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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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Sunday, 26 February 23
MAWANI AND JEDDAH CHAMBER SIGN AN AGREEMENT TO BUILD INTEGRATED LOGISTICS PARK
Press Release: The Saudi Ports Authority (Mawani) and Jeddah Chamber of Commerce and Industry have today inked an agreement to set up an integrated ...
Saturday, 25 February 23
INDONESIA IS STILL BY FAR THE TOP SUPPLIER OF COAL TO CHINA - BANCHERO COSTA
After a slow start in the first quarter, global coal trade has really picked up pace last year, and is now fully back to pre-Covid levels, said ban ...
Wednesday, 22 February 23
MARKET INSIGHT - INTERMODAL
The short-term outlook of the global soybean market is currently pivoted by a combination of weather patterns that are affecting the harvest progre ...
Saturday, 18 February 23
OIL UNLIKELY TO BREAK ABOVE $100/BBL THIS YEAR, J.P.MORGAN SAYS –- REUTERS
Brent oil prices are unlikely to breach the $100 a barrel level this year, barring any significant geopolitical drivers, with OPEC+ potentially add ...
Saturday, 18 February 23
CHINA'S COAL PRICES FALL TO 1 YR-LOW, CLOUDING DEMAND AND IMPORT OUTLOOK - REUTERS
China’s thermal coal prices hit their lowest levels in a year this week on rising inventories as domestic mine production is recovering faste ...
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- Parliament of New Zealand
- Bhushan Steel Limited - India
- Singapore Mercantile Exchange
- Bayan Resources Tbk. - Indonesia
- Antam Resourcindo - Indonesia
- Timah Investasi Mineral - Indoneisa
- Gujarat Mineral Development Corp Ltd - India
- PowerSource Philippines DevCo
- TeaM Sual Corporation - Philippines
- Mintek Dendrill Indonesia
- Bulk Trading Sa - Switzerland
- PTC India Limited - India
- Barasentosa Lestari - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Chettinad Cement Corporation Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- PNOC Exploration Corporation - Philippines
- The Treasury - Australian Government
- Bangladesh Power Developement Board
- Metalloyd Limited - United Kingdom
- Kohat Cement Company Ltd. - Pakistan
- GVK Power & Infra Limited - India
- Madhucon Powers Ltd - India
- Kobexindo Tractors - Indoneisa
- Therma Luzon, Inc, Philippines
- Formosa Plastics Group - Taiwan
- Globalindo Alam Lestari - Indonesia
- Banpu Public Company Limited - Thailand
- AsiaOL BioFuels Corp., Philippines
- Iligan Light & Power Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Petron Corporation, Philippines
- Jaiprakash Power Ventures ltd
- Heidelberg Cement - Germany
- Borneo Indobara - Indonesia
- Goldman Sachs - Singapore
- Wilmar Investment Holdings
- Bukit Makmur.PT - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Ministry of Finance - Indonesia
- Georgia Ports Authority, United States
- Karaikal Port Pvt Ltd - India
- Merrill Lynch Commodities Europe
- Cement Manufacturers Association - India
- CIMB Investment Bank - Malaysia
- Aditya Birla Group - India
- Meralco Power Generation, Philippines
- Binh Thuan Hamico - Vietnam
- Marubeni Corporation - India
- Tata Chemicals Ltd - India
- Coal and Oil Company - UAE
- Energy Link Ltd, New Zealand
- Uttam Galva Steels Limited - India
- Makarim & Taira - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kepco SPC Power Corporation, Philippines
- MS Steel International - UAE
- Sakthi Sugars Limited - India
- Indian Energy Exchange, India
- Agrawal Coal Company - India
- ASAPP Information Group - India
- Cigading International Bulk Terminal - Indonesia
- The University of Queensland
- Jindal Steel & Power Ltd - India
- Chamber of Mines of South Africa
- SMC Global Power, Philippines
- Xindia Steels Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Bhatia International Limited - India
- LBH Netherlands Bv - Netherlands
- London Commodity Brokers - England
- Larsen & Toubro Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- India Bulls Power Limited - India
- Dalmia Cement Bharat India
- Ministry of Mines - Canada
- Anglo American - United Kingdom
- GMR Energy Limited - India
- CNBM International Corporation - China
- Gujarat Electricity Regulatory Commission - India
- Latin American Coal - Colombia
- Riau Bara Harum - Indonesia
- Edison Trading Spa - Italy
- Electricity Generating Authority of Thailand
- Vizag Seaport Private Limited - India
- Meenaskhi Energy Private Limited - India
- Kideco Jaya Agung - Indonesia
- Mercuria Energy - Indonesia
- Billiton Holdings Pty Ltd - Australia
- European Bulk Services B.V. - Netherlands
