We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Tuesday, 16 July 13
TAKE - OR - PAY CONTRACTS CONTINUE TO INCENTIVISE AUSTRALIAN COAL PRODUCERS DESPITE POTENTIAL NEGATIVE CASH MARGINS - WOOD MACKENZIE
 Australia's coal production has continued to grow, despite lower coal prices in 2013. Global investors and suppliers are therefore questioning whether more production will be shut down. Wood Mackenzie estimates that in 2013, only 4 million tonnes (mt) of coal production in Australia is at risk of closure even though 32mt of coal will be produced at negative margins, including sustaining capital. The decision to continue production instead of shutting it down can mainly be attributed to transport and port contracts in Australia, otherwise known as 'take-or-pay' contracts.
Take-or-pay contracts are fixed cost contracts that result in most producers paying for capacity regardless of tonnes shipped. Stronger growth in exports relative to new capacity build will reduce the average cost per tonne that miners pay for not fully utilising contracted capacity.
Mr. Viktor Tanevski, Coal Cost Analyst at Wood Mackenzie, says, "There have only been two mine closures so far in 2013 compared to seven in 2012. Despite the low coal price environment and current margin squeeze, take-or-pay contracts are incentivising coal producers to increase rather than reduce production, even if additional production is generating negative cash margins. This is because the fixed cost of infrastructure capacity makes the cost of shutting down even more expensive than the cost of maintaining production."
"We estimate that only 4mt, or just over 1% of Australia's coal exports in 2013, is at risk of closure based on Hard Coking Coal (HCC) price of US$171/t and thermal coal price of US$92/t. This is not a significant volume of output; however the amount at risk increases significantly under a lower price scenario.
Wood Mackenzie analyses that if average prices fall to US$122/t for HCC and US$77/t for thermal coal in 2013, then 45mt or 13% of Australia's coal exports in 2013 will be at risk of closure. At that price, a total of 204mt of production will be suffering negative margins.
In summary, Mr. Tanevski says, "Our expectation is that there will not be a significant dent in Australia's production this year. However, if prices do fall below expectations, the risk of closure for mines producing at negative margins will increase, reducing output."
Editor's notes:
Wood Mackenzie is the most comprehensive source of knowledge about the world's energy and metals industries. We analyse and advise on every stage along the value chain - from discovery to delivery, and beyond - to provide clients with the commercial insight that makes them stronger. For more information visit Wood Mackenzie.
Views expressed herein are personal views of the author and not that of COALspot.com and subject to COALspot.com's disclaimer clause. We welcome article submissions from experts in the areas of coal, mining, shipping, etc. To submit your articles please click here.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Friday, 01 November 13
DRY BULK MARKET IN FIRST POSITIVE SIGN IN DAYS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
Owners of dry bulk carriers are well aware of the rollercoaster ride that has been the market for their vessels over the past few years. This trend ...
Thursday, 31 October 13
HANDY: ACTIVE; PANAMAX: QUIET; CAPESIZE: NO LIGHT
Handy
The handy market had an active week however not directly translated into the rates we´ve seen in the Pacific. We see more coal and baux ...
Wednesday, 30 October 13
INDONESIAN STATE OWNED COAL MINER HAS EXPORTED 7.02 MILLION TONS OF COAL IN 9 MONTHS
COALspot.com : PT. Bukit Asam, Indonesian state owned coal miner has sold 13.24 million tons of coal for the period January - September 2013. Accord ...
Wednesday, 30 October 13
DRY BULK MARKET HAS LOST FURTHER GROUND THIS PAST WEEK - INTERMODAL
Chartering (Wet: Firm+ / Dry: Stable-)
The Dry Bulk market has lost further ground this past week, as de-creased activity in both basins for both C ...
