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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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Saturday, 25 March 23
COAL INDIA HAS STRONG CASE TO INCREASE PRICES, TALKS ON: CMD AGRAWAL - BUSINESS STANDARD
Coal India (CIL) Chairman and Managing Director Pramod Agrawal said on Monday there is a “strong case” for increasing coal prices, and ...
Saturday, 25 March 23
ASIAN CRUDE PALM OIL WATCH 1Q23 - FITCH RATINGS
Malaysian benchmark crude palm oil (CPO) spot prices have averaged around USD915 per tonne (t) so far in 1Q23, sharply lower than the average of ar ...
Saturday, 25 March 23
INDONESIA’S COAL EXPORT INCREASED BY 21.0% YOY TO 388.4 MLN T IN 2022 - BANCHERO COSTA
After a slow start in the first quarter, global coal trade has really picked up pace last year, and is now fully back to pre-Covid levels. In the f ...
Saturday, 25 March 23
GLOBAL LNG-ASIA SPOT PRICES SLIP AS WEAK NORTHERN DEMAND REMAINS - REUTERS
Asian spot prices of liquefied natural gas (LNG) declined this week, falling to a 21-month low, as weak demand in the northeast Asia region continu ...
Wednesday, 22 March 23
OIL PRICE FALL SPECULATIVE, TO HIT $140 BY YEAR-END -ANDURAND: REUTERS
The recent fall in oil prices due to banking jitters is speculative and oil will hit $140 a barrel by the end of the year, hedge fund manager Pierr ...
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- Bulk Trading Sa - Switzerland
- Bahari Cakrawala Sebuku - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Indogreen Group - Indonesia
- Mjunction Services Limited - India
- The University of Queensland
- Global Business Power Corporation, Philippines
- Kumho Petrochemical, South Korea
- Simpson Spence & Young - Indonesia
- Petron Corporation, Philippines
- Indonesian Coal Mining Association
- Jorong Barutama Greston.PT - Indonesia
- Electricity Authority, New Zealand
- Chettinad Cement Corporation Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Australian Commodity Traders Exchange
- GVK Power & Infra Limited - India
- Jindal Steel & Power Ltd - India
- Marubeni Corporation - India
- Orica Mining Services - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Economic Council, Georgia
- Energy Link Ltd, New Zealand
- Romanian Commodities Exchange
- Thiess Contractors Indonesia
- Attock Cement Pakistan Limited
- ASAPP Information Group - India
- Sical Logistics Limited - India
- Oldendorff Carriers - Singapore
- Borneo Indobara - Indonesia
- Global Coal Blending Company Limited - Australia
- Standard Chartered Bank - UAE
- Metalloyd Limited - United Kingdom
- Sojitz Corporation - Japan
- Karaikal Port Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- TNB Fuel Sdn Bhd - Malaysia
- Electricity Generating Authority of Thailand
- Petrochimia International Co. Ltd.- Taiwan
- Africa Commodities Group - South Africa
- Trasteel International SA, Italy
- Parliament of New Zealand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Posco Energy - South Korea
- SN Aboitiz Power Inc, Philippines
- Sakthi Sugars Limited - India
- Deloitte Consulting - India
- Price Waterhouse Coopers - Russia
- Cement Manufacturers Association - India
- Orica Australia Pty. Ltd.
- Sinarmas Energy and Mining - Indonesia
- Ministry of Mines - Canada
- Wood Mackenzie - Singapore
- India Bulls Power Limited - India
- Kaltim Prima Coal - Indonesia
- Tamil Nadu electricity Board
- Georgia Ports Authority, United States
- Star Paper Mills Limited - India
- Therma Luzon, Inc, Philippines
- Formosa Plastics Group - Taiwan
- Baramulti Group, Indonesia
- Binh Thuan Hamico - Vietnam
- Central Electricity Authority - India
- PowerSource Philippines DevCo
- Coal and Oil Company - UAE
- Bhatia International Limited - India
- Rashtriya Ispat Nigam Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- GN Power Mariveles Coal Plant, Philippines
- OPG Power Generation Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Bayan Resources Tbk. - Indonesia
- Lanco Infratech Ltd - India
- Bharathi Cement Corporation - India
- Altura Mining Limited, Indonesia
- PNOC Exploration Corporation - Philippines
- Meenaskhi Energy Private Limited - India
- London Commodity Brokers - England
- Malabar Cements Ltd - India
- Meralco Power Generation, Philippines
- SMC Global Power, Philippines
- Barasentosa Lestari - Indonesia
- Bhushan Steel Limited - India
- Wilmar Investment Holdings
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PetroVietnam Power Coal Import and Supply Company
- Alfred C Toepfer International GmbH - Germany
- IHS Mccloskey Coal Group - USA
