Energy Earth speeds up coal resource quest in RI

By Audy Zandri

Thai based Energy Earth Plc, a coal miner listed on the Market for Alternative Investment (MAI) Thailand, has stated to speed up its search for new coal resources in Indonesia to cope with rising demand, planning to ramp up its coal reserves by 114 percent to 15.9 million tons next year.

It currently owns coal reserves in two mines in Indonesia's Kalimantan totalling 7.4 million tons and has secured sales orders from coal users of 8 million tons, to be delivered from 2012 to 2015.

In October 2011, Energy Earth signed a purchase order from an Indian private power producer, Chettinad Power Corporation, to deliver coal in the amount of 8.5 million tons from 2013 to 2017.

"We are conducting physical due diligence in many areas of Indonesia's Kalimantan and expected to finalise as soon as possible" managing director Khajohnpong Khamdee said as quoted by Bangkok Post, adding that the company had signed a 3.08-billion-baht loan from Krung Thai Bank in March to receive a capital boost.

Energy Earth expects sales this year to rise to 3.2 million tons, up 68% from 1.9 million tons in 2011 and up 400% from 800,000 tons in 2010.

The company sold 80 percent of its total coal output to overseas markets, particularly China and India, with the remaining 20 percent supplying the domestic market. "We plan to sell coal to clients in other countries such as Korea, Taiwan and Singapore to diversify risk," he said.

Energy Earth plans to expand with a coal processing plant and depot in Indonesia worth more than 10 million baht to add to existing ones in Sri Racha and Ayutthaya.

The company entered the coal-trading business in 1984, listed on the MAI in 2011, and now considering a move to the Stock Exchange of Thailand.

"We have to wait until the end of this year to show our financial performance," Khajohnpong said.

Editing by David Mustakim