Banpu rules out new investment in Indonesia: Report

Thailand?s biggest coal miner Banpu Plc has no plan to invest in a power plant in Indonesia, but will focus on its main coal business and domestic power plants, Reuters quoted a company executives late on Friday.

Their comments came in the wake of a statement last week by Indonesia?s South Kalimantan provincial governor who said the province was seeking cooperation with Banpu to build a 130-MegaWatt coal-fired power generator.

?We have no plan to invest (in power business) in foreign countries. We want to focus in Thailand, where we have experience,? chief financial officer Somruedee Chaimongkol told reporter.

Banpu chief operating officer Rawi Corsiri said Banpu, which has a majority stake in six coal mines Sumatra and Kalimantan, Indonesia, is a major coal supplier of Kalimantan?s existing power plant.

?In the short term, chance are slim because we think electricity demand in Kalimantan is quite low. But for the long term, we have to study more, ? Rawi said.

Banpu has three mines in the north of Thailand. Including coal mines in Indonesia and total production capacity of 13.4 million tons this year.

Revenues from coal account for 90 percent of total, and the rest from power business.

Last month, Banpu said it expected revenues to grow to 13-14 billion baht (US$300 -$323 million) this year from 5.2 billion baht in 2001, mainly due to increase in sales in its investment in Indonesia?s Indocoal, in which Banpu has a 95 percent stake.

On Friday, Banpu shares closed down 0.56 percent at 44.00 baht, while the overall Thai stock arket was down 1.25 percent.

Banpu, which recently diversified itself into power business, said it was also studying the possibility of refinancing its debts to reduce costs and boost efficiency.

Banpu has stakes in various power plants in Thailand and neighboring countries with combined capacity of 1,473 megawatts.

These include a 37.50 percent stake in Tri Energy, 50 percent stake in BLCP Co, 14.6 percent stake in Ratchaburi Electricity Generating Plc and a power plant in Vietnam.

Rawi said Banpu may dilute its stake in the 1,400 megawatt BLCP to 30 percent from 50 percent, but gave no further details.

He said Banpu plans to invest $50 million to expand coal mine and power businesses this year, and it was considering buying domestic coal-fired power producers.

Banpu is in the process of buying a 143-megawatt power plant belonging to Thai Petrochemical Industry, estimated to be worth $100 million.

In a bid to reduce its costs, Somruedee said Banpu was considering possibility to issue bonds and seek domestic loans to refinance its 1.0 billion bath debt and a $250 million debt of its unit Tri Energy, which operates a 700-megawatt gas turbine power plant.

Somruedee said Banpu would make a final decision whether it would go ahead with the refinancing plan by the middle of 2002. (*)