Banpu to ramp up Indonesian coal production

Thai energy conglomerate plans to increase Indonesian unit coal production from about 10-11 million tons this year to 14 million tons per annum in the next three years with the commencement new coal mine in 2005.

?We plan to start production from Trubaindo Coal Mining in 2005 with initial production of 3 million tons per annum,? Banpu?s CEO Chanin Vongkusolkit told Petromindo.Com on a sideline of a book launching in Jakarta recently.

Banpu controls three coal mining firms already in production; PT Jorong Barutama Greston in South Kalimantan, PT. Indominco Mandiri and PT. Kitadin in East Kalimantan and three coal mining at exploration stage; Trubaindo Coal Mining in East Kalimantan, PT Bara Sentosa Lestari and PT. Nusantara Thai Coal in the southern part of Sumatra.

Last year Banpu acquired Indominco, Kitadin, Trubaindo and Bara Sentosa Lestari from Indonesian Banking Restructure Agency (IBRA). The four coal minings, which are often referred to as IndoCoal was previously controlled by Indonesia?s former largest conglomerate Salim Group.

Chanin said Banpu is currently concentrating to develop the mines under its control and said has no immediate plan to acquire another coal mining.

?It?s been a year since we took over IndoCoal and we still have a lot of work to do to develop the mines into good ones,? said Chanin.

?But from time to time, we will look at investment opportunities that can be synergized with our existing operations.?

Chanin said Banpu is in negotiation to acquire the 35 percent stake cement maker Indocement Tunggal Prakarsa has in PT. Indominco Mandiri. (alex)