SET-listed and mostly state-owned Bangchak Petroleum Plc (BCP) plans to triple its stake in a Canadian lithium miner, Lithium Americas Corporation (LAC), to 20% by early next year, up from 7%.
Chaiwat Kovavisarach, Bangchak president and chief executive, said the company is considering injecting more capital into LAC, which is set to expand mining operations to Argentina by next March.
The company is expected to produce 2,500 tonnes of lithium in the first year and reach full capacity of 50,000 tonnes in 2018, Mr Chaiwat said.
Bangchak paid US$5 million to buy the 7% stake of LAC in May last year.
LAC runs lithium mines in the Las Vegas area of the US with total ore reserves of 2 million tonnes, which can serve industry production for 20-30 years.
Bangchak, an oil refiner and retailer, has diversified its business into lithium because it also focuses on renewable power and lithium is used in batteries. It started operation of a solar farm in Thailand in 2010 with a total capacity of 118 megawatts.
Bangchak plans to develop power storage technology for its renewable energy business. It set up wholly-owned BCPG to handle renewable power business and plans to list it on the SET.
Yesterday BCPG announced the initial public offering price of shares would be in a range of 9.80-10 baht. The exact IPO price is scheduled to be announced next Monday. The company plans to float 590 million units or 29.6% of total equity.
BCPG expects to gain some 6 billion baht from the IPO, and it has the financial capability to acquire a loan or issue debentures worth 10 billion baht for expansion.
BCPG chief executive Bundit Sapianchai said the subsidiary operates renewable energy projects throughout East Asia, mainly in South Korea, Japan, China, Taiwan and the Philippines. Its renewable energy plan includes geothermal, wind and solar farms.
The company has total power-generating capacity of 138MW, of which 118MW is from Thailand and 20MW from Japan. It aims to raise capacity to 324 MW this year.
Mr Bundit said additional capacity will come from its solar farms in Ayutthaya and Ang Thong comprising 12MW. The other 174MW will come from solar farms in Japan such as Fukushima, Shiba and Oita, with operations slated to start next year.
"BCPG plans to expand capacity to 1,000MW by 2020, which will require further capital," he said.
BCP shares closed yesterday on the SET at 32 baht, down 75 satang, in trade worth 113 million.