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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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Sunday, 26 April 09
INDONESIAN GOVT SAYS COAL MINES CAUSE WEEKLONG FLOOD - THE JAKARTA POST
Samarinda administration in East Kalimantan admitted openly Thursday that the weeklong flood that paralyzed the city was caused by unruly management ...
Saturday, 25 April 09
FOREIGN SHARE DIVESTMENT STARTING THE 6TH YEAR OF PRODUCTION - MAJALAH TAMBANG
The government would set a divestment scheme for foreign miners, which would require companies to divest their ownership starting the 6th year of pr ...
Saturday, 25 April 09
INDO TAMBANGRAYA MEGAH ALLOCATED USD 126 MILLION FOR CAPITAL SPENDING - MAJALAH TAMBANG
Somyot Ruchirawat, President Director of PT Indo Tambangraya Megah, Tbk (ITMG), has announced the company's total dividend payment of Rp 1,345 per ...
Saturday, 25 April 09
MINING SECTOR IS STILL ON THE SURPLUS - THE JAKARTA POST
The global financial crisis is apparently also having an impact on the mining sector. People are thinking twice about investing in the mining sector ...
Saturday, 25 April 09
ADARO RUNS CATARACT OPERATION PROGRAM - THE JAKARTA POST
As part of its CSR program, thermal coal producer PT Adaro Indonesia has made cataract operations available to residents of Tandjung district, South ...
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- Independent Power Producers Association of India
- Indian Energy Exchange, India
- Grasim Industreis Ltd - India
- Semirara Mining and Power Corporation, Philippines
- India Bulls Power Limited - India
- Sical Logistics Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- CIMB Investment Bank - Malaysia
- San Jose City I Power Corp, Philippines
- SMC Global Power, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Kepco SPC Power Corporation, Philippines
- Mercator Lines Limited - India
- Power Finance Corporation Ltd., India
- Romanian Commodities Exchange
- SN Aboitiz Power Inc, Philippines
- Parliament of New Zealand
- Mjunction Services Limited - India
- Bulk Trading Sa - Switzerland
- Eastern Energy - Thailand
- Therma Luzon, Inc, Philippines
- European Bulk Services B.V. - Netherlands
- Cigading International Bulk Terminal - Indonesia
- Dalmia Cement Bharat India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- LBH Netherlands Bv - Netherlands
- Uttam Galva Steels Limited - India
- The University of Queensland
- Thai Mozambique Logistica
- Salva Resources Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Australian Commodity Traders Exchange
- Orica Australia Pty. Ltd.
- Aditya Birla Group - India
- Latin American Coal - Colombia
- Kartika Selabumi Mining - Indonesia
- Rio Tinto Coal - Australia
- Borneo Indobara - Indonesia
- Bukit Makmur.PT - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Planning Commission, India
- Sindya Power Generating Company Private Ltd
- Parry Sugars Refinery, India
- Krishnapatnam Port Company Ltd. - India
- Wilmar Investment Holdings
- Holcim Trading Pte Ltd - Singapore
- Binh Thuan Hamico - Vietnam
- Coal and Oil Company - UAE
- Kalimantan Lumbung Energi - Indonesia
- Vedanta Resources Plc - India
- Miang Besar Coal Terminal - Indonesia
- White Energy Company Limited
- Petron Corporation, Philippines
- Ambuja Cements Ltd - India
- Mercuria Energy - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Africa Commodities Group - South Africa
- Barasentosa Lestari - Indonesia
- Sinarmas Energy and Mining - Indonesia
- South Luzon Thermal Energy Corporation
- Chamber of Mines of South Africa
- Edison Trading Spa - Italy
- Offshore Bulk Terminal Pte Ltd, Singapore
- Goldman Sachs - Singapore
- Gujarat Mineral Development Corp Ltd - India
- Bangladesh Power Developement Board
- Wood Mackenzie - Singapore
- Energy Development Corp, Philippines
- Oldendorff Carriers - Singapore
- Gujarat Sidhee Cement - India
- MS Steel International - UAE
- Makarim & Taira - Indonesia
- Coastal Gujarat Power Limited - India
- Simpson Spence & Young - Indonesia
- Riau Bara Harum - Indonesia
- Pendopo Energi Batubara - Indonesia
- Attock Cement Pakistan Limited
- New Zealand Coal & Carbon
- Standard Chartered Bank - UAE
- Maheswari Brothers Coal Limited - India
- Intertek Mineral Services - Indonesia
- Samtan Co., Ltd - South Korea
- Sojitz Corporation - Japan
- Eastern Coal Council - USA
- Karbindo Abesyapradhi - Indoneisa
- Timah Investasi Mineral - Indoneisa
- Jindal Steel & Power Ltd - India
- Carbofer General Trading SA - India
- Vizag Seaport Private Limited - India
