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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, 23 February 24
STRONG OUTLOOK FOR THE TANKER MARKET IN 2024 AND BEYOND - DNV
Several factors have aligned over the past two years to create a robust and profitable market for tanker owners, which is expected to drive newbuil ...
Friday, 23 February 24
AUSTRALIAN COAL FLOWS TO ASIA HOVER ABOVE LAST YEAR’S VOLUME TONNES - SIGNAL GROUP
In the final days of February, the dry bulk freight market appeared to maintain a relatively stable momentum, particularly evident in the large ves ...
Friday, 23 February 24
RUSSIAN COAL SHIPMENTS FALL 14% AS SANCTIONS BITE - BIMCO
During the first seven weeks of 2024, Russian coal shipments have fallen 14% y/y. Volumes have gradually declined since October 2023 when logistica ...
Thursday, 22 February 24
BIMCO PUBLISHES SHIP FINANCING FORMS TO ENSURE UNINTERRUPTED USE OF SHIPS
BIMCO has published two standard Quiet Enjoyment Letters (QELs), the first standard form QELs available to the industry, to offer a tool that can e ...
Monday, 19 February 24
METALS INVESTMENT: THE DARKEST HOUR IS JUST BEFORE THE DAWN - WOOD MACKENZIE
Things often seem at their worst just before they get better. In terms of meeting our net zero 2050 scenario, we’ve reached a watershed momen ...
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- Madhucon Powers Ltd - India
- Medco Energi Mining Internasional
- Ministry of Transport, Egypt
- Orica Mining Services - Indonesia
- Chettinad Cement Corporation Ltd - India
- Power Finance Corporation Ltd., India
- Port Waratah Coal Services - Australia
- Therma Luzon, Inc, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Videocon Industries ltd - India
- Vedanta Resources Plc - India
- Bangladesh Power Developement Board
- Semirara Mining Corp, Philippines
- Sakthi Sugars Limited - India
- Coal and Oil Company - UAE
- Uttam Galva Steels Limited - India
- Kepco SPC Power Corporation, Philippines
- Cement Manufacturers Association - India
- VISA Power Limited - India
- IHS Mccloskey Coal Group - USA
- Cigading International Bulk Terminal - Indonesia
- Xindia Steels Limited - India
- Holcim Trading Pte Ltd - Singapore
- Bhoruka Overseas - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Indian Oil Corporation Limited
- Timah Investasi Mineral - Indoneisa
- SMC Global Power, Philippines
- Global Green Power PLC Corporation, Philippines
- GVK Power & Infra Limited - India
- Siam City Cement PLC, Thailand
- Barasentosa Lestari - Indonesia
- Australian Commodity Traders Exchange
- PTC India Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Baramulti Group, Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Directorate Of Revenue Intelligence - India
- Renaissance Capital - South Africa
- Semirara Mining and Power Corporation, Philippines
- Mercator Lines Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Posco Energy - South Korea
- Jorong Barutama Greston.PT - Indonesia
- Georgia Ports Authority, United States
- Interocean Group of Companies - India
- The Treasury - Australian Government
- Orica Australia Pty. Ltd.
- Bank of Tokyo Mitsubishi UFJ Ltd
- Larsen & Toubro Limited - India
- Savvy Resources Ltd - HongKong
- Trasteel International SA, Italy
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- GAC Shipping (India) Pvt Ltd
- LBH Netherlands Bv - Netherlands
- Ministry of Mines - Canada
- Planning Commission, India
- Vizag Seaport Private Limited - India
- Global Coal Blending Company Limited - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Lanco Infratech Ltd - India
- Standard Chartered Bank - UAE
- Kobexindo Tractors - Indoneisa
- Formosa Plastics Group - Taiwan
- OPG Power Generation Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Star Paper Mills Limited - India
- Eastern Energy - Thailand
- South Luzon Thermal Energy Corporation
- Merrill Lynch Commodities Europe
- Sical Logistics Limited - India
- Miang Besar Coal Terminal - Indonesia
- Pendopo Energi Batubara - Indonesia
- Indika Energy - Indonesia
- Sojitz Corporation - Japan
- Electricity Authority, New Zealand
- Sinarmas Energy and Mining - Indonesia
- Mintek Dendrill Indonesia
- Samtan Co., Ltd - South Korea
- Malabar Cements Ltd - India
- Electricity Generating Authority of Thailand
- Antam Resourcindo - Indonesia
- Manunggal Multi Energi - Indonesia
- CIMB Investment Bank - Malaysia
- Minerals Council of Australia
- Meralco Power Generation, Philippines
- Essar Steel Hazira Ltd - India
- IEA Clean Coal Centre - UK
