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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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Wednesday, 07 December 22
MARKET INSIGHT - INTERMODAL
China’s coal imports from January to October were 230.1m mt, a decrease of around 10.7% y-o-y (2021 totalled 323.2m mt). The question is if t ...
Wednesday, 07 December 22
INDIA'S STEEL MINISTRY SEEKS IMPORT TAX WAIVER FOR COKING COAL - SOURCES REUTERS REPORTED
India’s steel ministry has asked the finance ministry for a waiver of import tax on coking coal among a slew of raw materials, as it scramble ...
Tuesday, 06 December 22
INDIA'S COAL PRODUCTION RISES 17% IN APR-NOV PERIOD - PTI
The country’s coal production increased 17 per cent to 524.20 million tonnes in the April-November period of the ongoing fiscal.
...
Tuesday, 06 December 22
INDONESIA AIMS TO STARTS COLLECTING COAL LEVY IN Q1 2023 - MINISTER, REUTERS REPORTED
Indonesia aims to establish a coal fund agency and start collecting a coal levy in the first quarter next year, to help ensure supply security for ...
Saturday, 03 December 22
COMPLEX RUSSIAN PRICE CAP MAKES MARITIME VISIBILITY A MUST - WINDWARD
Many commentators and analysts are speculating about the potential impact the Russian seaborne oil price cap will have on organizations and entitie ...
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- Planning Commission, India
- PowerSource Philippines DevCo
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Gujarat Electricity Regulatory Commission - India
- Meralco Power Generation, Philippines
- Banpu Public Company Limited - Thailand
- MS Steel International - UAE
- India Bulls Power Limited - India
- Altura Mining Limited, Indonesia
- Wilmar Investment Holdings
- The State Trading Corporation of India Ltd
- PNOC Exploration Corporation - Philippines
- Kohat Cement Company Ltd. - Pakistan
- Bank of Tokyo Mitsubishi UFJ Ltd
- Mercator Lines Limited - India
- Central Java Power - Indonesia
- Latin American Coal - Colombia
- Rio Tinto Coal - Australia
- Riau Bara Harum - Indonesia
- SMC Global Power, Philippines
- Goldman Sachs - Singapore
- Billiton Holdings Pty Ltd - Australia
- White Energy Company Limited
- Bhushan Steel Limited - India
- Standard Chartered Bank - UAE
- Power Finance Corporation Ltd., India
- San Jose City I Power Corp, Philippines
- Renaissance Capital - South Africa
- Romanian Commodities Exchange
- Medco Energi Mining Internasional
- LBH Netherlands Bv - Netherlands
- Siam City Cement PLC, Thailand
- Xindia Steels Limited - India
- Holcim Trading Pte Ltd - Singapore
- Global Green Power PLC Corporation, Philippines
- ICICI Bank Limited - India
- Anglo American - United Kingdom
- Maharashtra Electricity Regulatory Commission - India
- Georgia Ports Authority, United States
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Iligan Light & Power Inc, Philippines
- Larsen & Toubro Limited - India
- Chamber of Mines of South Africa
- Alfred C Toepfer International GmbH - Germany
- Siam City Cement - Thailand
- Straits Asia Resources Limited - Singapore
- Bukit Asam (Persero) Tbk - Indonesia
- AsiaOL BioFuels Corp., Philippines
- ASAPP Information Group - India
- Kartika Selabumi Mining - Indonesia
- Electricity Authority, New Zealand
- Leighton Contractors Pty Ltd - Australia
- IHS Mccloskey Coal Group - USA
- Formosa Plastics Group - Taiwan
- Economic Council, Georgia
- Energy Link Ltd, New Zealand
- Miang Besar Coal Terminal - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Carbofer General Trading SA - India
- Bhatia International Limited - India
- Marubeni Corporation - India
- Neyveli Lignite Corporation Ltd, - India
- Timah Investasi Mineral - Indoneisa
- Madhucon Powers Ltd - India
- Independent Power Producers Association of India
- Electricity Generating Authority of Thailand
- Meenaskhi Energy Private Limited - India
- Lanco Infratech Ltd - India
- GAC Shipping (India) Pvt Ltd
- International Coal Ventures Pvt Ltd - India
- Trasteel International SA, Italy
- Indian Energy Exchange, India
- Globalindo Alam Lestari - Indonesia
- Agrawal Coal Company - India
- Sojitz Corporation - Japan
- Kepco SPC Power Corporation, Philippines
- Heidelberg Cement - Germany
- PetroVietnam Power Coal Import and Supply Company
- Therma Luzon, Inc, Philippines
- Bangladesh Power Developement Board
- Price Waterhouse Coopers - Russia
- Aboitiz Power Corporation - Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Indo Tambangraya Megah - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Sakthi Sugars Limited - India
