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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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Thursday, 02 March 23
DRY BULK MARKET: THE WAY CHINA GOES, SO GOES THE MARKET - BIMCO
We expect demand growth within the 1.5-2.5% range in 2023, driven by China’s economic recovery. Improvements in consumer sentiment should hel ...
Thursday, 02 March 23
INDIA, CHINA DEMAND BOOST LOW-RANK THERMAL COAL PRICES IN ASIA - RUSSELL, REUTERS
Signs of stronger import demand from India have arrested the decline in price of the thermal coal grades most commonly sought by the world’s ...
Thursday, 02 March 23
INDIA CHEERS THE RETURN OF ‘KING COAL’ AS INDUSTRY SEES BUOYANT FUTURE - REUTERS
India’s coal industry celebrated the return of its major conference after a three-year pandemic hiatus by presenting a bullish view of demand ...
Wednesday, 01 March 23
GEO CONNECT ASIA RETURNS IN MARCH TO ACCELERATE THE REGION’S GEOSPATIAL AND LOCATION INTELLIGENCE CAPABILITIES
Press Release: The third edition of GCA will be held in conjunction with Digital Construction Asia and the inaugural Drones Asia – an event d ...
Wednesday, 01 March 23
THE DECLINE IN THE COAL PRICE SINCE THE BEGINNING OF THE YEAR HAS BEEN SIGNIFICANT - INTERMODAL
Last week, the front-month API2 future rose by 3.5%, but since the beginning of the year the future has fallen by 39% to $136.65/t, while the Newca ...
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- The Treasury - Australian Government
- Videocon Industries ltd - India
- Central Electricity Authority - India
- Barasentosa Lestari - Indonesia
- Indika Energy - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Indian Oil Corporation Limited
- Gujarat Sidhee Cement - India
- Eastern Energy - Thailand
- Electricity Authority, New Zealand
- Mjunction Services Limited - India
- Tamil Nadu electricity Board
- Mercator Lines Limited - India
- Bhatia International Limited - India
- Coastal Gujarat Power Limited - India
- Kobexindo Tractors - Indoneisa
- Xindia Steels Limited - India
- Georgia Ports Authority, United States
- Carbofer General Trading SA - India
- Karaikal Port Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Siam City Cement PLC, Thailand
- Sindya Power Generating Company Private Ltd
- Kartika Selabumi Mining - Indonesia
- Kideco Jaya Agung - Indonesia
- Wilmar Investment Holdings
- Bayan Resources Tbk. - Indonesia
- PNOC Exploration Corporation - Philippines
- Energy Development Corp, Philippines
- Jindal Steel & Power Ltd - India
- SMC Global Power, Philippines
- Global Business Power Corporation, Philippines
- Marubeni Corporation - India
- Grasim Industreis Ltd - India
- Port Waratah Coal Services - Australia
- Tata Chemicals Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Ministry of Transport, Egypt
- Indonesian Coal Mining Association
- Billiton Holdings Pty Ltd - Australia
- Malabar Cements Ltd - India
- Madhucon Powers Ltd - India
- Commonwealth Bank - Australia
- Binh Thuan Hamico - Vietnam
- Larsen & Toubro Limited - India
- Miang Besar Coal Terminal - Indonesia
- Samtan Co., Ltd - South Korea
- Directorate General of MIneral and Coal - Indonesia
- Makarim & Taira - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Agrawal Coal Company - India
- Timah Investasi Mineral - Indoneisa
- Electricity Generating Authority of Thailand
- San Jose City I Power Corp, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Aboitiz Power Corporation - Philippines
- Leighton Contractors Pty Ltd - Australia
- South Luzon Thermal Energy Corporation
- Orica Mining Services - Indonesia
- Straits Asia Resources Limited - Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Bukit Makmur.PT - Indonesia
- Simpson Spence & Young - Indonesia
- Parliament of New Zealand
- Petron Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Pendopo Energi Batubara - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Energy Link Ltd, New Zealand
- Kapuas Tunggal Persada - Indonesia
- Meralco Power Generation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Australian Commodity Traders Exchange
- Mercuria Energy - Indonesia
- Central Java Power - Indonesia
- Indo Tambangraya Megah - Indonesia
- TeaM Sual Corporation - Philippines
- Bukit Baiduri Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- PTC India Limited - India
- Price Waterhouse Coopers - Russia
- Maharashtra Electricity Regulatory Commission - India
- Kalimantan Lumbung Energi - Indonesia
- London Commodity Brokers - England
- Uttam Galva Steels Limited - India
- ICICI Bank Limited - India
