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Wednesday, 18 November 09
THAI PTT PLANS COAL MINE INVESTMENT IN INDONESIA


* To conclude Indonesian coal mine buy in 6 months
* Sees coal output jumping to 20 mln tonnes in five years

Reuters reported that,  PTT , Thailand's biggest energy firm, said on Wednesday it would conclude a plan to invest in coal mines in Indonesia over the next six months.

"We are in talks on the coal mine investment. It will be a joint investment to help our expansion," Chitrapongse Kwangsukstith, chairman of PTT International, told reporters.

PTT International, PTT's wholly owned overseas investment arm, would invest with partners in a mine in Kalimantan, he said.

PTT has said it was looking to buy more coal assets in Indonesia and Australia.

The latest deal was in April when PTT spent $335 million to buy part of Australian miner Straits Resources'  coal and salt assets. The deal marked PTT group's first foray into the coal business and its second investment in Australia.

Chitrapongse said he expected PTT to raise its coal output to 9 million tonnes this year from 7-8 million tonnes last year, then to 11-12 million tonnes in 2010 and at least 20 million tonnes in five years.

Under a five-year plan, PTT wanted to increase overseas revenue to 20 percent of group revenue from around 10 percent now, PTT finance executive Tevin Vongvanick said.

PTT, Thailand's biggest listed company with a market value of $20 billion, runs Thailand's gas pipeline monopoly and controls more than 30 petroleum, gas exploration, petrochemical and refinery businesses.

At the midday break, PTT shares were up 0.4 percent at 240 baht while the main Thai stock index was down 0.4 percent.

Source: Reuters



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