The Company has established diversified business strategies and investment plans for the Company to grow in quality, stability and sustainability in the long term, which the Company has two mining concessions in Indonesia with the remaining concession for several decades with quality coal reserves that is sufficient to use as fuel for coal-fired power plant. Indonesia currently has insufficient electricity to meet the needs of the population which continues to grow, together with the expansion of Indonesian economy every year, by which the Indonesian government had planned to add 43.5 gigawatts to its power generation capacity within 2024. Recently, the Indonesian government has revised the “2018-2027 Electricity Supply Business Plan” by increasing its power generation capacity by 56 gigawatts within 2027, which will be invested by the State Electricity Company of Indonesia (“PT Perusahaan Listrik Negara” or “PLN”) and provides opportunity for private sector or Independent Power Producer (“IPP”) to make a direct offer or direct appointment, which mainly uses coal as fuel for power generation. From the preliminary study, the Company and its subsidiary companies certainly have potential to invest in coal-fired power plant projects, thereby, having established Lanna Power Generation Co., Ltd. (“LPG”) in 2016, a wholly-owned subsidiary company, to conduct feasibility studies and prepare to invest in electricity generation and distribution business in Indonesia and also aims to expand the investment in power plant business in Thailand and other countries.
The Company has discussed and negotiated with other companies with expertise in power plant business and recently entered into Memorandum of Understanding (“MOU”) with PT. Indonesia Power, a state-owned having studied and prepared for investment in coal-fired power plant project of 55 megawatts, including preparation for a tender process of 200-megawatts mine-mouth coal-fired power plant project located at the adjacent area to coal mining concession of PT. Singlurus Pratama, a subsidiary in Indonesia. Additionally, the Company is conducting a feasibility study in the investment in renewable energy project both domestically and overseas such as, biogas power plant project using wastes from palm oil production process in Indonesia, etc.
For the investment in power plant business in Thailand, LANNA Consortium Group is interested to participate in a tender process of coal procurement project for coal-fired power plant of the Electricity Generating Authority of Thailand (“EGAT”), which has been selected in the pre-qualification process, and also ready to consider an investment in coal-fired power plant project or other renewable energy in Thailand, such as municipal solid waste to energy project in the provincial area, etc., which is a potential investment project in the future since the government actively promotes and supports such projects.
The Company has planned and set goal to invest in coal-fired power plant business as mentioned above, which is a business that shall increase the capacity of coal production and distribution, including seeking for opportunities on investment in other renewable energy both domestically and overseas, which expected good return from its investment in such power plant project in correspondence with the Company’s business strategy to generate more revenue and profit in the future.