TTA seeks plants for coal output

Monday, 23 January 2012

Thoresen Thai Agencies (TTA), a leading SET-listed dry bulk carrier, is studying a possible investment in coal-fired power plants in Indonesia and the Philippines and a deep-sea port in Myanmar.
With a coal output of 4-5 million tonnes a year, TTA will be ready to operate power plants, said M.L. Chandchutha Chandratat, the president and chief executive. Under the current plan, TTA plans to produce 3 million tonnes of Indonesian coal and one million tonnes from the Philippines by 2014.
TTA and three partners have been awarded a concession for four coal exploration blocks covering 200,000 rai in Kalimantan, on Borneo.

The company is producing coal from its first mine in the Philippines and looking for a second mine there.
"We are considering investment in power plants near our mines in Indonesia and the Philippines so we don't have to spend a lot on logistics cost," said M.L. Chandchutha.On Cebu in the Philippines and Borneo in Indonesia, there are large-scale coal-fired power plants in operation, he acknowledged.Meanwhile, TTA has been invited by Premchai Karnasuta, chairman of Italian-Thai Development Plc, to co-invest in a deep-sea port in Dawei, Myanmar.

Thailand's largest construction firm by market value is seeking partners and mobilising at least US$12.5 billion this year to develop infrastructure on the coast of the neighbouring country."I agree there's a lot of potential in Myanmar and we are interested," said M.L. Chandchutha. "However, we need time to study the regulations there, as well as strategic partners who understand this business quite well." TTA owns a 20% share of Baria Serece, which operates the largest deep-water port in southern Vietnam.

M.L. Chandchutha said TTA plans to dilute its ownership in Unique Mining Services (UMS), a SET-listed coal importer and distributor, from 86% now. TTA acquired shares and warrants of UMS in late 2009 with a total investment of 3.9 billion baht at 23 baht per share. UMS shares now trade at 13-14 baht.
"We will consider reducing shares when the price improves, and we will still take control of more than 50% in the coal mine subsidiary, as TTA has a plan for long-term investment in energy," said M.L. Chandchutha.TTA has said that its core shipping business will bottom out this year as the new supply of ships eases from next year onwards.

In 2011, 70 million tonnes of vessels arrived on the market, denoting a 14% increase from the year before.
Supply is expected to rise by 10% or more this year, but the gloomy global economic outlook will continue to pressure the demand side. "We expect the Baltic Dry Index (BDI) to stay on par with last year's level or even worse," said M.L. Chandchutha. The BDI, a measure of shipping cost for dry-bulk commodities, just slipped below 1,000 points, compared with last year's low of 1,043.
"Our shipping business might be flat from last year or slightly drop, but it should gradually recover from this quarter onwards," he said.

Source: Bangkok Post

SSI wants Corus steel plant in Redcar running by September

Sunday, 23 Jan 2011
It is reported that Thai firm Sahaviriya Steel Industries wants to get the Corus steelmaking plant in Redcar up and running again by September 2011.
As per report, SSI is poised to buy the Teesside Cast Product plant, which was mothballed last year following a severe downturn in the global steel industry.
Talks between SSI and Corus owner TATA Steel are at an advanced stage and a deal is expected to be clinched within two months.
Mr Win Viriyaprapaikit president of SSI said that he is confident the plant will be operational 6 months after the change of ownership has been completed. SSI is also in talks with the UK Government about expanding the TCP plant, which at full capacity can produce 3.5 million tonnes of steel slab a year.
Mr Win Viriyaprapaikit said that "When we have stabilized production the next step will be to look at that (expanding capacity) because it is the wish of the Teesside people that we invest in the output, which will provide more jobs and more income for the community."
SSI said that it was premature to give detail about the expansion plans, which could potentially create new jobs, before any deal goes through. But steel unions have welcomed the company's latest show of commitment to Teesside.
Mr Roy Rickhuss, national officer of the Community Union, said that "SSI recognises the world class workforce and production facilities that Teesside has to offer. We look forward to hearing more about their plans to expand steelmaking and we are also encouraged that the deal will be completed soon."
The UK Government has already given assurances that expansion plans at the TCP site will not be hindered by EU emissions rules. SSI bosses feared the company could be penalized under the EU’s Emissions Trading Scheme, which caps companies’ carbon emissions.
Under the scheme, which only affects firms operating in the EU, companies are given an allowance for the amount of their business activities produce. If they exceed their allowance, they must buy carbon certificates to cover the excess and pay a penalty on top.
UK manufacturers have expressed concern the scheme will put them at a trading disadvantage to foreign rivals, who are unrestricted by the heavy emissions laws.
(Sourced from www.nebusiness.co.uk)