- PTC India Limited - India
- Bayan Resources Tbk. - Indonesia
- Manunggal Multi Energi - Indonesia
- Bulk Trading Sa - Switzerland
- Parry Sugars Refinery, India
- Kaltim Prima Coal - Indonesia
- OPG Power Generation Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Central Electricity Authority - India
- Singapore Mercantile Exchange
- GVK Power & Infra Limited - India
- CNBM International Corporation - China
- Commonwealth Bank - Australia
- Binh Thuan Hamico - Vietnam
- Sree Jayajothi Cements Limited - India
- Mjunction Services Limited - India
- Barasentosa Lestari - Indonesia
- Sical Logistics Limited - India
- VISA Power Limited - India
- Port Waratah Coal Services - Australia
- Star Paper Mills Limited - India
- IEA Clean Coal Centre - UK
- Gujarat Mineral Development Corp Ltd - India
- CIMB Investment Bank - Malaysia
- Coal and Oil Company - UAE
- Vedanta Resources Plc - India
- Krishnapatnam Port Company Ltd. - India
- SMG Consultants - Indonesia
- Kobexindo Tractors - Indoneisa
- Deloitte Consulting - India
- Parliament of New Zealand
- Grasim Industreis Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Bhoruka Overseas - Indonesia
- SN Aboitiz Power Inc, Philippines
- Cement Manufacturers Association - India
- Energy Development Corp, Philippines
- Bharathi Cement Corporation - India
- Minerals Council of Australia
- Indogreen Group - Indonesia
- Ambuja Cements Ltd - India
- Indika Energy - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Coastal Gujarat Power Limited - India
- European Bulk Services B.V. - Netherlands
- McConnell Dowell - Australia
- Videocon Industries ltd - India
- Jindal Steel & Power Ltd - India
- Bukit Baiduri Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Metalloyd Limited - United Kingdom
- Ministry of Mines - Canada
- Global Business Power Corporation, Philippines
- Vizag Seaport Private Limited - India
- Ministry of Transport, Egypt
- Makarim & Taira - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- New Zealand Coal & Carbon
- Cigading International Bulk Terminal - Indonesia
- Dalmia Cement Bharat India
- Eastern Coal Council - USA
- Thiess Contractors Indonesia
- Uttam Galva Steels Limited - India
- Directorate Of Revenue Intelligence - India
- London Commodity Brokers - England
- Pipit Mutiara Jaya. PT, Indonesia
- Kideco Jaya Agung - Indonesia
- Africa Commodities Group - South Africa
- Intertek Mineral Services - Indonesia
- Attock Cement Pakistan Limited
- Merrill Lynch Commodities Europe
- Rashtriya Ispat Nigam Limited - India
- Posco Energy - South Korea
- GMR Energy Limited - India
- Antam Resourcindo - Indonesia
- Aditya Birla Group - India
- Global Coal Blending Company Limited - Australia
- Salva Resources Pvt Ltd - India
- Karaikal Port Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Sindya Power Generating Company Private Ltd
- Ministry of Finance - Indonesia
- Ind-Barath Power Infra Limited - India
- Australian Coal Association
- Thai Mozambique Logistica
- Orica Mining Services - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Mercuria Energy - Indonesia
- Tata Chemicals Ltd - India
- Petron Corporation, Philippines
- Oldendorff Carriers - Singapore
- Maheswari Brothers Coal Limited - India
- Borneo Indobara - Indonesia
- The University of Queensland
- Eastern Energy - Thailand
- Australian Commodity Traders Exchange
- Toyota Tsusho Corporation, Japan
- Simpson Spence & Young - Indonesia
- Coalindo Energy - Indonesia
- Tamil Nadu electricity Board
- South Luzon Thermal Energy Corporation
- Orica Australia Pty. Ltd.
- TeaM Sual Corporation - Philippines
- Kalimantan Lumbung Energi - Indonesia
- Interocean Group of Companies - India
- Savvy Resources Ltd - HongKong
- Directorate General of MIneral and Coal - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Sarangani Energy Corporation, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Indian Oil Corporation Limited
- Jaiprakash Power Ventures ltd
- Bukit Makmur.PT - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Gujarat Sidhee Cement - India
- Malabar Cements Ltd - India
- Kumho Petrochemical, South Korea
- Pendopo Energi Batubara - Indonesia
- Samtan Co., Ltd - South Korea
- Baramulti Group, Indonesia
- Chettinad Cement Corporation Ltd - India
- Semirara Mining Corp, Philippines
- Indonesian Coal Mining Association
- The Treasury - Australian Government
- Wood Mackenzie - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Edison Trading Spa - Italy
- Sinarmas Energy and Mining - Indonesia
- Mintek Dendrill Indonesia
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