Banpu ups stakes in Australia, Indonesia
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Banpu, Thailand's largest coal miner in terms of market value, has budgeted US$600 million (Bt18.9 billion) for investment in Australian and Indonesian operations this year, while insisting that it has no plan to sell its stakes in Chinese mines, citing i
Chief financial officer Somrudee Chaimongkol said the $600-million budget would mainly come from its cash flow.
In response to rumours of a planned divestiture of its stakes in Chinese mines after the sale of its interest in the Daning mine in the northeastern province of Shanxi, Somrudee said Banpu had no such plan, as it needed to keep Chinese assets for adding value.
Gaohe mine in Shanxi province will start coal production this year and will be one of cash drivers for the company, apart from its power business in China.
Banpu will focus on developing existing mines in Indonesia and Australia to optimise their production capacity this year. The company’s business-development team is considering opportunities for mine acquisition.
Currently, the company has a team in Mongolia on expectation of starting production in the next two or three years. The Mongolian operation is expected to have annual production capacity of 3 million to 5 million tonnes.
Somrudee expects Banpu’s revenue to grow 15-20 per cent this year mainly on higher coal production and higher average selling prices. Last year, the company registered Bt100 billion in revenue.
The company forecasts its coal sales at 46 million tonnes this year. About 27 million tonnes of that will come from Indonesian mines, 16 million tonnes from Australian operations and the remaining 3 million tonnes from China.
Banpu has already sold about half of this year’s anticipated coal output under forward contracts, with prices averaging more than $100 a tonne. The company’s coal sales averaged about $97 a tonne in 2011.
Coal prices are expected to be on a positive trend on higher demand in China and Japan.
Somrudee said Banpu was studying the sale of Bt7 billion to Bt10 billion of bonds in Thailand or overseas this year. The proceeds would lessen its interest burden. The company has debts of about Bt4 billion to Bt5 billion set to fall due this year.
