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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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Friday, 28 June 24
INDIAN POWER STATIONS STOCKED WITH BUMPER COAL SUPPLY AS TRANSPORT WOES EASE - BUSINESS STANDARD
Even as power demand has touched a historic high of 250 gigawatts (Gw) amid sweltering heat this June, India’s power stations are stocked wit ...
Friday, 28 June 24
INDIA'S CY23 COAL USE LARGER THAN NORTH AMERICA, EUROPE COMBINED - THE HINDU
For the first time, India’s coal consumption surpassed that of North America and Europe combined in the calendar year 2023, said Energy Insti ...
Monday, 24 June 24
PLN'S FINANCIAL SUSTAINABILITY RESTS ON ACCELERATED COAL RETIREMENT AND RENEWABLES DEPLOYMENT - MUTYA YUSTIKA
On 28 May 2024, Indonesia’s national electricity utility, PT Perusahaan Listrik Negara (PLN), released its financial report for 2023. Althoug ...
Monday, 24 June 24
INDIA'S COAL-BASED POWER DEMAND AT ALL-TIME HIGH, GOVERNMENT SAYS - REUTERS
India’s demand for coal-based power has risen by 7.3% this fiscal year to an all-time high, the government said in a statement on Wednesday.
...
Monday, 24 June 24
CHINA'S COAL INDUSTRY TURNS GREENER THROUGH INNOVATIVE APPROACHES - PEOPLE'S DAILY
At an opencast mine operated by Inner Mongolia Pingzhuang Coal Group Co. Ltd., a subsidiary of CHN Energy Investment Group (CHN Energy), a 14-meter ...
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Showing 11 to 15 news of total 6871 |
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- Petrochimia International Co. Ltd.- Taiwan
- Directorate Of Revenue Intelligence - India
- The Treasury - Australian Government
- Sojitz Corporation - Japan
- Jorong Barutama Greston.PT - Indonesia
- CIMB Investment Bank - Malaysia
- Riau Bara Harum - Indonesia
- Central Java Power - Indonesia
- South Luzon Thermal Energy Corporation
- Lanco Infratech Ltd - India
- Altura Mining Limited, Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Sakthi Sugars Limited - India
- Aditya Birla Group - India
- Straits Asia Resources Limited - Singapore
- Mercator Lines Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Ind-Barath Power Infra Limited - India
- Bangladesh Power Developement Board
- Georgia Ports Authority, United States
- TeaM Sual Corporation - Philippines
- Independent Power Producers Association of India
- Rio Tinto Coal - Australia
- Kalimantan Lumbung Energi - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Mjunction Services Limited - India
- Kartika Selabumi Mining - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Power Finance Corporation Ltd., India
- Agrawal Coal Company - India
- Kaltim Prima Coal - Indonesia
- Siam City Cement PLC, Thailand
- Jindal Steel & Power Ltd - India
- Banpu Public Company Limited - Thailand
- Manunggal Multi Energi - Indonesia
- Siam City Cement - Thailand
- Energy Link Ltd, New Zealand
- Gujarat Sidhee Cement - India
- The State Trading Corporation of India Ltd
- Ceylon Electricity Board - Sri Lanka
- Parliament of New Zealand
- Global Business Power Corporation, Philippines
- Australian Coal Association
- Cement Manufacturers Association - India
- Parry Sugars Refinery, India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Iligan Light & Power Inc, Philippines
- Kepco SPC Power Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Medco Energi Mining Internasional
- Orica Mining Services - Indonesia
- White Energy Company Limited
- Therma Luzon, Inc, Philippines
- Africa Commodities Group - South Africa
- Bayan Resources Tbk. - Indonesia
- Orica Australia Pty. Ltd.
