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Friday, 16 March 18
INDONESIA COAL PRICE CAP POSES LIMITED RISKS TO PRODUCERS : FITCH
 Indonesia’s cap on the benchmark price of coal sold to the domestic electricity sector is unlikely to have a significant impact on the credit profiles of Fitch-rated mining firms, which export most of their production, says Fitch Ratings. In any case, our ratings are based on average benchmark price forecasts that are broadly in line with the cap of USD70/tonne imposed until end-2019, and so will not be affected.
The price cap, announced last week and set to apply from mid-March, is part of the government’s strategy to ensure low prices for electricity consumers as it looks to support industrial competitiveness and household disposable incomes. It froze electricity prices charged to industrial consumers earlier in the year, preventing Perusahaan Listrik Negara (PLN), the state-owned monopoly distributor, from passing on rising costs as coal prices were pushed up by an unusually cold Chinese winter. The Indonesian coal price benchmark, Harga Batubara Acuan (HBA), has exceeded USD95/tonne since January 2018, which might have necessitated an increase in government subsidies to PLN if the price cap had not been imposed.
The new regulations will mean coal miners miss out on some of the short-term upside from high prevailing coal prices, to the extent that they sell production to the domestic market. The government sets domestic market obligations for miners to ensure they meet local demand, which prevents them from simply diverting output toward the overseas market.
That said, only around one-fifth of Indonesia’s 461 million tonnes of coal production was sold in the domestic market in 2017, which suggests any loss of revenue will be limited. Indika would be the most affected among our rated coal miners, as around 15% of its volumes are sold to the domestic power sector. GEO Energy, Golden Energy Resources, ABM Investama and PT Toba Bara sell less than 10% of volumes to the domestic power sector. Domestic market obligations are likely to increase over the medium term, as the government looks to contain production and conserve coal resources for local power needs, but a sharp rise next year is unlikely.
Coal firms will therefore continue to receive the market price for the majority of their production. As a result, their financial performance might still exceed our expectations at the start of the year, when we had forecast an average Newcastle benchmark (6000 kcal) price of USD72/tonne in 2018 and USD67/tonne in 2019. The HBA on which the regulations are based broadly reflect Newcastle prices.
The new price regime does not include a floor on prices, and so provides no benefit to the mining firms in the event of a downturn. Prices will continue to fluctuate as before if the market price drops below USD70/tonne.
The price ceiling is unlikely to have any meaningful impact on PLN’s standalone credit profile. We would have expected the government to compensate PLN for losses through subsidies if high coal prices and fixed electricity prices had caused under recoveries. PLN’s IDR of ‘BBB’ is equalised with the sovereign rating due to its very strong government linkages.
Source: Fitch Ratings
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Monday, 12 March 18
DRY BULK MARKET: CAPESIZE MARKET FINDS ITS FOOTING - BALTIC BRIEFING
Capesize
Some relief for owners as the week closed out with the market finding a floor in the East. Rates on the key West Australia/China run loo ...
Monday, 12 March 18
COAL OUTPUT FROM PRIVATE MINERS UNLIKELY TO RISE IN MEDIUM TERM: ICRA
Coal output levels from private commercial miners are unlikely to go up considerably in the medium to short term, given the issues related to land ...
Saturday, 10 March 18
ENHANCED PRODUCTION BY COAL INDIA HELPS DECLINE IN COAL IMPORTS
As per the current import policy, coal is kept under Open General License (OGL) and consumers are free to import coal from the source of their choi ...
Saturday, 10 March 18
THE 'RENOS' - COURT OF APPEAL CLARIFIES CTL CALCULATION AND RIGHT OF ABANDONMENT - CLYDE & CO
KNOWLEDGE TO ELEVATE
In the matter of the “RENOS”, Mr Justice Knowles addressed a number of issues, at first instance, regarding t ...
Friday, 09 March 18
THE WORLD CANNOT KEEP IGNORING THE ASIAN COAL STORY - BENJAMIN SPORTON
There were significant changes in the global energy system in 2017, including the growth in electric vehicles, the rise of renewables and the conti ...
