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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 June 12
GLOBAL ACTION NEEDED ON ENERGY POVERTY - WORLD COAL
Eradicating energy poverty is possibly the biggest challenge facing the world today. Like climate change it can only be addressed with a concerted g ...
Friday, 22 June 12
COAL: THE BACKBONE OF MODERN ELECTRICITY - ECOAL
Coal has been described as the "forgotten fuel," perhaps because many aren't aware of the huge role it plays in powering the global econo ...
Thursday, 21 June 12
DRY BULK MARKET ON THE RISE AGAIN - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market was on the rise once again yesterday, with the Baltic Dry Index (BDI), the industry’s benchmark, rising by 18 points, or 1 ...
Wednesday, 20 June 12
BDI MOVING HIGHER, PANAMAX AND SUPRAMAX VESSELS STRONGER, CAPESIZE RATES NEAR TO HISTORICAL LOWS OF DECEMBER 2008 - MARIA BERTZELETOU, HELLENIC SHIPPING
The dry market seems to follow the dynamic of the previous week with the Baltic Dry Index showing daily increases since June 8th, but is still stand ...
Tuesday, 19 June 12
SMALLER DRY BULK CARRIERS LIFT UP MARKET, PANAMAXES SET TO FALL SAYS ANALYST - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
Another rise for the dry bulk market was evident yesterday, as the industry’s benchmark, the BDI (Baltic Dry Index) was up for a ninth straigh ...
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- Kapuas Tunggal Persada - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Bulk Trading Sa - Switzerland
- Ceylon Electricity Board - Sri Lanka
- Energy Link Ltd, New Zealand
- Globalindo Alam Lestari - Indonesia
- Orica Mining Services - Indonesia
- Lanco Infratech Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Baramulti Group, Indonesia
- Posco Energy - South Korea
- Bangladesh Power Developement Board
- Star Paper Mills Limited - India
- Rashtriya Ispat Nigam Limited - India
- Coalindo Energy - Indonesia
- Siam City Cement - Thailand
- Pipit Mutiara Jaya. PT, Indonesia
- Carbofer General Trading SA - India
- Electricity Authority, New Zealand
- Georgia Ports Authority, United States
- Asmin Koalindo Tuhup - Indonesia
- Pendopo Energi Batubara - Indonesia
- Antam Resourcindo - Indonesia
- Leighton Contractors Pty Ltd - Australia
- McConnell Dowell - Australia
- South Luzon Thermal Energy Corporation
- AsiaOL BioFuels Corp., Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Attock Cement Pakistan Limited
- Minerals Council of Australia
- PTC India Limited - India
- Ministry of Mines - Canada
- Gujarat Electricity Regulatory Commission - India
- Indonesian Coal Mining Association
- Marubeni Corporation - India
- PowerSource Philippines DevCo
- Kumho Petrochemical, South Korea
- Karaikal Port Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Mjunction Services Limited - India
- Miang Besar Coal Terminal - Indonesia
- LBH Netherlands Bv - Netherlands
- Thai Mozambique Logistica
- Bhushan Steel Limited - India
- Indika Energy - Indonesia
- Vizag Seaport Private Limited - India
- GAC Shipping (India) Pvt Ltd
- Renaissance Capital - South Africa
- IHS Mccloskey Coal Group - USA
- Sojitz Corporation - Japan
- Bhatia International Limited - India
- TeaM Sual Corporation - Philippines
- Commonwealth Bank - Australia
- SMG Consultants - Indonesia
- Riau Bara Harum - Indonesia
- Medco Energi Mining Internasional
- Makarim & Taira - Indonesia
- Price Waterhouse Coopers - Russia
- Indian Oil Corporation Limited
- Kepco SPC Power Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Indian Energy Exchange, India
- ICICI Bank Limited - India
- The University of Queensland
- Vedanta Resources Plc - India
- Coal and Oil Company - UAE
- Bahari Cakrawala Sebuku - Indonesia
- Ministry of Transport, Egypt
- Larsen & Toubro Limited - India
- Uttam Galva Steels Limited - India
- Chamber of Mines of South Africa
- Metalloyd Limited - United Kingdom
- GMR Energy Limited - India
- Deloitte Consulting - India
- Malabar Cements Ltd - India
- Trasteel International SA, Italy
- Straits Asia Resources Limited - Singapore
- Bukit Makmur.PT - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Mintek Dendrill Indonesia
- Bayan Resources Tbk. - Indonesia
- Australian Commodity Traders Exchange
- Banpu Public Company Limited - Thailand
- Mercuria Energy - Indonesia
- Standard Chartered Bank - UAE
- Australian Coal Association
- Ministry of Finance - Indonesia
- Aditya Birla Group - India
- Salva Resources Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Ambuja Cements Ltd - India
- Wood Mackenzie - Singapore
