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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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Tuesday, 23 May 23
INDIA: COAL OUTPUT UP 8.9%, SUPPLY RISES 11.7% IN APRIL - FINANCIAL EXPRESS
India’s coal production jumped 8.85% to 73.14 million tonne (MT) in April 2023 and the total coal despatch during the month went up 11.66% to ...
Tuesday, 23 May 23
CHINA COAL OUTPUT UP 4.5 PCT IN APRIL - XINHUA
China’s raw coal output posted stable expansion in April, official data showed.
The country produced 380 million tonnes of raw ...
Saturday, 20 May 23
NON-OPEC OIL SUPPLY DEVELOPMENT - OPEC
In 2022, non-OPEC supply is estimated to have increased by 1.9 mb/d y-o-y. Out of this, US liquids production increased by 1.2 mb/d, mainly on the ...
Saturday, 20 May 23
GLOBAL COAL TRADE HAS REALLY PICKED UP PACE IN RECENT MONTHS, NOW FULLY BACK TO PRE-COVID LEVELS - BANCHERO COSTA
Global coal trade has really picked up pace in recent months, and is now fully back to pre-Covid levels. In Jan-Apr 2023, total global seaborne coa ...
Saturday, 20 May 23
MARKET INSIGHT - INTERMODAL
India is one of the world's largest coal producers and one of the world's largest importers of coal. The country uses coal mainly for power ...
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Showing 101 to 105 news of total 6871 |
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- Carbofer General Trading SA - India
- Standard Chartered Bank - UAE
- Kohat Cement Company Ltd. - Pakistan
- Maheswari Brothers Coal Limited - India
- Orica Australia Pty. Ltd.
- Kaltim Prima Coal - Indonesia
- Formosa Plastics Group - Taiwan
- Eastern Coal Council - USA
- Bahari Cakrawala Sebuku - Indonesia
- Binh Thuan Hamico - Vietnam
- Intertek Mineral Services - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- CIMB Investment Bank - Malaysia
- Sree Jayajothi Cements Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Vedanta Resources Plc - India
- Timah Investasi Mineral - Indoneisa
- Samtan Co., Ltd - South Korea
- SMG Consultants - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Heidelberg Cement - Germany
- Riau Bara Harum - Indonesia
- Makarim & Taira - Indonesia
- Tamil Nadu electricity Board
- Parliament of New Zealand
- Attock Cement Pakistan Limited
- Sakthi Sugars Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Billiton Holdings Pty Ltd - Australia
- Salva Resources Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- Bangladesh Power Developement Board
- Karaikal Port Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Bharathi Cement Corporation - India
- Chettinad Cement Corporation Ltd - India
- Indonesian Coal Mining Association
- Altura Mining Limited, Indonesia
- Thiess Contractors Indonesia
- Bayan Resources Tbk. - Indonesia
- Star Paper Mills Limited - India
- Sojitz Corporation - Japan
- Madhucon Powers Ltd - India
- Vizag Seaport Private Limited - India
- Singapore Mercantile Exchange
- Straits Asia Resources Limited - Singapore
- Global Coal Blending Company Limited - Australia
- Metalloyd Limited - United Kingdom
- Marubeni Corporation - India
- Aditya Birla Group - India
- Mjunction Services Limited - India
- Ministry of Transport, Egypt
- SMC Global Power, Philippines
- Videocon Industries ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Meenaskhi Energy Private Limited - India
- Indian Energy Exchange, India
- Sical Logistics Limited - India
- Ministry of Mines - Canada
- Maharashtra Electricity Regulatory Commission - India
- Pendopo Energi Batubara - Indonesia
- Edison Trading Spa - Italy
- Bhoruka Overseas - Indonesia
- The Treasury - Australian Government
- Kalimantan Lumbung Energi - Indonesia
- Ambuja Cements Ltd - India
- The University of Queensland
- Interocean Group of Companies - India
- Energy Link Ltd, New Zealand
- Australian Coal Association
- IHS Mccloskey Coal Group - USA
- Central Java Power - Indonesia
- Bhatia International Limited - India
- PNOC Exploration Corporation - Philippines
- Simpson Spence & Young - Indonesia
- Electricity Authority, New Zealand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- VISA Power Limited - India
- Meralco Power Generation, Philippines
- Mercuria Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Coal and Oil Company - UAE
- Ministry of Finance - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Medco Energi Mining Internasional
- Eastern Energy - Thailand
- Neyveli Lignite Corporation Ltd, - India
- Africa Commodities Group - South Africa
