Banpu to expand Bontang coal terminal capacity

Thai energy conglomerate Banpu Plc will expand capacity of its Bontang Coal Terminal in East Kalimantan to enable the port to be berthed by cape size coal vessels and will dedicate the terminal as the company?s coal export center.

?Bontang terminal capacity will be expanded to be able to handle coal throughput of more than 10 million tons per annum and the terminal will also serve as blending center for Banpu?s Kalimantan mines,? said Banpu Indonesia business development director Phongsak Thongampai in an interview Wednesday.

Phongsak said that currently Bontang coal terminal has a 350,000 tons stockyard facilities, which include a Port facilities include a 2,000 ton per hour shiploader for Panamax size vessels.

Phongsak said the company is currently conducting feasibility study on the plan, but expected the plan could be realized within one or two years.

Bontang coal terminal is currently serving as loading port for Banpu?s Indominco Mandiri. The terminal currently could be berthed by handy size to panamax size vessels.

Phongsak said terminal expansion would enable customers from Japan to increase their purchase from Banpu, as Japan customers is known to prefer to employ cape size vessels or larger rather than panamax size.

Banpu currently produces around 11 million tons of coal per annum from its East Kalimantan mines; Indominco Mandiri and Kitadin, and from Jorong Barutama Greston mine in South Kalimantan. Banpu plans to increase coal output to 20 million tons per annum in 2006, after its new mine, Trubaindo, which located in East Kalimantan reaches peak production of 6 million tons per year.

?With diverse range of coal quality, sufficient production and large port capacity, Banpu will be in position to give more satisfaction to its customers and we will be in better position to expand our marketing base,? he said. (alex)