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Friday, 26 September 14
INDIA SUPREME COURT RULING TO HIT STEEL, UTILITY EARNINGS, SAYS FITCH
 COALspot.com: The 24 September Supreme Court of India (SCI) decision to cancel almost every coal block allocation since 1993 will have a negative financial impact on a number of Indian power and steel companies, says Fitch Ratings.
The decision is broadly credit negative for these sectors, but should have no impact on the ratings of any Fitch-rated steel or power sector corporates.
According to Fitch, the decision to cancel 214 of 218 coal licences follows a ruling in August in which the SCI declared the licence allocation process as arbitrary and illegal. The cancelled licences include 46 producing or near-production blocks, and are owned largely by power and steel sector companies. The producing mines will be allowed to continue operations until March 2015, at which point they will be handed back to state firm, Coal India Limited, until they are sold as part of a new auction process.
Companies with cancelled licences will not receive any compensation on account of development expenditure incurred to date, meaning these will have to be written off. They can bid for the same coal blocks when they come back on the market, while it will be an open bidding process. Furthermore, they will now have to pay for externally sourced coal, resulting in higher operating costs. The SCI's decision also levies a fine of INR295/tonne on coal produced to date from the mines affected, which could amount to INR73bn (USD1.2bn), Fitch says in its latest research report.
The negative financial impact will vary significantly depending on the company. Current credit profiles are likely to remain intact for Fitch-rated steel and power companies. The ruling has no immediate direct impact on Tata Steel Limited (BB+/Stable) and Steel Authority of India Limited (SAIL, BBB-/Stable). All but one of their operational coal mines were allocated before 1993, which are exempt from the decision. In addition, SAIL's one operational mine which was allocated after 1993 was one of the four licences upheld by the SCI as valid. The cancellation of non-operational coal licenses will not hurt credit profiles, as these have not been factored into Fitch's long-term financial projections for these companies.
Power Company NTPC Limited (BBB-/Stable) could be more vulnerable to the decision, though Fitch maintains that the broader impact will still be relatively small. Pakhri Barwadih, an NTPC mine nearing production, has been exempt from the cancellation. The status of the other nine of NTPC's 10 coal blocks is uncertain, as it is not very clear if they are also exempt - owing to the fact that NTPC is a state-owned entity. The company had expected that its captive mines would be able to serve 4.3% of its coal requirements in FY15 - rising further to 15% by FY17.
The potential long-term effects of the decision on the wider power and steel sectors will depend largely on how quickly the government proceeds with re-auctioning the licences. This could lead to more efficient development of these coal blocks in the long term should the new process go quickly. Uncertainty regarding the original allocation process had previously contributed in part to the underdevelopment and utilisation of these blocks.
However, it is important to highlight that a new and transparent auction process is just one factor needed to boost coal production in India. Other key challenges remain, including tough environmental clearances and regulatory approvals.
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Friday, 02 August 24
COAL MARKET DEVELOPMENTS: FALLING PRICES AMID RECORD-HIGH OUTPUT - WORLD BANK
Coal prices inched up in May (m/m) following an 8 percent decline in 2024Q1. The Australian and South African benchmarks have plummeted more ...
Friday, 26 July 24
FUELEU MARITME IS COMING. IS YOUR CHARTERPARTY READY? - GARD
With less than six months to implementation of FuelEU Maritime in EU and EEA trades, there has been little published advice regarding how to alloca ...
Thursday, 04 July 24
INDIA'S COAL PRODUCTION RISES 14% IN JUNE - PTI
The country’s coal production rose by 14.49% to 84.63 million tonne (MT) in June. The country’s coal output was 73.92 MT in June last f ...
Tuesday, 02 July 24
NTPC CAPTIVE COAL OUTPUT GROWS 15% IN Q1; DESPATCH RISES 17%
State-owned NTPC on Monday reported a 15 per cent year-on-year increase in the production of coal from captives mines to 9.862 metric million tonne ...
Friday, 28 June 24
KOSPO INVITED BIDS FOR 400,000 MT OF MINIMUM 4000 NCV COAL FOR FIVE YEARS
Korea Southern Power Co., Ltd. (KOSPO), is inviting bids for total 400,000 MT of Low Calorific Value Coal for 5 years starting from July 2024 until ...