Wednesday, 30 October 13
CAPESIZE: DOWNWARD; SUPRAS AND HANDIES: STABLE - INTERMODAL
The Dry Bulk market has resumed its downward movement, noting another dip for a third week in a row. The larger size segments were responsible for p ...
|
|
|
Showing 4036 to 4040 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Cigading International Bulk Terminal - Indonesia
- Sojitz Corporation - Japan
- Global Business Power Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Eastern Coal Council - USA
- GAC Shipping (India) Pvt Ltd
- AsiaOL BioFuels Corp., Philippines
- PowerSource Philippines DevCo
- MS Steel International - UAE
- Ceylon Electricity Board - Sri Lanka
- Timah Investasi Mineral - Indoneisa
- Indo Tambangraya Megah - Indonesia
- Sical Logistics Limited - India
- Energy Development Corp, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kartika Selabumi Mining - Indonesia
- Medco Energi Mining Internasional
- Chettinad Cement Corporation Ltd - India
- ASAPP Information Group - India
- Pendopo Energi Batubara - Indonesia
- Xindia Steels Limited - India
- Indogreen Group - Indonesia
- Wood Mackenzie - Singapore
- Antam Resourcindo - Indonesia
- Global Green Power PLC Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- Mercator Lines Limited - India
- Bhoruka Overseas - Indonesia
- Africa Commodities Group - South Africa
- Bukit Asam (Persero) Tbk - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Aditya Birla Group - India
- Kohat Cement Company Ltd. - Pakistan
- Parliament of New Zealand
- Essar Steel Hazira Ltd - India
- South Luzon Thermal Energy Corporation
- Commonwealth Bank - Australia
- Ministry of Transport, Egypt
- IEA Clean Coal Centre - UK
- Renaissance Capital - South Africa
- Rio Tinto Coal - Australia
- Agrawal Coal Company - India
- Alfred C Toepfer International GmbH - Germany
- New Zealand Coal & Carbon
- Gujarat Sidhee Cement - India
- Cement Manufacturers Association - India
- The Treasury - Australian Government
- Oldendorff Carriers - Singapore
- India Bulls Power Limited - India
- Meenaskhi Energy Private Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Economic Council, Georgia
- Electricity Authority, New Zealand
- Dalmia Cement Bharat India
- Vizag Seaport Private Limited - India
- Kobexindo Tractors - Indoneisa
- The State Trading Corporation of India Ltd
- Chamber of Mines of South Africa
- Interocean Group of Companies - India
- Savvy Resources Ltd - HongKong
- Port Waratah Coal Services - Australia
- White Energy Company Limited
- Simpson Spence & Young - Indonesia
- Coastal Gujarat Power Limited - India
- Planning Commission, India
- Goldman Sachs - Singapore
- Tamil Nadu electricity Board
- The University of Queensland
- Sarangani Energy Corporation, Philippines
- Mercuria Energy - Indonesia
- London Commodity Brokers - England
- Merrill Lynch Commodities Europe
- Deloitte Consulting - India
- Attock Cement Pakistan Limited
- Siam City Cement PLC, Thailand
- PetroVietnam Power Coal Import and Supply Company
- GMR Energy Limited - India
- Jindal Steel & Power Ltd - India
- Romanian Commodities Exchange
- Kumho Petrochemical, South Korea
- Parry Sugars Refinery, India
- Riau Bara Harum - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Kideco Jaya Agung - Indonesia
- Thiess Contractors Indonesia
- Heidelberg Cement - Germany
- Leighton Contractors Pty Ltd - Australia
- Thai Mozambique Logistica
- SMG Consultants - Indonesia
- Georgia Ports Authority, United States
- Borneo Indobara - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Energy Link Ltd, New Zealand
- Marubeni Corporation - India
- Semirara Mining and Power Corporation, Philippines
- Star Paper Mills Limited - India
- Baramulti Group, Indonesia
- Electricity Generating Authority of Thailand
- Petrochimia International Co. Ltd.- Taiwan
- Straits Asia Resources Limited - Singapore
- Indika Energy - Indonesia
- Toyota Tsusho Corporation, Japan
