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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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Friday, 04 November 22
CHINA EXPANDS COAL TERM CONTRACTS TO ALL MINES TO STABILIZE MARKET - REUTERS
China has expanded long-term thermal coal supply contracts for 2023 to all coal mines and asked power utilities to source more of their demand thro ...
Thursday, 03 November 22
HANDYSIZE VALUES MOVING UP IN OCTOBER, WHILE LNG VALUES SKYROCKET - VESSELSVALUE
Handysize values have increased this month across most ages, following a period of decline. Values for generic 10 year old Handysizes have moved up ...
Thursday, 03 November 22
EUROPEAN GAS SUPPLY SURPLUS, NOVEMBER HBA DOWN TO US$ 308.2 PER TON - ESDM
European gas supply conditions have a major influence in determining fluctuations in the Reference Coal Price (HBA). The November 2022 HBA recorded ...
Wednesday, 02 November 22
MARKET INSIGHT - INTERMODAL
Only five weeks before western sanctions’ full effect, uncertainty over energy has markets and governments on the edge. What was initially th ...
Tuesday, 01 November 22
CHINA COAL TRADE DISRUPTED BY COVID OUTBREAKS AS WINTER LOOMS - REUTERS
China’s strict COVID-19 policy is constraining coal supplies and pushing up prices, industry officials and traders say, just weeks before the ...
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- Gujarat Sidhee Cement - India
- Kapuas Tunggal Persada - Indonesia
- Sojitz Corporation - Japan
- Bukit Baiduri Energy - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Australian Commodity Traders Exchange
- Miang Besar Coal Terminal - Indonesia
- Manunggal Multi Energi - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Posco Energy - South Korea
- Bukit Asam (Persero) Tbk - Indonesia
- Wood Mackenzie - Singapore
- South Luzon Thermal Energy Corporation
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- The Treasury - Australian Government
- Mercator Lines Limited - India
- Sinarmas Energy and Mining - Indonesia
- Savvy Resources Ltd - HongKong
- Uttam Galva Steels Limited - India
- Ind-Barath Power Infra Limited - India
- Planning Commission, India
- Georgia Ports Authority, United States
- Ministry of Finance - Indonesia
- Kumho Petrochemical, South Korea
- Latin American Coal - Colombia
- IHS Mccloskey Coal Group - USA
- Gujarat Mineral Development Corp Ltd - India
- Renaissance Capital - South Africa
- Mercuria Energy - Indonesia
- Samtan Co., Ltd - South Korea
- Indian Oil Corporation Limited
- The University of Queensland
- India Bulls Power Limited - India
- ICICI Bank Limited - India
- Energy Development Corp, Philippines
- Bhoruka Overseas - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Formosa Plastics Group - Taiwan
- Star Paper Mills Limited - India
- Asmin Koalindo Tuhup - Indonesia
- LBH Netherlands Bv - Netherlands
- MS Steel International - UAE
- Aditya Birla Group - India
- Global Business Power Corporation, Philippines
- Mintek Dendrill Indonesia
- Straits Asia Resources Limited - Singapore
- Grasim Industreis Ltd - India
- Standard Chartered Bank - UAE
- Neyveli Lignite Corporation Ltd, - India
- Vizag Seaport Private Limited - India
- Chettinad Cement Corporation Ltd - India
- Riau Bara Harum - Indonesia
- Sical Logistics Limited - India
- Indika Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- Thiess Contractors Indonesia
- Oldendorff Carriers - Singapore
- Maheswari Brothers Coal Limited - India
- Orica Australia Pty. Ltd.
