Regional Coal: Banpu in China coal mining venture

Thai energy conglomerate reported on Mionday that it had entered into a joint venture agreement with China's Hebi Coal and Electricity Co., Ltd. to set up a company named Hebi Zhong Tai Mining Co., Ltd.

Banpu will have 40 percent shares in the company with Hebi Coal owning the remaining 60 percent.

Banpu will invest in cash amounting to RMB 313,330,000 while HCEC will invest by injecting assets which consist of buildings, machinery, equipment and mining license to operate a coal mine, the appraisal value of all of which equals RMB 470,000,000.

Banpu said that the mine's current production capacity is 0.9 million tonnes per annum. The current mining area has the coal reserves of 35 million tones, which can be classified as Semi Anthracite.

The JV Company will also expand its production capacity of another 600,000 tonnes; total production after expansion will be 1.5 million tonnes er annum in the year 2008 of which expansion area will have additional reserve of 50 million tonnes.(alex)