- Deloitte Consulting - India
- Indo Tambangraya Megah - Indonesia
- Iligan Light & Power Inc, Philippines
- Sakthi Sugars Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Indogreen Group - Indonesia
- OPG Power Generation Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- PNOC Exploration Corporation - Philippines
- GVK Power & Infra Limited - India
- Essar Steel Hazira Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Directorate Of Revenue Intelligence - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- SMG Consultants - Indonesia
- Electricity Generating Authority of Thailand
- Thiess Contractors Indonesia
- Kideco Jaya Agung - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Kohat Cement Company Ltd. - Pakistan
- Heidelberg Cement - Germany
- Anglo American - United Kingdom
- Central Java Power - Indonesia
- Malabar Cements Ltd - India
- Tata Chemicals Ltd - India
- Indika Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- Minerals Council of Australia
- Neyveli Lignite Corporation Ltd, - India
- Economic Council, Georgia
- Kobexindo Tractors - Indoneisa
- Ministry of Transport, Egypt
- Star Paper Mills Limited - India
- Orica Mining Services - Indonesia
- Jaiprakash Power Ventures ltd
- Price Waterhouse Coopers - Russia
- CNBM International Corporation - China
- Bukit Asam (Persero) Tbk - Indonesia
- Manunggal Multi Energi - Indonesia
- Marubeni Corporation - India
- Siam City Cement - Thailand
- Lanco Infratech Ltd - India
- Mintek Dendrill Indonesia
- Maharashtra Electricity Regulatory Commission - India
- GMR Energy Limited - India
- Meralco Power Generation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Bahari Cakrawala Sebuku - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Medco Energi Mining Internasional
- Bayan Resources Tbk. - Indonesia
- The State Trading Corporation of India Ltd
- PTC India Limited - India
- Kumho Petrochemical, South Korea
- Sree Jayajothi Cements Limited - India
- PowerSource Philippines DevCo
- Kapuas Tunggal Persada - Indonesia
- Videocon Industries ltd - India
- Indian Oil Corporation Limited
- Trasteel International SA, Italy
- Singapore Mercantile Exchange
- Coalindo Energy - Indonesia
- Bhatia International Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Aboitiz Power Corporation - Philippines
- Energy Link Ltd, New Zealand
- The Treasury - Australian Government
- Siam City Cement PLC, Thailand
- Port Waratah Coal Services - Australia
- Chettinad Cement Corporation Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Bhushan Steel Limited - India
- Agrawal Coal Company - India
- IHS Mccloskey Coal Group - USA
- Semirara Mining Corp, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Xindia Steels Limited - India
- Indonesian Coal Mining Association
- Baramulti Group, Indonesia
- IEA Clean Coal Centre - UK
- Sarangani Energy Corporation, Philippines
- Renaissance Capital - South Africa
- Interocean Group of Companies - India
- Madhucon Powers Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Banpu Public Company Limited - Thailand
- Cement Manufacturers Association - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ministry of Finance - Indonesia
- ASAPP Information Group - India
- Savvy Resources Ltd - HongKong
- Georgia Ports Authority, United States
- Metalloyd Limited - United Kingdom
- Kaltim Prima Coal - Indonesia
- Global Coal Blending Company Limited - Australia
- Alfred C Toepfer International GmbH - Germany
- Electricity Authority, New Zealand
- Central Electricity Authority - India
- Ind-Barath Power Infra Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Karaikal Port Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Ministry of Mines - Canada
- VISA Power Limited - India
- Bharathi Cement Corporation - India
- Global Green Power PLC Corporation, Philippines
- McConnell Dowell - Australia
- Globalindo Alam Lestari - Indonesia
- Tamil Nadu electricity Board
- International Coal Ventures Pvt Ltd - India
- Australian Coal Association
- Global Business Power Corporation, Philippines
- Formosa Plastics Group - Taiwan
- Straits Asia Resources Limited - Singapore
- Antam Resourcindo - Indonesia
- TeaM Sual Corporation - Philippines
- Posco Energy - South Korea
- London Commodity Brokers - England
- Merrill Lynch Commodities Europe
- Bukit Baiduri Energy - Indonesia
- ICICI Bank Limited - India
- Larsen & Toubro Limited - India
- Meenaskhi Energy Private Limited - India
- GAC Shipping (India) Pvt Ltd
- Altura Mining Limited, Indonesia
- Commonwealth Bank - Australia
- Bhoruka Overseas - Indonesia
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