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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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Monday, 02 April 12
BANGLADESH EYEING INDONESIA FOR COAL
COALspot.com - The high level executives of Center for Environmental and Geographic Information Services (CEGIS) of Bangladesh is visiting Ind ...
Monday, 02 April 12
WEEKLY DRY MARKET OVERVIEW - MARIA BERTZELETOU, HELLENIC SHIPPING
The first quarter of the New Year ended with the BDI standing 42% above from the 26 years’ bottom low of 662 points on February 1st, and a pos ...
Saturday, 31 March 12
THE BDI CONTINUED TO MOVE UPWARD - VISTAAR
COALspot.com - The BDI continued to move upward and rose by 2.86 pct closing at 934 points.
The cape index was up by 3.14 pct closing at 1,412 po ...
Saturday, 31 March 12
SRI LANKA IMPORTS 152,555 MT OF INDONESIAN COAL IN FEBRUARY
COALspot.com: Indonesia, the world largest coal exporter, shipped 27.126* million tons of coal in February 2012, compared to 28.21* million to ...
Friday, 30 March 12
RECOND NUMBERS SURROUNDING THE SUPRAMAX DRY BULK MARKET - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
Last year proved to be both a record year in the number of deliveries of dry bulkers between 40,000dwt and 64,000dwt, as well as a record year in th ...
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- Jorong Barutama Greston.PT - Indonesia
- Gujarat Electricity Regulatory Commission - India
- IHS Mccloskey Coal Group - USA
- Indogreen Group - Indonesia
- Mjunction Services Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Billiton Holdings Pty Ltd - Australia
- SMG Consultants - Indonesia
- Economic Council, Georgia
- Sarangani Energy Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Mercuria Energy - Indonesia
- Gujarat Sidhee Cement - India
- Globalindo Alam Lestari - Indonesia
- Intertek Mineral Services - Indonesia
- Bukit Makmur.PT - Indonesia
- Bulk Trading Sa - Switzerland
- Antam Resourcindo - Indonesia
- Medco Energi Mining Internasional
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- Indonesian Coal Mining Association
- Ceylon Electricity Board - Sri Lanka
- The Treasury - Australian Government
- Price Waterhouse Coopers - Russia
- Gujarat Mineral Development Corp Ltd - India
- ICICI Bank Limited - India
- Karbindo Abesyapradhi - Indoneisa
- India Bulls Power Limited - India
- Tamil Nadu electricity Board
- Essar Steel Hazira Ltd - India
- Toyota Tsusho Corporation, Japan
- Rashtriya Ispat Nigam Limited - India
- Baramulti Group, Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- PTC India Limited - India
- Borneo Indobara - Indonesia
- London Commodity Brokers - England
- Global Business Power Corporation, Philippines
- Latin American Coal - Colombia
- GVK Power & Infra Limited - India
- Ministry of Transport, Egypt
- Oldendorff Carriers - Singapore
- Standard Chartered Bank - UAE
- Indian Oil Corporation Limited
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Carbofer General Trading SA - India
- Ind-Barath Power Infra Limited - India
- Anglo American - United Kingdom
- Binh Thuan Hamico - Vietnam
- Agrawal Coal Company - India
- Global Coal Blending Company Limited - Australia
- Vedanta Resources Plc - India
- Renaissance Capital - South Africa
- New Zealand Coal & Carbon
- MS Steel International - UAE
- Samtan Co., Ltd - South Korea
- Star Paper Mills Limited - India
- SMC Global Power, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Asmin Koalindo Tuhup - Indonesia
- Sojitz Corporation - Japan
- Madhucon Powers Ltd - India
- Commonwealth Bank - Australia
- Eastern Coal Council - USA
- Rio Tinto Coal - Australia
- Savvy Resources Ltd - HongKong
- Formosa Plastics Group - Taiwan
- Trasteel International SA, Italy
- Minerals Council of Australia
- Thiess Contractors Indonesia
- Energy Link Ltd, New Zealand
- Simpson Spence & Young - Indonesia
- Planning Commission, India
- Electricity Generating Authority of Thailand
- GAC Shipping (India) Pvt Ltd
- Maharashtra Electricity Regulatory Commission - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Parry Sugars Refinery, India
- Meralco Power Generation, Philippines
- Bhatia International Limited - India
- Georgia Ports Authority, United States
- Makarim & Taira - Indonesia
- Electricity Authority, New Zealand
- Cigading International Bulk Terminal - Indonesia
- SN Aboitiz Power Inc, Philippines
- Coastal Gujarat Power Limited - India
- Deloitte Consulting - India
