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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, 22 December 22
RUSSIAN OIL EXPORTS CRATER BY 54% IN THE FIRST FULL WEEK OF THE EU'S EMBARGO AMID A SHORTAGE OF TANKERS WILLING TO CARRY CARGOES - BUSINESS INSIDER
Since the European Union imposed its seaborne crude sanctions, Russian oil exports have tumbled by more than half, according to data compiled by Bl ...
Thursday, 22 December 22
CHINA TIGHTENS VERIFICATION OF SHIPS’ ENERGY CONSUMPTION DATA - GARD
From 22 December 2022, ships trading to Chinese ports must record their energy consumption data in accordance with the requirements of their Ship E ...
Thursday, 22 December 22
AN OVERVIEW OF THE LNG MARKET - VESSELSVALUE
LNG values have continued to strengthen, spurred by skyrocketing earnings that have surpassed last year’s record breaking peaks. In November, ...
Thursday, 22 December 22
COKING COAL SLUMPS AS TALKS ON AUSTRALIA-CHINA TRADE RIFT LOOM - REUTERS
Chinese coking coal futures dropped more than 3 per cent on Tuesday (Dec 20), extending losses, as supply of the steelmaking input might increase i ...
Thursday, 22 December 22
COAL AND GAS PRICE CAPS MAY COMPOUND POLITICAL RISK FOR AUSTRALIAN CORPORATES - FITCH RATINGS
Australia’s introduction of temporary price caps on domestic sales of gas and coal used for electricity generation will probably have limited ...
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- Australian Coal Association
- Standard Chartered Bank - UAE
- Bukit Asam (Persero) Tbk - Indonesia
- Africa Commodities Group - South Africa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- CNBM International Corporation - China
- Interocean Group of Companies - India
- Krishnapatnam Port Company Ltd. - India
- Bukit Baiduri Energy - Indonesia
- Intertek Mineral Services - Indonesia
- Sojitz Corporation - Japan
- Power Finance Corporation Ltd., India
- ICICI Bank Limited - India
- Timah Investasi Mineral - Indoneisa
- San Jose City I Power Corp, Philippines
- Antam Resourcindo - Indonesia
- Vedanta Resources Plc - India
- Bayan Resources Tbk. - Indonesia
- The State Trading Corporation of India Ltd
- London Commodity Brokers - England
- Leighton Contractors Pty Ltd - Australia
- Kalimantan Lumbung Energi - Indonesia
- Bukit Makmur.PT - Indonesia
- Bulk Trading Sa - Switzerland
- Petron Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Aditya Birla Group - India
- Sarangani Energy Corporation, Philippines
- European Bulk Services B.V. - Netherlands
- Rashtriya Ispat Nigam Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- White Energy Company Limited
- Attock Cement Pakistan Limited
- Chamber of Mines of South Africa
- Mjunction Services Limited - India
- PNOC Exploration Corporation - Philippines
- Thai Mozambique Logistica
- Directorate Of Revenue Intelligence - India
- Baramulti Group, Indonesia
- Semirara Mining Corp, Philippines
- Singapore Mercantile Exchange
- South Luzon Thermal Energy Corporation
- TeaM Sual Corporation - Philippines
- Binh Thuan Hamico - Vietnam
- Metalloyd Limited - United Kingdom
- AsiaOL BioFuels Corp., Philippines
- Coal and Oil Company - UAE
- Global Green Power PLC Corporation, Philippines
- Bharathi Cement Corporation - India
- Ambuja Cements Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bhushan Steel Limited - India
- Ministry of Mines - Canada
- Meralco Power Generation, Philippines
- Jaiprakash Power Ventures ltd
- Renaissance Capital - South Africa
- Karbindo Abesyapradhi - Indoneisa
- Global Business Power Corporation, Philippines
- Deloitte Consulting - India
- Kartika Selabumi Mining - Indonesia
- Parry Sugars Refinery, India
- Bhatia International Limited - India
- Manunggal Multi Energi - Indonesia
- PTC India Limited - India
- Uttam Galva Steels Limited - India
- Indian Oil Corporation Limited
- Ceylon Electricity Board - Sri Lanka
- Edison Trading Spa - Italy
- Kohat Cement Company Ltd. - Pakistan
- Gujarat Sidhee Cement - India
- Toyota Tsusho Corporation, Japan
- Videocon Industries ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- The Treasury - Australian Government
- Indonesian Coal Mining Association
- Anglo American - United Kingdom
- CIMB Investment Bank - Malaysia
- Barasentosa Lestari - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Globalindo Alam Lestari - Indonesia
- Mercator Lines Limited - India
- Australian Commodity Traders Exchange
- The University of Queensland
- Kideco Jaya Agung - Indonesia
- Orica Mining Services - Indonesia
