Company Limited - Thailand
- SMC Global Power, Philippines
- Miang Besar Coal Terminal - Indonesia
- Price Waterhouse Coopers - Russia
- Cement Manufacturers Association - India
- Cigading International Bulk Terminal - Indonesia
- Indian Oil Corporation Limited
- Edison Trading Spa - Italy
- Krishnapatnam Port Company Ltd. - India
- Neyveli Lignite Corporation Ltd, - India
- Energy Development Corp, Philippines
- Indika Energy - Indonesia
- Electricity Authority, New Zealand
- PowerSource Philippines DevCo
- Chettinad Cement Corporation Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Salva Resources Pvt Ltd - India
- London Commodity Brokers - England
- Kumho Petrochemical, South Korea
- Kapuas Tunggal Persada - Indonesia
- Kepco SPC Power Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Rio Tinto Coal - Australia
- Baramulti Group, Indonesia
- Aboitiz Power Corporation - Philippines
- Mjunction Services Limited - India
- Sical Logistics Limited - India
- Posco Energy - South Korea
- Attock Cement Pakistan Limited
- Mercator Lines Limited - India
- Rashtriya Ispat Nigam Limited - India
- Vizag Seaport Private Limited - India
- Manunggal Multi Energi - Indonesia
- MS Steel International - UAE
- India Bulls Power Limited - India
- Globalindo Alam Lestari - Indonesia
- Kartika Selabumi Mining - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Commonwealth Bank - Australia
- Bulk Trading Sa - Switzerland
- Indo Tambangraya Megah - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Global Green Power PLC Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Coalindo Energy - Indonesia
- Semirara Mining Corp, Philippines
- GN Power Mariveles Coal Plant, Philippines
- AsiaOL BioFuels Corp., Philippines
- Kideco Jaya Agung - Indonesia
- Indian Energy Exchange, India
- Australian Coal Association
- Agrawal Coal Company - India
- LBH Netherlands Bv - Netherlands
- Directorate Of Revenue Intelligence - India
- GAC Shipping (India) Pvt Ltd
- Bank of Tokyo Mitsubishi UFJ Ltd
- Coastal Gujarat Power Limited - India
- Barasentosa Lestari - Indonesia
- Orica Australia Pty. Ltd.
- Semirara Mining and Power Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Planning Commission, India
- Larsen & Toubro Limited - India
- Ministry of Transport, Egypt
- Antam Resourcindo - Indonesia
- San Jose City I Power Corp, Philippines
- PTC India Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Malabar Cements Ltd - India
- Binh Thuan Hamico - Vietnam
- Savvy Resources Ltd - HongKong
- Wood Mackenzie - Singapore
- Orica Mining Services - Indonesia
- Meralco Power Generation, Philippines
- Port Waratah Coal Services - Australia
- Bahari Cakrawala Sebuku - Indonesia
- ASAPP Information Group - India
- Medco Energi Mining Internasional
- Billiton Holdings Pty Ltd - Australia
- Georgia Ports Authority, United States
- Kalimantan Lumbung Energi - Indonesia
- Central Java Power - Indonesia
- Straits Asia Resources Limited - Singapore
- The State Trading Corporation of India Ltd
- Asmin Koalindo Tuhup - Indonesia
- European Bulk Services B.V. - Netherlands
- Simpson Spence & Young - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Singapore Mercantile Exchange
- Bayan Resources Tbk. - Indonesia
- Siam City Cement PLC, Thailand
- Ceylon Electricity Board - Sri Lanka
- Grasim Industreis Ltd - India
- Bhoruka Overseas - Indonesia
- ICICI Bank Limited - India
- Intertek Mineral Services - Indonesia
- Siam City Cement - Thailand
- Ministry of Finance - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Kobexindo Tractors - Indoneisa
- South Luzon Thermal Energy Corporation
- Videocon Industries ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Interocean Group of Companies - India
- Thiess Contractors Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Energy Link Ltd, New Zealand
- Bhushan Steel Limited - India
- Gujarat Sidhee Cement - India
- Sree Jayajothi Cements Limited - India
- Ambuja Cements Ltd - India
- Central Electricity Authority - India
- Global Coal Blending Company Limited - Australia
- PetroVietnam Power Coal Import and Supply Company
- Jaiprakash Power Ventures ltd
- Ind-Barath Power Infra Limited - India
- TeaM Sual Corporation - Philippines
- Pendopo Energi Batubara - Indonesia
- Xindia Steels Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Samtan Co., Ltd - South Korea
- Kaltim Prima Coal - Indonesia
- Altura Mining Limited, Indonesia
- Thai Mozambique Logistica
- Africa Commodities Group - South Africa
- Pipit Mutiara Jaya. PT, Indonesia
- Toyota Tsusho Corporation, Japan
- Bukit Asam (Persero) Tbk - Indonesia
- Oldendorff Carriers - Singapore
- Dalmia Cement Bharat India
- New Zealand Coal & Carbon
- Sindya Power Generating Company Private Ltd
- White Energy Company Limited
- Maharashtra Electricity Regulatory Commission - India
- Holcim Trading Pte Ltd - Singapore
- Renaissance Capital - South Africa
- Marubeni Corporation - India
- Indogreen Group - Indonesia
- Makarim & Taira - Indonesia
- International Coal Ventures Pvt Ltd - India
- The University of Queensland
- Bhatia International Limited - India
- VISA Power Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Minerals Council of Australia
- PNOC Exploration Corporation - Philippines
- Borneo Indobara - Indonesia
- Australian Commodity Traders Exchange
- SN Aboitiz Power Inc, Philippines
- Timah Investasi Mineral - Indoneisa
- Aditya Birla Group - India
- Sarangani Energy Corporation, Philippines
- Eastern Energy - Thailand
- Anglo American - United Kingdom
- Star Paper Mills Limited - India
- Vedanta Resources Plc - India
- Petron Corporation, Philippines
- GVK Power & Infra Limited - India
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