Thai Banpu to sell S. Sumatra coal mine

Thailand's largest coal miner Banpu PCL said on Thursday it expected to sell its Barasentosa coal mine in South Sumatra this year due to rising costs and a low investment return, Reuters reported.

?We are in talks with two or three interested buyers. The negotiations should be concluded within this year,? chief executive Chanin Vongkusolkit told reporters in Bangkok. He did not name the potential buyers.

Barasentosa mine is certified to contain around 32.8 million tons of coal reserves. Earlier, Banpu is mulling to utilize this mine?s coal deposit by developing minemouth power plant.

Banpu has previously sold its Mampun Pandan coal mine in Jambi province for US$1.3 million

Banpu, the world's seventh-largest coal exporter with reserves of 364 million tons, has six mines in Indonesia, two in China and two in Thailand.

The company has said it plans to invest $484 million over the next three years, US$236 million of it to be spent this year on coal mines and power plants. Last month, Banpu agreed to buy four power plants in China for about $84 million. (*)