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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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Saturday, 18 February 23
PAKISTAN PLANS TO QUADRUPLE DOMESTIC COAL-FIRED POWER, MOVE AWAY FROM GAS - REUTERS
Pakistan plans to quadruple its domestic coal-fired capacity to reduce power generation costs and will not build new gas-fired plants in the coming ...
Saturday, 18 February 23
2023 MARINE FUEL MARKET PREDICTIONS - JOHN BERGMAN, AURAMARINE
The drive for decarbonisation we witnessed in 2022 has continued into 2023, demonstrating the shipping’s industry positive strides in the fas ...
Saturday, 28 January 23
COAL GROWTH BLIP NOT TO BE REPEATED - BALTIC EXCHANGE
As 2022 drew to a close, global coal demand looked set to end the year just 1.2% up on the previous year. But that small increase was enough to pus ...
Thursday, 26 January 23
CHINA'S COAL OUTPUT INCREASES IN DECEMBER 2022 - XINHUA
China’s raw coal output posted stable expansion in December 2022, official data showed.
The country produced 400 million tonne ...
Thursday, 26 January 23
COKING COAL NARROWS THE GAP ON THERMAL AS CHINA REOPENS - REUTERS
The premium of high-grade thermal coal over coking coal in Asia is shrinking as China’s re-opening and ending of a ban on imports from Austra ...
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- Mjunction Services Limited - India
- Barasentosa Lestari - Indonesia
- Mercator Lines Limited - India
- Indian Oil Corporation Limited
- Xindia Steels Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Iligan Light & Power Inc, Philippines
- Riau Bara Harum - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- LBH Netherlands Bv - Netherlands
- Carbofer General Trading SA - India
- Power Finance Corporation Ltd., India
- Gujarat Electricity Regulatory Commission - India
- Tamil Nadu electricity Board
- Straits Asia Resources Limited - Singapore
- ICICI Bank Limited - India
- Oldendorff Carriers - Singapore
- Alfred C Toepfer International GmbH - Germany
- Maharashtra Electricity Regulatory Commission - India
- MS Steel International - UAE
- Manunggal Multi Energi - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Petron Corporation, Philippines
- Ambuja Cements Ltd - India
- Eastern Coal Council - USA
- Indonesian Coal Mining Association
- Georgia Ports Authority, United States
- Port Waratah Coal Services - Australia
- Economic Council, Georgia
- Holcim Trading Pte Ltd - Singapore
- Toyota Tsusho Corporation, Japan
- ASAPP Information Group - India
- Anglo American - United Kingdom
- Bukit Baiduri Energy - Indonesia
- Uttam Galva Steels Limited - India
- The University of Queensland
- Leighton Contractors Pty Ltd - Australia
- Borneo Indobara - Indonesia
- Posco Energy - South Korea
- Bhushan Steel Limited - India
- Jaiprakash Power Ventures ltd
- PowerSource Philippines DevCo
- Ministry of Mines - Canada
- AsiaOL BioFuels Corp., Philippines
- Standard Chartered Bank - UAE
- Indian Energy Exchange, India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Altura Mining Limited, Indonesia
- Coalindo Energy - Indonesia
- Lanco Infratech Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Eastern Energy - Thailand
- Malabar Cements Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Australian Coal Association
- Bhoruka Overseas - Indonesia
- PNOC Exploration Corporation - Philippines
- Jindal Steel & Power Ltd - India
- Indo Tambangraya Megah - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Agrawal Coal Company - India
- International Coal Ventures Pvt Ltd - India
- Thai Mozambique Logistica
- Antam Resourcindo - Indonesia
- Bukit Makmur.PT - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Merrill Lynch Commodities Europe
- Orica Mining Services - Indonesia
- IHS Mccloskey Coal Group - USA
- Gujarat Sidhee Cement - India
- GVK Power & Infra Limited - India
- Semirara Mining Corp, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Larsen & Toubro Limited - India
- Electricity Authority, New Zealand
- Independent Power Producers Association of India
- Trasteel International SA, Italy
- Deloitte Consulting - India
- Makarim & Taira - Indonesia
- Cement Manufacturers Association - India
- Chamber of Mines of South Africa
- Mintek Dendrill Indonesia
- Global Coal Blending Company Limited - Australia
- Bhatia International Limited - India
- The Treasury - Australian Government
- Sojitz Corporation - Japan
- Sakthi Sugars Limited - India
- Vedanta Resources Plc - India
- IEA Clean Coal Centre - UK
- Commonwealth Bank - Australia
- Krishnapatnam Port Company Ltd. - India
- Chettinad Cement Corporation Ltd - India
- San Jose City I Power Corp, Philippines
- Latin American Coal - Colombia
- Indika Energy - Indonesia
- Rio Tinto Coal - Australia
- Romanian Commodities Exchange
- Karbindo Abesyapradhi - Indoneisa
- CNBM International Corporation - China
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Planning Commission, India
- Parliament of New Zealand
- Timah Investasi Mineral - Indoneisa
- Mercuria Energy - Indonesia
- Singapore Mercantile Exchange
- Formosa Plastics Group - Taiwan
- Kumho Petrochemical, South Korea
- Dalmia Cement Bharat India
- Karaikal Port Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- CIMB Investment Bank - Malaysia
- Global Green Power PLC Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Kepco SPC Power Corporation, Philippines
- Australian Commodity Traders Exchange
- Sindya Power Generating Company Private Ltd
- Intertek Mineral Services - Indonesia
- South Luzon Thermal Energy Corporation
- Orica Australia Pty. Ltd.
