Tuesday, 04 Oct 2011
Maharatna Coal India today Profitability would be eroded by about INR 2,000 crore per annum post enactment of new mines legislation which mandates coal miners to share 26% of their profits with project affected people.
Mr NC Jha Coal India Chairman said "It would hit the profitability of the company by about INR 2,000 crore.”
He added that added that if the government wanted to maintain the profit of the state run PSU, it would have to resort to hike in coal prices. Mr Jha said "If the profit of the company has to be maintained it has to be done by increasing the prices of coal. Therefore, it is for the government which is the major shareholder of the company to decide whether to go for price hike or not."
Mr Jha earlier this month had said that the additional cost impact, due to the new act will eventually be passed on to the consumers. The Federation of Indian Mineral Industries too had said recently that prices of all minerals will go up due to the new Mines Bill.
He confidence that despite a dip in company profit post enactment of the new law, the state own firm would stand benefited in the long term by getting land without hindrances and would improve its bottomline.
Mr Jha said "In the short term Coal India would of course witness a dip in its profit but in the long term it would be beneficial as with more land with the public sector firm the business volume would increase and the profit would automatically increase."
The state owned miner which accounts for about 80% of the country total production of coal had reported a consolidated net profit of INR 10,867 crore in 2010-11.
(Sourced from Economic Times)
Showing posts with label coal and mining laws. Show all posts
Showing posts with label coal and mining laws. Show all posts
Tuesday, October 4, 2011
Saturday, October 1, 2011
New mining bill to hit Coal India the hardest - Analysts
Saturday, 01 Oct 2011
Moneycontrol.com reported that the new Mining Bill cleared by the Indian union cabinet today could impact bottom lines of metal companies in India as these companies will now have to share 100% royalty with affected locals in the region, Coal India Limited’s profits could be dented at significant levels as coal miners will now compulsorily have to share 26% of its profit after taxes to the affected tribals.
If the bill is passed, an estimated amount of INR 10,000 crore will be generated per year from miners and an average amount of INR 180 crore to INR 200 crore will be distributed among District Mining Foundations of 60 mineral rich districts in India.
Analysts quickly did a preliminary analysis on the kind of impact it will have on miners and metal sector.
Mr Bhavesh Chauhan from Angel Broking told moneycontrol.com, “As per our estimates, the EPS of metal companies is expected to be lower by 8% to 13%, while for Coal India the EPS could potentially decline by 17%. But Coal India can do some damage control as it has the cushion to pass on the additional burden to its customers as its sells coal at a price lower than global benchmarks, but metal miners do not enjoy this privilege.”
Khandwala Securities said “We expect EPS of all integrated players in metal space which includes TATA Steel, SAIL, Sterlite, Hindustan Zinc and Hindalco to be impacted by 5% to 20% depending upon their mining integration. But Coal India is expected to be impacted majorly as it is already facing employee cost pressure of around 40% of its total revenues in FY11 and revision in wages in 12th plan will put further pressure on the company earnings. Going ahead, companies might hike prices.”
Edelweiss Securities said “Profits of non coal mining companies (including integrated metal/ cement companies) could be impacted to the tune of 3% to 16% with Hindustan Zinc being hit the most and JSW Steel the least.”
Mr Tarang Bhanushali of IIFL said “The move is all set to push down profits of major mining and power companies. Most of the coal companies will be going for a downgrade.” The EPS impact on Coal India would be around 13% to 14%.”
(sourced from moneycontrol)
Moneycontrol.com reported that the new Mining Bill cleared by the Indian union cabinet today could impact bottom lines of metal companies in India as these companies will now have to share 100% royalty with affected locals in the region, Coal India Limited’s profits could be dented at significant levels as coal miners will now compulsorily have to share 26% of its profit after taxes to the affected tribals.
If the bill is passed, an estimated amount of INR 10,000 crore will be generated per year from miners and an average amount of INR 180 crore to INR 200 crore will be distributed among District Mining Foundations of 60 mineral rich districts in India.
Analysts quickly did a preliminary analysis on the kind of impact it will have on miners and metal sector.
Mr Bhavesh Chauhan from Angel Broking told moneycontrol.com, “As per our estimates, the EPS of metal companies is expected to be lower by 8% to 13%, while for Coal India the EPS could potentially decline by 17%. But Coal India can do some damage control as it has the cushion to pass on the additional burden to its customers as its sells coal at a price lower than global benchmarks, but metal miners do not enjoy this privilege.”
Khandwala Securities said “We expect EPS of all integrated players in metal space which includes TATA Steel, SAIL, Sterlite, Hindustan Zinc and Hindalco to be impacted by 5% to 20% depending upon their mining integration. But Coal India is expected to be impacted majorly as it is already facing employee cost pressure of around 40% of its total revenues in FY11 and revision in wages in 12th plan will put further pressure on the company earnings. Going ahead, companies might hike prices.”
Edelweiss Securities said “Profits of non coal mining companies (including integrated metal/ cement companies) could be impacted to the tune of 3% to 16% with Hindustan Zinc being hit the most and JSW Steel the least.”
Mr Tarang Bhanushali of IIFL said “The move is all set to push down profits of major mining and power companies. Most of the coal companies will be going for a downgrade.” The EPS impact on Coal India would be around 13% to 14%.”
