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Sunday, 28 March 10
DEMAND FROM INDIA RESHAPING THE GLOBAL COAL MARKET - DAVE FOREST
 Attention international coal industry. There's a new kid on the block.
The nation of India.
India is emerging as a major re-shaping force for the global coal market. With in-country coal supplies flagging, Indian buyers are increasingly turning to imports to meet demand.
The situation at many of the nation's power plants is dire. The federal Central Electricity Authority monitors coal stockpiles at 79 plants throughout India. As of yesterday, 19 of those plants (25%) were running at "critical" levels, with less than 7 days worth of coal on hand.
In fact, 9 of those plants are operating with less than 4 days of coal supply. Meaning that 11% of national generating capacity is teetering on the edge of shutdown. These plants are completely reliant on new coal deliveries. If coal shipping is disrupted for any reason, there's no back-up.
There are a few factors at play here. Firstly, India's coal production is lagging demand. Due to fixed government pricing that makes it difficult for coal miners to turn a profit. There's simply not much economic incentive to build new mines (although the government is trying to horse-whip producers into increasing output, even at low prices.)
The other problem is that India's coal-producing regions are distant from many of the electricity demand centers, especially along the coast. Bottlenecks in rail transport make it difficult to get coal to many of the power plants that need supply most.
A clear solution seems to be emerging amongst many of India's biggest coal buyers. Go international.
Yesterday, Maharashtra State Power Generation Co. (the firm that supplies power to Mumbai, among other places) announced it will seek to import 3.35 million tons of thermal coal in the year beginning April 1.
This is a big jump in Maharashtra's foreign coal use. Up 40% from the 2.4 million tons imported in the year ended March 31.
The company's managing director Subrat Ratho made it clear this is a decision coming from the highest levels in India. As he noted, "We would like to import as little as we can because overseas coal is six-times more expensive than Indian coal. But it appears the Ministry of Power has made an assessment of how much coal the domestic companies will be able to supply to various states and have given us this target."
The decision is changing the face of coal imports across the country. India's thermal coal imports surged 100% in 2009, to 60 million tons. Up from just 30 million tons in 2008.
With India's focus now shifting to coal imports, a question is arising. Where will this international supply come from?
Nations like China and Japan have been competing hard for years to secure coal supplies in many of the world's richest regions like Indonesia and Australia. Being late to the party, India is now making its own push to capture supplies. By going forth and buying mines.
Last year, the Indian government gave explicit instructions to many of the nation's largest coal companies to buy overseas coal mines in the interest of nailing down import supply.
One such acquisition materialized this week, with major coal miner and power plant operator Essar Group announcing its purchase of the Aries coal mine in East Kalimantan, Indonesia. The project is reported to hold 100 million tons of thermal coal.
This follows on the heels of Essar's recently-announced $600 million purchase of West Virginia's Trinity Coal Corp. Signaling that Essar (and other groups like it) are moving fast to secure coal assets globally.
The coal industry is already a crowded space, with several nations competing for imports and to buy mines. The sudden addition of an aggressive and deep-pocketed buyer like India could end up being like trying to drive a bulldozer through a mousehole. Putting upward pressure on both coal trade prices and the price tag for purchasing deposits.
We saw this movie once before in 2005 when China turned from a net exporter of coal to a net importer. Prices soared and coal producers had a great run in the stock market.
India may be the only other nation on the planet with the ability to do same.
Source: OilPrice
Dave Forest, dforest@piercepoints.com, www.piercepoints.com
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Friday, 16 April 10
KRISHNAPATNAM PORT IS IRONING ITS WAY INTO RECORD BOOKS
COALspot.com: Krishnapatnam Port achieved a new benchmark by loading 60,021 MT of Iron Ore fines in just 24 hrs surpassing its previous record of 54 ...
Friday, 16 April 10
RBCT COAL DISPUTE RESOLVED - MININGMX
Miningmx reported that, the long-simmering spat over the coal allocation for producers who will use the expanded facilities at Richards Bay Coal Ter ...
Friday, 16 April 10
COAL INDIA SELECTS MERCHANT BANKERS TO ACQUIRE OVERSEAS ASSETS -THE HINDU
An investment of about $1.8 billion is expected to be made in these deals
The Hindu reported that, Bank of America-Merill Lynch, Royal Bank of Sc ...
