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Friday, 08 June 12
NO IMMEDIATE IMPACT ON ADARO'S RATING FROM BEP TRANSACTION - FITCH RATINGS
 Fitch Ratings has said that PT Adaro Indonesia's (Adaro, 'BB+'/ Stable) ratings are not immediately affected by its parent PT Adaro Energy Tbk's (Adaro Energy) planned investment in greenfield coal miner PT Bhakti Energi Persada (BEP).
Adaro Energy recently signed an agreement for the right to acquire up to 51% of BEP over three years for up to USD500m through a convertible loan or to issue a pre-specified number of shares of Adaro Energy to the shareholders of BEP (participating in this agreement) in exchange for 79.8% of BEP. Adaro Energy currently owns 10.22% of BEP.
BEP has seven coal concessions, all IUPs (Izin Usaha Pertambangans - mining business licences), with estimated Australasian Joint Ore Reserves Committee (JORC)-compliant coal resources of 9.53 billion tonnes. Fitch expects that a large part of the investment required before bringing these resources to production will relate to the coal hauling road connecting the mines to barging and shipping points. Coal resources of BEP are of low energy content (3,379kcal on a gross as received basis) and as such will trade at a substantial discount to benchmark thermal coal prices. However, the favourable geology of BEP mines will allow the extraction of coal at an extremely low strip ratio (i.e., units of overburden to be removed on per unit of coal extracted) over the average life of a mine of below 0.5x as estimated by Adaro Energy, supporting the economic viability of these operations. The materially shorter supply chain of BEP's mines at 130km (versus 320km for Adaro's existing mines) would provide further support.
However, BEP coal mines have substantially lower cash margins than Adaro Energy's currently main cash generating mine, Tutupan, and are more susceptible to low coal prices. There is also uncertainty relating to coal mining regulations in Indonesia at present, such as restrictions on coal exports and a resource export tax. Any unfavourable regulatory developments can affect the commerciality of BEP's operations. However, Adaro Energy's options to invest in rather than an outright purchase of BEP resources provide a meaningful level of flexibility and safety. Fitch believes that any investments in the first half of the three-year option period will not be significant and can be funded from Adaro Energy's projected internal cash generation.
If successfully executed, BEP can over time contribute to the increasing diversity of Adaro Energy's mining operations. The limited diversity of Adaro Energy's existing mine sites is one of the factors currently constraining its ratings.
The ratings of Adaro are based on the credit profile of Adaro Energy given their strong rating linkages as per Fitch's parent-subsidiary linkage methodology. At end-March 2012 Adaro Energy's funds from operations (FFO)-adjusted gross leverage was 2.4x and FFO interest coverage 7.0x.
Negative rating action may result from FFO gross leverage rising above 2.75x or FFO interest coverage falling below 5x for two consecutive years. Other negative rating guidelines are material deviation from its policy of maintaining strong liquidity; adverse regulatory developments that will significantly impair Adaro Energy's financial profile; further substantial investments that weaken Adaro's financial or operating risk profile and a sustained weakening of coal prices.
Source: Fitch (Hong Kong) Limited
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Wednesday, 31 January 24
CHINA'S INNER MONGOLIA COAL OUTPUT HIT 1.21B TONS IN 2023 - XINHUA
North China’s Inner Mongolia autonomous region churned out 1.21 billion tons of coal in 2023 as it strives to guarantee the country’s e ...
Wednesday, 31 January 24
GAS EXPORTS COST U.S. CONSUMERS MORE THAN $100 BILLION OVER 16-MONTH PERIOD - IEEFA
Limited Demand Growth Could Dampen the Dry Bulk Market in the Coming Months BIMCOStarting in late 2021—before its invasion of Ukraine—R ...
Tuesday, 30 January 24
LIMITED DEMAND GROWTH COULD DAMPEN THE DRY BULK MARKET IN THE COMING MONTHS - BIMCO
Demand
In our base scenario, we expect cargo demand to grow by 0-1% in 2024 and 0.5-1.5% in 2025. This is a 0.5 percentage point reduction for ...
Friday, 26 January 24
RED SEA DIVERSIONS ADD NEARLY A MILLION DOLLARS PER VOYAGE TO SHIPPING COSTS WHILE DOUBLING TRANSIT TIME - LSEG
The incremental costs of diverting a tanker from Asia to NW Europe via the Cape of Good Hope is accounting for an extra $932,905 USD per voyage whi ...
