Banpu to expand coal mining operation despite market slump

Thailand-based coal miner Banpu Pcl will further expand the company?s mining operations in Indonesia and China despite the slump in the world?s coal markets, Investor Daily reported on Wednesday.

The company?s chief executive Chanin Vongkusolkit said that the company would continue to increase its investment in coal mining operations despite the slump in the world?s coal market.

The expansion is part of the company?s long-term strategy to take the advantage of the high coal demand in the future.

He said that Banpu would allocate about US$126 million to finance the expansion in Indonesia and another $82 million in China.

?Of the total investment which reaches about $208 million, about $126 million will be allocated for coal mining operations in Indonesia and the remainders will be allocated for coal mining operations in China,? he said

In Indonesia, the Thai company will carry out the expansion plan through its local subsidiary PT Indo Tambangraya Megah Tbk, which operates a number of coal mine concessions through subsidiaries such as PT Trubaindo Coal Mining, PT Indominco Mandiri, dan PT Jorong Barutama Greston.

The new investment funds will also be used to expand the Bontang port, and other infrastructure facilities for the company?s mining operations in East, Central and South Kalimantan.

Bampu is the fourth largest coal producer in Indonesia, after PT Bumi Resources Tbk, PT Adaro Energy Tbk, and PT Indika Energy Tbk. (*)