- Xindia Steels Limited - India
- Parliament of New Zealand
- Bharathi Cement Corporation - India
- Alfred C Toepfer International GmbH - Germany
- Australian Coal Association
- Bukit Baiduri Energy - Indonesia
- Posco Energy - South Korea
- The University of Queensland
- Ministry of Finance - Indonesia
- Energy Development Corp, Philippines
- Directorate Of Revenue Intelligence - India
- CIMB Investment Bank - Malaysia
- Central Java Power - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Banpu Public Company Limited - Thailand
- Siam City Cement - Thailand
- Cement Manufacturers Association - India
- Goldman Sachs - Singapore
- Sakthi Sugars Limited - India
- Iligan Light & Power Inc, Philippines
- OPG Power Generation Pvt Ltd - India
- IEA Clean Coal Centre - UK
- Kaltim Prima Coal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indika Energy - Indonesia
- Grasim Industreis Ltd - India
- Larsen & Toubro Limited - India
- AsiaOL BioFuels Corp., Philippines
- Semirara Mining Corp, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Attock Cement Pakistan Limited
- Directorate General of MIneral and Coal - Indonesia
- Wilmar Investment Holdings
- VISA Power Limited - India
- Krishnapatnam Port Company Ltd. - India
- Sical Logistics Limited - India
- Indian Energy Exchange, India
- Lanco Infratech Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- GMR Energy Limited - India
- South Luzon Thermal Energy Corporation
- Pendopo Energi Batubara - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Orica Mining Services - Indonesia
- Barasentosa Lestari - Indonesia
- Riau Bara Harum - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Bayan Resources Tbk. - Indonesia
- Bhoruka Overseas - Indonesia
- Coal and Oil Company - UAE
- Romanian Commodities Exchange
- Sindya Power Generating Company Private Ltd
- Kobexindo Tractors - Indoneisa
- CNBM International Corporation - China
- Jaiprakash Power Ventures ltd
- Videocon Industries ltd - India
- PNOC Exploration Corporation - Philippines
- Altura Mining Limited, Indonesia
- Central Electricity Authority - India
- Manunggal Multi Energi - Indonesia
- Ministry of Mines - Canada
- Interocean Group of Companies - India
- Vijayanagar Sugar Pvt Ltd - India
- Mintek Dendrill Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Straits Asia Resources Limited - Singapore
- Maheswari Brothers Coal Limited - India
- ASAPP Information Group - India
- Indo Tambangraya Megah - Indonesia
- Vizag Seaport Private Limited - India
- Holcim Trading Pte Ltd - Singapore
- Chamber of Mines of South Africa
- Kohat Cement Company Ltd. - Pakistan
- Eastern Energy - Thailand
- International Coal Ventures Pvt Ltd - India
- Heidelberg Cement - Germany
- Timah Investasi Mineral - Indoneisa
- Independent Power Producers Association of India
- Therma Luzon, Inc, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Malabar Cements Ltd - India
- TeaM Sual Corporation - Philippines
- Kideco Jaya Agung - Indonesia
- Global Green Power PLC Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Petron Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Kartika Selabumi Mining - Indonesia
- Africa Commodities Group - South Africa
- Miang Besar Coal Terminal - Indonesia
- Power Finance Corporation Ltd., India
- Merrill Lynch Commodities Europe
- Port Waratah Coal Services - Australia
- PowerSource Philippines DevCo
- Chettinad Cement Corporation Ltd - India
- Australian Commodity Traders Exchange
- Ambuja Cements Ltd - India
- Orica Australia Pty. Ltd.
- Tata Chemicals Ltd - India
- Uttam Galva Steels Limited - India
- Bangladesh Power Developement Board
- Kumho Petrochemical, South Korea
- Mercator Lines Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Salva Resources Pvt Ltd - India
- McConnell Dowell - Australia
- LBH Netherlands Bv - Netherlands
- Singapore Mercantile Exchange
- Wood Mackenzie - Singapore
- White Energy Company Limited
- Thai Mozambique Logistica
- San Jose City I Power Corp, Philippines
- Siam City Cement PLC, Thailand
- Aditya Birla Group - India
- The State Trading Corporation of India Ltd
- European Bulk Services B.V. - Netherlands
- Coalindo Energy - Indonesia
- Dalmia Cement Bharat India
- TNB Fuel Sdn Bhd - Malaysia
- Karaikal Port Pvt Ltd - India
- Marubeni Corporation - India
- Bhushan Steel Limited - India
- Jindal Steel & Power Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Edison Trading Spa - Italy
- Bank of Tokyo Mitsubishi UFJ Ltd
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