- Coalindo Energy - Indonesia
- Energy Development Corp, Philippines
- MS Steel International - UAE
- Electricity Generating Authority of Thailand
- Banpu Public Company Limited - Thailand
- Kumho Petrochemical, South Korea
- Vijayanagar Sugar Pvt Ltd - India
- OPG Power Generation Pvt Ltd - India
- ICICI Bank Limited - India
- Petron Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Commonwealth Bank - Australia
- Xindia Steels Limited - India
- Agrawal Coal Company - India
- Mercator Lines Limited - India
- Coastal Gujarat Power Limited - India
- ASAPP Information Group - India
- Antam Resourcindo - Indonesia
- Deloitte Consulting - India
- Oldendorff Carriers - Singapore
- Bhushan Steel Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Renaissance Capital - South Africa
- Romanian Commodities Exchange
- White Energy Company Limited
- Merrill Lynch Commodities Europe
- Semirara Mining and Power Corporation, Philippines
- Posco Energy - South Korea
- Malabar Cements Ltd - India
- Latin American Coal - Colombia
- Port Waratah Coal Services - Australia
- New Zealand Coal & Carbon
- Sinarmas Energy and Mining - Indonesia
- Wilmar Investment Holdings
- Indogreen Group - Indonesia
- Global Green Power PLC Corporation, Philippines
- Indian Oil Corporation Limited
- Directorate Of Revenue Intelligence - India
- TNB Fuel Sdn Bhd - Malaysia
- SN Aboitiz Power Inc, Philippines
- Holcim Trading Pte Ltd - Singapore
- Miang Besar Coal Terminal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Economic Council, Georgia
- Uttam Galva Steels Limited - India
- Baramulti Group, Indonesia
- AsiaOL BioFuels Corp., Philippines
- Gujarat Sidhee Cement - India
- Wood Mackenzie - Singapore
- Dalmia Cement Bharat India
- GMR Energy Limited - India
- Savvy Resources Ltd - HongKong
- Planning Commission, India
- Minerals Council of Australia
- Therma Luzon, Inc, Philippines
- Jaiprakash Power Ventures ltd
- The State Trading Corporation of India Ltd
- Central Electricity Authority - India
- PTC India Limited - India
- European Bulk Services B.V. - Netherlands
- Directorate General of MIneral and Coal - Indonesia
- Iligan Light & Power Inc, Philippines
- Chamber of Mines of South Africa
- GVK Power & Infra Limited - India
- Goldman Sachs - Singapore
- India Bulls Power Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Larsen & Toubro Limited - India
- McConnell Dowell - Australia
- Essar Steel Hazira Ltd - India
- Orica Mining Services - Indonesia
- Siam City Cement - Thailand
- Thai Mozambique Logistica
- Ind-Barath Power Infra Limited - India
- IEA Clean Coal Centre - UK
- Trasteel International SA, Italy
- Bukit Makmur.PT - Indonesia
- Cement Manufacturers Association - India
- Borneo Indobara - Indonesia
- Independent Power Producers Association of India
- TeaM Sual Corporation - Philippines
- South Luzon Thermal Energy Corporation
- Siam City Cement PLC, Thailand
- Kideco Jaya Agung - Indonesia
- Anglo American - United Kingdom
- Rio Tinto Coal - Australia
- Tata Chemicals Ltd - India
- Semirara Mining Corp, Philippines
- Krishnapatnam Port Company Ltd. - India
- Sarangani Energy Corporation, Philippines
- Sindya Power Generating Company Private Ltd
- Gujarat Electricity Regulatory Commission - India
- Grasim Industreis Ltd - India
- International Coal Ventures Pvt Ltd - India
- Global Business Power Corporation, Philippines
- San Jose City I Power Corp, Philippines
- Indo Tambangraya Megah - Indonesia
- Globalindo Alam Lestari - Indonesia
- Alfred C Toepfer International GmbH - Germany
- London Commodity Brokers - England
- GN Power Mariveles Coal Plant, Philippines
- Bukit Baiduri Energy - Indonesia
- Lanco Infratech Ltd - India
- Georgia Ports Authority, United States
- PowerSource Philippines DevCo
- Australian Commodity Traders Exchange
- Parry Sugars Refinery, India
- Manunggal Multi Energi - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Bulk Trading Sa - Switzerland
- Price Waterhouse Coopers - Russia
- Toyota Tsusho Corporation, Japan
- Kartika Selabumi Mining - Indonesia
- Jindal Steel & Power Ltd - India
- CNBM International Corporation - China
- Asmin Koalindo Tuhup - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Cigading International Bulk Terminal - Indonesia
- Kobexindo Tractors - Indoneisa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Mintek Dendrill Indonesia
- Aboitiz Power Corporation - Philippines
- GAC Shipping (India) Pvt Ltd
- Indika Energy - Indonesia
- Power Finance Corporation Ltd., India
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