SET-listed energy conglomerate Bangchak Corporation has diversified into mining by investing in Thai Kali Co, the operator of a potash mine in the northeastern province of Nakhon Ratchasima.
Executive vice-president Wannasiri Trongtrakulwong said the investment is part of the company's business diversification plan focusing on upstream businesses.
However, she did not elaborate on the business's direction after Bangchak acquired a 65% share of Thai Kali.
The acquisition was made through Bangchak's wholly-owned subsidiary BCV Energy.
Thai Kali was granted a concession to mine an area covering 9,005 rai of land in the tambon Nong Sai in Dan Khun Thot district.
Potash, a common term used for nutrient forms of the element potassium, is an important nutrient for growing plants. It is a key component of fertilisers.
Bangchak is also interested in the upstream petroleum business.
The company's upstream petroleum business is currently operated by subsidiary BCPR, which has already invested in Okea ASA, a Norway-based oil and gas drilling company.
BCPR plans to acquire new oil and gas assets, especially in the Asia-Pacific region, to earn more revenue, Chaiwat Kovavisarach, group chief executive and president of Bangchak Corporation, said earlier.
Bangchak aims to be a key player in this sector, he said.
The company acquired a 45.7% share in Okea, which is listed on the Oslo Stock Exchange, in 2018.
Okea took over the Draugen oil field from Shell in 2018 and is continually developing new fields.
In 2017, Bangchak acquired a 15.8% stake in Lithium Americas Corp, an operator of a lithium mine in Argentina and the US, but later decided to sell most of its shares, resulting in its shareholding decreasing to 0.5%.
Lithium is used to make batteries for electric cars and energy storage.
In another development, Bangchak has obtained a 6.5-bilion-baht loan from UOB Thailand to finance the construction of a sustainable aviation fuel (SAF) factory. Part of the money will be used as working capital for the SAF business.
Panitsanee Tansavatdi, UOB Thailand's head of corporate banking, said her bank wants to support green projects, including low-carbon fuel development, carbon capture and storage, as well as carbon credit trade.