- PTC India Limited - India
- Eastern Coal Council - USA
- Kobexindo Tractors - Indoneisa
- Gujarat Sidhee Cement - India
- Madhucon Powers Ltd - India
- Bhoruka Overseas - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Antam Resourcindo - Indonesia
- Toyota Tsusho Corporation, Japan
- The Treasury - Australian Government
- Mercator Lines Limited - India
- Kartika Selabumi Mining - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Sree Jayajothi Cements Limited - India
- Coalindo Energy - Indonesia
- South Luzon Thermal Energy Corporation
- Siam City Cement - Thailand
- Carbofer General Trading SA - India
- Sarangani Energy Corporation, Philippines
- Grasim Industreis Ltd - India
- Commonwealth Bank - Australia
- Salva Resources Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Merrill Lynch Commodities Europe
- GMR Energy Limited - India
- Global Green Power PLC Corporation, Philippines
- Dalmia Cement Bharat India
- Jaiprakash Power Ventures ltd
- Larsen & Toubro Limited - India
- Kapuas Tunggal Persada - Indonesia
- Minerals Council of Australia
- Rio Tinto Coal - Australia
- Leighton Contractors Pty Ltd - Australia
- The State Trading Corporation of India Ltd
- GAC Shipping (India) Pvt Ltd
- Mercuria Energy - Indonesia
- Medco Energi Mining Internasional
- Ambuja Cements Ltd - India
- Mintek Dendrill Indonesia
- TeaM Sual Corporation - Philippines
- Ministry of Transport, Egypt
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Thai Mozambique Logistica
- Pendopo Energi Batubara - Indonesia
- International Coal Ventures Pvt Ltd - India
- Makarim & Taira - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Bangladesh Power Developement Board
- Aditya Birla Group - India
- San Jose City I Power Corp, Philippines
- Sindya Power Generating Company Private Ltd
- Intertek Mineral Services - Indonesia
- Edison Trading Spa - Italy
- Coastal Gujarat Power Limited - India
- Timah Investasi Mineral - Indoneisa
- Bukit Makmur.PT - Indonesia
- Latin American Coal - Colombia
- Kepco SPC Power Corporation, Philippines
- Semirara Mining Corp, Philippines
- Kideco Jaya Agung - Indonesia
- Renaissance Capital - South Africa
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indo Tambangraya Megah - Indonesia
- Indian Energy Exchange, India
- Samtan Co., Ltd - South Korea
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Pipit Mutiara Jaya. PT, Indonesia
- Singapore Mercantile Exchange
- Riau Bara Harum - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Manunggal Multi Energi - Indonesia
- Heidelberg Cement - Germany
- Vedanta Resources Plc - India
- Aboitiz Power Corporation - Philippines
- Parry Sugars Refinery, India
- Ministry of Finance - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Power Finance Corporation Ltd., India
- Independent Power Producers Association of India
- MS Steel International - UAE
- Cigading International Bulk Terminal - Indonesia
- Eastern Energy - Thailand
- Central Java Power - Indonesia
- White Energy Company Limited
- CIMB Investment Bank - Malaysia
- Agrawal Coal Company - India
- Siam City Cement PLC, Thailand
- Vizag Seaport Private Limited - India
- Australian Coal Association
- Anglo American - United Kingdom
- Videocon Industries ltd - India
- Goldman Sachs - Singapore
- Ceylon Electricity Board - Sri Lanka
- SMG Consultants - Indonesia
- IEA Clean Coal Centre - UK
- Port Waratah Coal Services - Australia
- Bukit Baiduri Energy - Indonesia
- CNBM International Corporation - China
- Tata Chemicals Ltd - India
- McConnell Dowell - Australia
- VISA Power Limited - India
- LBH Netherlands Bv - Netherlands
- Maharashtra Electricity Regulatory Commission - India
- Essar Steel Hazira Ltd - India
- Straits Asia Resources Limited - Singapore
- Banpu Public Company Limited - Thailand
- Kalimantan Lumbung Energi - Indonesia
- Indika Energy - Indonesia
- Ind-Barath Power Infra Limited - India
- New Zealand Coal & Carbon
- Maheswari Brothers Coal Limited - India
- Chamber of Mines of South Africa
- Indian Oil Corporation Limited
- Iligan Light & Power Inc, Philippines
- Miang Besar Coal Terminal - Indonesia
- Planning Commission, India
- Krishnapatnam Port Company Ltd. - India
- Globalindo Alam Lestari - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Xindia Steels Limited - India
- Interocean Group of Companies - India
- Karbindo Abesyapradhi - Indoneisa
- Neyveli Lignite Corporation Ltd, - India
- Gujarat Mineral Development Corp Ltd - India
- ICICI Bank Limited - India
- Gujarat Electricity Regulatory Commission - India
- Energy Development Corp, Philippines
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