- Sree Jayajothi Cements Limited - India
- Sical Logistics Limited - India
- Eastern Coal Council - USA
- Kideco Jaya Agung - Indonesia
- Posco Energy - South Korea
- VISA Power Limited - India
- Essar Steel Hazira Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- India Bulls Power Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Karbindo Abesyapradhi - Indoneisa
- Bhushan Steel Limited - India
- Price Waterhouse Coopers - Russia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Eastern Energy - Thailand
- Indonesian Coal Mining Association
- Baramulti Group, Indonesia
- European Bulk Services B.V. - Netherlands
- Meralco Power Generation, Philippines
- Trasteel International SA, Italy
- IHS Mccloskey Coal Group - USA
- GAC Shipping (India) Pvt Ltd
- Wood Mackenzie - Singapore
- MS Steel International - UAE
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kapuas Tunggal Persada - Indonesia
- Global Coal Blending Company Limited - Australia
- Formosa Plastics Group - Taiwan
- Pendopo Energi Batubara - Indonesia
- Savvy Resources Ltd - HongKong
- Bukit Makmur.PT - Indonesia
- Heidelberg Cement - Germany
- Semirara Mining Corp, Philippines
- OPG Power Generation Pvt Ltd - India
- Australian Commodity Traders Exchange
- TNB Fuel Sdn Bhd - Malaysia
- Interocean Group of Companies - India
- Samtan Co., Ltd - South Korea
- Timah Investasi Mineral - Indoneisa
- Bulk Trading Sa - Switzerland
- McConnell Dowell - Australia
- Global Green Power PLC Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- International Coal Ventures Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- Tata Chemicals Ltd - India
- Karaikal Port Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- Carbofer General Trading SA - India
- Cigading International Bulk Terminal - Indonesia
- Binh Thuan Hamico - Vietnam
- Thai Mozambique Logistica
- Wilmar Investment Holdings
- LBH Netherlands Bv - Netherlands
- Toyota Tsusho Corporation, Japan
- New Zealand Coal & Carbon
- Barasentosa Lestari - Indonesia
- Metalloyd Limited - United Kingdom
- Indian Energy Exchange, India
- The University of Queensland
- Neyveli Lignite Corporation Ltd, - India
- Vizag Seaport Private Limited - India
- Ministry of Mines - Canada
- Bukit Baiduri Energy - Indonesia
- Meenaskhi Energy Private Limited - India
- Sinarmas Energy and Mining - Indonesia
- Ministry of Transport, Egypt
- Thiess Contractors Indonesia
- Oldendorff Carriers - Singapore
- Latin American Coal - Colombia
- Bhatia International Limited - India
- Central Electricity Authority - India
- Alfred C Toepfer International GmbH - Germany
- Makarim & Taira - Indonesia
- GMR Energy Limited - India
- Energy Development Corp, Philippines
- Tamil Nadu electricity Board
- Planning Commission, India
- Mercuria Energy - Indonesia
- Dalmia Cement Bharat India
- GVK Power & Infra Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Attock Cement Pakistan Limited
- Chamber of Mines of South Africa
- Maharashtra Electricity Regulatory Commission - India
- Renaissance Capital - South Africa
- Sarangani Energy Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Krishnapatnam Port Company Ltd. - India
- Indo Tambangraya Megah - Indonesia
- Kobexindo Tractors - Indoneisa
- CNBM International Corporation - China
- Indogreen Group - Indonesia
- Coalindo Energy - Indonesia
- Ministry of Finance - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Sindya Power Generating Company Private Ltd
- Deloitte Consulting - India
- Grasim Industreis Ltd - India
- Goldman Sachs - Singapore
- Bharathi Cement Corporation - India
- Electricity Generating Authority of Thailand
- Malabar Cements Ltd - India
- SMG Consultants - Indonesia
- SN Aboitiz Power Inc, Philippines
- ICICI Bank Limited - India
- PTC India Limited - India
- Anglo American - United Kingdom
- Salva Resources Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Standard Chartered Bank - UAE
- Mintek Dendrill Indonesia
- Maheswari Brothers Coal Limited - India
- Petron Corporation, Philippines
- London Commodity Brokers - England
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Commonwealth Bank - Australia
- Bhoruka Overseas - Indonesia
- Indika Energy - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Chettinad Cement Corporation Ltd - India
- Vedanta Resources Plc - India
- PNOC Exploration Corporation - Philippines
- Economic Council, Georgia
- Minerals Council of Australia
- Coal and Oil Company - UAE
- Star Paper Mills Limited - India
- Leighton Contractors Pty Ltd - Australia
- Edison Trading Spa - Italy
- Singapore Mercantile Exchange
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Marubeni Corporation - India
- Intertek Mineral Services - Indonesia
- Kumho Petrochemical, South Korea
- PowerSource Philippines DevCo
- Ambuja Cements Ltd - India
- Simpson Spence & Young - Indonesia
- SMC Global Power, Philippines
- Larsen & Toubro Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Holcim Trading Pte Ltd - Singapore
- Globalindo Alam Lestari - Indonesia
- Romanian Commodities Exchange
- Gujarat Electricity Regulatory Commission - India
- AsiaOL BioFuels Corp., Philippines
- Electricity Authority, New Zealand
- Indian Oil Corporation Limited
- Vijayanagar Sugar Pvt Ltd - India
- Antam Resourcindo - Indonesia
- Madhucon Powers Ltd - India
- IEA Clean Coal Centre - UK
- Xindia Steels Limited - India
- Miang Besar Coal Terminal - Indonesia
- Borneo Indobara - Indonesia
- Videocon Industries ltd - India
- Merrill Lynch Commodities Europe
- GN Power Mariveles Coal Plant, Philippines
- Port Waratah Coal Services - Australia
- ASAPP Information Group - India
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