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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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Wednesday, 14 March 12
GLOBAL THERMAL TRADE FLOW CHANGES WILL ENSURE SECURITY OF THERMAL COAL SUPPLY, ALBEIT AT A HIGH PRICE - WOOD MACKENZIE
Wood Mackenzie Says Global Thermal Trade Flow Changes Will Ensure Security of Thermal Coal Supply, Albeit At a High Price Seaborne thermal demand by ...
Wednesday, 14 March 12
COKAL TAKES ANOTHER STEP IN DEVELOPING INFRASTRUCTURE TO FACILITATE METALLURGICAL COAL PRODUCTION
Global coal group, Cokal Limited (ASX-CKA), has signed Memorandums of Understanding (MoU’s) to develop two river ports and two small scale coa ...
Tuesday, 13 March 12
CLARIFICATION OF GR 24 OF 2012 REQUIRING DIVESTMENT OF FOREIGN OWNERSHIP OVER TIME
ASX Announcement
Global metallurgical coal group, Cokal Limited (ASX-CKA), is responding to the recent announcement of the Indonesian Ministry of ...
Tuesday, 13 March 12
EUROPEAN COAL CONTANGO: FURTHER STEEPNESS REQUIRED TO MAKE LARGE SCALE PHYSICAL TIME SPREAD ARBITRAGE MORE ATTRACTIVE - MISWIN MAHESH, BARCLAYS CAPITAL
COALspot.com - "With the contango between the Y+1 and M+1 ARA delivered contract now averaging above the $14/t level, there is an increasing in ...
Monday, 12 March 12
DELTA DUNIA 1M OVERBURDEN DROPS 3.1% - INSIDER STORIES
Insider Stories reported that, Indonesia's second largest coal mining contractor PT Delta Dunia Makmur Tbk (DOID) reported a 25 million bank ...
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- Price Waterhouse Coopers - Russia
- Gujarat Sidhee Cement - India
- TeaM Sual Corporation - Philippines
- Australian Commodity Traders Exchange
- Central Java Power - Indonesia
- Vizag Seaport Private Limited - India
- Posco Energy - South Korea
- Coalindo Energy - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Borneo Indobara - Indonesia
- Ministry of Finance - Indonesia
- Carbofer General Trading SA - India
- Samtan Co., Ltd - South Korea
- Interocean Group of Companies - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bhushan Steel Limited - India
- Kartika Selabumi Mining - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Georgia Ports Authority, United States
- Alfred C Toepfer International GmbH - Germany
- SN Aboitiz Power Inc, Philippines
- Eastern Energy - Thailand
- Metalloyd Limited - United Kingdom
- Medco Energi Mining Internasional
- Malabar Cements Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Globalindo Alam Lestari - Indonesia
- Sree Jayajothi Cements Limited - India
- ASAPP Information Group - India
- Maharashtra Electricity Regulatory Commission - India
- Bukit Baiduri Energy - Indonesia
- Star Paper Mills Limited - India
- Sakthi Sugars Limited - India
- Kumho Petrochemical, South Korea
- SMG Consultants - Indonesia
- Thiess Contractors Indonesia
- Kepco SPC Power Corporation, Philippines
- SMC Global Power, Philippines
- Vedanta Resources Plc - India
- Barasentosa Lestari - Indonesia
- Kideco Jaya Agung - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Straits Asia Resources Limited - Singapore
- International Coal Ventures Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Energy Development Corp, Philippines
- Timah Investasi Mineral - Indoneisa
- Chettinad Cement Corporation Ltd - India
- Eastern Coal Council - USA
- Kalimantan Lumbung Energi - Indonesia
- Global Green Power PLC Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Intertek Mineral Services - Indonesia
- Bharathi Cement Corporation - India
- Karbindo Abesyapradhi - Indoneisa
- Lanco Infratech Ltd - India
- Madhucon Powers Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Savvy Resources Ltd - HongKong
- Semirara Mining Corp, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Riau Bara Harum - Indonesia
- Mjunction Services Limited - India
- Banpu Public Company Limited - Thailand
- Rashtriya Ispat Nigam Limited - India
- Singapore Mercantile Exchange
- Bhoruka Overseas - Indonesia
- Marubeni Corporation - India
- Tata Chemicals Ltd - India
- Jaiprakash Power Ventures ltd
- Global Coal Blending Company Limited - Australia
- European Bulk Services B.V. - Netherlands
- Binh Thuan Hamico - Vietnam
- Sindya Power Generating Company Private Ltd
- Formosa Plastics Group - Taiwan
- GVK Power & Infra Limited - India
- Salva Resources Pvt Ltd - India
- VISA Power Limited - India
- Minerals Council of Australia
- Simpson Spence & Young - Indonesia
- Siam City Cement PLC, Thailand
- Ambuja Cements Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Uttam Galva Steels Limited - India
- Meralco Power Generation, Philippines
- South Luzon Thermal Energy Corporation
- Indika Energy - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Ind-Barath Power Infra Limited - India
- Orica Australia Pty. Ltd.
