AGE earmarks Bt2.3 bn for coal mine purchase
Play
Asia Green Energy (AGE) has budgeted Bt2.3 billion to invest in coal mining in Indonesia.
AGE managing director Panom Kuansataporn said the company’s board had passed a resolution to set up a wholly owned subsidiary in Indonesia, which will capitalise US$1 million (about Bt30.8 million). The subsidiary will be a vehicle to buy a bituminous-coal-mine business in Kalimantan.
He said talks on the share purchase were nearly done and the acquisition was expected to be complete in June.
He added that as part of the company’s acquisition policy, it required at least 60 per cent shareholding in the target coal mine, which must have at least 10 million tonnes of coal reserves to enable it to make revenue immediately after its investment.
The company set aside its own cash of Bt800 million for the share purchase, while a local financial institution approved a loan of Bt1.5 billion for the transaction. The combined amount is enough to buy one coal mine.
AGE has set a revenue target of Bt7 billion this year, a jump of 40 per cent from last year. Last year it made net profit of Bt260 million.
It aims to sell 3 million tonnes of coal this year, up from 1.9 million tonnes last year. Of the total, 2 million tonnes is expected to be sold in the local market and the rest in China and India.
AGE also plans to acquire a power plant in the third quarter but Panom declined to elaborate on this. The move is part of its plan to continue to grow in the energy arena without relying too heavily on the coal business.