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Showing 1776 to 1780 news of total 6871 |
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- Anglo American - United Kingdom
- Siam City Cement PLC, Thailand
- Bukit Makmur.PT - Indonesia
- Planning Commission, India
- Maheswari Brothers Coal Limited - India
- Bukit Baiduri Energy - Indonesia
- Bhoruka Overseas - Indonesia
- Mjunction Services Limited - India
- Bahari Cakrawala Sebuku - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- SMG Consultants - Indonesia
- Indonesian Coal Mining Association
- Agrawal Coal Company - India
- Videocon Industries ltd - India
- OPG Power Generation Pvt Ltd - India
- ASAPP Information Group - India
- Ministry of Transport, Egypt
- Thiess Contractors Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Directorate Of Revenue Intelligence - India
- Bhatia International Limited - India
- GAC Shipping (India) Pvt Ltd
- CNBM International Corporation - China
- Dalmia Cement Bharat India
- Deloitte Consulting - India
- Semirara Mining Corp, Philippines
- AsiaOL BioFuels Corp., Philippines
- Karbindo Abesyapradhi - Indoneisa
- Price Waterhouse Coopers - Russia
- Coal and Oil Company - UAE
- Independent Power Producers Association of India
- Semirara Mining and Power Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Kepco SPC Power Corporation, Philippines
- Latin American Coal - Colombia
- Directorate General of MIneral and Coal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Indo Tambangraya Megah - Indonesia
- IHS Mccloskey Coal Group - USA
- Ministry of Mines - Canada
- International Coal Ventures Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- Tata Chemicals Ltd - India
- Commonwealth Bank - Australia
- Interocean Group of Companies - India
- Altura Mining Limited, Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Central Electricity Authority - India
- Coalindo Energy - Indonesia
- The State Trading Corporation of India Ltd
- Grasim Industreis Ltd - India
- LBH Netherlands Bv - Netherlands
- Indika Energy - Indonesia
- Carbofer General Trading SA - India
- Aboitiz Power Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- Indian Oil Corporation Limited
- Cement Manufacturers Association - India
- Gujarat Mineral Development Corp Ltd - India
- Kaltim Prima Coal - Indonesia
- Borneo Indobara - Indonesia
- Simpson Spence & Young - Indonesia
- Heidelberg Cement - Germany
- Eastern Energy - Thailand
- Economic Council, Georgia
- Africa Commodities Group - South Africa
- Indogreen Group - Indonesia
- Electricity Authority, New Zealand
- Binh Thuan Hamico - Vietnam
- Savvy Resources Ltd - HongKong
- MS Steel International - UAE
- Kobexindo Tractors - Indoneisa
- Lanco Infratech Ltd - India
- Sakthi Sugars Limited - India
- Kartika Selabumi Mining - Indonesia
- Straits Asia Resources Limited - Singapore
- Attock Cement Pakistan Limited
- Rashtriya Ispat Nigam Limited - India
- Trasteel International SA, Italy
- Chamber of Mines of South Africa
- Banpu Public Company Limited - Thailand
- PetroVietnam Power Coal Import and Supply Company
- European Bulk Services B.V. - Netherlands
- Sree Jayajothi Cements Limited - India
- Karaikal Port Pvt Ltd - India
- Antam Resourcindo - Indonesia
- Intertek Mineral Services - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Parliament of New Zealand
- Leighton Contractors Pty Ltd - Australia
- New Zealand Coal & Carbon
- Star Paper Mills Limited - India
- Global Green Power PLC Corporation, Philippines
- Vedanta Resources Plc - India
- Mercator Lines Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bangladesh Power Developement Board
- Posco Energy - South Korea
- Bharathi Cement Corporation - India
- Energy Development Corp, Philippines
- Coastal Gujarat Power Limited - India
- Edison Trading Spa - Italy
- Mercuria Energy - Indonesia
- Wood Mackenzie - Singapore
- Pendopo Energi Batubara - Indonesia
- Singapore Mercantile Exchange
