Lanna?s coal business net profit down 40.84%

Despite a 44.66 percent increase in sales volume, Thailand?s second largest coal miner Lanna Resources PLC reported its net profit declined by 40.84 percent to 44.51 million baht (US$1.17 million) in the first quarter of 2006, compared to the same period of last year.

?This was due to the fact the costs of coal sales per ton have increased corresponding with rising oil prices and the coal production costs have also increased, as well as the average coal prices have decreased by about 3.70 percent as compared with the same period last year,? Lanna said in its quarterly report released Monday.

Lanna, however, did not disclose the figures of its coal production and sales in the report.

Lanna holds a 55 percent stake each in three East Kalimantan-based coal miners, which are PT Lanna Harita Indonesia (LHI), PT Citra Harita Mineral (CHM) and PT Singlurus Pratama (SGP).

The company used to have mining operations in Thailand but it ended the operations in 2005.

According to Lanna?s 2005 annual report, LHI and CHM produced 1.89 million tons and 0.33 million tons of coal, respectively, last year. Meanwhile, coal production from SGP is scheduled to start in 2007. (Robert)