Banpu?s Indo Tambang to increase 2008 coal production, eyeing acquisition

IDX-listed coal mining group PT.Indo Tambangraya Megah expects to increase coal production by 7 percent this year to 19.5 million tonnes from 18.1 MT last year, the company official said.

CEO Somyot Ruchirawat told reporters on Monday that this year?s first quarter production reached 4.3 MT, higher than last year?s same quarter production of 4.1 MT.

Somyot also expected average selling price to swell to US$60 per tonne this year from $42 per tonne last year, with expected revenue of $1.2 billion.

He added that the company also targeted to increase net profit to above 7 percent revenue this year from only 7 percent last year on increased efficiency, including substituting fuel to coal for the company?s power generation.

Indo Tambangraya, which is a subsidiary of Thai energy conglomerate Banpu plc, operates several coal mines in Kalimantan including PT Trubaindo Coal Mining, PT Indominco Mandiri, PT Kitadin, PT Jorong Barutama Greston, and PT Bharinto Ekatama.

Somyot said that Indo Tambangraya has appropriate US$50 million for acquisition of coal mines to further increase production capacity. He did not give detail.

The company, which had raised $370 million from IPO late last year will spend $145 million to increase throughput capacity of its Bontang coal terminal to 18.5 MTPA from 12.5 MTPA ($88 million), to build Bontang Power plant ($22 million), to expand Bharinto mine ($45 million) and Indominco East Block ($20 million.) (godang)