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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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Tuesday, 11 April 23
OIL RISES ON CHINA STIMULUS EXPECTATIONS, WEAKER DOLLAR - REUTERS
Oil prices rose on Tuesday on expectations of potential economic stimulus by China, healthy demand in the rest of Asia and a drop in U.S. crude sto ...
Sunday, 09 April 23
CHINA’S BUSINESS INCOME REBOUND POINTS TO IMPROVING ECONOMY: OFFICIAL - XINHUA
Chinese businesses have posted a strong rebound in sales revenue since the beginning of this year in the latest signal of an improving economy.
...
Sunday, 09 April 23
COAL INDIA TO BOOST SUPPLIES TO INDUSTRIES AS UTILITIES’ INVENTORIES RISE - REUTERS
Coal India Ltd will increase supplies to industries, the world’s largest coal miner said on Wednesday as fuel inventories at utilities run by ...
Thursday, 06 April 23
MARKET INSIGHT - INTERMODAL
LNG Current Supply/Demand Dynamics
This year, LNG supply will likely exceed demand, so prices will need to decline to levels that will encourag ...
Sunday, 26 March 23
EUROPE’S RUSH TO LNG COULD TURN INTO 'WORLD’S MOST EXPENSIVE AND UNNECESSARY INSURANCE POLICY'- CNBC
Europe’s rapid buildout of liquefied natural gas infrastructure is on track to far exceed demand by the end of the decade, according to new r ...
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- Thai Mozambique Logistica
- Bhushan Steel Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Coastal Gujarat Power Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Baramulti Group, Indonesia
- European Bulk Services B.V. - Netherlands
- Mercator Lines Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Siam City Cement PLC, Thailand
- Salva Resources Pvt Ltd - India
- Bharathi Cement Corporation - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bhoruka Overseas - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Uttam Galva Steels Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Essar Steel Hazira Ltd - India
- Borneo Indobara - Indonesia
- SMC Global Power, Philippines
- Gujarat Electricity Regulatory Commission - India
- Antam Resourcindo - Indonesia
- Bulk Trading Sa - Switzerland
- Tamil Nadu electricity Board
- TNB Fuel Sdn Bhd - Malaysia
- Bahari Cakrawala Sebuku - Indonesia
- Xindia Steels Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Larsen & Toubro Limited - India
- Holcim Trading Pte Ltd - Singapore
- Mintek Dendrill Indonesia
- SMG Consultants - Indonesia
- TeaM Sual Corporation - Philippines
- Attock Cement Pakistan Limited
- Jindal Steel & Power Ltd - India
- McConnell Dowell - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Deloitte Consulting - India
- Sree Jayajothi Cements Limited - India
- Global Green Power PLC Corporation, Philippines
- New Zealand Coal & Carbon
- Savvy Resources Ltd - HongKong
- Globalindo Alam Lestari - Indonesia
- Coal and Oil Company - UAE
- Central Java Power - Indonesia
- Price Waterhouse Coopers - Russia
- Gujarat Sidhee Cement - India
- Energy Development Corp, Philippines
- Ministry of Transport, Egypt
- Cement Manufacturers Association - India
- Timah Investasi Mineral - Indoneisa
- Vijayanagar Sugar Pvt Ltd - India
- Rio Tinto Coal - Australia
- Kartika Selabumi Mining - Indonesia
- ASAPP Information Group - India
- Agrawal Coal Company - India
- Port Waratah Coal Services - Australia
- Indogreen Group - Indonesia
- Videocon Industries ltd - India
- Kepco SPC Power Corporation, Philippines
- Africa Commodities Group - South Africa
- Vedanta Resources Plc - India
- Kobexindo Tractors - Indoneisa
- Chettinad Cement Corporation Ltd - India
- South Luzon Thermal Energy Corporation
- Jaiprakash Power Ventures ltd
- Alfred C Toepfer International GmbH - Germany
- Singapore Mercantile Exchange
- Bukit Makmur.PT - Indonesia
- Indika Energy - Indonesia
- Kaltim Prima Coal - Indonesia
- PTC India Limited - India
- Eastern Energy - Thailand
- CNBM International Corporation - China
- Malabar Cements Ltd - India
- Bayan Resources Tbk. - Indonesia
- Sical Logistics Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Straits Asia Resources Limited - Singapore
- Meralco Power Generation, Philippines
- Tata Chemicals Ltd - India
- Intertek Mineral Services - Indonesia
- Wilmar Investment Holdings
- Ind-Barath Power Infra Limited - India
- Dalmia Cement Bharat India
- PNOC Exploration Corporation - Philippines
- LBH Netherlands Bv - Netherlands
- Aditya Birla Group - India
- Star Paper Mills Limited - India
- Banpu Public Company Limited - Thailand