- Renaissance Capital - South Africa
- Savvy Resources Ltd - HongKong
- International Coal Ventures Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Medco Energi Mining Internasional
- SMG Consultants - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Trasteel International SA, Italy
- Sarangani Energy Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Essar Steel Hazira Ltd - India
- Parry Sugars Refinery, India
- Sinarmas Energy and Mining - Indonesia
- Directorate Of Revenue Intelligence - India
- Mjunction Services Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Global Green Power PLC Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Romanian Commodities Exchange
- IEA Clean Coal Centre - UK
- Star Paper Mills Limited - India
- Grasim Industreis Ltd - India
- Minerals Council of Australia
- Indonesian Coal Mining Association
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indogreen Group - Indonesia
- Australian Coal Association
- Pendopo Energi Batubara - Indonesia
- Global Coal Blending Company Limited - Australia
- McConnell Dowell - Australia
- The State Trading Corporation of India Ltd
- Posco Energy - South Korea
- Orica Mining Services - Indonesia
- Africa Commodities Group - South Africa
- Rashtriya Ispat Nigam Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Gujarat Sidhee Cement - India
- Petrochimia International Co. Ltd.- Taiwan
- Port Waratah Coal Services - Australia
- Rio Tinto Coal - Australia
- Aboitiz Power Corporation - Philippines
- Interocean Group of Companies - India
- Asmin Koalindo Tuhup - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Kumho Petrochemical, South Korea
- Semirara Mining and Power Corporation, Philippines
- Ambuja Cements Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Leighton Contractors Pty Ltd - Australia
- Sindya Power Generating Company Private Ltd
- Siam City Cement PLC, Thailand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kaltim Prima Coal - Indonesia
- Ministry of Transport, Egypt
- Indian Oil Corporation Limited
- Karbindo Abesyapradhi - Indoneisa
- Deloitte Consulting - India
- Tamil Nadu electricity Board
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- Vedanta Resources Plc - India
- Altura Mining Limited, Indonesia
- Thai Mozambique Logistica
- Samtan Co., Ltd - South Korea
- Central Java Power - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- South Luzon Thermal Energy Corporation
- Australian Commodity Traders Exchange
- Sree Jayajothi Cements Limited - India
- VISA Power Limited - India
- GAC Shipping (India) Pvt Ltd
- Thiess Contractors Indonesia
- OPG Power Generation Pvt Ltd - India
- Videocon Industries ltd - India
- Price Waterhouse Coopers - Russia
- ICICI Bank Limited - India
- Lanco Infratech Ltd - India
- Bhoruka Overseas - Indonesia
- Intertek Mineral Services - Indonesia
- Standard Chartered Bank - UAE
- Jorong Barutama Greston.PT - Indonesia
- Carbofer General Trading SA - India
- Simpson Spence & Young - Indonesia
- White Energy Company Limited
- IHS Mccloskey Coal Group - USA
- Ceylon Electricity Board - Sri Lanka
- Bukit Baiduri Energy - Indonesia
- Global Business Power Corporation, Philippines
- Energy Development Corp, Philippines
- Alfred C Toepfer International GmbH - Germany
- Baramulti Group, Indonesia
- Sojitz Corporation - Japan
- Miang Besar Coal Terminal - Indonesia
- Salva Resources Pvt Ltd - India
- Siam City Cement - Thailand
- Kartika Selabumi Mining - Indonesia
- Toyota Tsusho Corporation, Japan
- TNB Fuel Sdn Bhd - Malaysia
- Krishnapatnam Port Company Ltd. - India
- Sical Logistics Limited - India
- Semirara Mining Corp, Philippines
- Eastern Energy - Thailand
- Planning Commission, India
- Directorate General of MIneral and Coal - Indonesia
- Central Electricity Authority - India
- Economic Council, Georgia
- Bahari Cakrawala Sebuku - Indonesia
- New Zealand Coal & Carbon
- Wood Mackenzie - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Commonwealth Bank - Australia
- Independent Power Producers Association of India
- San Jose City I Power Corp, Philippines
- Malabar Cements Ltd - India
- Electricity Authority, New Zealand
- Manunggal Multi Energi - Indonesia
- Attock Cement Pakistan Limited
- Bharathi Cement Corporation - India
- Mercator Lines Limited - India
- Ind-Barath Power Infra Limited - India
- Oldendorff Carriers - Singapore
- Coalindo Energy - Indonesia
- Indika Energy - Indonesia
- Orica Australia Pty. Ltd.
- Coastal Gujarat Power Limited - India
- Eastern Coal Council - USA
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