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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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Monday, 06 April 09
RICHARDS BAY COAL TERMINAL EXPORTS ROSE 5 PERCENT IN MARCH - BLOOMBERG
South Africa’s Richards Bay Coal Terminal, the world’s largest coal-export facility, shipped 5 percent more coal in March than the same ...
Monday, 06 April 09
INDIA'S OSWAL CHEM EYES INDONESIAN COAL MINES -ECONOMICTIMES
Oswal Chemicals and Fertilisers (OCFL), part of Abhay Oswal-led Oswal group, has initiated talks with three separate Indonesian coal firms to ...
Thursday, 02 April 09
FOREIGNERS ALSO CHEER FOR INDONESIA'S THE NEW MINING LAW - MAJALA TAMBANG
Three mining giants, Australia's Rio Tinto along with Canada's Barrick Gold and Southern Arc, are among foreign corporations currently applying fo ...
Wednesday, 01 April 09
INDONESIAN GOVERNMENT REVISES MINING REVENUE TARGET DOWN 26% - THE JAKARTA POST
Government income from mining this year, excluding taxes, is expected to drop by about 26 percent to Rp 11 trillion ($957 million), primarily becaus ...
Wednesday, 01 April 09
INDONESIAN OFFICIAL CLAIMS NEW LEGISLATION IS VINDICATED AS OVERSEAS FIRMS LINE UP FOR MINING LICENSES - THE JAKARTA GLOBE
The Energy and Mineral Resources Ministry is expected to issue six mining licenses under the country’s new mining law over the next two months ...
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- Bahari Cakrawala Sebuku - Indonesia
- Marubeni Corporation - India
- Pipit Mutiara Jaya. PT, Indonesia
- London Commodity Brokers - England
- PowerSource Philippines DevCo
- Simpson Spence & Young - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Makarim & Taira - Indonesia
- Mjunction Services Limited - India
- Merrill Lynch Commodities Europe
- Intertek Mineral Services - Indonesia
- Georgia Ports Authority, United States
- Bhushan Steel Limited - India
- Karaikal Port Pvt Ltd - India
- Planning Commission, India
- Metalloyd Limited - United Kingdom
- Attock Cement Pakistan Limited
- Energy Development Corp, Philippines
- Wilmar Investment Holdings
- Wood Mackenzie - Singapore
- Posco Energy - South Korea
- Ministry of Mines - Canada
- Globalindo Alam Lestari - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Global Green Power PLC Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- Formosa Plastics Group - Taiwan
- Australian Coal Association
- Thai Mozambique Logistica
- Kohat Cement Company Ltd. - Pakistan
- TNB Fuel Sdn Bhd - Malaysia
- Carbofer General Trading SA - India
- Mercuria Energy - Indonesia
- VISA Power Limited - India
- Ministry of Transport, Egypt
- Toyota Tsusho Corporation, Japan
- Interocean Group of Companies - India
- Lanco Infratech Ltd - India
- Indian Energy Exchange, India
- Gujarat Sidhee Cement - India
- Electricity Generating Authority of Thailand
- Electricity Authority, New Zealand
- Price Waterhouse Coopers - Russia
- Billiton Holdings Pty Ltd - Australia
- Sree Jayajothi Cements Limited - India
- Power Finance Corporation Ltd., India
- Parliament of New Zealand
- Bayan Resources Tbk. - Indonesia
- Barasentosa Lestari - Indonesia
- Tata Chemicals Ltd - India
- Port Waratah Coal Services - Australia
- Petrochimia International Co. Ltd.- Taiwan
- Semirara Mining Corp, Philippines
- Ceylon Electricity Board - Sri Lanka
- Agrawal Coal Company - India
- Aboitiz Power Corporation - Philippines
- GN Power Mariveles Coal Plant, Philippines
- Bangladesh Power Developement Board
- Chamber of Mines of South Africa
- MS Steel International - UAE
- Parry Sugars Refinery, India
- Commonwealth Bank - Australia
- Meenaskhi Energy Private Limited - India
- Kalimantan Lumbung Energi - Indonesia
- OPG Power Generation Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Alfred C Toepfer International GmbH - Germany
- CIMB Investment Bank - Malaysia
- Leighton Contractors Pty Ltd - Australia
- Iligan Light & Power Inc, Philippines
- Xindia Steels Limited - India
- Semirara Mining and Power Corporation, Philippines
- Grasim Industreis Ltd - India
- PTC India Limited - India
- Aditya Birla Group - India
- Global Coal Blending Company Limited - Australia
- Pendopo Energi Batubara - Indonesia
- Sinarmas Energy and Mining - Indonesia
- The Treasury - Australian Government
- San Jose City I Power Corp, Philippines
- New Zealand Coal & Carbon
- Kideco Jaya Agung - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Cement Manufacturers Association - India
- Vizag Seaport Private Limited - India
- South Luzon Thermal Energy Corporation
