Page 8 - AsiaElec Week 42 2021

AsiaElec COAL AsiaElec

India to boost Russian coal

imports, Globaltrans could

INDIA IN order to boost supplies to its growing steel- transportation capacities is unlikely as Russian
making sector, India has signed an agreement companies are trying to get rid of coal exposure.
with Russia to increase imports of coking coal to “In case we are wrong and the project is suc-
40mn tonnes, 40 times above the current levels, cessful, this could bring our 12-mo target price
according to a report by the Vedomosti daily. to $10 (estimated total return +32%),” VTBC
VTB Capital estimated on October 18 that estimated, while maintaining a Hold rating on
as Russian total coking coal exports were 28mn Globaltrans shares with a 12-month target price
tonnes in 2020 (of which 1mn tonnes to India), of $8.5 (ETR +14%).
overall exports volumes might grow 2.5-fold. VTBC estimates that the stock trades at 4.5x
Such an increase could offer great support for 2022 forecasted Enterprise Value/EBITDA
Globaltrans transportation major, which “will with a 2022 forecasted dividend yield at 13%.
continue to face structural market oversupply As followed by bne IntelliNews, previously
once the current surge in demand for energy coal Globaltrans was one of the transportation names
is over,” VTBC suggests. expected to bounce back in 2021 by the analysts
However, at the moment the company can and saw improvements on the market in June
only increase exports by 5-10mn tonnes with and July 2021.™
currently available capacities, and increasing
South Korea under pressure

to phase out coal power

MONGOLIA SOUTH Korean civil society groups have called the country remains “a laggard relative to G20
on the government to accelerate the retirement countries.”
of existing coal plants and block the construction South Korea is the world’s fourth-largest
of new projects. buyer of thermal coal, importing 84mn tonnes
Climate Transparency, a global partner- in 2020.
ship of 16 think-tanks and non-governmental The calls come as an official committee advis-
organisations (NGOs), has called on the coun- ing the South Korean Government on achieving
try to promptly phase out coal power by 2030, carbon neutrality has proposed two possible sce-
halt construction of new coal plants, streamline narios, both of which assume coal generation has
operation approval for generators of renewables been phased out by 2050.
and improve grid access. The government’s preferred scenario is
The group comprises experts from the major- scheduled to be finalised on October 27 ahead
ity of G20 member nations with a mission of of the COP26 climate conference in Glasgow.
advocating for stronger climate action by the South Korea’s recent nationally determined
G20 countries. contribution under the terms of the Paris Agree-
Its Climate Transparency Report 2021 ment proposes only a 32% decline in coal gener-
showed South Korea lagged behind in decarbon- ation by 2030 from 2020.
isation efforts relative to its G20 peers. “Korea has failed to make meaningful
South Korea had, the report showed, among improvements in climate action, despite its pur-
the highest recovery spending relative to gross suit of carbon neutrality since last year’s study,”
domestic product (GDP) since the beginning said Han Ga-hee, a researcher at Seoul-based
of the coronavirus (COVID-19) pandemic, but climate advocacy Solutions for Our Climate,
less than 30% of it was for green recovery. A con- a partner of the Climate Transparency net-
siderable amount of spending supported fossil work, and one of the lead authors of the report.
fuels, such as Doosan Heavy, the country’s flag- “The country remains a laggard relative to G20
ship coal plant manufacturer. countries.”™
Meanwhile, Solutions for Our Climate said

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