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Friday, 23 October 09
CIL PRICE HIKE LIKELY TO PUSH POWER RATES UP
 Business-Standard reported that, May squeeze cement companies’ margins, but the steel sector is unlikely to be affected much.
The upward revision of coal prices by government-owned Coal India Limited (CIL), which took place last week, is likely to have a divergent impact on the fossil fuel’s primary consumers such as cement, power and steel sectors. While cement makers’ margins will be under pressure, power producers will make a move to pass on the increased burden to consumers.The three sectors account for about 72 per cent of the total coal demand in the country.
On October 16, CIL increased the price of coal from Eastern Coalfields (ECL) and Bharat Coking Coal (BCCL) by 15 per cent, while all other subsidiary companies were permitted a hike of 10 per cent. This price increase is expected to swell CIL’s net profit by approximately Rs 2,000 crore this financial year and by about Rs 4,100 crore in the following year.
However, for the consuming sectors, especially the cement industry, the increase in coal prices will squeeze profit margins at a time when prices are already low due to rapid capacity augmentation.
Despite the fact that coal accounted for around two-thirds of the power and fuel cost, and 20 per cent of the total cost for cement manufacturers, firms would be unable to pass on the hike in coal prices to end users due to the current business environment, a report by Crisil Research suggested.
“The recent coal price hike will increase the cost of cement by Rs 3-4 a bag. However, this has been absorbed by manufacturers in the short-term. In the long run, though, if conditions are right, we could pass on the cost,” Cement Manufacturers Association President and Shree Cement Managing Director HM Bangur said. For the power sector, though, the impact of the upward revision of coal prices would be neutral, as the rise in cost of fuel would be passed on by the generators.
On an average, tariffs of power plants using domestic coal as fuel are expected to increase by 3-4 per cent. In rupee terms, the tariffs are expected to increase on an average by Rs 0.06 a unit. The rise is expected to increase the tariffs for final power consumers as the price hike will be passed on, the Crisil report further stated.
With the respective regulatory authorities of each state overseeing power tariffs, generators would first have to ascertain the increase in input costs and then approach the regulator for approval.
However, with the coal mixture of each generator differing, the choice being between CIL coal and that of the imported variety, it would take sometime before power utilities decide on the actual magnitude of the increase in tariff. “But 100 per cent, we will have to pass on the cost,” an official from the RPG’s power utility CESC said.
As for the steel industry, the Crisil report indicated that the coal price hike by CIL was not expected to have a significant impact on the steel industry as non-coking coal, which was primarily used by the sector, did not account for a significant portion of the total cost of steel manufacturing, except for steel made through the sponge iron route. Moreover, the dependence of domestic steel producers on CIL is only 25-35 per cent of their total requirement due to the availability of captive mines and imports. But Visa Steel Chairman and President of the Indian Chamber of Commerce Vishambhar Saran said the ex-pit head prices of CIL were already comparable to international prices, barring the freight factor cost. “The cost of setting-up a plant is higher if one is to use domestically available coal as compared to imported coal. This is because the former is of inferior quality and consequently extra costs such as ash disposal must be counted into the total project cost,” he added.
Source: Business-Standard
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Friday, 23 October 09
INDIAN GROUP INTERESTED IN MOZAMBICAN COAL
Mining Weekly reported that, India’s leading steelmaker, the Steel Authority of India Limited (Sail), has confirmed that it is seeking to acqu ...
Friday, 23 October 09
AUSTRALIA APPROVES CHINESE TAKEOVER OF FELIX RESOURCES
* Australia give conditional approval to China's Felix deal
* Chinese owner must list the assets on Australian exchange
Reuters reported that, ...
Friday, 23 October 09
IVANHOE TARGETING 20 MILLION TONS OF COAL OUTPUT IN MONGOLIA
Bloomberg reported that, Ivanhoe Mines Ltd., developing a $4 billion copper and gold mine in Mongolia with Rio Tinto Group, is targeting long-term c ...
Friday, 23 October 09
XSTRATA PLANS $1BN AUSTRALIAN COAL PORT
Xstrata Plc, the world's biggest exporter of steam coal, plans to build a new $1 billion coal port in Australia, it said.
