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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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Thursday, 02 March 23
DRY BULK MARKET: THE WAY CHINA GOES, SO GOES THE MARKET - BIMCO
We expect demand growth within the 1.5-2.5% range in 2023, driven by China’s economic recovery. Improvements in consumer sentiment should hel ...
Thursday, 02 March 23
INDIA, CHINA DEMAND BOOST LOW-RANK THERMAL COAL PRICES IN ASIA - RUSSELL, REUTERS
Signs of stronger import demand from India have arrested the decline in price of the thermal coal grades most commonly sought by the world’s ...
Thursday, 02 March 23
INDIA CHEERS THE RETURN OF ‘KING COAL’ AS INDUSTRY SEES BUOYANT FUTURE - REUTERS
India’s coal industry celebrated the return of its major conference after a three-year pandemic hiatus by presenting a bullish view of demand ...
Wednesday, 01 March 23
GEO CONNECT ASIA RETURNS IN MARCH TO ACCELERATE THE REGION’S GEOSPATIAL AND LOCATION INTELLIGENCE CAPABILITIES
Press Release: The third edition of GCA will be held in conjunction with Digital Construction Asia and the inaugural Drones Asia – an event d ...
Wednesday, 01 March 23
THE DECLINE IN THE COAL PRICE SINCE THE BEGINNING OF THE YEAR HAS BEEN SIGNIFICANT - INTERMODAL
Last week, the front-month API2 future rose by 3.5%, but since the beginning of the year the future has fallen by 39% to $136.65/t, while the Newca ...
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- SMG Consultants - Indonesia
- Sojitz Corporation - Japan
- Directorate Of Revenue Intelligence - India
- Tamil Nadu electricity Board
- Standard Chartered Bank - UAE
- Eastern Coal Council - USA
- India Bulls Power Limited - India
- CIMB Investment Bank - Malaysia
- Georgia Ports Authority, United States
- Parry Sugars Refinery, India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Star Paper Mills Limited - India
- Marubeni Corporation - India
- Toyota Tsusho Corporation, Japan
- GAC Shipping (India) Pvt Ltd
- Siam City Cement - Thailand
- Kumho Petrochemical, South Korea
- PowerSource Philippines DevCo
- IHS Mccloskey Coal Group - USA
- Global Green Power PLC Corporation, Philippines
- The State Trading Corporation of India Ltd
- Bukit Makmur.PT - Indonesia
- Barasentosa Lestari - Indonesia
- Sree Jayajothi Cements Limited - India
- Ministry of Finance - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Meenaskhi Energy Private Limited - India
- Edison Trading Spa - Italy
- OPG Power Generation Pvt Ltd - India
- CNBM International Corporation - China
- London Commodity Brokers - England
- PTC India Limited - India
- Coastal Gujarat Power Limited - India
- Vedanta Resources Plc - India
- Bukit Asam (Persero) Tbk - Indonesia
- Thiess Contractors Indonesia
- Straits Asia Resources Limited - Singapore
- Neyveli Lignite Corporation Ltd, - India
- Posco Energy - South Korea
- SN Aboitiz Power Inc, Philippines
- GMR Energy Limited - India
- McConnell Dowell - Australia
- Latin American Coal - Colombia
- Bukit Baiduri Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- Coalindo Energy - Indonesia
- Altura Mining Limited, Indonesia
- Krishnapatnam Port Company Ltd. - India
- Kapuas Tunggal Persada - Indonesia
- Gujarat Sidhee Cement - India
- Deloitte Consulting - India
- Meralco Power Generation, Philippines
- Rashtriya Ispat Nigam Limited - India
- SMC Global Power, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kobexindo Tractors - Indoneisa
- Xindia Steels Limited - India
- Heidelberg Cement - Germany
- Independent Power Producers Association of India
- Indika Energy - Indonesia
- Dalmia Cement Bharat India
- Alfred C Toepfer International GmbH - Germany
- Bhoruka Overseas - Indonesia
- Mjunction Services Limited - India
- Baramulti Group, Indonesia
- Ministry of Mines - Canada
- Orica Australia Pty. Ltd.
