Thai firm buys stake in coal company

Mar 10 • Mining • 1154 Views • No Comments on Thai firm buys stake in coal company

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Thai energy company Banpu Minerals has made a second foray into the Australian resources sector by becoming the biggest stakeholder in coal company Hunnu Coal Ltd.

Shares in Mongolia-focused Hunnu added 14 cents, or 11.29 per cent, to close at $1.38 on Wednesday.

The move comes after Banpu took over Australian firm Centennial Coal Company Ltd in October in a $2.4 billion deal.

Hunnu managing director George Tumur on Wednesday said Banpu’s involvement would help it become Mongolia’s premier coal company.

Banpu would now get access to deposits close to China, Banpu chief executive Chanin Vongkusolkit said.

“The Mongolian coal sector has great potential, with extensive coal deposits and rapidly developing infrastructure,” he said.

Hunnu Coal has more than 400 million tonnes of reported coal resource across its projects.

The Perth-based company was the best performing initial public offer in the first six months of 2010, with its shares rising more than four fold from the issue price of 20 cents to 90 cents on June 30.

Banpu’s stake includes 30 million shares placed to Banpu Minerals (Singapore) Pte Ltd at $1.50 per share for $45 million.

The placement is at a 20.1 per cent premium to Hunnu’s share price of $1.24 on Friday, March 4.

Banpu currently produces more than 40 million tonnes of coal annually.

Source: Trading Room

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