The proposed Balaclava ...
Friday, 23 October 09
MEXICO'S CFE SEEKS 6.24 MLN T COAL FOR 2010-12
Reuters reported that, Mexico's state-owned power monopoly plans to award a tender for 6.24 million tonnes of steam coal in December, according to ...
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- Asia Pacific Energy Resources Ventures Inc, Philippines
- CNBM International Corporation - China
- Riau Bara Harum - Indonesia
- Jindal Steel & Power Ltd - India
- Cement Manufacturers Association - India
- CIMB Investment Bank - Malaysia
- Makarim & Taira - Indonesia
- Thai Mozambique Logistica
- Malabar Cements Ltd - India
- Maheswari Brothers Coal Limited - India
- Borneo Indobara - Indonesia
- Coal and Oil Company - UAE
- Kideco Jaya Agung - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Bangladesh Power Developement Board
- Minerals Council of Australia
- Banpu Public Company Limited - Thailand
- Sojitz Corporation - Japan
- Kepco SPC Power Corporation, Philippines
- Gujarat Sidhee Cement - India
- Global Business Power Corporation, Philippines
- Sree Jayajothi Cements Limited - India
- MS Steel International - UAE
- Star Paper Mills Limited - India
- Trasteel International SA, Italy
- Bukit Baiduri Energy - Indonesia
- Formosa Plastics Group - Taiwan
- Semirara Mining Corp, Philippines
- India Bulls Power Limited - India
- Gujarat Electricity Regulatory Commission - India
- The State Trading Corporation of India Ltd
- Wilmar Investment Holdings
- PTC India Limited - India
- Global Green Power PLC Corporation, Philippines
- LBH Netherlands Bv - Netherlands
- Price Waterhouse Coopers - Russia
- European Bulk Services B.V. - Netherlands
- Antam Resourcindo - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Grasim Industreis Ltd - India
- Therma Luzon, Inc, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Indika Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- Global Coal Blending Company Limited - Australia
- Anglo American - United Kingdom
- Tamil Nadu electricity Board
- Tata Chemicals Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Binh Thuan Hamico - Vietnam
- GVK Power & Infra Limited - India
- Bhoruka Overseas - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Port Waratah Coal Services - Australia
- Parliament of New Zealand
- Savvy Resources Ltd - HongKong
- Bahari Cakrawala Sebuku - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Bharathi Cement Corporation - India
- Agrawal Coal Company - India
- Altura Mining Limited, Indonesia
- Petron Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Romanian Commodities Exchange
- Indian Energy Exchange, India
- Economic Council, Georgia
- Essar Steel Hazira Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Deloitte Consulting - India
- IHS Mccloskey Coal Group - USA
- Toyota Tsusho Corporation, Japan
- Kumho Petrochemical, South Korea
- Sical Logistics Limited - India
- TeaM Sual Corporation - Philippines
- Jaiprakash Power Ventures ltd
- Madhucon Powers Ltd - India
- Indonesian Coal Mining Association
- Goldman Sachs - Singapore
- ASAPP Information Group - India
- Carbofer General Trading SA - India
- Samtan Co., Ltd - South Korea
- Siam City Cement - Thailand
- Singapore Mercantile Exchange
- Larsen & Toubro Limited - India
- PowerSource Philippines DevCo
- Interocean Group of Companies - India
- Heidelberg Cement - Germany
- Kobexindo Tractors - Indoneisa
- Meenaskhi Energy Private Limited - India
- Energy Development Corp, Philippines
- Directorate Of Revenue Intelligence - India
- IEA Clean Coal Centre - UK
- Parry Sugars Refinery, India
- Baramulti Group, Indonesia
- Indo Tambangraya Megah - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Ministry of Transport, Egypt
- Billiton Holdings Pty Ltd - Australia
- Central Electricity Authority - India
- Kalimantan Lumbung Energi - Indonesia
- Marubeni Corporation - India
- Australian Coal Association
- Krishnapatnam Port Company Ltd. - India
- Chamber of Mines of South Africa
- Manunggal Multi Energi - Indonesia
