Banpu sells Mampun Pandan coal mine for $1.3 million

Thai energy giant Banpu Plc announced Friday it had sold its entire shares in PT Nusantara Thai Coal (NTC), which owns the Mampun Pandan coal mine in Jambi, to PT Bungo Raya Nusantara and PT Bara Adhipratama for US$1.3 million.

Banpu said it was too costly to develop the Mampun Pandan mine given the fact it was located over 300 kilometers away from the closest port. ?The company, therefore, considered it appropriate to sell shares in PT Nusantara Thai Coal and focus on investing and developing other coal mines.?

Banpu controls NTC through its wholly-owned subsidiaries, Banpu Minerals Singapore Pte., Ltd. (BMS) and PT. Nusantara Thai Mining Services (NTMS), which holds 95 percent and 5 percent of the paid-up capital in NTC, respectively.

Banpu added that BMS and NTMS have made an aggregate gain from the divestment of NTC of approximately 47 million baht or about US$1.14 million.

Mampun Pandan mine is now on the feasibility study stage. The coal mine is estimated to contain around 14.1 million tons of coal resources, according to Banpu. (Robert)