- GMR Energy Limited - India
- Bulk Trading Sa - Switzerland
- Australian Commodity Traders Exchange
- Star Paper Mills Limited - India
- Latin American Coal - Colombia
- Dalmia Cement Bharat India
- Maheswari Brothers Coal Limited - India
- Uttam Galva Steels Limited - India
- ASAPP Information Group - India
- Indo Tambangraya Megah - Indonesia
- Kepco SPC Power Corporation, Philippines
- Salva Resources Pvt Ltd - India
- Indian Oil Corporation Limited
- Trasteel International SA, Italy
- SN Aboitiz Power Inc, Philippines
- Indogreen Group - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- PetroVietnam Power Coal Import and Supply Company
- Jindal Steel & Power Ltd - India
- LBH Netherlands Bv - Netherlands
- SMC Global Power, Philippines
- Cigading International Bulk Terminal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Energy Link Ltd, New Zealand
- Sarangani Energy Corporation, Philippines
- Independent Power Producers Association of India
- McConnell Dowell - Australia
- India Bulls Power Limited - India
- SMG Consultants - Indonesia
- Kumho Petrochemical, South Korea
- Neyveli Lignite Corporation Ltd, - India
- Bharathi Cement Corporation - India
- Romanian Commodities Exchange
- Eastern Coal Council - USA
- Bukit Makmur.PT - Indonesia
- Directorate Of Revenue Intelligence - India
- Bhoruka Overseas - Indonesia
- Sindya Power Generating Company Private Ltd
- Ind-Barath Power Infra Limited - India
- GVK Power & Infra Limited - India
- Banpu Public Company Limited - Thailand
- ICICI Bank Limited - India
- PNOC Exploration Corporation - Philippines
- Vedanta Resources Plc - India
- Meralco Power Generation, Philippines
- Kobexindo Tractors - Indoneisa
- Orica Australia Pty. Ltd.
- Oldendorff Carriers - Singapore
- Bukit Baiduri Energy - Indonesia
- Bhatia International Limited - India
- Siam City Cement PLC, Thailand
- Ambuja Cements Ltd - India
- IEA Clean Coal Centre - UK
- European Bulk Services B.V. - Netherlands
- Jaiprakash Power Ventures ltd
- Kartika Selabumi Mining - Indonesia
- Petron Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- TeaM Sual Corporation - Philippines
- Altura Mining Limited, Indonesia
- Madhucon Powers Ltd - India
- Central Java Power - Indonesia
- Heidelberg Cement - Germany
- Coastal Gujarat Power Limited - India
- Miang Besar Coal Terminal - Indonesia
- Siam City Cement - Thailand
- Central Electricity Authority - India
- Thiess Contractors Indonesia
- Tamil Nadu electricity Board
- Kapuas Tunggal Persada - Indonesia
- Baramulti Group, Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Malabar Cements Ltd - India
- Edison Trading Spa - Italy
- Medco Energi Mining Internasional
- Larsen & Toubro Limited - India
- Mintek Dendrill Indonesia
- Videocon Industries ltd - India
- Indonesian Coal Mining Association
- Antam Resourcindo - Indonesia
- Minerals Council of Australia
- Chettinad Cement Corporation Ltd - India
- Standard Chartered Bank - UAE
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- White Energy Company Limited
- Economic Council, Georgia
- Sical Logistics Limited - India
- Gujarat Mineral Development Corp Ltd - India
- IHS Mccloskey Coal Group - USA
- Samtan Co., Ltd - South Korea
- Holcim Trading Pte Ltd - Singapore
- Africa Commodities Group - South Africa
- Anglo American - United Kingdom
- Coalindo Energy - Indonesia
- Deloitte Consulting - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- Coal and Oil Company - UAE
- Rashtriya Ispat Nigam Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Timah Investasi Mineral - Indoneisa
- Krishnapatnam Port Company Ltd. - India
- Essar Steel Hazira Ltd - India
- Global Business Power Corporation, Philippines
- Indika Energy - Indonesia
- Renaissance Capital - South Africa
- Savvy Resources Ltd - HongKong
- Orica Mining Services - Indonesia
- Singapore Mercantile Exchange
- Mercator Lines Limited - India
- Sakthi Sugars Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Eastern Energy - Thailand
- Riau Bara Harum - Indonesia
- Sojitz Corporation - Japan
- Manunggal Multi Energi - Indonesia
- The University of Queensland
- Rio Tinto Coal - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kaltim Prima Coal - Indonesia
- Binh Thuan Hamico - Vietnam
- CNBM International Corporation - China
- Ministry of Finance - Indonesia
- International Coal Ventures Pvt Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- The State Trading Corporation of India Ltd
- Goldman Sachs - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Borneo Indobara - Indonesia
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