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- Bank of Tokyo Mitsubishi UFJ Ltd
- Altura Mining Limited, Indonesia
- Goldman Sachs - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Ambuja Cements Ltd - India
- Kideco Jaya Agung - Indonesia
- Kaltim Prima Coal - Indonesia
- Heidelberg Cement - Germany
- Mintek Dendrill Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Star Paper Mills Limited - India
- Petron Corporation, Philippines
- Antam Resourcindo - Indonesia
- Directorate Of Revenue Intelligence - India
- India Bulls Power Limited - India
- Samtan Co., Ltd - South Korea
- Baramulti Group, Indonesia
- New Zealand Coal & Carbon
- Malabar Cements Ltd - India
- Barasentosa Lestari - Indonesia
- Iligan Light & Power Inc, Philippines
- Global Coal Blending Company Limited - Australia
- Georgia Ports Authority, United States
- The State Trading Corporation of India Ltd
- Energy Link Ltd, New Zealand
- Kapuas Tunggal Persada - Indonesia
- Siam City Cement - Thailand
- Sindya Power Generating Company Private Ltd
- Ministry of Transport, Egypt
- Global Business Power Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Africa Commodities Group - South Africa
- TNB Fuel Sdn Bhd - Malaysia
- Bayan Resources Tbk. - Indonesia
- Siam City Cement PLC, Thailand
- Price Waterhouse Coopers - Russia
- Planning Commission, India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- McConnell Dowell - Australia
- Coastal Gujarat Power Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Medco Energi Mining Internasional
- Dalmia Cement Bharat India
- Wilmar Investment Holdings
- Anglo American - United Kingdom
- Manunggal Multi Energi - Indonesia
- Timah Investasi Mineral - Indoneisa
- Parliament of New Zealand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Larsen & Toubro Limited - India
- Power Finance Corporation Ltd., India
- Binh Thuan Hamico - Vietnam
- LBH Netherlands Bv - Netherlands
- Tamil Nadu electricity Board
- Rio Tinto Coal - Australia
- Tata Chemicals Ltd - India
- Semirara Mining Corp, Philippines
- Formosa Plastics Group - Taiwan
- Orica Mining Services - Indonesia
- Bulk Trading Sa - Switzerland
- Globalindo Alam Lestari - Indonesia
- Attock Cement Pakistan Limited
- Makarim & Taira - Indonesia
- Thiess Contractors Indonesia
- Australian Commodity Traders Exchange
- Bhatia International Limited - India
- Central Java Power - Indonesia
- CNBM International Corporation - China
- Billiton Holdings Pty Ltd - Australia
- Grasim Industreis Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Sinarmas Energy and Mining - Indonesia
- Australian Coal Association
- Intertek Mineral Services - Indonesia
- International Coal Ventures Pvt Ltd - India
- Vedanta Resources Plc - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- San Jose City I Power Corp, Philippines
- Ministry of Mines - Canada
- Central Electricity Authority - India
- VISA Power Limited - India
- Edison Trading Spa - Italy
- Asmin Koalindo Tuhup - Indonesia
- Carbofer General Trading SA - India
- Bhoruka Overseas - Indonesia
- Kumho Petrochemical, South Korea
- Coal and Oil Company - UAE
- Karaikal Port Pvt Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Aditya Birla Group - India
- SMC Global Power, Philippines
- Oldendorff Carriers - Singapore
- South Luzon Thermal Energy Corporation
- Deloitte Consulting - India
- Cigading International Bulk Terminal - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Mjunction Services Limited - India
- Parry Sugars Refinery, India
- Meenaskhi Energy Private Limited - India
- Kohat Cement Company Ltd. - Pakistan
- The University of Queensland
- Offshore Bulk Terminal Pte Ltd, Singapore
- GMR Energy Limited - India
- Banpu Public Company Limited - Thailand
- Leighton Contractors Pty Ltd - Australia
- Independent Power Producers Association of India
- Meralco Power Generation, Philippines
- Wood Mackenzie - Singapore
- Madhucon Powers Ltd - India
