Failed motor stops Banpu coal shipments
A failed winch-brake motor at its main port facility on the Indonesian portion of Borneo has led Thai coal producer Banpu to declare force majeure - unforeseeable circumstances preventing it from fulfilling contracts.
The breakdown has stopped deliveries through the Bontang coal terminal, which has a capacity of 12.5 million tonnes a year. Initial investigations indicate damage to the terminal's loading boom on Sunday was caused by the malfunction of a winch-brake motor, leading to the temporary suspension of loading at the port, Banpu said in a statement to the Stock Exchange of Thailand. "It is currently anticipated that the problem may take a number of weeks to resolve. The extent of insurance coverage and potential impact on first-quarter earnings is being assessed," the company said. While the company is fixing the problem at the terminal, barges and floating cranes will be used to load vessels where possible, while other ships will be diverted to other ports in Indonesia. Banpu's board recently approved investment of about US$60 million (Bt2.15 billion) to upgrade the Bontang coal terminal and expand its capacity to 18.5 million tonnes annually by next year.
|
