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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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Monday, 24 June 24
PHILIPPINES COAL SUPPLY ENOUGH UNTIL 2030 - PHILSTAR GLOBAL
The country’s existing coal-fired power plants are sufficient to ensure enough base load capacity in the next six years, Energy Secretary Rap ...
Friday, 14 June 24
NEXTDECADE, SAUDI ARAMCO SIGN 20-YEAR LNG SUPPLY DEAL - REUTERS
U.S. liquefied natural gas (LNG) provider NextDecade has signed a non-binding agreement with Saudi Aramco 2222.SE to supply 1.2 million tonnes per ...
Friday, 14 June 24
NEWBUILDING PRICES CLIMB 3% TO HIGHEST LEVEL IN 16 YEARS - NIELS RASMUSSEN
“Since the start of the year, newbuilding prices have risen 3% to their highest level since 2008. Compared to their most recent low in late 2 ...
Friday, 14 June 24
INDIA TARGETS HIGHER DOMESTIC COAL PRODUCTION, REDUCED IMPORTS: GOVT - REUTERS
India wants to reduce coal imports and increase domestic production, federal coal minister G. Kishan Reddy said on Thursday.
The cou ...
Thursday, 13 June 24
US LNG TO ASIA FOR POWER GENERATION EXPECTED TO CUT EMISSIONS VERSUS COAL - RYSTAD ENERGY
The value-chain emissions of liquified natural gas (LNG) are lower on average than for coal-fired power generation, even when the fuel is shipp ...
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- Mercuria Energy - Indonesia
- Gujarat Sidhee Cement - India
- Tamil Nadu electricity Board
- Krishnapatnam Port Company Ltd. - India
- Riau Bara Harum - Indonesia
- Xindia Steels Limited - India
- Salva Resources Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Semirara Mining and Power Corporation, Philippines
- Jaiprakash Power Ventures ltd
- LBH Netherlands Bv - Netherlands
- PowerSource Philippines DevCo
- Latin American Coal - Colombia
- Bulk Trading Sa - Switzerland
- Videocon Industries ltd - India
- Karaikal Port Pvt Ltd - India
- Vedanta Resources Plc - India
- SN Aboitiz Power Inc, Philippines
- Formosa Plastics Group - Taiwan
- Central Java Power - Indonesia
- Meralco Power Generation, Philippines
- VISA Power Limited - India
- Iligan Light & Power Inc, Philippines
- Essar Steel Hazira Ltd - India
- Energy Link Ltd, New Zealand
- Chettinad Cement Corporation Ltd - India
- Banpu Public Company Limited - Thailand
- Rio Tinto Coal - Australia
- Mjunction Services Limited - India
- Jindal Steel & Power Ltd - India
- Coalindo Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Siam City Cement PLC, Thailand
- Barasentosa Lestari - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Bukit Asam (Persero) Tbk - Indonesia
- Singapore Mercantile Exchange
- Vijayanagar Sugar Pvt Ltd - India
- Makarim & Taira - Indonesia
- SMG Consultants - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Maheswari Brothers Coal Limited - India
- Timah Investasi Mineral - Indoneisa
- Medco Energi Mining Internasional
- Kumho Petrochemical, South Korea
- Bharathi Cement Corporation - India
- Bangladesh Power Developement Board
- The University of Queensland
- Orica Mining Services - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Thai Mozambique Logistica
- London Commodity Brokers - England
- Global Coal Blending Company Limited - Australia
- Planning Commission, India
- Australian Coal Association
- Merrill Lynch Commodities Europe
- Metalloyd Limited - United Kingdom
- Binh Thuan Hamico - Vietnam
- Star Paper Mills Limited - India
- CNBM International Corporation - China
- Petron Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Oldendorff Carriers - Singapore
- Miang Besar Coal Terminal - Indonesia
- Bukit Baiduri Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- Malabar Cements Ltd - India
- Vizag Seaport Private Limited - India
- Globalindo Alam Lestari - Indonesia
- White Energy Company Limited
- Ambuja Cements Ltd - India
- Sindya Power Generating Company Private Ltd
- Samtan Co., Ltd - South Korea
- Cigading International Bulk Terminal - Indonesia
- Ministry of Finance - Indonesia
- Parry Sugars Refinery, India
- Thiess Contractors Indonesia
- Bhushan Steel Limited - India
- GAC Shipping (India) Pvt Ltd
- Baramulti Group, Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bayan Resources Tbk. - Indonesia
- CIMB Investment Bank - Malaysia
- European Bulk Services B.V. - Netherlands
- AsiaOL BioFuels Corp., Philippines
- Simpson Spence & Young - Indonesia
- Africa Commodities Group - South Africa
- PetroVietnam Power Coal Import and Supply Company
- Carbofer General Trading SA - India