- Krishnapatnam Port Company Ltd. - India
- Indian Energy Exchange, India
- Vijayanagar Sugar Pvt Ltd - India
- Central Electricity Authority - India
- Sarangani Energy Corporation, Philippines
- Holcim Trading Pte Ltd - Singapore
- The University of Queensland
- LBH Netherlands Bv - Netherlands
- Bulk Trading Sa - Switzerland
- Leighton Contractors Pty Ltd - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- MS Steel International - UAE
- GAC Shipping (India) Pvt Ltd
- Directorate Of Revenue Intelligence - India
- Renaissance Capital - South Africa
- McConnell Dowell - Australia
- Coal and Oil Company - UAE
- Orica Mining Services - Indonesia
- Parry Sugars Refinery, India
- Ministry of Mines - Canada
- Videocon Industries ltd - India
- Ministry of Transport, Egypt
- TNB Fuel Sdn Bhd - Malaysia
- Meenaskhi Energy Private Limited - India
- Makarim & Taira - Indonesia
- Aditya Birla Group - India
- Anglo American - United Kingdom
- AsiaOL BioFuels Corp., Philippines
- Kobexindo Tractors - Indoneisa
- Goldman Sachs - Singapore
- Economic Council, Georgia
- Larsen & Toubro Limited - India
- Maheswari Brothers Coal Limited - India
- Sojitz Corporation - Japan
- Mercator Lines Limited - India
- Therma Luzon, Inc, Philippines
- Cigading International Bulk Terminal - Indonesia
- Pendopo Energi Batubara - Indonesia
- Siam City Cement - Thailand
- Wood Mackenzie - Singapore
- Bukit Makmur.PT - Indonesia
- ICICI Bank Limited - India
- White Energy Company Limited
- CIMB Investment Bank - Malaysia
- Petrochimia International Co. Ltd.- Taiwan
- New Zealand Coal & Carbon
- Bangladesh Power Developement Board
- Kaltim Prima Coal - Indonesia
- Attock Cement Pakistan Limited
- Karaikal Port Pvt Ltd - India
- Indogreen Group - Indonesia
- Toyota Tsusho Corporation, Japan
- Baramulti Group, Indonesia
- Port Waratah Coal Services - Australia
- CNBM International Corporation - China
- Romanian Commodities Exchange
- IHS Mccloskey Coal Group - USA
- Rio Tinto Coal - Australia
- Kapuas Tunggal Persada - Indonesia
- Africa Commodities Group - South Africa
- Chamber of Mines of South Africa
- Energy Link Ltd, New Zealand
- Commonwealth Bank - Australia
- Indo Tambangraya Megah - Indonesia
- Antam Resourcindo - Indonesia
- Aboitiz Power Corporation - Philippines
- Edison Trading Spa - Italy
- Dalmia Cement Bharat India
- Latin American Coal - Colombia
- Indian Oil Corporation Limited
- Bhatia International Limited - India
- Electricity Authority, New Zealand
- Asmin Koalindo Tuhup - Indonesia
- Jindal Steel & Power Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Tamil Nadu electricity Board
- Trasteel International SA, Italy
- Standard Chartered Bank - UAE
- IEA Clean Coal Centre - UK
- Wilmar Investment Holdings
- Parliament of New Zealand
- Mintek Dendrill Indonesia
- Electricity Generating Authority of Thailand
- Independent Power Producers Association of India
- The State Trading Corporation of India Ltd
- Essar Steel Hazira Ltd - India
- Indonesian Coal Mining Association
- PowerSource Philippines DevCo
- Sical Logistics Limited - India
- OPG Power Generation Pvt Ltd - India
- GMR Energy Limited - India
- Petron Corporation, Philippines
- Cement Manufacturers Association - India
- Sinarmas Energy and Mining - Indonesia
- PTC India Limited - India
- Altura Mining Limited, Indonesia
- Thai Mozambique Logistica
- Xindia Steels Limited - India
- San Jose City I Power Corp, Philippines
- Deloitte Consulting - India
- India Bulls Power Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kohat Cement Company Ltd. - Pakistan
- Global Business Power Corporation, Philippines
- Agrawal Coal Company - India
- Australian Coal Association
- Planning Commission, India
- Miang Besar Coal Terminal - Indonesia
- The Treasury - Australian Government
- Iligan Light & Power Inc, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Coastal Gujarat Power Limited - India
- Ceylon Electricity Board - Sri Lanka
- Oldendorff Carriers - Singapore
- Manunggal Multi Energi - Indonesia
- Grasim Industreis Ltd - India
- Merrill Lynch Commodities Europe
- Heidelberg Cement - Germany
- Gujarat Mineral Development Corp Ltd - India
- Bayan Resources Tbk. - Indonesia
- Mercuria Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- London Commodity Brokers - England
- Power Finance Corporation Ltd., India
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