- Savvy Resources Ltd - HongKong
- Medco Energi Mining Internasional
- Therma Luzon, Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Coal and Oil Company - UAE
- SMC Global Power, Philippines
- Energy Development Corp, Philippines
- Samtan Co., Ltd - South Korea
- OPG Power Generation Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Pendopo Energi Batubara - Indonesia
- Essar Steel Hazira Ltd - India
- PTC India Limited - India
- New Zealand Coal & Carbon
- Bangladesh Power Developement Board
- Thiess Contractors Indonesia
- White Energy Company Limited
- European Bulk Services B.V. - Netherlands
- Indogreen Group - Indonesia
- Grasim Industreis Ltd - India
- Sree Jayajothi Cements Limited - India
- Baramulti Group, Indonesia
- SMG Consultants - Indonesia
- Marubeni Corporation - India
- Siam City Cement - Thailand
- GMR Energy Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Gujarat Mineral Development Corp Ltd - India
- Videocon Industries ltd - India
- Directorate Of Revenue Intelligence - India
- Interocean Group of Companies - India
- Siam City Cement PLC, Thailand
- Meralco Power Generation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Globalindo Alam Lestari - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Aboitiz Power Corporation - Philippines
- Kideco Jaya Agung - Indonesia
- Bayan Resources Tbk. - Indonesia
- SN Aboitiz Power Inc, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Bulk Trading Sa - Switzerland
- Metalloyd Limited - United Kingdom
- London Commodity Brokers - England
- Central Electricity Authority - India
- Ministry of Finance - Indonesia
- Minerals Council of Australia
- Asmin Koalindo Tuhup - Indonesia
- Tata Chemicals Ltd - India
- Price Waterhouse Coopers - Russia
- Ceylon Electricity Board - Sri Lanka
- Madhucon Powers Ltd - India
- Goldman Sachs - Singapore
- Banpu Public Company Limited - Thailand
- PetroVietnam Power Coal Import and Supply Company
- Directorate General of MIneral and Coal - Indonesia
- Africa Commodities Group - South Africa
- Kobexindo Tractors - Indoneisa
- GAC Shipping (India) Pvt Ltd
- India Bulls Power Limited - India
- GN Power Mariveles Coal Plant, Philippines
- The State Trading Corporation of India Ltd
- Parry Sugars Refinery, India
- Kartika Selabumi Mining - Indonesia
- Meenaskhi Energy Private Limited - India
- Vijayanagar Sugar Pvt Ltd - India
- Ministry of Transport, Egypt
- McConnell Dowell - Australia
- Central Java Power - Indonesia
- Vizag Seaport Private Limited - India
- Simpson Spence & Young - Indonesia
- Wood Mackenzie - Singapore
- Aditya Birla Group - India
- Bharathi Cement Corporation - India
- Salva Resources Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Renaissance Capital - South Africa
- Electricity Generating Authority of Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kaltim Prima Coal - Indonesia
- Energy Link Ltd, New Zealand
- Sical Logistics Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Star Paper Mills Limited - India
- Cigading International Bulk Terminal - Indonesia
- VISA Power Limited - India
- Attock Cement Pakistan Limited
- Ind-Barath Power Infra Limited - India
- Heidelberg Cement - Germany
- Edison Trading Spa - Italy
- Coastal Gujarat Power Limited - India
- Wilmar Investment Holdings
- Sarangani Energy Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
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