Banpu seeks to expand Indonesian portfolio

PT.Indo Tambangraya Megah (ITM), a unit of Thai energy conglomerate Banpu PCL, is eyeing acquisition of new mines to expand its Indonesian portfolio.

CEO Somyot Ruchirawat said on Tuesday the company is in talks to acquire new mines. ?We?re looking for green fields, brown fields and producing fields to add into our portfolio,? he said, adding that the company is scouting for mines near its existing mining projects.

ITM currently controls several mines in South and East Kalimantan, namely: PT.Jorong Barutama Greston, PT.Indominco Mandiri, PT.Kitadin, PT.Trubaindo and PT.Bharinto Ekatama, with planned combined output of 20.5 million tonnes this year.

ITM sold 4.1 million tonnes of coal in the January to March period this year, down from 4.4 million tonnes in the same period in 2008.

Despite lower sales volume, the coal price the company achieved rose 70 percent to an average of $85 a tonne in the January-March period, up from $50 a tonne in the same period of 2008.

Sales revenue was $347 million in the first quarter of 2009, up 59 percent from $219 million in the same period last year.

ITM has forecast revenue would climb to between US$1.33-$1.54 billion this year, compared with $1.32 billion in 2008, on higher production.(denny)