- Maheswari Brothers Coal Limited - India
- The University of Queensland
- Africa Commodities Group - South Africa
- SN Aboitiz Power Inc, Philippines
- Ind-Barath Power Infra Limited - India
- White Energy Company Limited
- Krishnapatnam Port Company Ltd. - India
- Parliament of New Zealand
- Deloitte Consulting - India
- New Zealand Coal & Carbon
- Bayan Resources Tbk. - Indonesia
- Kumho Petrochemical, South Korea
- Directorate General of MIneral and Coal - Indonesia
- Singapore Mercantile Exchange
- Commonwealth Bank - Australia
- PowerSource Philippines DevCo
- Borneo Indobara - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Central Electricity Authority - India
- SMG Consultants - Indonesia
- ASAPP Information Group - India
- PNOC Exploration Corporation - Philippines
- Makarim & Taira - Indonesia
- Sarangani Energy Corporation, Philippines
- Heidelberg Cement - Germany
- Leighton Contractors Pty Ltd - Australia
- San Jose City I Power Corp, Philippines
- Ministry of Finance - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Sindya Power Generating Company Private Ltd
- Wood Mackenzie - Singapore
- Sree Jayajothi Cements Limited - India
- Latin American Coal - Colombia
- Intertek Mineral Services - Indonesia
- Meenaskhi Energy Private Limited - India
- Bulk Trading Sa - Switzerland
- MS Steel International - UAE
- Neyveli Lignite Corporation Ltd, - India
- Coastal Gujarat Power Limited - India
- Eastern Coal Council - USA
- Bukit Asam (Persero) Tbk - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- GMR Energy Limited - India
- Bhushan Steel Limited - India
- Agrawal Coal Company - India
- Toyota Tsusho Corporation, Japan
- Pipit Mutiara Jaya. PT, Indonesia
- Kaltim Prima Coal - Indonesia
- Attock Cement Pakistan Limited
- Globalindo Alam Lestari - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Dalmia Cement Bharat India
- Riau Bara Harum - Indonesia
- Bukit Makmur.PT - Indonesia
- Aboitiz Power Corporation - Philippines
- Global Business Power Corporation, Philippines
- Grasim Industreis Ltd - India
- Tata Chemicals Ltd - India
- Rio Tinto Coal - Australia
- Siam City Cement - Thailand
- Price Waterhouse Coopers - Russia
- Bukit Baiduri Energy - Indonesia
- Romanian Commodities Exchange
- Australian Coal Association
- Indian Energy Exchange, India
- European Bulk Services B.V. - Netherlands
- Straits Asia Resources Limited - Singapore
- Simpson Spence & Young - Indonesia
- The State Trading Corporation of India Ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- McConnell Dowell - Australia
- Economic Council, Georgia
- International Coal Ventures Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Jindal Steel & Power Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- ICICI Bank Limited - India
- Gujarat Electricity Regulatory Commission - India
- Gujarat Mineral Development Corp Ltd - India
- CNBM International Corporation - China
- Binh Thuan Hamico - Vietnam
- Oldendorff Carriers - Singapore
- Mercuria Energy - Indonesia
- Altura Mining Limited, Indonesia
- India Bulls Power Limited - India
- Independent Power Producers Association of India
- Carbofer General Trading SA - India
- Indo Tambangraya Megah - Indonesia
- Mjunction Services Limited - India
- Aditya Birla Group - India
- Tamil Nadu electricity Board
- Wilmar Investment Holdings
- Ambuja Cements Ltd - India
- Coalindo Energy - Indonesia
- Goldman Sachs - Singapore
- Indonesian Coal Mining Association
- Billiton Holdings Pty Ltd - Australia
- Energy Link Ltd, New Zealand
- Karaikal Port Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Vijayanagar Sugar Pvt Ltd - India
- Parry Sugars Refinery, India
- Bahari Cakrawala Sebuku - Indonesia
- Indogreen Group - Indonesia
- Jaiprakash Power Ventures ltd
- Metalloyd Limited - United Kingdom
- Thiess Contractors Indonesia
- AsiaOL BioFuels Corp., Philippines
- London Commodity Brokers - England
- Salva Resources Pvt Ltd - India
- Edison Trading Spa - Italy
- TeaM Sual Corporation - Philippines
- Energy Development Corp, Philippines
- Gujarat Sidhee Cement - India
- Central Java Power - Indonesia
- Bharathi Cement Corporation - India
- Chamber of Mines of South Africa
- Marubeni Corporation - India
- Kartika Selabumi Mining - Indonesia
- Iligan Light & Power Inc, Philippines
- Bhatia International Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Petron Corporation, Philippines
- Anglo American - United Kingdom
- Thai Mozambique Logistica
- Kideco Jaya Agung - Indonesia
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