Banpu?s 2007 coal sales target remains flat

Thai-based coal producer Banpu PCL said on Friday it had cut its 2007 coal production target to 20 million tons from 21 million tons after heavy rainfall in Kalimantan slashed its coal output.

 

That meant no growth in revenue this year, but the company expected a 10 percent rise in 2008 revenue despite stable coal sales of 20 million tons as coal prices should stay high, company chief executive Chanin Vongkusolkit was quoted by agencies as saying.

 

“New year sales and production should be equal to this year, but revenue should rise to reflect rising coal prices,” he said

 

Banpu has five coal mines in Indonesia, all mines in Kalimantan, two in China and two in Thailand. But the Thai mines are likely to be exhausted in the next few years, forcing the company to invest more in Indonesia and China to boost coal reserves.  

 

Banpu's coal sales in the first semester of this year from its Indonesian mines reached 8.59 million tons. In 2006, the company  sold a total of 19.27 million tons from its Indonesian mines. (*)