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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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Thursday, 15 October 09
GOVT TO CAP COAL EXPORTS AT 150 MILLION TONS A YEAR
The Jakarta Post reported that, The government plans to cap coal exports at around 150 million tons a year in a bid to guarantee supply for domestic ...
Thursday, 15 October 09
AUSTRALIAN MINING COMPANIES REPORTED FINDING 1.5 BILLION COAL MINE DEPOSIT IN MOZAMBIQUE
Paguntaka reported that, Mozambique is a country that has the potential mining areas are very rich. Many mining companies who want to invest in the ...
Wednesday, 14 October 09
INDONESIA POWER FIRM SIGNS LOAN AGREEMENTS FOR OVER $1 BLN
Reuters reported that, Indonesia's state electricity firm PT Perusahaan Listrik Negara (PLN) has raised more than $1 billion from a group of banks ...
Wednesday, 14 October 09
LARSEN & TOUBRO MAY ENTER POWER GENERATION BUSINESS IN INDIA
Bloomberg reported that, Larsen & Toubro Ltd., India’s biggest engineering company, said it is considering entering the power generation b ...
Wednesday, 14 October 09
INDONESIA MULLS TO LIMIT COAL EXPORT
China View reported that, The Indonesian government planned to limit coal export of up to 150 million tons per year due to the growing coal demand i ...
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- Commonwealth Bank - Australia
- Renaissance Capital - South Africa
- Pipit Mutiara Jaya. PT, Indonesia
- Straits Asia Resources Limited - Singapore
- Parliament of New Zealand
- Borneo Indobara - Indonesia
- Savvy Resources Ltd - HongKong
- McConnell Dowell - Australia
- LBH Netherlands Bv - Netherlands
- Mercuria Energy - Indonesia
- Georgia Ports Authority, United States
- Miang Besar Coal Terminal - Indonesia
- Indian Energy Exchange, India
- IEA Clean Coal Centre - UK
- Kepco SPC Power Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Energy Development Corp, Philippines
- Bulk Trading Sa - Switzerland
- GMR Energy Limited - India
- Kaltim Prima Coal - Indonesia
- White Energy Company Limited
- Standard Chartered Bank - UAE
- Bukit Makmur.PT - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Sindya Power Generating Company Private Ltd
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- ICICI Bank Limited - India
- Xindia Steels Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Mjunction Services Limited - India
- Thai Mozambique Logistica
- Interocean Group of Companies - India
- OPG Power Generation Pvt Ltd - India
- ASAPP Information Group - India
- Larsen & Toubro Limited - India
- Semirara Mining and Power Corporation, Philippines
- Bhushan Steel Limited - India
- Therma Luzon, Inc, Philippines
- South Luzon Thermal Energy Corporation
- Eastern Coal Council - USA
- Posco Energy - South Korea
- Mercator Lines Limited - India
- Baramulti Group, Indonesia
- Eastern Energy - Thailand
- Tamil Nadu electricity Board
- CIMB Investment Bank - Malaysia
- Kapuas Tunggal Persada - Indonesia
- Bayan Resources Tbk. - Indonesia
- Power Finance Corporation Ltd., India
- Gujarat Sidhee Cement - India
- Indo Tambangraya Megah - Indonesia
- Deloitte Consulting - India
- Jaiprakash Power Ventures ltd
- Singapore Mercantile Exchange
- Cigading International Bulk Terminal - Indonesia
- Bukit Baiduri Energy - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Sical Logistics Limited - India
- Trasteel International SA, Italy
- Economic Council, Georgia
- Central Electricity Authority - India
- Binh Thuan Hamico - Vietnam
- Aboitiz Power Corporation - Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kobexindo Tractors - Indoneisa
- Asmin Koalindo Tuhup - Indonesia
- Global Coal Blending Company Limited - Australia
- Bahari Cakrawala Sebuku - Indonesia
- PNOC Exploration Corporation - Philippines
- Sarangani Energy Corporation, Philippines
- Romanian Commodities Exchange
- Salva Resources Pvt Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Bharathi Cement Corporation - India
- Minerals Council of Australia
- Coalindo Energy - Indonesia
- Indonesian Coal Mining Association
- Dalmia Cement Bharat India
- Makarim & Taira - Indonesia
- Indika Energy - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Bhatia International Limited - India
- Anglo American - United Kingdom
- SMC Global Power, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Price Waterhouse Coopers - Russia
- GAC Shipping (India) Pvt Ltd
- Independent Power Producers Association of India
- Oldendorff Carriers - Singapore
- Alfred C Toepfer International GmbH - Germany
- Africa Commodities Group - South Africa
- Central Java Power - Indonesia
- Essar Steel Hazira Ltd - India
- TeaM Sual Corporation - Philippines
- Energy Link Ltd, New Zealand
- Orica Australia Pty. Ltd.