- Goldman Sachs - Singapore
- Samtan Co., Ltd - South Korea
- Rashtriya Ispat Nigam Limited - India
- The State Trading Corporation of India Ltd
- Orica Mining Services - Indonesia
- Wood Mackenzie - Singapore
- Anglo American - United Kingdom
- Bhatia International Limited - India
- Ministry of Mines - Canada
- Madhucon Powers Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- ICICI Bank Limited - India
- IEA Clean Coal Centre - UK
- Metalloyd Limited - United Kingdom
- Heidelberg Cement - Germany
- Global Business Power Corporation, Philippines
- Kumho Petrochemical, South Korea
- International Coal Ventures Pvt Ltd - India
- GMR Energy Limited - India
- Merrill Lynch Commodities Europe
- Interocean Group of Companies - India
- Gujarat Mineral Development Corp Ltd - India
- Independent Power Producers Association of India
- SN Aboitiz Power Inc, Philippines
- Marubeni Corporation - India
- AsiaOL BioFuels Corp., Philippines
- Krishnapatnam Port Company Ltd. - India
- Mercuria Energy - Indonesia
- Ambuja Cements Ltd - India
- Electricity Generating Authority of Thailand
- Semirara Mining and Power Corporation, Philippines
- Formosa Plastics Group - Taiwan
- PetroVietnam Power Coal Import and Supply Company
- Indo Tambangraya Megah - Indonesia
- VISA Power Limited - India
- Standard Chartered Bank - UAE
- Oldendorff Carriers - Singapore
- Altura Mining Limited, Indonesia
- Australian Coal Association
- Kapuas Tunggal Persada - Indonesia
- Manunggal Multi Energi - Indonesia
- Iligan Light & Power Inc, Philippines
- Global Coal Blending Company Limited - Australia
- Ministry of Finance - Indonesia
- Central Electricity Authority - India
- Leighton Contractors Pty Ltd - Australia
- Electricity Authority, New Zealand
- Georgia Ports Authority, United States
- Meenaskhi Energy Private Limited - India
- Simpson Spence & Young - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Kideco Jaya Agung - Indonesia
- Mjunction Services Limited - India
- Sinarmas Energy and Mining - Indonesia
- Pendopo Energi Batubara - Indonesia
- San Jose City I Power Corp, Philippines
- Makarim & Taira - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Maheswari Brothers Coal Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Kohat Cement Company Ltd. - Pakistan
- IHS Mccloskey Coal Group - USA
- Parliament of New Zealand
- Asmin Koalindo Tuhup - Indonesia
- Thiess Contractors Indonesia
- Barasentosa Lestari - Indonesia
- Siam City Cement - Thailand
- Australian Commodity Traders Exchange
- Sarangani Energy Corporation, Philippines
- Orica Australia Pty. Ltd.
- Lanco Infratech Ltd - India
- Sakthi Sugars Limited - India
- Coalindo Energy - Indonesia
- Grasim Industreis Ltd - India
- Sindya Power Generating Company Private Ltd
- Trasteel International SA, Italy
- Posco Energy - South Korea
- PowerSource Philippines DevCo
- Indian Energy Exchange, India
- Directorate Of Revenue Intelligence - India
- Latin American Coal - Colombia
- Semirara Mining Corp, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Binh Thuan Hamico - Vietnam
- Sojitz Corporation - Japan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GN Power Mariveles Coal Plant, Philippines
- The Treasury - Australian Government
- Chamber of Mines of South Africa
- Therma Luzon, Inc, Philippines
- Aboitiz Power Corporation - Philippines
- Riau Bara Harum - Indonesia
- MS Steel International - UAE
- Carbofer General Trading SA - India
- Indian Oil Corporation Limited
- GVK Power & Infra Limited - India
- Bangladesh Power Developement Board
- Indonesian Coal Mining Association
- Economic Council, Georgia
- Planning Commission, India
- The University of Queensland
- India Bulls Power Limited - India
- GAC Shipping (India) Pvt Ltd
- Miang Besar Coal Terminal - Indonesia
- Minerals Council of Australia
- OPG Power Generation Pvt Ltd - India
- Vizag Seaport Private Limited - India
- Bukit Baiduri Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Medco Energi Mining Internasional
- Energy Link Ltd, New Zealand
- Parry Sugars Refinery, India
- Eastern Coal Council - USA
- Commonwealth Bank - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- White Energy Company Limited
- Power Finance Corporation Ltd., India
- Petron Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Romanian Commodities Exchange
- London Commodity Brokers - England
- Karaikal Port Pvt Ltd - India
- Renaissance Capital - South Africa
- Edison Trading Spa - Italy
- Cigading International Bulk Terminal - Indonesia
- Toyota Tsusho Corporation, Japan
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