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Thursday, 06 January 11
BANPU EXPECTS ROSY 2011 AS COAL PRICES SKYROCKET - BANGKOK POST


Bangkok Post reported that, Banpu Plc, Asean's largest coal miner, expects minimal impact from the production stoppage at its Daning mine in China as the sharp rise in coal prices and strong demand will benefit the company's financial results this year.

Chief financial officer Somrudee Chaimongkol said Banpu's average selling price for coal was projected to top US$80 per tonne in 2011 compared to $73 last year.

Coal at Australia's Newcastle port, an Asian benchmark, surged to a two-year high of $126.10 at the end of 2010 after rains and severe floods disrupted supplies in the country, which is the world's largest exporter of the fuel.

"The price of coal to be shipped in the first quarter was already fixed last year. The market's higher coal prices, however, will help increase Banpu's average selling price to more than $80 per tonne in 2011," she said.

Banpu on Tuesday informed the Stock Exchange of Thailand that its coal mine in Daning had suspended operations since Dec 31 pending a licence renewal.

The mine, operated by Shanxi Asian-American Daning Energy (SAADEC), is Banpu's largest mine in China with planned production of 4 million tonnes this year. Its Chinese wholly owned subsidiary Asian-American Coal (AACI) owns a 56% stake of SAADEC, contributing equity income of 2.16 billion baht to Banpu in the first nine months of 2010.

Ms Somrudee said the company was reviewing the Daning stoppage, but output from the mine was small compared to total figures.

The miner projects to almost double its coal output to 43 million tonnes this year from 22.5 million tonnes in 2010. Sydney-based Centennial Coal, which Banpu acquired last year, will contribute 14.5 million tonnes while Indonesian coal mines produce 26 million tonnes. To read more Bangkok Post



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