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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, 22 March 24
INDONESIA APPROVES 922.14 MLN T COAL PRODUCTION QUOTA FOR 2024, ABOVE TARGET - REUTERS
Indonesia has approved coal production quotas totalling 922.14 million metric tons for 2024, Bambang Suswantono, a senior official at the mining mi ...
Friday, 22 March 24
CHINA COAL INDUSTRY GROUP EXPECTS OUTPUT GROWTH TO SLOW IN 2024 - REUTERS
China’s coal output is expected to increase 36 million metric tons, or 0.8%, to about 4.7 billion tonnes in 2024, a Chinese coal industry gro ...
Monday, 18 March 24
THREE KEY TAKEAWAYS FROM OUR EUROPE GAS MARKETS SHORT-TERM OUTLOOK Q1 2024 - WOOD MACKENZIE
European gas prices are currently back to pre-crisis levels, but with a complex series of factors affecting future supply and demand, are they set ...
Wednesday, 06 March 24
INDONESIA AIMS TO FINISH MINING OUTPUT QUOTAS APPROVAL BY END-MARCH, OFFICIAL SAYS - REUTERS
Indonesia’s has approved the mining production quotarequests from more than 120mineral companies and aims to complete the approval process th ...
Monday, 04 March 24
IS YOUR GUARANTEE A GUARANTEE? NOTE TO SHIPOWNERS - GARD
KNOWLEDGE TO ELEVATE
The law of guarantees is not always obvious or easy to understand without proper guidance. This article clarifies the dif ...
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Showing 26 to 30 news of total 6871 |
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- Orica Australia Pty. Ltd.
- LBH Netherlands Bv - Netherlands
- Price Waterhouse Coopers - Russia
- Sakthi Sugars Limited - India
- SN Aboitiz Power Inc, Philippines
- Coalindo Energy - Indonesia
- Gujarat Sidhee Cement - India
- PTC India Limited - India
- Coastal Gujarat Power Limited - India
- Pendopo Energi Batubara - Indonesia
- Sarangani Energy Corporation, Philippines
- Heidelberg Cement - Germany
- Simpson Spence & Young - Indonesia
- Global Business Power Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Kalimantan Lumbung Energi - Indonesia
- Deloitte Consulting - India
- Indogreen Group - Indonesia
- Chettinad Cement Corporation Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- OPG Power Generation Pvt Ltd - India
- Indika Energy - Indonesia
- Medco Energi Mining Internasional
- Ministry of Mines - Canada
- Independent Power Producers Association of India
- Standard Chartered Bank - UAE
- CIMB Investment Bank - Malaysia
- Directorate General of MIneral and Coal - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Therma Luzon, Inc, Philippines
- Leighton Contractors Pty Ltd - Australia
- Essar Steel Hazira Ltd - India
- Posco Energy - South Korea
- AsiaOL BioFuels Corp., Philippines
- Vizag Seaport Private Limited - India
- Mercator Lines Limited - India
- Directorate Of Revenue Intelligence - India
- Bhushan Steel Limited - India
- Baramulti Group, Indonesia
- Xindia Steels Limited - India
- Ambuja Cements Ltd - India
- The State Trading Corporation of India Ltd
- Intertek Mineral Services - Indonesia
- Trasteel International SA, Italy
- SMG Consultants - Indonesia
- Anglo American - United Kingdom
- Agrawal Coal Company - India
- Gujarat Mineral Development Corp Ltd - India
- Bukit Baiduri Energy - Indonesia
- Goldman Sachs - Singapore
- PetroVietnam Power Coal Import and Supply Company
- PNOC Exploration Corporation - Philippines
- Global Coal Blending Company Limited - Australia
- Energy Development Corp, Philippines
- Thiess Contractors Indonesia
- Singapore Mercantile Exchange
- Holcim Trading Pte Ltd - Singapore
- Ind-Barath Power Infra Limited - India
- Aboitiz Power Corporation - Philippines
- Merrill Lynch Commodities Europe
- Semirara Mining and Power Corporation, Philippines
- Electricity Authority, New Zealand
- Planning Commission, India
- Bukit Makmur.PT - Indonesia
- Parry Sugars Refinery, India
- Maharashtra Electricity Regulatory Commission - India
- Coal and Oil Company - UAE
- Rio Tinto Coal - Australia
- Larsen & Toubro Limited - India
- Semirara Mining Corp, Philippines
- Riau Bara Harum - Indonesia
- Tamil Nadu electricity Board
- Kideco Jaya Agung - Indonesia
- Africa Commodities Group - South Africa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- GVK Power & Infra Limited - India
- Port Waratah Coal Services - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Madhucon Powers Ltd - India
- MS Steel International - UAE
- Maheswari Brothers Coal Limited - India
- South Luzon Thermal Energy Corporation
- Parliament of New Zealand
- Grasim Industreis Ltd - India
- Indian Energy Exchange, India
- Central Java Power - Indonesia
- Chamber of Mines of South Africa