- Sree Jayajothi Cements Limited - India
- Chettinad Cement Corporation Ltd - India
- Indogreen Group - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Kobexindo Tractors - Indoneisa
- MS Steel International - UAE
- Marubeni Corporation - India
- Metalloyd Limited - United Kingdom
- European Bulk Services B.V. - Netherlands
- Electricity Authority, New Zealand
- London Commodity Brokers - England
- Mercator Lines Limited - India
- Agrawal Coal Company - India
- Pendopo Energi Batubara - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- ICICI Bank Limited - India
- Xindia Steels Limited - India
- Renaissance Capital - South Africa
- Eastern Energy - Thailand
- Bukit Asam (Persero) Tbk - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Petrochimia International Co. Ltd.- Taiwan
- Electricity Generating Authority of Thailand
- SN Aboitiz Power Inc, Philippines
- Commonwealth Bank - Australia
- Riau Bara Harum - Indonesia
- Toyota Tsusho Corporation, Japan
- Posco Energy - South Korea
- GAC Shipping (India) Pvt Ltd
- Ind-Barath Power Infra Limited - India
- Romanian Commodities Exchange
- Gujarat Sidhee Cement - India
- Coalindo Energy - Indonesia
- Savvy Resources Ltd - HongKong
- Orica Australia Pty. Ltd.
- IHS Mccloskey Coal Group - USA
- ASAPP Information Group - India
- Miang Besar Coal Terminal - Indonesia
- Kartika Selabumi Mining - Indonesia
- Indo Tambangraya Megah - Indonesia
- GVK Power & Infra Limited - India
- Port Waratah Coal Services - Australia
- CIMB Investment Bank - Malaysia
- Ceylon Electricity Board - Sri Lanka
- Sical Logistics Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Indonesian Coal Mining Association
- Uttam Galva Steels Limited - India
- Videocon Industries ltd - India
- Borneo Indobara - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Interocean Group of Companies - India
- PNOC Exploration Corporation - Philippines
- Sakthi Sugars Limited - India
- Bharathi Cement Corporation - India
- Kalimantan Lumbung Energi - Indonesia
- Kepco SPC Power Corporation, Philippines
- TeaM Sual Corporation - Philippines
- Gujarat Electricity Regulatory Commission - India
- Vizag Seaport Private Limited - India
- Sarangani Energy Corporation, Philippines
- IEA Clean Coal Centre - UK
- PTC India Limited - India
- OPG Power Generation Pvt Ltd - India
- Thai Mozambique Logistica
- Singapore Mercantile Exchange
- Directorate General of MIneral and Coal - Indonesia
- Latin American Coal - Colombia
- Standard Chartered Bank - UAE
- Chamber of Mines of South Africa
- Eastern Coal Council - USA
- Therma Luzon, Inc, Philippines
- Jaiprakash Power Ventures ltd
- Essar Steel Hazira Ltd - India
- The Treasury - Australian Government
- Indian Oil Corporation Limited
- Merrill Lynch Commodities Europe
- Jindal Steel & Power Ltd - India
- Minerals Council of Australia
- PowerSource Philippines DevCo
- Indika Energy - Indonesia
- Mercuria Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- Indian Energy Exchange, India
- Energy Development Corp, Philippines
- Alfred C Toepfer International GmbH - Germany
- GN Power Mariveles Coal Plant, Philippines
- White Energy Company Limited
- Bangladesh Power Developement Board
- Cement Manufacturers Association - India
- Bhushan Steel Limited - India
- Straits Asia Resources Limited - Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Lanco Infratech Ltd - India
- Salva Resources Pvt Ltd - India
- Sojitz Corporation - Japan
- AsiaOL BioFuels Corp., Philippines
- Maharashtra Electricity Regulatory Commission - India
- Krishnapatnam Port Company Ltd. - India
- Bukit Makmur.PT - Indonesia
- Bukit Baiduri Energy - Indonesia
- Trasteel International SA, Italy
- SMG Consultants - Indonesia
- Simpson Spence & Young - Indonesia
- Economic Council, Georgia
- Global Green Power PLC Corporation, Philippines
- Ministry of Finance - Indonesia
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