(sourced from moneycontrol)
Friday, February 18, 2011
Indonesia approves more permits to ease coal, metals ship delays
Fri Feb 18, 2011 9:43am GMT
* Govt approves export permits for another 29 firms
* Backlog on coal shipments remains
* Some traders borrowing permits to ship coal (Adds trader quotes, details)
By Fitri Wulandari
JAKARTA, Feb 18 (Reuters) - Indonesia has approved permits for 29 more firms to resume coal and metals exports, paving the way for traders and producers to begin clearing a backlog of shipments at the country's ports, a trade ministry official said on Friday.
Up to 3.5 million tonnes of coal shipments, destined to fuel power stations in China and India, have been delayed in recent weeks because of changes to coal and mining laws that required cargoes to undergo extra surveys in a bid to stem tax evasion.
With the latest set of approvals, a total of 81 firms are now allowed to resume exports, after 52 companies were given approval earlier this month, said Junaedi, head of the mining exports unit at the ministry.
Indonesia's trade ministry ordered surveyors in January to temporarily halt issuing surveyor reports to coal and mineral traders in the process of reapplying for trading permits under the new coal and mining law.
"The energy ministry notified us that they have issued trading permits for (an additional) 29 mining firms," said Junaedi, who like many Indonesians only has one name.
As part of obtaining export permits, Indonesia has required exports of mining products including coal and tin to be checked by surveyors, as the country seeks to keep illegal mining in check and boost revenue from the sector.
Surveyor reports, required for shipping coal and metals, show the origin of the cargoes and are used to calculate royalties.
Despite the 81 permits that have been issued, a backlog of cargoes still remains, with some shippers still waiting for export permits from the energy ministry, traders and shipping sources said.
Some desperate traders have also borrowed export permits from other shippers who have already obtained them.
"Some traders have submitted requests for the permit two months ago and they haven't got it," a port source said.
"So instead of waiting for the permit to be issued, they just ship the coal under the name of another shipper that already has the permit," the source said.
But traders could not give details how many vessels are still being held up in ports around Indonesia, the world's top thermal coal exporter that is expected to produce 340 million tonnes of coal this year.
Previously, the Indonesian Coal Mining Association said around 60 to 70 vessels or 3.5 million tonnes of coal were backed up in Indonesian ports.
"There is a backlog and vessel waiting times are up to about 20 days, which is pretty high for Indonesia," a trade source in Singapore said.
"From what I hear, there are a couple of ways to get around it...you can just borrow a miner's license and pay him," the source said. (Additional reporting by Yayat Supriatna in JAKARTA, and Rebekah Kebede in PERTH; Editing by Neil Chatterjee, sourced:reuters)
Tags:Indonesia approves exports permits,coal traders,firms,backlog, coal shipment, ship coal,coal and mining laws,cargoes surveys, stem tax,energy ministry,Indonesian Coal Mining Association
* Govt approves export permits for another 29 firms
* Backlog on coal shipments remains
* Some traders borrowing permits to ship coal (Adds trader quotes, details)
By Fitri Wulandari
JAKARTA, Feb 18 (Reuters) - Indonesia has approved permits for 29 more firms to resume coal and metals exports, paving the way for traders and producers to begin clearing a backlog of shipments at the country's ports, a trade ministry official said on Friday.
Up to 3.5 million tonnes of coal shipments, destined to fuel power stations in China and India, have been delayed in recent weeks because of changes to coal and mining laws that required cargoes to undergo extra surveys in a bid to stem tax evasion.
With the latest set of approvals, a total of 81 firms are now allowed to resume exports, after 52 companies were given approval earlier this month, said Junaedi, head of the mining exports unit at the ministry.
Indonesia's trade ministry ordered surveyors in January to temporarily halt issuing surveyor reports to coal and mineral traders in the process of reapplying for trading permits under the new coal and mining law.
"The energy ministry notified us that they have issued trading permits for (an additional) 29 mining firms," said Junaedi, who like many Indonesians only has one name.
As part of obtaining export permits, Indonesia has required exports of mining products including coal and tin to be checked by surveyors, as the country seeks to keep illegal mining in check and boost revenue from the sector.
Surveyor reports, required for shipping coal and metals, show the origin of the cargoes and are used to calculate royalties.
Despite the 81 permits that have been issued, a backlog of cargoes still remains, with some shippers still waiting for export permits from the energy ministry, traders and shipping sources said.
Some desperate traders have also borrowed export permits from other shippers who have already obtained them.
"Some traders have submitted requests for the permit two months ago and they haven't got it," a port source said.
"So instead of waiting for the permit to be issued, they just ship the coal under the name of another shipper that already has the permit," the source said.
But traders could not give details how many vessels are still being held up in ports around Indonesia, the world's top thermal coal exporter that is expected to produce 340 million tonnes of coal this year.
Previously, the Indonesian Coal Mining Association said around 60 to 70 vessels or 3.5 million tonnes of coal were backed up in Indonesian ports.
"There is a backlog and vessel waiting times are up to about 20 days, which is pretty high for Indonesia," a trade source in Singapore said.
"From what I hear, there are a couple of ways to get around it...you can just borrow a miner's license and pay him," the source said. (Additional reporting by Yayat Supriatna in JAKARTA, and Rebekah Kebede in PERTH; Editing by Neil Chatterjee, sourced:reuters)
Tags:Indonesia approves exports permits,coal traders,firms,backlog, coal shipment, ship coal,coal and mining laws,cargoes surveys, stem tax,energy ministry,Indonesian Coal Mining Association
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