Release: Banpu: Impact of the incident at Bontang Coal Terminal

(26 February, 2007) - Banpu Public Company Limited would like to update the Stock Exchange of Thailand about the damage assessment following the coal loading boom failure at Bontang Coal Terminal (according to the letter BP 50214/071 dated 13th February 2007) and provide some comment on the commercial impact of the incident.

Last week, structural engineering experts from Australia and representatives from the original ship loader designer were invited to inspect the structural damage of the boom. These experts have concluded that the incident caused minor bending to the boom and loading conveyor, while the overall structural integrity of the shiploader remains intact.

The bent segments had been temporarily strengthened and the experts afterwards confirmed that the conveyor can now be operated safely at a reduced rate until final repairs are completed. Some parts will need to be replaced according to the long-term plan of Bontang Coal Terminal separately scheduled for early Q2 2007.

The company has started loading ships again at a reduced capacity and under close supervision of engineers since 21st February.

The company estimates that about 400,000 tonnes of coal shipments have been impacted from the port shutdown period. Incremental expenses related to utilization of extra barges, floating cranes, and other charges for year 2007 are relatively minor. The extent of insurance reimbursement is still being clarified. (end of release)