APMC unfazed by Bangchak

APMC unfazed by Bangchak

Asean Potash Mining Co (APMC) is ramping up plans for mine operations in the northeastern province of Chaiyaphum.

It expects to produce 300,000 tonnes of potassium fertiliser in 2018 regardless of any change in shareholders if Bangchak Petroleum Plc sells its stake.

Bangchak president Chaiwat Kovavisarach said his company was still discussing a plan to quit APMC.

Mining is not a sector his company is keen on, he said.

"We're still in talks about selling our APMC shares, as we consider them to be a very small portion and mining is a field in which we don't have much expertise," Mr Chaiwat said, referring to the company's 11.32% stake in APMC.

However, APMC board director Gen Mongkol Jivasantikarn said his company remained confident about pressing on regardless of any change in shareholders.

"It's not a problem if Bangchak quits since we expect another company to replace it, as the portion owned by Bangchak is quite small," he said.

Bangchak's shares are worth only about 100 million baht, Gen Mongkol added.

After facing opposition from villagers and non-governmental organisations for more than 20 years, APMC was finally granted a mining concession last month.

It expects to start investing in and building the mining facilities immediately, with drilling to start in 2018.

APMC chief executive Samai Leesakul said his company was seeking financial advisers, mostly domestic financial institutes interested in joining the company's project.

However, he declined to give further details.

"We expect to use up to 45 billion baht of the investment budget for the whole project, which will be divided into three phases starting this year," Mr Samai said.

He said APMC expected to start producing 300,000 tonnes of fertiliser once the first phase was completed in 2018.

Production is expected to rise to 800,000 tonnes in 2019, reaching full capacity of 1 million tonnes in 2020.

Industry Minister Chakramon Phasukvanich said the Chaiyaphum mine was then expected to maintain full capacity for 25 years.

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