- Bangladesh Power Developement Board
- Ministry of Transport, Egypt
- Ceylon Electricity Board - Sri Lanka
- Edison Trading Spa - Italy
- Videocon Industries ltd - India
- Port Waratah Coal Services - Australia
- London Commodity Brokers - England
- Krishnapatnam Port Company Ltd. - India
- Semirara Mining Corp, Philippines
- Uttam Galva Steels Limited - India
- Meralco Power Generation, Philippines
- IHS Mccloskey Coal Group - USA
- Australian Coal Association
- The University of Queensland
- SN Aboitiz Power Inc, Philippines
- The Treasury - Australian Government
- Thiess Contractors Indonesia
- Heidelberg Cement - Germany
- Planning Commission, India
- Banpu Public Company Limited - Thailand
- PetroVietnam Power Coal Import and Supply Company
- Offshore Bulk Terminal Pte Ltd, Singapore
- Carbofer General Trading SA - India
- Cement Manufacturers Association - India
- Marubeni Corporation - India
- PTC India Limited - India
- Vedanta Resources Plc - India
- Sojitz Corporation - Japan
- Globalindo Alam Lestari - Indonesia
- Mintek Dendrill Indonesia
- GVK Power & Infra Limited - India
- International Coal Ventures Pvt Ltd - India
- Chamber of Mines of South Africa
- VISA Power Limited - India
- Samtan Co., Ltd - South Korea
- Vijayanagar Sugar Pvt Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Merrill Lynch Commodities Europe
- PowerSource Philippines DevCo
- Medco Energi Mining Internasional
- Directorate General of MIneral and Coal - Indonesia
- Metalloyd Limited - United Kingdom
- Star Paper Mills Limited - India
- Vizag Seaport Private Limited - India
- MS Steel International - UAE
- Electricity Generating Authority of Thailand
- Manunggal Multi Energi - Indonesia
- Sree Jayajothi Cements Limited - India
- Ind-Barath Power Infra Limited - India
- Toyota Tsusho Corporation, Japan
- Chettinad Cement Corporation Ltd - India
- Meenaskhi Energy Private Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Gujarat Mineral Development Corp Ltd - India
- Goldman Sachs - Singapore
- Australian Commodity Traders Exchange
- Ministry of Finance - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Kumho Petrochemical, South Korea
- Attock Cement Pakistan Limited
- Wilmar Investment Holdings
- Timah Investasi Mineral - Indoneisa
- Ambuja Cements Ltd - India
- San Jose City I Power Corp, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Madhucon Powers Ltd - India
- Orica Mining Services - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Malabar Cements Ltd - India
- Bukit Asam (Persero) Tbk - Indonesia
- Antam Resourcindo - Indonesia
- Jindal Steel & Power Ltd - India
- Simpson Spence & Young - Indonesia
- Grasim Industreis Ltd - India
- Pendopo Energi Batubara - Indonesia
- Parry Sugars Refinery, India
- Altura Mining Limited, Indonesia
- Barasentosa Lestari - Indonesia
- Directorate Of Revenue Intelligence - India
- Kideco Jaya Agung - Indonesia
- Riau Bara Harum - Indonesia
- Aditya Birla Group - India
- Indian Oil Corporation Limited
- Indogreen Group - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Coal and Oil Company - UAE
- Agrawal Coal Company - India
- Petron Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Electricity Authority, New Zealand
- Iligan Light & Power Inc, Philippines
- Coastal Gujarat Power Limited - India
- Formosa Plastics Group - Taiwan
- Holcim Trading Pte Ltd - Singapore
- Siam City Cement PLC, Thailand
- Sinarmas Energy and Mining - Indonesia
- Bhoruka Overseas - Indonesia
- Intertek Mineral Services - Indonesia
- Siam City Cement - Thailand
- Karaikal Port Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- European Bulk Services B.V. - Netherlands
- India Bulls Power Limited - India
- Rio Tinto Coal - Australia
- Wood Mackenzie - Singapore
- Ministry of Mines - Canada
- Lanco Infratech Ltd - India
- Global Business Power Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Petrochimia International Co. Ltd.- Taiwan
- Tata Chemicals Ltd - India
- New Zealand Coal & Carbon
- CNBM International Corporation - China
- GN Power Mariveles Coal Plant, Philippines
- SMG Consultants - Indonesia
- The State Trading Corporation of India Ltd
- Sakthi Sugars Limited - India
- Latin American Coal - Colombia
- Bank of Tokyo Mitsubishi UFJ Ltd
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