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Wednesday, 09 December 09
COAL INDIA YET TO IMPLEMENT IMPORT LINKED PRICES
Coal India Ltd is adopting a conservative approach in pricing despite being allowed to charge import-linked price for the country's minuscule reserve of 12-13 million tonnes of A- and B-grade high quality coal. The company was allowed to charge import-linked price for superior grade coal in October.
Eastern Coalfields Ltd, which has the country's largest reserve of 11 million tonnes of superior coal having highest energy value and low sulphur content, recently entered into MoUs with four West Bengal-based power producers to sell the underground production of 5 million tonnes of A- and B- grade coal at an import-linked price of Rs 3,500-3,700 (US$ 74.82 - 79.10) a tonne. The four power producers are CESC Ltd, West Bengal Power Development Corporation Ltd, Durgapur Projects Ltd and Damodar Valley Corporation.
The landed price to the producers will include 25 per cent cess and Rs 6 (US$ 0.12 ) a tonne of royalty collected by the West Bengal Government plus freight. Till the coal price hike in October, the notified price of A- and B- grade coal at pit head was Rs 1,700-1,800 (US$ 36.34 - 38.48) a tonne.
According to an industry source, the price of similar grade Australian coal (of over 6,000 Kcal/kg of gross calorific value) is approximately $65 a tonne on FOB basis. After inclusion of $25 a tonne of ocean freight cost, the landed price of similar imported coal is Rs 4,500 (US$ 96.17) a tonne at today's exchange rate.
“We are yet to devise a finer mechanism for charging import-linked price and have priced our underground production of superior coal at 15-16 per cent lower than the landed cost of imported coal.
However, we are charging the notified price (Rs 2,200-2,300 (US$ 47 - 49.15) a tonne) open cast production of A- and B-grade coal.
The weighted average of price of the coal on million Kcal basis works out to be approximately 50 per cent cheaper than the imported coal,” a CIL official said.
According to him, following introduction of import-linked price ECL's underground operations may break-even beginning this fiscal.
Apart from ECL, South Eastern Coalfields Ltd has small quantities of A- and B-grade coal reserves. However the company is yet to charge import-linked prices. (1 USD = 46.7942 INR)
Source: Business Line
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Monday, 18 January 10
BHP TO SPEND $267 MILLION ON QUEENSLAND COKING COAL
BHP Billiton Ltd, the world’s largest mining company, will spend $267 million to accelerate development of the Caval Ridge mine and the Hay Po ...
Sunday, 17 January 10
THE FUTURES FOR THREE YEARS (2010 - 2012) FIRMED UP - VISTAAR SINGAPORE
COALspot.com (Singapore): The freight market was a bit mixed with BDI up by about 159 points and closed at 3,299 points.
BDI
The cape index cont ...
Sunday, 17 January 10
NTPC TO DOUBLE CAPACITY BY 2017
NTPC, which will launch its follow-on public offer on February 3, plans to more than double its generating capacity to over 70,000 mega watts by 201 ...
Saturday, 16 January 10
HANDY CONTINUED FIRM CONDITIONS FOR MARKET IN THE ATLANTIC
HANDY
Continued firm conditions for the Handymax / Smax market in the Atlantic with the BSI having a continued upwards momentum. US$ 45,000 ac ...
Friday, 15 January 10
INDONESIA COAL - HEAVY RAINS HAVE LITTLE IMPACT ON COAL OUTPUT
Coal shipments from Indonesia's main coal-producing area are unlikely to be hit by heavy rains during January-February as many miners are prepared ...
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- Karaikal Port Pvt Ltd - India
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- Carbofer General Trading SA - India
- Meenaskhi Energy Private Limited - India
- Global Business Power Corporation, Philippines
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- Samtan Co., Ltd - South Korea
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- European Bulk Services B.V. - Netherlands
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- Directorate General of MIneral and Coal - Indonesia
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- Riau Bara Harum - Indonesia
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- Ministry of Transport, Egypt
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- Cement Manufacturers Association - India
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- Ministry of Mines - Canada
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- Eastern Coal Council - USA
- Power Finance Corporation Ltd., India
- Leighton Contractors Pty Ltd - Australia
- McConnell Dowell - Australia
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- Sical Logistics Limited - India
- Jorong Barutama Greston.PT - Indonesia
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- Commonwealth Bank - Australia
- Bulk Trading Sa - Switzerland
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- Kapuas Tunggal Persada - Indonesia
- Wood Mackenzie - Singapore
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- Kumho Petrochemical, South Korea
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- SMC Global Power, Philippines
- Indian Oil Corporation Limited
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- IEA Clean Coal Centre - UK
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- Altura Mining Limited, Indonesia
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- Deloitte Consulting - India
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- Planning Commission, India
- Parliament of New Zealand
- ASAPP Information Group - India
- Metalloyd Limited - United Kingdom
- Billiton Holdings Pty Ltd - Australia
- Thiess Contractors Indonesia
- Chamber of Mines of South Africa
- Singapore Mercantile Exchange
- Anglo American - United Kingdom
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- Pipit Mutiara Jaya. PT, Indonesia
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- White Energy Company Limited
- CIMB Investment Bank - Malaysia
- Sinarmas Energy and Mining - Indonesia
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