- Ambuja Cements Ltd - India
- SN Aboitiz Power Inc, Philippines
- Thai Mozambique Logistica
- Bayan Resources Tbk. - Indonesia
- The University of Queensland
- Oldendorff Carriers - Singapore
- Gujarat Electricity Regulatory Commission - India
- GVK Power & Infra Limited - India
- Wilmar Investment Holdings
- Meralco Power Generation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Global Coal Blending Company Limited - Australia
- Jindal Steel & Power Ltd - India
- Tamil Nadu electricity Board
- Sojitz Corporation - Japan
- Samtan Co., Ltd - South Korea
- Jaiprakash Power Ventures ltd
- Minerals Council of Australia
- Riau Bara Harum - Indonesia
- Orica Mining Services - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Rio Tinto Coal - Australia
- Gujarat Sidhee Cement - India
- Sindya Power Generating Company Private Ltd
- Sinarmas Energy and Mining - Indonesia
- The Treasury - Australian Government
- Australian Commodity Traders Exchange
- Kohat Cement Company Ltd. - Pakistan
- London Commodity Brokers - England
- TeaM Sual Corporation - Philippines
- Kapuas Tunggal Persada - Indonesia
- Standard Chartered Bank - UAE
- Parry Sugars Refinery, India
- Essar Steel Hazira Ltd - India
- Vizag Seaport Private Limited - India
- Australian Coal Association
- Central Java Power - Indonesia
- Electricity Generating Authority of Thailand
- Asmin Koalindo Tuhup - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Sical Logistics Limited - India
- Uttam Galva Steels Limited - India
- Orica Australia Pty. Ltd.
- Barasentosa Lestari - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Global Business Power Corporation, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Globalindo Alam Lestari - Indonesia
- South Luzon Thermal Energy Corporation
- Aditya Birla Group - India
- PowerSource Philippines DevCo
- Neyveli Lignite Corporation Ltd, - India
- Power Finance Corporation Ltd., India
- Manunggal Multi Energi - Indonesia
- Renaissance Capital - South Africa
- Siam City Cement - Thailand
- Sarangani Energy Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- ICICI Bank Limited - India
- Makarim & Taira - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Timah Investasi Mineral - Indoneisa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Ceylon Electricity Board - Sri Lanka
- Georgia Ports Authority, United States
- Mintek Dendrill Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Formosa Plastics Group - Taiwan
- SMC Global Power, Philippines
- Larsen & Toubro Limited - India
- Billiton Holdings Pty Ltd - Australia
- Malabar Cements Ltd - India
- Petron Corporation, Philippines
- Bulk Trading Sa - Switzerland
- IEA Clean Coal Centre - UK
- GMR Energy Limited - India
- Marubeni Corporation - India
- PTC India Limited - India
- McConnell Dowell - Australia
- Therma Luzon, Inc, Philippines
- Port Waratah Coal Services - Australia
- Ind-Barath Power Infra Limited - India
- Bhushan Steel Limited - India
- Holcim Trading Pte Ltd - Singapore
- Goldman Sachs - Singapore
- Kideco Jaya Agung - Indonesia
- Indian Energy Exchange, India
- Iligan Light & Power Inc, Philippines
- Romanian Commodities Exchange
- Eastern Coal Council - USA
- White Energy Company Limited
- Medco Energi Mining Internasional
- Energy Link Ltd, New Zealand
- Baramulti Group, Indonesia
- Meenaskhi Energy Private Limited - India
- Madhucon Powers Ltd - India
- Toyota Tsusho Corporation, Japan
- Ministry of Finance - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Chettinad Cement Corporation Ltd - India
- VISA Power Limited - India
- Xindia Steels Limited - India
- India Bulls Power Limited - India
- Metalloyd Limited - United Kingdom
- San Jose City I Power Corp, Philippines
- Krishnapatnam Port Company Ltd. - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Merrill Lynch Commodities Europe
- Kumho Petrochemical, South Korea
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