Banpu plans to spend US$208 mln on coal mines in Indonesia and China
Banpu Plc, Thailand’s leading coal mining operator, plans to invest US$208 million in improving its coal mines in Indonesia and China this year.
Chanin Vongkusolkit, chief executive officer of Banpu, yesterday told the press that the company has planned to spend about US$208 million on the improvement of existing coal mine businesses in Indonesia and China.
About US$126 million, Chanin said, will be used for Bontang port expansion, infrastructure development at Bharinto Mine, mining equipment procurement at Indominco East Block, the final phase construction of Bontang coal-fired power plant and improvement works for Indominco underground operation and electrification, installation of Trubaindo mobile crusher and wash plant and Tandung Mayang fleet expansion.
Meanwhile, he said, the US$82 million will be used for the construction of Gaohe Mine in Shanxi Province of China.
“Due to the global economic turmoil, we are now reviewing our five year strategic plan as well as our long-term capital expenditure (CAPEX) which needs some time for adjustment, based on the day-to-day economic circumstance. Our strategy at the moment is to emphasize on our existing assets and this year’s capital expenditure will therefore be mainly for our organic assets especially on coal business,” said Chanin.
He also added that one of the company’s measures to cope with this economic downturn is to maintain its cash flow in a high level and mitigate any financial risks that may occur.
Therefore, he said, Banpu plans to sell around 6 -7 billion baht of bonds in the domestic market in the second quarter of this year to minimize financial risks and the fund received from the bond issuance will be used for refinancing the company’s existing debt.
As of 31 December 2008, Banpu’s total assets stood at 89.36 billion baht while total liability was at 43.83 million baht.
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