- Simpson Spence & Young - Indonesia
- VISA Power Limited - India
- Directorate General of MIneral and Coal - Indonesia
- SMG Consultants - Indonesia
- Renaissance Capital - South Africa
- White Energy Company Limited
- Chettinad Cement Corporation Ltd - India
- New Zealand Coal & Carbon
- Electricity Generating Authority of Thailand
- Sarangani Energy Corporation, Philippines
- ICICI Bank Limited - India
- Bukit Makmur.PT - Indonesia
- South Luzon Thermal Energy Corporation
- International Coal Ventures Pvt Ltd - India
- Planning Commission, India
- Kohat Cement Company Ltd. - Pakistan
- Mintek Dendrill Indonesia
- Eastern Energy - Thailand
- Latin American Coal - Colombia
- Dalmia Cement Bharat India
- Rio Tinto Coal - Australia
- Lanco Infratech Ltd - India
- Ind-Barath Power Infra Limited - India
- Leighton Contractors Pty Ltd - Australia
- Barasentosa Lestari - Indonesia
- Vizag Seaport Private Limited - India
- Uttam Galva Steels Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Indogreen Group - Indonesia
- Posco Energy - South Korea
- Central Java Power - Indonesia
- OPG Power Generation Pvt Ltd - India
- London Commodity Brokers - England
- The Treasury - Australian Government
- Orica Mining Services - Indonesia
- PNOC Exploration Corporation - Philippines
- Mjunction Services Limited - India
- Xindia Steels Limited - India
- Thiess Contractors Indonesia
- Indian Oil Corporation Limited
- Offshore Bulk Terminal Pte Ltd, Singapore
- Mercuria Energy - Indonesia
- Australian Commodity Traders Exchange
- Eastern Coal Council - USA
- Cigading International Bulk Terminal - Indonesia
- SMC Global Power, Philippines
- Asmin Koalindo Tuhup - Indonesia
- GAC Shipping (India) Pvt Ltd
- Bulk Trading Sa - Switzerland
- Power Finance Corporation Ltd., India
- Semirara Mining and Power Corporation, Philippines
- Bhushan Steel Limited - India
- Coalindo Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- Commonwealth Bank - Australia
- Siam City Cement PLC, Thailand
- Coastal Gujarat Power Limited - India
- Metalloyd Limited - United Kingdom
- The University of Queensland
- Vedanta Resources Plc - India
- Edison Trading Spa - Italy
- Attock Cement Pakistan Limited
- Pendopo Energi Batubara - Indonesia
- Bhatia International Limited - India
- Africa Commodities Group - South Africa
- Karaikal Port Pvt Ltd - India
- Merrill Lynch Commodities Europe
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Meralco Power Generation, Philippines
- Orica Australia Pty. Ltd.
- Intertek Mineral Services - Indonesia
- Oldendorff Carriers - Singapore
- GMR Energy Limited - India
- Independent Power Producers Association of India
- Kartika Selabumi Mining - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Rashtriya Ispat Nigam Limited - India
- San Jose City I Power Corp, Philippines
- Electricity Authority, New Zealand
- Ambuja Cements Ltd - India
- Standard Chartered Bank - UAE
- Iligan Light & Power Inc, Philippines
- Energy Link Ltd, New Zealand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Mercator Lines Limited - India
- Alfred C Toepfer International GmbH - Germany
- Aditya Birla Group - India
- Medco Energi Mining Internasional
- Salva Resources Pvt Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Straits Asia Resources Limited - Singapore
- Gujarat Mineral Development Corp Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Ministry of Mines - Canada
- Georgia Ports Authority, United States
- TNB Fuel Sdn Bhd - Malaysia
- Bayan Resources Tbk. - Indonesia
- Wood Mackenzie - Singapore
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sinarmas Energy and Mining - Indonesia
- McConnell Dowell - Australia
- Videocon Industries ltd - India
- Holcim Trading Pte Ltd - Singapore
- SN Aboitiz Power Inc, Philippines
- Ministry of Finance - Indonesia
- Sakthi Sugars Limited - India
- Timah Investasi Mineral - Indoneisa
- Globalindo Alam Lestari - Indonesia
- Neyveli Lignite Corporation Ltd, - India
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