TTA BUYS INTO PHILIPPINE ENERGY FIRM

       Thoresen Thai Agencies (TTA), a leading dry-bulk shipper, has increased its presence in the energy sector through the purchase of a stake in a Philippines company.
       TTA recently acquired a 21.8-per-cent stake in the coal-mining venture Merton Group (Cyprus) via its wholly owned subsidiary Soleado Holdings for Bt169 million.
       The move is in line with TTA's diversification strategy, resulting in an extension of its capabilities in coal transportation and logistics.
       Managing director ML Chandchutha Chandratat said yesterday that the company's primary objective in this investment was to increase its exposure to the energy sector, as the global demand for energy continues to increase.
       "The prospects for the coal business, which remains a primary fuel for power generation - particularly in Asia - remain strong. A variety of forecasts from industry experts and investment analysts project coal demand to continue growing strongly over the next 20 years or more," he said.
       Merton group is the sole international partner in SKI Energy Resources (SERI), a joint coal-mining venture established in the Philippines between Merton Group and SKI Construction Group (SKI).
       The Philippines government is seeking to actively encourage investment in the coal-mining sector to develop its substantial domestic coal reserves. SERI now holds 3,000 hectares under coal-operating contracts granted by the Department of Energy in the Philippines.
       SERI plans to initially develop the mine site at Danao, where coal reserves have already been identified with good thermal characteristics for quality commercial production.
       "This investment is quite unique, because it allows TTA to enter the coal industry with a limited upfront investment, unlike many other coal projects in the region. A substantial portion of the concession area remains unexplored," said Chandchutha, adding that it is possible that the company can acquire more exploration concessions elsewhere in Philippines.
       "The Merton Group investment is an exciting move for TTA, but we are continually looking for further investments in our focus areas of transport, energy and infrastructure. We are not stopping here," he said.
       Merton Group was established in 2007 with the objective of monetising the growing demand for energy worldwide, particularly in the fast-growing economies of Asia such as China and India.
       It initially acquired interests in the Naga Mine site in Cebu, Philippines, and subsequently entered into a joint venture with SKI in SKI's Danao site, also in Cebu.
       Founded in 1976, SKI is one of the top five general contractors in the Philippines and the one securing coal concessions, which led to its acquisition of the Danao site in 2005.