- Salva Resources Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- VISA Power Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Meenaskhi Energy Private Limited - India
- Formosa Plastics Group - Taiwan
- SMC Global Power, Philippines
- Bharathi Cement Corporation - India
- Bhatia International Limited - India
- Wood Mackenzie - Singapore
- The Treasury - Australian Government
- Sree Jayajothi Cements Limited - India
- Karaikal Port Pvt Ltd - India
- PowerSource Philippines DevCo
- Aditya Birla Group - India
- Iligan Light & Power Inc, Philippines
- Tata Chemicals Ltd - India
- IHS Mccloskey Coal Group - USA
- European Bulk Services B.V. - Netherlands
- GMR Energy Limited - India
- Oldendorff Carriers - Singapore
- IEA Clean Coal Centre - UK
- Bayan Resources Tbk. - Indonesia
- Lanco Infratech Ltd - India
- Savvy Resources Ltd - HongKong
- Carbofer General Trading SA - India
- Latin American Coal - Colombia
- Binh Thuan Hamico - Vietnam
- San Jose City I Power Corp, Philippines
- Edison Trading Spa - Italy
- Kaltim Prima Coal - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Mercuria Energy - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Antam Resourcindo - Indonesia
- Banpu Public Company Limited - Thailand
- Jaiprakash Power Ventures ltd
- Commonwealth Bank - Australia
- TeaM Sual Corporation - Philippines
- Kepco SPC Power Corporation, Philippines
- Meralco Power Generation, Philippines
- Makarim & Taira - Indonesia
- Central Electricity Authority - India
- Kobexindo Tractors - Indoneisa
- Manunggal Multi Energi - Indonesia
- International Coal Ventures Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Indian Oil Corporation Limited
- Siam City Cement PLC, Thailand
- Barasentosa Lestari - Indonesia
- Mjunction Services Limited - India
- Indonesian Coal Mining Association
- Thai Mozambique Logistica
- Kumho Petrochemical, South Korea
- Bank of Tokyo Mitsubishi UFJ Ltd
- Petron Corporation, Philippines
- Australian Coal Association
- Straits Asia Resources Limited - Singapore
- Cigading International Bulk Terminal - Indonesia
- Eastern Energy - Thailand
- Sical Logistics Limited - India
- Energy Link Ltd, New Zealand
- Rashtriya Ispat Nigam Limited - India
- London Commodity Brokers - England
- Timah Investasi Mineral - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- Uttam Galva Steels Limited - India
- Miang Besar Coal Terminal - Indonesia
- Indo Tambangraya Megah - Indonesia
- Minerals Council of Australia
- White Energy Company Limited
- McConnell Dowell - Australia
- Renaissance Capital - South Africa
- Kartika Selabumi Mining - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Ministry of Transport, Egypt
- Gujarat Electricity Regulatory Commission - India
- TNB Fuel Sdn Bhd - Malaysia
- Alfred C Toepfer International GmbH - Germany
- Electricity Generating Authority of Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Samtan Co., Ltd - South Korea
- Siam City Cement - Thailand
- Metalloyd Limited - United Kingdom
- Borneo Indobara - Indonesia
- Star Paper Mills Limited - India
- Georgia Ports Authority, United States
- Romanian Commodities Exchange
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Vedanta Resources Plc - India
- The University of Queensland
- CNBM International Corporation - China
- Bulk Trading Sa - Switzerland
- Globalindo Alam Lestari - Indonesia
- Ministry of Finance - Indonesia
- Global Green Power PLC Corporation, Philippines
- Jorong Barutama Greston.PT - Indonesia
- ASAPP Information Group - India
- Krishnapatnam Port Company Ltd. - India
- Asmin Koalindo Tuhup - Indonesia
- Altura Mining Limited, Indonesia
- Malabar Cements Ltd - India
- New Zealand Coal & Carbon
- Pipit Mutiara Jaya. PT, Indonesia
- Economic Council, Georgia
- Bhoruka Overseas - Indonesia
- Bangladesh Power Developement Board
- Interocean Group of Companies - India
- Ceylon Electricity Board - Sri Lanka
- Attock Cement Pakistan Limited
- GAC Shipping (India) Pvt Ltd
- ICICI Bank Limited - India
- Jindal Steel & Power Ltd - India
- Power Finance Corporation Ltd., India
- Orica Mining Services - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- India Bulls Power Limited - India
- Sindya Power Generating Company Private Ltd
- Wilmar Investment Holdings
- Mintek Dendrill Indonesia
- Eastern Coal Council - USA
- Marubeni Corporation - India
- Sojitz Corporation - Japan
- Dalmia Cement Bharat India
- Australian Commodity Traders Exchange
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Petrochimia International Co. Ltd.- Taiwan
- Videocon Industries ltd - India
- Cement Manufacturers Association - India
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