Business Overview
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Banpu is a pioneering Asian energy company, operating business in coal, power generation, and integrated energy sectors. The Company has over 30 years of accumulated experience in the domestic and international coal industry. It operates coal and coal-related businesses – ranging from investment, exploration and development, to production of both thermal and coking coal. Our expertise lies in open-pit and underground coal mining operations. With an extensive expertise in the power businesses, the Company aims to establish sustainable power generation, including the development of Smart Energy Solution to enhance future energy security.   
 
At present, we have business bases in nine countries; Thailand, Indonesia, China, Australia, Lao PDR, Mongolia, Singapore, Japan and the United States of America.

Thailand & Laos

 

Although mining operations in Thailand are closed due to the depletion of coal reserves, Banpu has poured its expertise in coal exploration and production into business expansion and operations overseas. Being the pioneer of the private power plant development project in Thailand, and the first company to respond to Thailand’s power sector liberalization, Banpu has extensive experience developing successful power plant projects in the country. At present, the Company holds a 50% share in BLCP Power Limited, a 1,434MW coal-fired power plant in Map Ta Phut Industrial Estate, Rayong province.

The ‘Hongsa Power Plant’ project – a mine-mouth power plant in Hongsa District, Xayaburi Province in Lao PDR – is Banpu’s latest power plant development project in cooperation with Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) and Lao Holding State Enterprise (LHSE), a state-owned enterprise of Lao PDR. The ‘Hongsa Power Plant’ project is now under construction, with commercial operations scheduled to start in 2015. Upon completion, the project would benefit both Thailand and Lao PDR – particularly in terms of power stability.

In addition, according to its long-term corporate strategy, Banpu continues to study and explore new energy possibilities – especially bio-energy, wind power and solar energy.

Indonesia

 

Banpu entered Indonesia’s coal industry in1991 and, with its continuous growth, Indonesia has become one of Banpu’s significant production bases. Currently, PT. Indo Tambangraya Megah Tbk (ITM), Banpu’s subsidiary company listed on the Indonesia Stock Exchange, manages six coal mines in Kalimantan: Indominco, Jorong, Kitadin-Embalut, Kitadin-Tundung Mayang,Trubaindo, and Bharinto. These mines produce a range of bituminous and sub-bituminous thermal coals suitable for both export and domestic consumption, with a total annual production capacity of around 30 million tonnes and an annual port handling capacity of 21 million tonnes. (For more details, visit http://www.itmg.co.id)

China

 

Banpu expanded its coal business into China in 2003, with its subsidiary, Banpu Investment (China) Company Limited (BIC), managing all operations (For more details, visit http://www.banpu.com.cn). At present, the Company holds a 45% stake in Shanxi Gaohe Energy Company Ltd., which operates the Gaohe underground mine in Shanxi Province. The Gaohe mine started its commercial production in late 2012, and currently has an annual production of 6 million tonnes per annum from 2013 onwards. In addition, Banpu holds a 40% stake in Hebi Zhong Tai Mining Co., Ltd. (HZTM), which operates the Hebi mine in Henan Province with an annual production capacity of 1.4 million tonnes.

In 2006, Banpu expanded its investment into China’s power industry through BIC, which now operates and manages three Combined Heat and Power (CHP) plants in northern China: Luannan and Zhengding in Hebei Province, and Zouping in Shandong Province. The three plants have a total power capacity of 248 megawatts and a steam capacity of 808 tonnes per hour.
 

Australia

 

To enhance growth, corporate value, and geographical diversification, Banpu wholly acquired Centennial Coal Company Limited (Centennial) in 2010. Centennial is a coal mining and marketing company, supplying thermal coal and coking coal to the domestic and export markets. It owns nine coal mines, both underground and open-pit, in the North and the West of New South Wales, with a total annual production capacity of around 19 million tonnes. (For more details, visit http://www.centennialcoal.com.au/) Banpu has continually placed emphasis on the synergies gained by enhancing operational performance, with efficiencies in production planning and coal reserve exploration.

Mongolia

 

In late 2011, Banpu successfully acquired Hunnu Coal Limited, a specialized company in coal exploration and mine development with around 15 sites of thermal and coking coal deposits in Mongolia. This acquisition opened up new business opportunities for Banpu, as Mongolia is rich in coal resources and has a rapidly developing infrastructure combined with a geographical advantage for export to nearby markets – including China.

Banpu continuted to focus on feasibility studies at the Tsant Uul (steam coal) and Altai Nuurs (metallurgical coal) concessions in 2013.  For the Tsant Uul project, Banpu has conducted a small pilot test with encouraging chemical yields.  A further pilot plant will be developed this year with market product tests and further economic viability analysis.  Subject to the on-going study, the objective will be to develop a commercial plant of around by next year.

Singapore

Established in 2013 to manage commercial aspects of coal business of Banpu Group, including marketing, research, sales contracts, and logistics of over 45 million tonnes of coal as well as to centralized marketing of the Group's Indonesian and Australian coal.

United States of America

Banpu has acquired a 29.4% stake valued US$112 million in the Chaffee Corners Joint Exploration Agreement (JEA) which runs a low-cost unconventional operation in the northeast section of the Marcellus Shale play in Pennsylvania. Marcellus is the largest source of natural gas in the United States, and one of the biggest in the world.

Banpu’s net interest in the Chaffee Corners JEA is equivalent to proved (or “P1”) reserves of 156 billion cubic feet of dry natural gas and target net output of around 21 million cubic feet per day for 2016. The gas is sold entirely into the US domestic market, mainly for power generation. The JEA is 65.4%-owned and operated by Talisman, a leading unconventional US-based player, which produces over 400 million cubic feet per day from the Marcellus play. The Marcellus Shale is estimated to hold around 85 trillion cubic feet in proved reserves and accounts for around one-fifth of the country’s total gas production.