- Tata Chemicals Ltd - India
- Savvy Resources Ltd - HongKong
- MS Steel International - UAE
- Bahari Cakrawala Sebuku - Indonesia
- Samtan Co., Ltd - South Korea
- Altura Mining Limited, Indonesia
- Electricity Generating Authority of Thailand
- Trasteel International SA, Italy
- Sree Jayajothi Cements Limited - India
- Siam City Cement PLC, Thailand
- Chettinad Cement Corporation Ltd - India
- Salva Resources Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Romanian Commodities Exchange
- PowerSource Philippines DevCo
- Planning Commission, India
- Borneo Indobara - Indonesia
- Holcim Trading Pte Ltd - Singapore
- IEA Clean Coal Centre - UK
- Vijayanagar Sugar Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Bank of Tokyo Mitsubishi UFJ Ltd
- Dalmia Cement Bharat India
- LBH Netherlands Bv - Netherlands
- Carbofer General Trading SA - India
- Kepco SPC Power Corporation, Philippines
- Central Electricity Authority - India
- Kumho Petrochemical, South Korea
- Ind-Barath Power Infra Limited - India
- Independent Power Producers Association of India
- Heidelberg Cement - Germany
- GAC Shipping (India) Pvt Ltd
- Makarim & Taira - Indonesia
- Madhucon Powers Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- India Bulls Power Limited - India
- Minerals Council of Australia
- Eastern Coal Council - USA
- Central Java Power - Indonesia
- Parliament of New Zealand
- VISA Power Limited - India
- New Zealand Coal & Carbon
- Sical Logistics Limited - India
- Indogreen Group - Indonesia
- GMR Energy Limited - India
- Eastern Energy - Thailand
- Energy Link Ltd, New Zealand
- ASAPP Information Group - India
- Global Coal Blending Company Limited - Australia
- Maheswari Brothers Coal Limited - India
- Mercuria Energy - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Mintek Dendrill Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Siam City Cement - Thailand
- Orica Australia Pty. Ltd.
- Coastal Gujarat Power Limited - India
- Kobexindo Tractors - Indoneisa
- Agrawal Coal Company - India
- Meenaskhi Energy Private Limited - India
- IHS Mccloskey Coal Group - USA
- Rio Tinto Coal - Australia
- Cement Manufacturers Association - India
- Vizag Seaport Private Limited - India
- Indika Energy - Indonesia
- Riau Bara Harum - Indonesia
- Karaikal Port Pvt Ltd - India
- Coalindo Energy - Indonesia
- Ministry of Transport, Egypt
- Economic Council, Georgia
- Cigading International Bulk Terminal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Xindia Steels Limited - India
- Oldendorff Carriers - Singapore
- SMG Consultants - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- GVK Power & Infra Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Electricity Authority, New Zealand
- Marubeni Corporation - India
- SMC Global Power, Philippines
- Wilmar Investment Holdings
- SN Aboitiz Power Inc, Philippines
- Larsen & Toubro Limited - India
- Medco Energi Mining Internasional
- Tamil Nadu electricity Board
- Aboitiz Power Corporation - Philippines
- Lanco Infratech Ltd - India
- Price Waterhouse Coopers - Russia
- Malabar Cements Ltd - India
- Therma Luzon, Inc, Philippines
- Goldman Sachs - Singapore
- International Coal Ventures Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- Essar Steel Hazira Ltd - India
- Georgia Ports Authority, United States
- Bhoruka Overseas - Indonesia
- Bangladesh Power Developement Board
- Miang Besar Coal Terminal - Indonesia
- Energy Development Corp, Philippines
- Port Waratah Coal Services - Australia
- Commonwealth Bank - Australia
- Sakthi Sugars Limited - India
- Thiess Contractors Indonesia
- Posco Energy - South Korea
- Petrochimia International Co. Ltd.- Taiwan
- Grasim Industreis Ltd - India
- Pendopo Energi Batubara - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Simpson Spence & Young - Indonesia
- Wood Mackenzie - Singapore
- Star Paper Mills Limited - India
- Banpu Public Company Limited - Thailand
- Indo Tambangraya Megah - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sindya Power Generating Company Private Ltd
- Formosa Plastics Group - Taiwan
- Merrill Lynch Commodities Europe
- Ministry of Finance - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Billiton Holdings Pty Ltd - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Indian Energy Exchange, India
- OPG Power Generation Pvt Ltd - India
- McConnell Dowell - Australia
- Latin American Coal - Colombia
- Gujarat Mineral Development Corp Ltd - India
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