Friday, 26 January 24
HARD COAL GUARDIAN ANGEL OF THE ENERGY SUPPLY - GERMANY COAL IMPORTERS ASSOCIATION
- No security of supply without hard coal
- The Substitute Power Plant Provision Act (EKBG) must be extended
- Higher grid fees due to the ...
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- Sinarmas Energy and Mining - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indian Energy Exchange, India
- TNB Fuel Sdn Bhd - Malaysia
- SN Aboitiz Power Inc, Philippines
- Orica Mining Services - Indonesia
- Vedanta Resources Plc - India
- Coalindo Energy - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Parry Sugars Refinery, India
- Makarim & Taira - Indonesia
- Orica Australia Pty. Ltd.
- Directorate Of Revenue Intelligence - India
- Ambuja Cements Ltd - India
- Siam City Cement PLC, Thailand
- Ministry of Mines - Canada
- Ministry of Transport, Egypt
- Energy Development Corp, Philippines
- Pendopo Energi Batubara - Indonesia
- Riau Bara Harum - Indonesia
- Trasteel International SA, Italy
- Formosa Plastics Group - Taiwan
- Mercuria Energy - Indonesia
- Power Finance Corporation Ltd., India
- Mercator Lines Limited - India
- Merrill Lynch Commodities Europe
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- ICICI Bank Limited - India
- Georgia Ports Authority, United States
- The University of Queensland
- SMG Consultants - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Mintek Dendrill Indonesia
- Minerals Council of Australia
- Petrochimia International Co. Ltd.- Taiwan
- White Energy Company Limited
- Bulk Trading Sa - Switzerland
- Manunggal Multi Energi - Indonesia
- Kobexindo Tractors - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- Savvy Resources Ltd - HongKong
- Metalloyd Limited - United Kingdom
- Neyveli Lignite Corporation Ltd, - India
- Kideco Jaya Agung - Indonesia
- Jaiprakash Power Ventures ltd
- Gujarat Mineral Development Corp Ltd - India
- Grasim Industreis Ltd - India
- Sojitz Corporation - Japan
- Bayan Resources Tbk. - Indonesia
- European Bulk Services B.V. - Netherlands
- Electricity Authority, New Zealand
- Intertek Mineral Services - Indonesia
- Thai Mozambique Logistica
- Samtan Co., Ltd - South Korea
- Karbindo Abesyapradhi - Indoneisa
- Port Waratah Coal Services - Australia
- Eastern Energy - Thailand
- Directorate General of MIneral and Coal - Indonesia
- Indika Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Altura Mining Limited, Indonesia
- Rashtriya Ispat Nigam Limited - India
- PetroVietnam Power Coal Import and Supply Company
- London Commodity Brokers - England
- Commonwealth Bank - Australia
- Larsen & Toubro Limited - India
- Billiton Holdings Pty Ltd - Australia
- Maheswari Brothers Coal Limited - India
- Malabar Cements Ltd - India
- Videocon Industries ltd - India
- Chamber of Mines of South Africa
- Semirara Mining and Power Corporation, Philippines
- Singapore Mercantile Exchange
- Australian Commodity Traders Exchange
- Gujarat Electricity Regulatory Commission - India
- Barasentosa Lestari - Indonesia
- Global Coal Blending Company Limited - Australia
- The Treasury - Australian Government
- PTC India Limited - India
- Central Electricity Authority - India
- GN Power Mariveles Coal Plant, Philippines
- Anglo American - United Kingdom
- Holcim Trading Pte Ltd - Singapore
- Miang Besar Coal Terminal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Energy Link Ltd, New Zealand
- Deloitte Consulting - India
- Indogreen Group - Indonesia
- Borneo Indobara - Indonesia
- Essar Steel Hazira Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Xindia Steels Limited - India
- Kumho Petrochemical, South Korea
- Ministry of Finance - Indonesia
- Price Waterhouse Coopers - Russia
- Planning Commission, India
- Petron Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Aboitiz Power Corporation - Philippines
- Iligan Light & Power Inc, Philippines
- Romanian Commodities Exchange
- Global Green Power PLC Corporation, Philippines
