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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, 29 November 22
SEABORNE COAL FLOWS IN 2022 - SIGNAL
This year is crucial for the energy mix in European countries, as the EU has imposed new sanctions on Russia. It is important to emphasize that the ...
Friday, 25 November 22
APAC THERMAL COAL PRICES CORRECT FROM RECORD HIGH - FITCH RATINGS
Prices of Newcastle 6,000kcal/kg coal have corrected following falling European gas and coal prices, and more supply from Australia could help miti ...
Thursday, 24 November 22
VIETNAM BOOSTS COAL USE PLAN FOR 2030 AS G7 CLIMATE OFFER STALLS - REUTERS
Vietnam has increased its coal power target for 2030 under a revised draft energy plan, government documents seen by Reuters show, while renewables ...
Tuesday, 22 November 22
THE GENCON 2022 CHARTERPARTY - GARD
KNOWLEDGE TO ELEVATE
BIMCO has published a revamped version of the popular GENCON charterparty. Our author, Helena Biggs, was a member of the ...
Tuesday, 22 November 22
INDIA POWER BINGES ON COAL, OUTPACES ASIA - REUTERS
India’s coal-fired power output has increased much faster than any other country in the Asia Pacific since Russia’s invasion of Ukraine ...
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- Bayan Resources Tbk. - Indonesia
- SMG Consultants - Indonesia
- Coalindo Energy - Indonesia
- Thiess Contractors Indonesia
- Aditya Birla Group - India
- Sinarmas Energy and Mining - Indonesia
- Kartika Selabumi Mining - Indonesia
- Savvy Resources Ltd - HongKong
- GVK Power & Infra Limited - India
- MS Steel International - UAE
- Gujarat Mineral Development Corp Ltd - India
- Posco Energy - South Korea
- Singapore Mercantile Exchange
- Mercuria Energy - Indonesia
- Medco Energi Mining Internasional
- GAC Shipping (India) Pvt Ltd
- Wood Mackenzie - Singapore
- Thai Mozambique Logistica
- Manunggal Multi Energi - Indonesia
- Kepco SPC Power Corporation, Philippines
- Riau Bara Harum - Indonesia
- Bhushan Steel Limited - India
- Grasim Industreis Ltd - India
- Indogreen Group - Indonesia
- Xindia Steels Limited - India
- Holcim Trading Pte Ltd - Singapore
- ICICI Bank Limited - India
- Central Electricity Authority - India
- Jorong Barutama Greston.PT - Indonesia
- Edison Trading Spa - Italy
- Mjunction Services Limited - India
- Parry Sugars Refinery, India
- McConnell Dowell - Australia
- PTC India Limited - India
- Vizag Seaport Private Limited - India
- Straits Asia Resources Limited - Singapore
- Timah Investasi Mineral - Indoneisa
- CIMB Investment Bank - Malaysia
- South Luzon Thermal Energy Corporation
- Indonesian Coal Mining Association
- Sarangani Energy Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- Global Business Power Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Meralco Power Generation, Philippines
- San Jose City I Power Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Madhucon Powers Ltd - India
- Kideco Jaya Agung - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Binh Thuan Hamico - Vietnam
- SMC Global Power, Philippines
- Australian Commodity Traders Exchange
- Bahari Cakrawala Sebuku - Indonesia
- Baramulti Group, Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Gujarat Electricity Regulatory Commission - India
- Directorate General of MIneral and Coal - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Metalloyd Limited - United Kingdom
- Bhatia International Limited - India
- Coal and Oil Company - UAE
- Bank of Tokyo Mitsubishi UFJ Ltd
- Rashtriya Ispat Nigam Limited - India
- Global Green Power PLC Corporation, Philippines
- Sical Logistics Limited - India
- Latin American Coal - Colombia
- Makarim & Taira - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- The State Trading Corporation of India Ltd
- Parliament of New Zealand
- Asmin Koalindo Tuhup - Indonesia
- Wilmar Investment Holdings
- Vedanta Resources Plc - India
- London Commodity Brokers - England
- Bukit Makmur.PT - Indonesia
- Deloitte Consulting - India
- Kalimantan Lumbung Energi - Indonesia
- Ministry of Finance - Indonesia
- Petron Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Price Waterhouse Coopers - Russia
- Dalmia Cement Bharat India
- Central Java Power - Indonesia
- Romanian Commodities Exchange
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kobexindo Tractors - Indoneisa
- Bukit Baiduri Energy - Indonesia
- India Bulls Power Limited - India
- Cement Manufacturers Association - India
- Kumho Petrochemical, South Korea
- Leighton Contractors Pty Ltd - Australia
- Miang Besar Coal Terminal - Indonesia
- Orica Australia Pty. Ltd.