- Therma Luzon, Inc, Philippines
- Vedanta Resources Plc - India
- Maheswari Brothers Coal Limited - India
- CNBM International Corporation - China
- Uttam Galva Steels Limited - India
- VISA Power Limited - India
- Sree Jayajothi Cements Limited - India
- Bulk Trading Sa - Switzerland
- Price Waterhouse Coopers - Russia
- Madhucon Powers Ltd - India
- Edison Trading Spa - Italy
- Rashtriya Ispat Nigam Limited - India
- Aboitiz Power Corporation - Philippines
- Bhatia International Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Bukit Baiduri Energy - Indonesia
- Ministry of Finance - Indonesia
- Bharathi Cement Corporation - India
- Latin American Coal - Colombia
- GVK Power & Infra Limited - India
- Independent Power Producers Association of India
- Samtan Co., Ltd - South Korea
- Kalimantan Lumbung Energi - Indonesia
- Sindya Power Generating Company Private Ltd
- IHS Mccloskey Coal Group - USA
- Ind-Barath Power Infra Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Orica Mining Services - Indonesia
- Semirara Mining Corp, Philippines
- Power Finance Corporation Ltd., India
- Siam City Cement - Thailand
- International Coal Ventures Pvt Ltd - India
- Indian Energy Exchange, India
- Gujarat Electricity Regulatory Commission - India
- Lanco Infratech Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Vijayanagar Sugar Pvt Ltd - India
- Ambuja Cements Ltd - India
- ICICI Bank Limited - India
- OPG Power Generation Pvt Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Sakthi Sugars Limited - India
- Indonesian Coal Mining Association
- Mintek Dendrill Indonesia
- Krishnapatnam Port Company Ltd. - India
- Kepco SPC Power Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Meralco Power Generation, Philippines
- Australian Commodity Traders Exchange
- Coal and Oil Company - UAE
- Videocon Industries ltd - India
- Trasteel International SA, Italy
- Minerals Council of Australia
- SMC Global Power, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Bhushan Steel Limited - India
- Binh Thuan Hamico - Vietnam
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Metalloyd Limited - United Kingdom
- PTC India Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- GN Power Mariveles Coal Plant, Philippines
- CIMB Investment Bank - Malaysia
- Jaiprakash Power Ventures ltd
- Malabar Cements Ltd - India
- Makarim & Taira - Indonesia
- San Jose City I Power Corp, Philippines
- Coalindo Energy - Indonesia
- Orica Australia Pty. Ltd.
- LBH Netherlands Bv - Netherlands
- McConnell Dowell - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bangladesh Power Developement Board
- European Bulk Services B.V. - Netherlands
- Petron Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Standard Chartered Bank - UAE
- Carbofer General Trading SA - India
- Global Coal Blending Company Limited - Australia
- Australian Coal Association
- Tata Chemicals Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Central Java Power - Indonesia
- Manunggal Multi Energi - Indonesia
- Eastern Energy - Thailand
- Barasentosa Lestari - Indonesia
- Directorate Of Revenue Intelligence - India
- Formosa Plastics Group - Taiwan
- Globalindo Alam Lestari - Indonesia
- Grasim Industreis Ltd - India
- Altura Mining Limited, Indonesia
- Kaltim Prima Coal - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Larsen & Toubro Limited - India
- Posco Energy - South Korea
- PNOC Exploration Corporation - Philippines
- Central Electricity Authority - India
- Ministry of Mines - Canada
- Wilmar Investment Holdings
- TeaM Sual Corporation - Philippines
- Anglo American - United Kingdom
- Bayan Resources Tbk. - Indonesia
- Iligan Light & Power Inc, Philippines
- Karaikal Port Pvt Ltd - India
- SN Aboitiz Power Inc, Philippines
- Salva Resources Pvt Ltd - India
- Singapore Mercantile Exchange
- Mjunction Services Limited - India
- Indian Oil Corporation Limited
- Karbindo Abesyapradhi - Indoneisa
|
| |
| |
|
