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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, 06 March 09
CHURCHILL STARTS REVERSE DRILLING AT INDONESIAN COAL PROJECT
Miningweekly reported that, Aim-listed minerals explorer Churchill Mining on Thursday stated that reverse drilling at its East Kutai coal project (E ...
Thursday, 05 March 09
UAE FUND PLANS INDONESIA COAL RAIL LINK
News.alibaba reported that, A United Arab Emirates' fund signed a memorandum of understanding on Monday (2 March 2009) with an Indonesian prov ...
Thursday, 05 March 09
CHINA COAL-PRICES LITTLE CHANGED DESPITE PLUNGE ABROAD
China's spot coal prices were little changed from a week earlier, despite the sharp fall in the international market, and demand for coal remains s ...
Thursday, 05 March 09
RAK TO BUILD COAL FIRED POWER STATION
The National Ras al Khaimah, which is developing a coal mine in Indonesia, will build a coal-fired power plant in the emirate in the next two years ...
Wednesday, 04 March 09
COAL: GLOBAL DEMAND WEAKENS
The Jakarta Post reported that, While coal prices were stickier on the way down compared to other commodities like oil, the Newcastle price now sugg ...
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- Pipit Mutiara Jaya. PT, Indonesia
- Global Business Power Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- San Jose City I Power Corp, Philippines
- Chettinad Cement Corporation Ltd - India
- Miang Besar Coal Terminal - Indonesia
- SMC Global Power, Philippines
- Barasentosa Lestari - Indonesia
- Vizag Seaport Private Limited - India
- The University of Queensland
- India Bulls Power Limited - India
- Riau Bara Harum - Indonesia
- Rashtriya Ispat Nigam Limited - India
- GMR Energy Limited - India
- Sindya Power Generating Company Private Ltd
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- GN Power Mariveles Coal Plant, Philippines
- LBH Netherlands Bv - Netherlands
- Indo Tambangraya Megah - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Indonesian Coal Mining Association
- Altura Mining Limited, Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Kaltim Prima Coal - Indonesia
- Pendopo Energi Batubara - Indonesia
- Borneo Indobara - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Salva Resources Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Aboitiz Power Corporation - Philippines
- Port Waratah Coal Services - Australia
- Bukit Baiduri Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- PowerSource Philippines DevCo
- Interocean Group of Companies - India
- New Zealand Coal & Carbon
- TeaM Sual Corporation - Philippines
- McConnell Dowell - Australia
- Kartika Selabumi Mining - Indonesia
- Makarim & Taira - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Siam City Cement PLC, Thailand
- White Energy Company Limited
- Videocon Industries ltd - India
- Savvy Resources Ltd - HongKong
- Banpu Public Company Limited - Thailand
- IHS Mccloskey Coal Group - USA
- Star Paper Mills Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Carbofer General Trading SA - India
- International Coal Ventures Pvt Ltd - India
- Sojitz Corporation - Japan
- Georgia Ports Authority, United States
- Antam Resourcindo - Indonesia
- South Luzon Thermal Energy Corporation
- Mercator Lines Limited - India
- Bharathi Cement Corporation - India
- CIMB Investment Bank - Malaysia
- Central Java Power - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Coalindo Energy - Indonesia
- Thai Mozambique Logistica
- Agrawal Coal Company - India
- Alfred C Toepfer International GmbH - Germany
- Rio Tinto Coal - Australia
- The Treasury - Australian Government
- Global Green Power PLC Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Ministry of Transport, Egypt
- Central Electricity Authority - India
- Anglo American - United Kingdom
- Tamil Nadu electricity Board
- Electricity Generating Authority of Thailand
- Toyota Tsusho Corporation, Japan
- VISA Power Limited - India
- Eastern Energy - Thailand
- Renaissance Capital - South Africa
- Ind-Barath Power Infra Limited - India
- London Commodity Brokers - England
- Grasim Industreis Ltd - India
- Kobexindo Tractors - Indoneisa
- Meralco Power Generation, Philippines
- Lanco Infratech Ltd - India
- Directorate Of Revenue Intelligence - India
- Billiton Holdings Pty Ltd - Australia
- Australian Commodity Traders Exchange
- Indika Energy - Indonesia