- VISA Power Limited - India
- Carbofer General Trading SA - India
- Indo Tambangraya Megah - Indonesia
- Mercator Lines Limited - India
- Cigading International Bulk Terminal - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Banpu Public Company Limited - Thailand
- Altura Mining Limited, Indonesia
- Standard Chartered Bank - UAE
- Intertek Mineral Services - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Trasteel International SA, Italy
- Goldman Sachs - Singapore
- IEA Clean Coal Centre - UK
- Antam Resourcindo - Indonesia
- Indika Energy - Indonesia
- Formosa Plastics Group - Taiwan
- Marubeni Corporation - India
- Agrawal Coal Company - India
- Bulk Trading Sa - Switzerland
- Planning Commission, India
- Orica Mining Services - Indonesia
- Sindya Power Generating Company Private Ltd
- Eastern Energy - Thailand
- Essar Steel Hazira Ltd - India
- Anglo American - United Kingdom
- Sakthi Sugars Limited - India
- AsiaOL BioFuels Corp., Philippines
- Ceylon Electricity Board - Sri Lanka
- Energy Link Ltd, New Zealand
- Renaissance Capital - South Africa
- Interocean Group of Companies - India
- Heidelberg Cement - Germany
- Maharashtra Electricity Regulatory Commission - India
- LBH Netherlands Bv - Netherlands
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indian Energy Exchange, India
- Attock Cement Pakistan Limited
- Directorate Of Revenue Intelligence - India
- ASAPP Information Group - India
- Borneo Indobara - Indonesia
- Independent Power Producers Association of India
- Billiton Holdings Pty Ltd - Australia
- Mintek Dendrill Indonesia
- Barasentosa Lestari - Indonesia
- Videocon Industries ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Meenaskhi Energy Private Limited - India
- Siam City Cement - Thailand
- Oldendorff Carriers - Singapore
- OPG Power Generation Pvt Ltd - India
- The University of Queensland
- Alfred C Toepfer International GmbH - Germany
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Electricity Generating Authority of Thailand
- Toyota Tsusho Corporation, Japan
- CNBM International Corporation - China
- GMR Energy Limited - India
- Chettinad Cement Corporation Ltd - India
- Star Paper Mills Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Pendopo Energi Batubara - Indonesia
- New Zealand Coal & Carbon
- White Energy Company Limited
- Karaikal Port Pvt Ltd - India
- The Treasury - Australian Government
- Rio Tinto Coal - Australia
- PNOC Exploration Corporation - Philippines
- Siam City Cement PLC, Thailand
- Iligan Light & Power Inc, Philippines
- Ministry of Mines - Canada
- SN Aboitiz Power Inc, Philippines
- Kaltim Prima Coal - Indonesia
- Bhoruka Overseas - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Indian Oil Corporation Limited
- Economic Council, Georgia
- Kapuas Tunggal Persada - Indonesia
- Globalindo Alam Lestari - Indonesia
- Bharathi Cement Corporation - India
- Ind-Barath Power Infra Limited - India
- Global Coal Blending Company Limited - Australia
- TeaM Sual Corporation - Philippines
- Power Finance Corporation Ltd., India
- Bangladesh Power Developement Board
- Coastal Gujarat Power Limited - India
- Malabar Cements Ltd - India
- Aboitiz Power Corporation - Philippines
- Samtan Co., Ltd - South Korea
- Krishnapatnam Port Company Ltd. - India
- European Bulk Services B.V. - Netherlands
- Larsen & Toubro Limited - India
- Jaiprakash Power Ventures ltd
- International Coal Ventures Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Therma Luzon, Inc, Philippines
- Energy Development Corp, Philippines
- Ambuja Cements Ltd - India
- Commonwealth Bank - Australia
- Gujarat Sidhee Cement - India
- Semirara Mining and Power Corporation, Philippines
- Sojitz Corporation - Japan
- Eastern Coal Council - USA
- Georgia Ports Authority, United States
- Lanco Infratech Ltd - India
- Merrill Lynch Commodities Europe
- Africa Commodities Group - South Africa
- Kohat Cement Company Ltd. - Pakistan
- IHS Mccloskey Coal Group - USA
- Port Waratah Coal Services - Australia
- Electricity Authority, New Zealand
- Ministry of Transport, Egypt
- PowerSource Philippines DevCo
- Semirara Mining Corp, Philippines
- Salva Resources Pvt Ltd - India
- Minerals Council of Australia
- Australian Coal Association
- Jindal Steel & Power Ltd - India
- Tata Chemicals Ltd - India
- Tamil Nadu electricity Board
- Uttam Galva Steels Limited - India
- Chamber of Mines of South Africa
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