- Borneo Indobara - Indonesia
- Economic Council, Georgia
- Star Paper Mills Limited - India
- Anglo American - United Kingdom
- Rio Tinto Coal - Australia
- Renaissance Capital - South Africa
- Meenaskhi Energy Private Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- SN Aboitiz Power Inc, Philippines
- PetroVietnam Power Coal Import and Supply Company
- White Energy Company Limited
- Alfred C Toepfer International GmbH - Germany
- Merrill Lynch Commodities Europe
- Eastern Coal Council - USA
- GVK Power & Infra Limited - India
- Semirara Mining Corp, Philippines
- Minerals Council of Australia
- Iligan Light & Power Inc, Philippines
- Africa Commodities Group - South Africa
- Jorong Barutama Greston.PT - Indonesia
- Oldendorff Carriers - Singapore
- Cigading International Bulk Terminal - Indonesia
- Thiess Contractors Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Intertek Mineral Services - Indonesia
- PowerSource Philippines DevCo
- Kaltim Prima Coal - Indonesia
- Latin American Coal - Colombia
- SMG Consultants - Indonesia
- Attock Cement Pakistan Limited
- CNBM International Corporation - China
- Sakthi Sugars Limited - India
- Wood Mackenzie - Singapore
- Trasteel International SA, Italy
- Antam Resourcindo - Indonesia
- Manunggal Multi Energi - Indonesia
- MS Steel International - UAE
- Neyveli Lignite Corporation Ltd, - India
- VISA Power Limited - India
- Cement Manufacturers Association - India
- Jaiprakash Power Ventures ltd
- Petrochimia International Co. Ltd.- Taiwan
- Bulk Trading Sa - Switzerland
- GMR Energy Limited - India
- Bhoruka Overseas - Indonesia
- Formosa Plastics Group - Taiwan
- Holcim Trading Pte Ltd - Singapore
- Salva Resources Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Independent Power Producers Association of India
- Directorate Of Revenue Intelligence - India
- New Zealand Coal & Carbon
- Aditya Birla Group - India
- Romanian Commodities Exchange
- IEA Clean Coal Centre - UK
- ASAPP Information Group - India
- Gujarat Electricity Regulatory Commission - India
- Thai Mozambique Logistica
- Sojitz Corporation - Japan
- Heidelberg Cement - Germany
- India Bulls Power Limited - India
- European Bulk Services B.V. - Netherlands
- Bukit Asam (Persero) Tbk - Indonesia
- Power Finance Corporation Ltd., India
- Semirara Mining and Power Corporation, Philippines
- The State Trading Corporation of India Ltd
- Pipit Mutiara Jaya. PT, Indonesia
- Deloitte Consulting - India
- Essar Steel Hazira Ltd - India
- Metalloyd Limited - United Kingdom
- GAC Shipping (India) Pvt Ltd
- The University of Queensland
- Baramulti Group, Indonesia
- IHS Mccloskey Coal Group - USA
- TNB Fuel Sdn Bhd - Malaysia
- Asmin Koalindo Tuhup - Indonesia
- Therma Luzon, Inc, Philippines
- Ambuja Cements Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Mintek Dendrill Indonesia
- Chettinad Cement Corporation Ltd - India
- Ministry of Finance - Indonesia
- Ind-Barath Power Infra Limited - India
- Parry Sugars Refinery, India
- Coal and Oil Company - UAE
- Global Coal Blending Company Limited - Australia
- Rashtriya Ispat Nigam Limited - India
- Vedanta Resources Plc - India
- Kumho Petrochemical, South Korea
- Planning Commission, India
- Siam City Cement - Thailand
- Krishnapatnam Port Company Ltd. - India
- Dalmia Cement Bharat India
- OPG Power Generation Pvt Ltd - India
- Bharathi Cement Corporation - India
- Posco Energy - South Korea
- Edison Trading Spa - Italy
- Bangladesh Power Developement Board
- Australian Coal Association
- Gujarat Mineral Development Corp Ltd - India
- Standard Chartered Bank - UAE
- Ministry of Mines - Canada
- Global Green Power PLC Corporation, Philippines
- Kepco SPC Power Corporation, Philippines
- Riau Bara Harum - Indonesia
- Goldman Sachs - Singapore
- International Coal Ventures Pvt Ltd - India
- Vizag Seaport Private Limited - India
- CIMB Investment Bank - Malaysia
- Altura Mining Limited, Indonesia
- Sarangani Energy Corporation, Philippines
- Bhushan Steel Limited - India
- Singapore Mercantile Exchange
- Savvy Resources Ltd - HongKong
- LBH Netherlands Bv - Netherlands
- Chamber of Mines of South Africa
- Coalindo Energy - Indonesia
- Medco Energi Mining Internasional
- Orica Australia Pty. Ltd.
- Sical Logistics Limited - India
- Globalindo Alam Lestari - Indonesia
- Indian Energy Exchange, India
- Indogreen Group - Indonesia
- Interocean Group of Companies - India
- Bahari Cakrawala Sebuku - Indonesia
- Lanco Infratech Ltd - India
- Banpu Public Company Limited - Thailand
- McConnell Dowell - Australia
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