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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, 13 December 22
AUSTRALIA TO CAP PRICES OF COAL, GAS TO DRIVE DOWN ENERGY BILLS - REUTERS
Australia will cap coal and gas prices for a year in a bid to shave utility bills for households and businesses hit by soaring costs because of the ...
Tuesday, 13 December 22
YANCOAL AUSTRALIA TO PREPAY $459 MLN DEBT AS RECORD COAL PRICES BOOST CASHFLOWS - REUTERS
Coal miner Yancoal Australia Ltd. said on Friday it intended to prepay $459 million of its debt on or around Dec. 16, as elevated coal prices were ...
Tuesday, 13 December 22
WHY COAL LEADS THE RISE IN COMMODITIES THIS YEAR - MARKETWATCH
This year marked a resurgence for coal, often known — and loathed — by environmentalists as the dirtiest energy source, with prices mor ...
Thursday, 08 December 22
BIMCO TO REVISE WAR RISK CLAUSES
Work to revise the BIMCO War Cancellation Clause 2004, the BIMCO War Risks Clause for Time Chartering 2013 (CONWARTIME 2013) and the BIMCO War Risk ...
Thursday, 08 December 22
COAL ROYALTY PAYMENTS BOOST AUSTRALIAN STATE'S BUDGET FORECAST - REUTERS
Australia’s Queensland state on Wednesday forecast a record surplus for the current financial year, largely driven by higher royalty payments ...
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- Eastern Energy - Thailand
- Ministry of Mines - Canada
- Sree Jayajothi Cements Limited - India
- San Jose City I Power Corp, Philippines
- Ministry of Transport, Egypt
- Parry Sugars Refinery, India
- Rashtriya Ispat Nigam Limited - India
- Sakthi Sugars Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Renaissance Capital - South Africa
- Ambuja Cements Ltd - India
- Coastal Gujarat Power Limited - India
- Siam City Cement - Thailand
- Central Electricity Authority - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Trasteel International SA, Italy
- Manunggal Multi Energi - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Gujarat Mineral Development Corp Ltd - India
- London Commodity Brokers - England
- IEA Clean Coal Centre - UK
- Coalindo Energy - Indonesia
- LBH Netherlands Bv - Netherlands
- Port Waratah Coal Services - Australia
- Coal and Oil Company - UAE
- Offshore Bulk Terminal Pte Ltd, Singapore
- New Zealand Coal & Carbon
- MS Steel International - UAE
- Mintek Dendrill Indonesia
- Singapore Mercantile Exchange
- Videocon Industries ltd - India
- Price Waterhouse Coopers - Russia
- Metalloyd Limited - United Kingdom
- Antam Resourcindo - Indonesia
- SN Aboitiz Power Inc, Philippines
- Bhatia International Limited - India
- Power Finance Corporation Ltd., India
- Commonwealth Bank - Australia
- Electricity Generating Authority of Thailand
- Kapuas Tunggal Persada - Indonesia
- OPG Power Generation Pvt Ltd - India
- Kumho Petrochemical, South Korea
- Banpu Public Company Limited - Thailand
- Cigading International Bulk Terminal - Indonesia
- Mercuria Energy - Indonesia
- Karaikal Port Pvt Ltd - India
- Georgia Ports Authority, United States
- Kaltim Prima Coal - Indonesia
- Petron Corporation, Philippines
- Medco Energi Mining Internasional
- Grasim Industreis Ltd - India
- Minerals Council of Australia
- Madhucon Powers Ltd - India
- Semirara Mining and Power Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Barasentosa Lestari - Indonesia
- Standard Chartered Bank - UAE
- Altura Mining Limited, Indonesia
- The State Trading Corporation of India Ltd
- Deloitte Consulting - India
- Australian Commodity Traders Exchange
- Salva Resources Pvt Ltd - India
- Dalmia Cement Bharat India
- Chettinad Cement Corporation Ltd - India
- Thiess Contractors Indonesia
- Agrawal Coal Company - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- ASAPP Information Group - India
- Billiton Holdings Pty Ltd - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Edison Trading Spa - Italy
- Marubeni Corporation - India
- Pipit Mutiara Jaya. PT, Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Sinarmas Energy and Mining - Indonesia
- Siam City Cement PLC, Thailand
- India Bulls Power Limited - India
- Bharathi Cement Corporation - India
- Vijayanagar Sugar Pvt Ltd - India
- Indogreen Group - Indonesia
- Carbofer General Trading SA - India
- Pendopo Energi Batubara - Indonesia
- Planning Commission, India
- Goldman Sachs - Singapore
- AsiaOL BioFuels Corp., Philippines
- GVK Power & Infra Limited - India
- Merrill Lynch Commodities Europe
- Miang Besar Coal Terminal - Indonesia
- Ceylon Electricity Board - Sri Lanka
- PetroVietnam Power Coal Import and Supply Company
