Banpu will focus on developing its existing mines in Indonesia and Australia to improve their production capacity this year but its business-development team is also considering opportunities for mine acquisition, according to a report in The Nation.

The company forecasts its coal sales at 46 million tonnes this year, of which 27Mt would come from Indonesian mines, 16Mt from Australian operations and the remaining 3Mt coming from China.

Banpu’s Australian mines are concentrated in New South Wales. Its major customers there are the power utilities but it is expected to increase the amount of coal it exports to benefit from higher prices.

Approximately half of its 2012 expected coal output has been sold under forward contracts, with prices averaging more than $US100 a tonne, compared with an average of $97/ t in 2011.

Banpu is taking a hard line in price negotiations with the New South Wales government-owned generator Delta Electricity, walking away from a 10-year supply contract renewal.

Centennial is believed to be not prepared to accept the historical government supply benchmark price – about $60 per tonne – being offered by Delta in a contract for well in excess of 1Mtpa.

Just days after assuming full ownership of Centennial for $2.5 billion, Banpu was already signalling that it would prefer to supply the more lucrative steaming export market, where prices are currently at $100/t.

Centennial provides 47% of coal to NSW power stations and picked up the coal assets of the previously government-owned Powercoal eight years ago.

Last year Centennial Coal founder Bob Cameron become chairman of the company after its takeover, relinquishing his position as managing director to chief operating officer David Moult.