- SMG Consultants - Indonesia
- Global Coal Blending Company Limited - Australia
- Commonwealth Bank - Australia
- Wilmar Investment Holdings
- OPG Power Generation Pvt Ltd - India
- GAC Shipping (India) Pvt Ltd
- Deloitte Consulting - India
- Jindal Steel & Power Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Jaiprakash Power Ventures ltd
- Samtan Co., Ltd - South Korea
- Ceylon Electricity Board - Sri Lanka
- Uttam Galva Steels Limited - India
- Krishnapatnam Port Company Ltd. - India
- Iligan Light & Power Inc, Philippines
- Medco Energi Mining Internasional
- Singapore Mercantile Exchange
- PTC India Limited - India
- Dalmia Cement Bharat India
- Thiess Contractors Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- ASAPP Information Group - India
- Sinarmas Energy and Mining - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Siam City Cement - Thailand
- Sakthi Sugars Limited - India
- SN Aboitiz Power Inc, Philippines
- Leighton Contractors Pty Ltd - Australia
- Ministry of Finance - Indonesia
- Bhushan Steel Limited - India
- Meenaskhi Energy Private Limited - India
- Latin American Coal - Colombia
- Eastern Coal Council - USA
- Mjunction Services Limited - India
- Power Finance Corporation Ltd., India
- Simpson Spence & Young - Indonesia
- Baramulti Group, Indonesia
- Price Waterhouse Coopers - Russia
- Electricity Authority, New Zealand
- Energy Link Ltd, New Zealand
- Bayan Resources Tbk. - Indonesia
- Kapuas Tunggal Persada - Indonesia
- GVK Power & Infra Limited - India
- Karaikal Port Pvt Ltd - India
- Madhucon Powers Ltd - India
- The State Trading Corporation of India Ltd
- Aditya Birla Group - India
- Bukit Makmur.PT - Indonesia
- Gujarat Sidhee Cement - India
- Independent Power Producers Association of India
- Petron Corporation, Philippines
- Mintek Dendrill Indonesia
- Formosa Plastics Group - Taiwan
- CNBM International Corporation - China
- Heidelberg Cement - Germany
- Bhoruka Overseas - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Larsen & Toubro Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- IEA Clean Coal Centre - UK
- Cement Manufacturers Association - India
- Timah Investasi Mineral - Indoneisa
- Bukit Asam (Persero) Tbk - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Binh Thuan Hamico - Vietnam
- Bangladesh Power Developement Board
- Minerals Council of Australia
- Chamber of Mines of South Africa
- Australian Coal Association
- Oldendorff Carriers - Singapore
- Kumho Petrochemical, South Korea
- Coal and Oil Company - UAE
- PNOC Exploration Corporation - Philippines
- Maheswari Brothers Coal Limited - India
- Xindia Steels Limited - India
- Attock Cement Pakistan Limited
- Bulk Trading Sa - Switzerland
- Merrill Lynch Commodities Europe
- Therma Luzon, Inc, Philippines
- Malabar Cements Ltd - India
- Essar Steel Hazira Ltd - India
- Globalindo Alam Lestari - Indonesia
- Sree Jayajothi Cements Limited - India
- Coastal Gujarat Power Limited - India
- Energy Development Corp, Philippines
- Manunggal Multi Energi - Indonesia
- Trasteel International SA, Italy
- Parry Sugars Refinery, India
- Wood Mackenzie - Singapore
- Africa Commodities Group - South Africa
- Indian Energy Exchange, India
- Sical Logistics Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Semirara Mining Corp, Philippines
- AsiaOL BioFuels Corp., Philippines
- Parliament of New Zealand
- Indogreen Group - Indonesia
- Kepco SPC Power Corporation, Philippines
- Goldman Sachs - Singapore
- Bhatia International Limited - India
- Economic Council, Georgia
- ICICI Bank Limited - India
- Holcim Trading Pte Ltd - Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Vedanta Resources Plc - India
- Mercuria Energy - Indonesia
- Indian Oil Corporation Limited
- Orica Australia Pty. Ltd.
- Sarangani Energy Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Planning Commission, India
- Ministry of Mines - Canada
- Tata Chemicals Ltd - India
- Ambuja Cements Ltd - India
- Romanian Commodities Exchange
- European Bulk Services B.V. - Netherlands
- Posco Energy - South Korea
- Orica Mining Services - Indonesia
- MS Steel International - UAE
- Marubeni Corporation - India
- Maharashtra Electricity Regulatory Commission - India
- Standard Chartered Bank - UAE
- Edison Trading Spa - Italy
- Jorong Barutama Greston.PT - Indonesia
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