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MINING
NAREERAT WIRIYAPONG
Banpu Plc, Thailand's largest coal producer, expects strong demand from coal-importing countries to lift its 2008 revenue 50% over last year's figure to 50 billion baht and is planning to expand production. This year, the SET-listed company expects to produce 20 million tonnes of coal, but chief executive Chanin Vongkusolkit said next year's production would be at least 22.8 million tonnes, reflecting output from Chinese mines.
He also forecast coal prices around $100 per tonne _ above this year's average of $70 _ and continuing strong global demand through 2008 and 2009, with weather conditions having disrupted global supplies and Vietnam and China having cut exports.
''Continuously rising coal prices in the regional market since early this year have pushed up our average selling price during this period,'' he said yesterday.
In the first half of 2008, Banpu produced 8.8 million tonnes of coal _ a figure slightly below its target _ following rains that affected three mines in Indonesia, where Banpu expects to produce 19.5 million tonnes of its 20-million-tonne objective for 2008.
Banpu's second-half output is now likely to be ramped up to 11.2 million tonnes to hit its target for the year.
In Indonesia a new mine coming onstream in late 2009 is expected to produce two million tonnes in its first year and to hit maximum capacity of four million tonnes the following year. Chinese coal operations are also due to add 2.8 million tonnes to Banpu's volume in 2009.
In Thailand, Banpu is to shut two coal mines by the end of this year as it shifts its focus to power generation. It currently holds a 50% share in the coal-fired power producer BLCP and a 15% share in Ratchaburi Electricity Generating Holding Plc, the country's biggest private power producer.
Regionally, the company's strategy includes seeking investment for new coal mines and coal-fired power plants in Indonesia while it expands production at three existing power plants and seeks to develop new plants in China.
From 2009 to 2013, the five-year investment plan will maintain a focus on coal and power businesses _ at a 70:30 ratio _ with a target of expanding existing assets by 15% a year over the period.
Banpu posted a net profit of 2.29 billion baht in the second quarter of this year, compared to 1.75 billion in the same period last year. Sales revenue was 11 billion baht, an increase of 40% year-on-year, of which 10 billion came from coal sales.
Banpu shares closed yesterday on the Stock Exchange of Thailand at 386 baht, up 12 baht, in trade worth 1.14 billion baht.
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