- Bukit Makmur.PT - Indonesia
- Savvy Resources Ltd - HongKong
- Ind-Barath Power Infra Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Anglo American - United Kingdom
- Marubeni Corporation - India
- Meenaskhi Energy Private Limited - India
- Indika Energy - Indonesia
- International Coal Ventures Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Ministry of Mines - Canada
- Siam City Cement - Thailand
- Aditya Birla Group - India
- Antam Resourcindo - Indonesia
- Manunggal Multi Energi - Indonesia
- Heidelberg Cement - Germany
- India Bulls Power Limited - India
- Commonwealth Bank - Australia
- Indian Energy Exchange, India
- Kohat Cement Company Ltd. - Pakistan
- Pendopo Energi Batubara - Indonesia
- Grasim Industreis Ltd - India
- OPG Power Generation Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Wilmar Investment Holdings
- Ministry of Transport, Egypt
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kaltim Prima Coal - Indonesia
- IHS Mccloskey Coal Group - USA
- Borneo Indobara - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Sakthi Sugars Limited - India
- Gujarat Electricity Regulatory Commission - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Alfred C Toepfer International GmbH - Germany
- GVK Power & Infra Limited - India
- Global Green Power PLC Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- The Treasury - Australian Government
- Kobexindo Tractors - Indoneisa
- Bhatia International Limited - India
- MS Steel International - UAE
- Edison Trading Spa - Italy
- Indogreen Group - Indonesia
- Intertek Mineral Services - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Toyota Tsusho Corporation, Japan
- New Zealand Coal & Carbon
- Rashtriya Ispat Nigam Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Tata Chemicals Ltd - India
- Indian Oil Corporation Limited
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Renaissance Capital - South Africa
- Posco Energy - South Korea
- Aboitiz Power Corporation - Philippines
- TeaM Sual Corporation - Philippines
- Coastal Gujarat Power Limited - India
- Dalmia Cement Bharat India
- Australian Commodity Traders Exchange
- Sojitz Corporation - Japan
- Georgia Ports Authority, United States
- Directorate Of Revenue Intelligence - India
- Gujarat Mineral Development Corp Ltd - India
- Indo Tambangraya Megah - Indonesia
- PNOC Exploration Corporation - Philippines
- ASAPP Information Group - India
- Agrawal Coal Company - India
- Orica Australia Pty. Ltd.
- Madhucon Powers Ltd - India
- IEA Clean Coal Centre - UK
- Deloitte Consulting - India
- Romanian Commodities Exchange
- Kapuas Tunggal Persada - Indonesia
- Chamber of Mines of South Africa
- McConnell Dowell - Australia
- Cement Manufacturers Association - India
- Ceylon Electricity Board - Sri Lanka
- ICICI Bank Limited - India
- Mintek Dendrill Indonesia
- Economic Council, Georgia
- Larsen & Toubro Limited - India
- Global Business Power Corporation, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Uttam Galva Steels Limited - India
- Coal and Oil Company - UAE
- Port Waratah Coal Services - Australia
- Parliament of New Zealand
- South Luzon Thermal Energy Corporation
- GMR Energy Limited - India
- Electricity Authority, New Zealand
- Neyveli Lignite Corporation Ltd, - India
- Billiton Holdings Pty Ltd - Australia
- Bahari Cakrawala Sebuku - Indonesia
- Sree Jayajothi Cements Limited - India
- San Jose City I Power Corp, Philippines
- Minerals Council of Australia
- Energy Development Corp, Philippines
- Altura Mining Limited, Indonesia
- Trasteel International SA, Italy
- Attock Cement Pakistan Limited
- Kartika Selabumi Mining - Indonesia
- Standard Chartered Bank - UAE
- Straits Asia Resources Limited - Singapore
- Price Waterhouse Coopers - Russia
- The State Trading Corporation of India Ltd
- Leighton Contractors Pty Ltd - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Eastern Energy - Thailand
- SMC Global Power, Philippines
- Power Finance Corporation Ltd., India
- Central Electricity Authority - India
- Interocean Group of Companies - India
- Mercator Lines Limited - India
- Wood Mackenzie - Singapore
- PTC India Limited - India
- Independent Power Producers Association of India
- Goldman Sachs - Singapore
- Sical Logistics Limited - India
- Lanco Infratech Ltd - India
- Eastern Coal Council - USA
- Electricity Generating Authority of Thailand
- Indonesian Coal Mining Association
- Semirara Mining Corp, Philippines
- Kalimantan Lumbung Energi - Indonesia
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