Thursday, 15 April 10
MAJOR THERMAL COAL CONTRACT AT 40% HIGHER PRICE THAN LAST YEAR - BUSINESS STANDARD
Business-Standard reported that, India is expected to import nearly 60 million tonnes of thermal coal this year.
After coking coal and iron ...
Thursday, 15 April 10
RICHARDS BAY ROUNDS BACK TO INDIA SUPRAS WERE FIXED AT MID 20'S
Handy
The BSI remains in a positive momentum and the Atlantic remains unchanged from last week. Fronthaul grain is active which is keeping ballast ...
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- Billiton Holdings Pty Ltd - Australia
- Sarangani Energy Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Independent Power Producers Association of India
- Interocean Group of Companies - India
- Madhucon Powers Ltd - India
- Siam City Cement - Thailand
- TeaM Sual Corporation - Philippines
- Trasteel International SA, Italy
- Central Electricity Authority - India
- Neyveli Lignite Corporation Ltd, - India
- Bulk Trading Sa - Switzerland
- Georgia Ports Authority, United States
- MS Steel International - UAE
- Dalmia Cement Bharat India
- Salva Resources Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- Bhatia International Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Maharashtra Electricity Regulatory Commission - India
- South Luzon Thermal Energy Corporation
- Pendopo Energi Batubara - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Videocon Industries ltd - India
- Goldman Sachs - Singapore
- The Treasury - Australian Government
- Straits Asia Resources Limited - Singapore
- Heidelberg Cement - Germany
- Baramulti Group, Indonesia
- ASAPP Information Group - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kapuas Tunggal Persada - Indonesia
- Bukit Baiduri Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- VISA Power Limited - India
- Petron Corporation, Philippines
- GAC Shipping (India) Pvt Ltd
- Bahari Cakrawala Sebuku - Indonesia
- European Bulk Services B.V. - Netherlands
- Aditya Birla Group - India
- Lanco Infratech Ltd - India
- Deloitte Consulting - India
- The University of Queensland
- Vijayanagar Sugar Pvt Ltd - India
- Central Java Power - Indonesia
- SN Aboitiz Power Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Commonwealth Bank - Australia
- Electricity Generating Authority of Thailand
- Miang Besar Coal Terminal - Indonesia
- Manunggal Multi Energi - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Barasentosa Lestari - Indonesia
- Globalindo Alam Lestari - Indonesia
- Maheswari Brothers Coal Limited - India
- Agrawal Coal Company - India
- Bangladesh Power Developement Board
- Kumho Petrochemical, South Korea
- Borneo Indobara - Indonesia
- Indogreen Group - Indonesia
- Bayan Resources Tbk. - Indonesia
- Kartika Selabumi Mining - Indonesia
- Mjunction Services Limited - India
- New Zealand Coal & Carbon
- White Energy Company Limited
- Sree Jayajothi Cements Limited - India
- Price Waterhouse Coopers - Russia
- Meralco Power Generation, Philippines
- Kepco SPC Power Corporation, Philippines
- Renaissance Capital - South Africa
- Riau Bara Harum - Indonesia
- Banpu Public Company Limited - Thailand
- Kalimantan Lumbung Energi - Indonesia
- Africa Commodities Group - South Africa
- Samtan Co., Ltd - South Korea
- Power Finance Corporation Ltd., India
- Ambuja Cements Ltd - India
- IEA Clean Coal Centre - UK
- Krishnapatnam Port Company Ltd. - India
- Siam City Cement PLC, Thailand
- Oldendorff Carriers - Singapore
- India Bulls Power Limited - India
- Parliament of New Zealand
- Sakthi Sugars Limited - India
- Formosa Plastics Group - Taiwan
- Metalloyd Limited - United Kingdom
- Altura Mining Limited, Indonesia
- PNOC Exploration Corporation - Philippines
- Thiess Contractors Indonesia
- Tata Chemicals Ltd - India
- Grasim Industreis Ltd - India
- Thai Mozambique Logistica
- IHS Mccloskey Coal Group - USA
- Kaltim Prima Coal - Indonesia
- ICICI Bank Limited - India
- Singapore Mercantile Exchange
- Australian Coal Association
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Essar Steel Hazira Ltd - India
- London Commodity Brokers - England
