Reuters reported that Thailand top coal miner, Banpu Pcl aimed to invest USD 600 million in 2012 mostly to develop coal mines in Indonesia and Australia and it expected higher operating profit this year.

Ms Somruedee Chaimongkol Chief Financial Officer said Banpu Southeast Asia fourth biggest coal miner expected 2012 revenue to rise about 15% to 20% due to rising coal sales volume and higher prices.

She said "We already made forward contracts to sell coal about 40% of expected sales this year with an average price higher than USD 100 a tonne which is higher than average prices last year, adding the budget figure excluded funds for any acquisitions it might make.”

According to Thomson Reuters I/B/E/S her revenue forecast was better than market expectations. The company is expected to post revenue of THB 115.8 billion for 2012 up 10% on the year.

Ms Somruedee said the company expected coal sales of 27 million tonnes in Indonesia this year up from 25 million last year, and aimed for 16 million tonnes from Australia up from 15 million in 2011.

She said major customers for its Australian coal are power plants in Japan and China where demand remained strong. She added that Banpu is due to repay about THB 4 billion to THB 5 billion in debt this year and the company was considering the possibility of issuing bonds to refinance the debt.

She added that "We haven't decided whether we will issue bonds. It depends on market conditions, adding that if Banpu went ahead, the issue amount would be around THB 7 billion to THB 10 billion.

Ms Somruedee said Banpu also planned to invest in Mongolia-focused Australian coal explorer Hunnu Coal Ltd as it aimed to produce and sell coal in the next two to three years.

She said Hunnu has not yet started a commercial run and Banpu expected it to produce at around 5 million tonnes per year.

(Sourced from Reuters)