- Antam Resourcindo - Indonesia
- Gujarat Sidhee Cement - India
- Indian Oil Corporation Limited
- Kalimantan Lumbung Energi - Indonesia
- Bukit Makmur.PT - Indonesia
- Meenaskhi Energy Private Limited - India
- Straits Asia Resources Limited - Singapore
- Tamil Nadu electricity Board
- LBH Netherlands Bv - Netherlands
- Eastern Coal Council - USA
- GMR Energy Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Simpson Spence & Young - Indonesia
- Independent Power Producers Association of India
- Australian Coal Association
- South Luzon Thermal Energy Corporation
- International Coal Ventures Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Renaissance Capital - South Africa
- Ind-Barath Power Infra Limited - India
- VISA Power Limited - India
- Carbofer General Trading SA - India
- OPG Power Generation Pvt Ltd - India
- Interocean Group of Companies - India
- Leighton Contractors Pty Ltd - Australia
- SMC Global Power, Philippines
- Therma Luzon, Inc, Philippines
- Economic Council, Georgia
- Oldendorff Carriers - Singapore
- Sindya Power Generating Company Private Ltd
- New Zealand Coal & Carbon
- Bukit Asam (Persero) Tbk - Indonesia
- Attock Cement Pakistan Limited
- San Jose City I Power Corp, Philippines
- Kartika Selabumi Mining - Indonesia
- The State Trading Corporation of India Ltd
- Uttam Galva Steels Limited - India
- Timah Investasi Mineral - Indoneisa
- Binh Thuan Hamico - Vietnam
- Mjunction Services Limited - India
- Agrawal Coal Company - India
- Latin American Coal - Colombia
- Semirara Mining Corp, Philippines
- PNOC Exploration Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- Coal and Oil Company - UAE
- IEA Clean Coal Centre - UK
- PowerSource Philippines DevCo
- Toyota Tsusho Corporation, Japan
- Lanco Infratech Ltd - India
- India Bulls Power Limited - India
- IHS Mccloskey Coal Group - USA
- Thiess Contractors Indonesia
- Bhushan Steel Limited - India
- Africa Commodities Group - South Africa
- CIMB Investment Bank - Malaysia
- Baramulti Group, Indonesia
- Madhucon Powers Ltd - India
- Standard Chartered Bank - UAE
- Central Java Power - Indonesia
- Marubeni Corporation - India
- Vizag Seaport Private Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Parliament of New Zealand
- Sakthi Sugars Limited - India
- Coastal Gujarat Power Limited - India
- Cement Manufacturers Association - India
- Indonesian Coal Mining Association
- Kaltim Prima Coal - Indonesia
- Bukit Baiduri Energy - Indonesia
- TeaM Sual Corporation - Philippines
- Electricity Generating Authority of Thailand
- Heidelberg Cement - Germany
- Sical Logistics Limited - India
- GAC Shipping (India) Pvt Ltd
- McConnell Dowell - Australia
- Indo Tambangraya Megah - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Siam City Cement - Thailand
- Bharathi Cement Corporation - India
- Asmin Koalindo Tuhup - Indonesia
- Chettinad Cement Corporation Ltd - India
- Banpu Public Company Limited - Thailand
- Bhoruka Overseas - Indonesia
- Jindal Steel & Power Ltd - India
- Medco Energi Mining Internasional
- GVK Power & Infra Limited - India
- Bangladesh Power Developement Board
- Rio Tinto Coal - Australia
- Bhatia International Limited - India
- Posco Energy - South Korea
- Wood Mackenzie - Singapore
- Edison Trading Spa - Italy
- MS Steel International - UAE
- CNBM International Corporation - China
- Dalmia Cement Bharat India
- Tata Chemicals Ltd - India
- Sarangani Energy Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Karaikal Port Pvt Ltd - India
- Star Paper Mills Limited - India
- Salva Resources Pvt Ltd - India
- Meralco Power Generation, Philippines
- Alfred C Toepfer International GmbH - Germany
- Bank of Tokyo Mitsubishi UFJ Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Aditya Birla Group - India
- Wilmar Investment Holdings
- ASAPP Information Group - India
- Bahari Cakrawala Sebuku - Indonesia
- Goldman Sachs - Singapore
- Kepco SPC Power Corporation, Philippines
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