- Makarim & Taira - Indonesia
- Borneo Indobara - Indonesia
- Videocon Industries ltd - India
- Electricity Authority, New Zealand
- Power Finance Corporation Ltd., India
- Bank of Tokyo Mitsubishi UFJ Ltd
- New Zealand Coal & Carbon
- Meenaskhi Energy Private Limited - India
- Krishnapatnam Port Company Ltd. - India
- Karaikal Port Pvt Ltd - India
- Intertek Mineral Services - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Pendopo Energi Batubara - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Jindal Steel & Power Ltd - India
- Kepco SPC Power Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Petrochimia International Co. Ltd.- Taiwan
- Agrawal Coal Company - India
- Sree Jayajothi Cements Limited - India
- Africa Commodities Group - South Africa
- TNB Fuel Sdn Bhd - Malaysia
- Edison Trading Spa - Italy
- Coastal Gujarat Power Limited - India
- Holcim Trading Pte Ltd - Singapore
- Medco Energi Mining Internasional
- Directorate Of Revenue Intelligence - India
- Bangladesh Power Developement Board
- VISA Power Limited - India
- Bhushan Steel Limited - India
- Leighton Contractors Pty Ltd - Australia
- Heidelberg Cement - Germany
- Coalindo Energy - Indonesia
- Siam City Cement PLC, Thailand
- Binh Thuan Hamico - Vietnam
- Meralco Power Generation, Philippines
- TeaM Sual Corporation - Philippines
- Trasteel International SA, Italy
- Merrill Lynch Commodities Europe
- Marubeni Corporation - India
- Kobexindo Tractors - Indoneisa
- Baramulti Group, Indonesia
- GAC Shipping (India) Pvt Ltd
- Altura Mining Limited, Indonesia
- Metalloyd Limited - United Kingdom
- Larsen & Toubro Limited - India
- Australian Coal Association
- Kartika Selabumi Mining - Indonesia
- Dalmia Cement Bharat India
- Billiton Holdings Pty Ltd - Australia
- Electricity Generating Authority of Thailand
- San Jose City I Power Corp, Philippines
- The State Trading Corporation of India Ltd
- Anglo American - United Kingdom
- Kaltim Prima Coal - Indonesia
- McConnell Dowell - Australia
- Cement Manufacturers Association - India
- Sarangani Energy Corporation, Philippines
- Petron Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Minerals Council of Australia
- Commonwealth Bank - Australia
- GN Power Mariveles Coal Plant, Philippines
- Bukit Makmur.PT - Indonesia
- SMG Consultants - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Barasentosa Lestari - Indonesia
- Bharathi Cement Corporation - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Therma Luzon, Inc, Philippines
- Sakthi Sugars Limited - India
- Global Coal Blending Company Limited - Australia
- Madhucon Powers Ltd - India
- Tamil Nadu electricity Board
- Romanian Commodities Exchange
- Eastern Coal Council - USA
- GMR Energy Limited - India
- European Bulk Services B.V. - Netherlands
- Malabar Cements Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Simpson Spence & Young - Indonesia
- London Commodity Brokers - England
- Goldman Sachs - Singapore
- Ambuja Cements Ltd - India
- PNOC Exploration Corporation - Philippines
- Karbindo Abesyapradhi - Indoneisa
- Carbofer General Trading SA - India
- Energy Link Ltd, New Zealand
- PowerSource Philippines DevCo
- Vedanta Resources Plc - India
- Xindia Steels Limited - India
- Banpu Public Company Limited - Thailand
- Toyota Tsusho Corporation, Japan
- ASAPP Information Group - India
- Parliament of New Zealand
- Price Waterhouse Coopers - Russia
- Essar Steel Hazira Ltd - India
- Iligan Light & Power Inc, Philippines
- Indian Energy Exchange, India
- Sindya Power Generating Company Private Ltd
- Tata Chemicals Ltd - India
- Orica Mining Services - Indonesia
- Interocean Group of Companies - India
- White Energy Company Limited
- Lanco Infratech Ltd - India
- Semirara Mining Corp, Philippines
- Bhatia International Limited - India
- Wilmar Investment Holdings
- Deloitte Consulting - India
- Ministry of Transport, Egypt
- Ceylon Electricity Board - Sri Lanka
- GVK Power & Infra Limited - India
- CNBM International Corporation - China
- Economic Council, Georgia
- Cigading International Bulk Terminal - Indonesia
- IEA Clean Coal Centre - UK
- PetroVietnam Power Coal Import and Supply Company
- Jaiprakash Power Ventures ltd
- OPG Power Generation Pvt Ltd - India
- Rio Tinto Coal - Australia
- Bayan Resources Tbk. - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Timah Investasi Mineral - Indoneisa
- Salva Resources Pvt Ltd - India
- Indonesian Coal Mining Association
- Globalindo Alam Lestari - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Siam City Cement - Thailand
- Eastern Energy - Thailand
- Thai Mozambique Logistica
- SMC Global Power, Philippines
- PTC India Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Antam Resourcindo - Indonesia
- Mjunction Services Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Indo Tambangraya Megah - Indonesia
- Attock Cement Pakistan Limited
- Ministry of Mines - Canada
- Kalimantan Lumbung Energi - Indonesia
- Coal and Oil Company - UAE
- Chamber of Mines of South Africa
- Kohat Cement Company Ltd. - Pakistan
- Central Electricity Authority - India
- Central Java Power - Indonesia
- International Coal Ventures Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Singapore Mercantile Exchange
- AsiaOL BioFuels Corp., Philippines
- Indogreen Group - Indonesia
- Independent Power Producers Association of India
- Port Waratah Coal Services - Australia
- Parry Sugars Refinery, India
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