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Globalindo Alam Lestari - Indonesia
- GMR Energy Limited - India
- GAC Shipping (India) Pvt Ltd
- Meenaskhi Energy Private Limited - India
- Chamber of Mines of South Africa
- Bukit Makmur.PT - Indonesia
- Wood Mackenzie - Singapore
- Anglo American - United Kingdom
- Indo Tambangraya Megah - Indonesia
- Energy Link Ltd, New Zealand
- PTC India Limited - India
- Vizag Seaport Private Limited - India
- South Luzon Thermal Energy Corporation
- Kobexindo Tractors - Indoneisa
- SMC Global Power, Philippines
- Meralco Power Generation, Philippines
- Semirara Mining Corp, Philippines
- SMG Consultants - Indonesia
- European Bulk Services B.V. - Netherlands
- Essar Steel Hazira Ltd - India
- Africa Commodities Group - South Africa
- Alfred C Toepfer International GmbH - Germany
- Posco Energy - South Korea
- PowerSource Philippines DevCo
- Therma Luzon, Inc, Philippines
- Cement Manufacturers Association - India
- Indika Energy - Indonesia
- Sojitz Corporation - Japan
- Petrochimia International Co. Ltd.- Taiwan
- Aboitiz Power Corporation - Philippines
- Maharashtra Electricity Regulatory Commission - India
- Baramulti Group, Indonesia
- Riau Bara Harum - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Mercator Lines Limited - India
- Binh Thuan Hamico - Vietnam
- International Coal Ventures Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- Bukit Baiduri Energy - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- CNBM International Corporation - China
- Malabar Cements Ltd - India
- Ministry of Finance - Indonesia
- Wilmar Investment Holdings
- Vedanta Resources Plc - India
- Gujarat Sidhee Cement - India
- Krishnapatnam Port Company Ltd. - India
- Gujarat Electricity Regulatory Commission - India
- Simpson Spence & Young - Indonesia
- Formosa Plastics Group - Taiwan
- Lanco Infratech Ltd - India
- Independent Power Producers Association of India
- Bhoruka Overseas - Indonesia
- Intertek Mineral Services - Indonesia
- Orica Australia Pty. Ltd.
- Karbindo Abesyapradhi - Indoneisa
- Orica Mining Services - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Australian Coal Association
- Directorate Of Revenue Intelligence - India
- Kartika Selabumi Mining - Indonesia
- TeaM Sual Corporation - Philippines
- Uttam Galva Steels Limited - India
- Global Coal Blending Company Limited - Australia
- ICICI Bank Limited - India
- Star Paper Mills Limited - India
- Timah Investasi Mineral - Indoneisa
- Economic Council, Georgia
- Latin American Coal - Colombia
- Samtan Co., Ltd - South Korea
- Bayan Resources Tbk. - Indonesia
- Tamil Nadu electricity Board
- Bukit Asam (Persero) Tbk - Indonesia
- Jindal Steel & Power Ltd - India
- Central Java Power - Indonesia
- Aditya Birla Group - India
- The University of Queensland
- Heidelberg Cement - Germany
- Kideco Jaya Agung - Indonesia
- VISA Power Limited - India
- Global Green Power PLC Corporation, Philippines
- Oldendorff Carriers - Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Sarangani Energy Corporation, Philippines
- Rio Tinto Coal - Australia
- Bangladesh Power Developement Board
- Ind-Barath Power Infra Limited - India
- Thai Mozambique Logistica
- Global Business Power Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- Larsen & Toubro Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Bulk Trading Sa - Switzerland
- Parliament of New Zealand
- Mjunction Services Limited - India
- Savvy Resources Ltd - HongKong
- Borneo Indobara - Indonesia
- Electricity Authority, New Zealand
- Indian Oil Corporation Limited
- Makarim & Taira - Indonesia
- Interocean Group of Companies - India
- IHS Mccloskey Coal Group - USA
- Jorong Barutama Greston.PT - Indonesia
- Romanian Commodities Exchange
- Eastern Coal Council - USA
- McConnell Dowell - Australia
- Straits Asia Resources Limited - Singapore
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sindya Power Generating Company Private Ltd
- Maheswari Brothers Coal Limited - India
- Holcim Trading Pte Ltd - Singapore
- The Treasury - Australian Government
- Directorate General of MIneral and Coal - Indonesia
- Indonesian Coal Mining Association
- Energy Development Corp, Philippines
- Bhushan Steel Limited - India
- Attock Cement Pakistan Limited
- Sical Logistics Limited - India
- Iligan Light & Power Inc, Philippines
- White Energy Company Limited
- Tata Chemicals Ltd - India
- Indian Energy Exchange, India
- Xindia Steels Limited - India
- Kepco SPC Power Corporation, Philippines
- Jaiprakash Power Ventures ltd
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