Banpu looks to expand business: Report
Monday, September 18 2006 - 10:05 PM WIB
Banpu, the seventh largest coal exporter in the world with reserves of nearly 260 million tonnes, said a possible merger, acquisition or listing on the Jakarta Stock Exchange were possible in the near future.
''We have not made any final decision on which way we want to go but all these steps have their pros and cons,'' said chief operating officer Ravi Korsiri.
If the company decided to list in Indonesia, he said, Banpu could become a holding company with assets ranging from coal mining to electricity generation, while a company such as Banpu Indonesia, could be the coal-mining operator.
''It's not the funding issue that is attracting us to list in Indonesia but rather the incentives granted to listed companies. Listing would also mean the company is more recognised as a local firm,'' he added.
He declined to give further details of the plans and stressed that they were still in the initial phase and the company had not hired a financial adviser for the project yet.
Banpu is currently the fourth largest coal exporter out of Indonesia, with total production estimated at 17.9 million tonnes this year.
The company plans to start operating a new coal mine, Bharinto Ekatama, by 2008. Bharinto has reported reserves of 28.50 million tonnes, compared with 64.3 million at the company's Trubaindo mine.
Banpu, which acquired the Bharinto coal concession in 2004, also said it continued to look for new mining projects in Indonesia and other parts of the world.
The company is looking to invest $20 million to develop the Bharinto mine, another $28 million to increase the capacity of its port at Bontang, from the current 11 million tonnes to 15 million, to accommodate production from Bharinto. All expansion projects are part of the $611 million budgeted for capital expenditure from 2005 to 2008.
Banpu derives nearly 80% of its revenue from Indonesia.(*)