- Kartika Selabumi Mining - Indonesia
- White Energy Company Limited
- Iligan Light & Power Inc, Philippines
- New Zealand Coal & Carbon
- Tamil Nadu electricity Board
- Grasim Industreis Ltd - India
- Central Java Power - Indonesia
- Sindya Power Generating Company Private Ltd
- Goldman Sachs - Singapore
- Meenaskhi Energy Private Limited - India
- Parry Sugars Refinery, India
- Videocon Industries ltd - India
- Holcim Trading Pte Ltd - Singapore
- Power Finance Corporation Ltd., India
- Heidelberg Cement - Germany
- Dalmia Cement Bharat India
- Interocean Group of Companies - India
- Rio Tinto Coal - Australia
- Essar Steel Hazira Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Oldendorff Carriers - Singapore
- CNBM International Corporation - China
- Sree Jayajothi Cements Limited - India
- India Bulls Power Limited - India
- VISA Power Limited - India
- Petron Corporation, Philippines
- Economic Council, Georgia
- Tata Chemicals Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Samtan Co., Ltd - South Korea
- Intertek Mineral Services - Indonesia
- IEA Clean Coal Centre - UK
- Borneo Indobara - Indonesia
- Bhoruka Overseas - Indonesia
- SMC Global Power, Philippines
- Xindia Steels Limited - India
- Meralco Power Generation, Philippines
- Energy Development Corp, Philippines
- International Coal Ventures Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Maheswari Brothers Coal Limited - India
- Kobexindo Tractors - Indoneisa
- Central Electricity Authority - India
- Simpson Spence & Young - Indonesia
- CIMB Investment Bank - Malaysia
- Merrill Lynch Commodities Europe
- Alfred C Toepfer International GmbH - Germany
- The Treasury - Australian Government
- European Bulk Services B.V. - Netherlands
- ASAPP Information Group - India
- Sinarmas Energy and Mining - Indonesia
- Directorate Of Revenue Intelligence - India
- OPG Power Generation Pvt Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Port Waratah Coal Services - Australia
- Gujarat Sidhee Cement - India
- Jindal Steel & Power Ltd - India
- Indogreen Group - Indonesia
- Bukit Baiduri Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Wilmar Investment Holdings
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Planning Commission, India
- Latin American Coal - Colombia
- Global Coal Blending Company Limited - Australia
- Semirara Mining Corp, Philippines
- Madhucon Powers Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Timah Investasi Mineral - Indoneisa
- Independent Power Producers Association of India
- Karbindo Abesyapradhi - Indoneisa
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Gujarat Mineral Development Corp Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Indo Tambangraya Megah - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bharathi Cement Corporation - India
- Eastern Coal Council - USA
- Africa Commodities Group - South Africa
- Cement Manufacturers Association - India
- Toyota Tsusho Corporation, Japan
- Singapore Mercantile Exchange
- Chettinad Cement Corporation Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Orica Australia Pty. Ltd.
- Ind-Barath Power Infra Limited - India
- Manunggal Multi Energi - Indonesia
- Kideco Jaya Agung - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Coastal Gujarat Power Limited - India
- Edison Trading Spa - Italy
- Semirara Mining and Power Corporation, Philippines
- Eastern Energy - Thailand
- Barasentosa Lestari - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Parliament of New Zealand
- Sarangani Energy Corporation, Philippines
- Global Business Power Corporation, Philippines
- GVK Power & Infra Limited - India
- Thiess Contractors Indonesia
- The State Trading Corporation of India Ltd
- London Commodity Brokers - England
- Siam City Cement PLC, Thailand
- Global Green Power PLC Corporation, Philippines
- Electricity Generating Authority of Thailand
- Vijayanagar Sugar Pvt Ltd - India
- Sakthi Sugars Limited - India
- San Jose City I Power Corp, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Aboitiz Power Corporation - Philippines
- Formosa Plastics Group - Taiwan
- Agrawal Coal Company - India
- Jaiprakash Power Ventures ltd
- Kaltim Prima Coal - Indonesia
- Sical Logistics Limited - India
- Savvy Resources Ltd - HongKong
- Romanian Commodities Exchange
- Therma Luzon, Inc, Philippines
- MS Steel International - UAE
- Altura Mining Limited, Indonesia
- SN Aboitiz Power Inc, Philippines
- Binh Thuan Hamico - Vietnam
- Mercator Lines Limited - India
- Anglo American - United Kingdom
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