It is reported that Thai coal producer Banpu Plc expects strong demand from coal importing countries to lift its 2008 revenue 50% over last year's figure to THB 50 billion and is planning to expand production.

Mr Chanin Vongkusolkit CEO of Banpu said that in 2008, Banpu expects to produce 20 million tonnes of coal, but next year's production would be at least 22.8 million tonnes, reflecting output from Chinese mines.

He also forecast coal prices around USD 100 per tonne, above this year's average of USD 70, and continuing strong global demand through 2008 and 2009, with weather conditions having disrupted global supplies and Vietnam and China having cut exports. He said that ''Continuously rising coal prices in the regional market since early this year have pushed up our average selling price during this period.''

In the first half of 2008, Banpu produced 8.8 million tonnes of coal, a figure slightly below its target, following rains that affected 3 mines in Indonesia, where Banpu expects to produce 19.5 million tonnes of its 20 million tonne objective for 2008.

Banpu's second half output is now likely to be ramped up to 11.2 million tonnes to hit its target for the year.

In Indonesia a new mine coming onstream in late 2009 is expected to produce two million tonnes in its first year and to hit maximum capacity of four million tonnes the following year. Chinese coal operations are also due to add 2.8 million tonnes to Banpu's volume in 2009.

In Thailand, Banpu is to shut 2 coal mines by the end of this year as it shifts its focus to power generation. It currently holds a 50% share in the coal-fired power producer BLCP and a 15% share in Ratchaburi Electricity Generating Holding Plc, the country's biggest private power producer.