Banpu slashes investment on falling coal prices
Banpu Plc has revised downward its four-year investment plan (2012-2015) by US$600 million, in line with the decline in selling coal prices.
Chanin Vongkusolkit, CEO of Thailand’s largest coal miner, said that the investment sum will be cut from US$1.75 billion to $1.15 billion.
He said that the coal prices should stay at this current level until late this year or early next year.
The decline will also pressure the company’s sale revenue. The revenue is expected to grow by only 3 per cent this year, from earlier target of 15 per cent.
According to coalspot.com, sub-bituminum free-on-board (FOB) price of Indonesia coal contracts for September 2012 delivery closed at US$ 61.38 on July 20 compared to US$62.12 on July 16 and lost US$0.74 per million tonne.