- Holcim Trading Pte Ltd - Singapore
- Directorate General of MIneral and Coal - Indonesia
- Ministry of Transport, Egypt
- Asmin Koalindo Tuhup - Indonesia
- Therma Luzon, Inc, Philippines
- Grasim Industreis Ltd - India
- Commonwealth Bank - Australia
- Sarangani Energy Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Bhatia International Limited - India
- Agrawal Coal Company - India
- Cigading International Bulk Terminal - Indonesia
- Anglo American - United Kingdom
- San Jose City I Power Corp, Philippines
- Rio Tinto Coal - Australia
- White Energy Company Limited
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- The University of Queensland
- Bhushan Steel Limited - India
- Maheswari Brothers Coal Limited - India
- Sindya Power Generating Company Private Ltd
- LBH Netherlands Bv - Netherlands
- Australian Commodity Traders Exchange
- Cement Manufacturers Association - India
- Chamber of Mines of South Africa
- Bahari Cakrawala Sebuku - Indonesia
- Eastern Energy - Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Antam Resourcindo - Indonesia
- GVK Power & Infra Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Coal and Oil Company - UAE
- AsiaOL BioFuels Corp., Philippines
- Semirara Mining Corp, Philippines
- Australian Coal Association
- IEA Clean Coal Centre - UK
- Indogreen Group - Indonesia
- Singapore Mercantile Exchange
- Power Finance Corporation Ltd., India
- Leighton Contractors Pty Ltd - Australia
- Iligan Light & Power Inc, Philippines
- Wood Mackenzie - Singapore
- Tata Chemicals Ltd - India
- Bharathi Cement Corporation - India
- Economic Council, Georgia
- Karbindo Abesyapradhi - Indoneisa
- Renaissance Capital - South Africa
- Medco Energi Mining Internasional
- Orica Mining Services - Indonesia
- Bangladesh Power Developement Board
- Port Waratah Coal Services - Australia
- Price Waterhouse Coopers - Russia
- Binh Thuan Hamico - Vietnam
- GN Power Mariveles Coal Plant, Philippines
- Vizag Seaport Private Limited - India
- Kartika Selabumi Mining - Indonesia
- Kepco SPC Power Corporation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Merrill Lynch Commodities Europe
- Carbofer General Trading SA - India
- Riau Bara Harum - Indonesia
- The Treasury - Australian Government
- Chettinad Cement Corporation Ltd - India
- Intertek Mineral Services - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Makarim & Taira - Indonesia
- Goldman Sachs - Singapore
- Videocon Industries ltd - India
- Interocean Group of Companies - India
- Timah Investasi Mineral - Indoneisa
- South Luzon Thermal Energy Corporation
- Salva Resources Pvt Ltd - India
- Karaikal Port Pvt Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Electricity Regulatory Commission - India
- Bulk Trading Sa - Switzerland
- Thai Mozambique Logistica
- ASAPP Information Group - India
- Kohat Cement Company Ltd. - Pakistan
- Indonesian Coal Mining Association
- Ambuja Cements Ltd - India
- Borneo Indobara - Indonesia
- Electricity Generating Authority of Thailand
- VISA Power Limited - India
- Africa Commodities Group - South Africa
- Uttam Galva Steels Limited - India
- PNOC Exploration Corporation - Philippines
- Planning Commission, India
- Trasteel International SA, Italy
- Aditya Birla Group - India
- Jindal Steel & Power Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Siam City Cement PLC, Thailand
- TeaM Sual Corporation - Philippines
- Indo Tambangraya Megah - Indonesia
- Oldendorff Carriers - Singapore
- Samtan Co., Ltd - South Korea
- Malabar Cements Ltd - India
- Energy Link Ltd, New Zealand
- Indian Energy Exchange, India
- Central Java Power - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Manunggal Multi Energi - Indonesia
- European Bulk Services B.V. - Netherlands
- ICICI Bank Limited - India
- Metalloyd Limited - United Kingdom
- Sakthi Sugars Limited - India
- Electricity Authority, New Zealand
- Mercuria Energy - Indonesia
- Indian Oil Corporation Limited
- Kaltim Prima Coal - Indonesia
- Ind-Barath Power Infra Limited - India
- Ceylon Electricity Board - Sri Lanka
- Gujarat Mineral Development Corp Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Madhucon Powers Ltd - India
- Bayan Resources Tbk. - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Larsen & Toubro Limited - India
- Mercator Lines Limited - India
- New Zealand Coal & Carbon
- Banpu Public Company Limited - Thailand
- Global Coal Blending Company Limited - Australia
- Attock Cement Pakistan Limited
- Sinarmas Energy and Mining - Indonesia
- Parliament of New Zealand
- Sical Logistics Limited - India
- Globalindo Alam Lestari - Indonesia
- Formosa Plastics Group - Taiwan
- Essar Steel Hazira Ltd - India
- Global Business Power Corporation, Philippines
- Wilmar Investment Holdings
- Petrochimia International Co. Ltd.- Taiwan
- Jaiprakash Power Ventures ltd
- Minerals Council of Australia
- Energy Development Corp, Philippines
- Petron Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Central Electricity Authority - India
- MS Steel International - UAE
- Pendopo Energi Batubara - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Mintek Dendrill Indonesia
- Lanco Infratech Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Kalimantan Lumbung Energi - Indonesia
- Savvy Resources Ltd - HongKong
- Romanian Commodities Exchange
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