- Electricity Authority, New Zealand
- Uttam Galva Steels Limited - India
- Coalindo Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Karaikal Port Pvt Ltd - India
- Merrill Lynch Commodities Europe
- The State Trading Corporation of India Ltd
- Sojitz Corporation - Japan
- Gujarat Sidhee Cement - India
- Chettinad Cement Corporation Ltd - India
- Tamil Nadu electricity Board
- Cement Manufacturers Association - India
- Attock Cement Pakistan Limited
- Vedanta Resources Plc - India
- Minerals Council of Australia
- Malabar Cements Ltd - India
- Xindia Steels Limited - India
- Intertek Mineral Services - Indonesia
- Vizag Seaport Private Limited - India
- Australian Commodity Traders Exchange
- Ind-Barath Power Infra Limited - India
- Ceylon Electricity Board - Sri Lanka
- Savvy Resources Ltd - HongKong
- Wilmar Investment Holdings
- Mintek Dendrill Indonesia
- PTC India Limited - India
- Ministry of Mines - Canada
- Cigading International Bulk Terminal - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Coal and Oil Company - UAE
- Global Business Power Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Energy Development Corp, Philippines
- Alfred C Toepfer International GmbH - Germany
- Bukit Asam (Persero) Tbk - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Binh Thuan Hamico - Vietnam
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Eastern Energy - Thailand
- Iligan Light & Power Inc, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Meenaskhi Energy Private Limited - India
- Medco Energi Mining Internasional
- Timah Investasi Mineral - Indoneisa
- Chamber of Mines of South Africa
- LBH Netherlands Bv - Netherlands
- Directorate Of Revenue Intelligence - India
- Larsen & Toubro Limited - India
- Standard Chartered Bank - UAE
- GVK Power & Infra Limited - India
- Anglo American - United Kingdom
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Carbofer General Trading SA - India
- Asmin Koalindo Tuhup - Indonesia
- Indonesian Coal Mining Association
- Gujarat Electricity Regulatory Commission - India
- Toyota Tsusho Corporation, Japan
- Orica Mining Services - Indonesia
- Ministry of Transport, Egypt
- Global Green Power PLC Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Port Waratah Coal Services - Australia
- Edison Trading Spa - Italy
- Mercator Lines Limited - India
- Rashtriya Ispat Nigam Limited - India
- Mercuria Energy - Indonesia
- McConnell Dowell - Australia
- PetroVietnam Power Coal Import and Supply Company
- Marubeni Corporation - India
- Gujarat Mineral Development Corp Ltd - India
- Energy Link Ltd, New Zealand
- Kobexindo Tractors - Indoneisa
- Rio Tinto Coal - Australia
- Ministry of Finance - Indonesia
- SMC Global Power, Philippines
- GMR Energy Limited - India
- Aboitiz Power Corporation - Philippines
- Jindal Steel & Power Ltd - India
- Bhoruka Overseas - Indonesia
- Sical Logistics Limited - India
- Semirara Mining Corp, Philippines
- Star Paper Mills Limited - India
- Eastern Coal Council - USA
- Sindya Power Generating Company Private Ltd
- OPG Power Generation Pvt Ltd - India
- Bhushan Steel Limited - India
- Planning Commission, India
- San Jose City I Power Corp, Philippines
- Indika Energy - Indonesia
- Coastal Gujarat Power Limited - India
- Romanian Commodities Exchange
- Indo Tambangraya Megah - Indonesia
- Bharathi Cement Corporation - India
- Latin American Coal - Colombia
- Makarim & Taira - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Parry Sugars Refinery, India
- Antam Resourcindo - Indonesia
- Economic Council, Georgia
- Kohat Cement Company Ltd. - Pakistan
- Indian Oil Corporation Limited
- AsiaOL BioFuels Corp., Philippines
- CNBM International Corporation - China
- PowerSource Philippines DevCo
- Posco Energy - South Korea
- Orica Australia Pty. Ltd.
- Wood Mackenzie - Singapore
- SMG Consultants - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Kideco Jaya Agung - Indonesia
- Indian Energy Exchange, India
- International Coal Ventures Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Jaiprakash Power Ventures ltd
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