Energy company Banpu Plc is studying a plan to take over or enter into a joint venture with other coal-mine companies in Indonesia in order to expand its business in that country.

Rawi Corsiri, chief operating officer, told a press conference in Jakarta last week that the company was negotiating with several coal-mining firms, considering those with standard-size concession and coal reserves of over a few million tonnes.

Negotiations will depend on each company's financial condition, he said.

He added that Banpu had not decided whether it would take over or enter into joint venture with targeted companies.

Since Banpu had entered the coal-mine business in Indonesia, it has taken over four open-pit coal mines: Jorong, Kitadin-Embalut, Indominco and Trubaindo.

After its Trubaindo mine started operating this year Banpu's mines in Indonesia

have a total production capacity of 18 million tonnes per year, an increase of 4 million tonnes from last year.

The company has budgeted of US$51 million (Bt1.9 billion) for investments in Indonesia, of which $28 million will be used to expand its port to handle 11 million tonnes of coal a year, up from 8 million tonnes today.

The remaing $23 million will be invested for a pre-feasibility project in Bharinto - Banpu's fifth coal mine in Indonesia, which is expected to come on line in 2008.

Rawi said 80 per cent of its Indonesian production was exported to Japan, Taiwan,

Hong Kong, Korea, Malaysia and some European countries, and the remaining 20 per cent to Thailand.

Although Banpu plans to develop its business in Indonesia and China before investing in other countries, India and Vietnam are Banpu's next destinations.

These two countries have high potential for energy investment due to huge energy consumption in both countries and plentiful coal resources in Vietnam.

Rawi said there was a possibility for Banpu to become a holding company and list on Indonesia's stock exchange.

"We are studying and considering the good and bad points for being a holding company and listed in Indonesia. It is a long-term plan," said Rawi.

Concerning the ruckus over its Trubaindo mine discharging wastewater last week, Banpu is waiting for the results of a government report, which will be released this week.

Chalida Ekvitthayavechnukul

The Nation

Jakarta