SET-listed zinc miner Padaeng Industry Plc (PDI) has acquired a solar farm in Tak province, another step in the company's plan to diversify into renewable energy after its first solar farm in Japan began operation in October.
Managing director Francis Vanbellen said the deal for the solar farm with an installed capacity of 6.3 megawatts was worth 477 million baht.
The acquisition was done via subsidiary PDI Energy, which purchased 99.99% of shares in IEC Mae Ramat Co Ltd.
The solar farm in Tak's Mae Ramat district commenced operation in 2013 and has been selling power to the Provincial Electricity Authority under a 25-year power purchasing agreement.
The newly acquired solar farm is due to start generating revenue for PDI from 2017.
"The cash flow generated from this investment will be used to reinvest in other sustainable business projects in the PDI group," said Mr Vanbellen. "PDI will continue to expand its renewable energy business both in Thailand and abroad."
He said the solar farm projects in Japan have progressed as expected. The farm in Nanao in Ishikawa prefecture, which has installed capacity of 2.27MW, actually operates 10% above target since it started operation in October.
The second solar farm in Nogata in Fukuoka prefecture, with a capacity of 10.5MW, is under construction and is expected to start operation by the second quarter of next year.
He said PDI is sticking with a plan to reduce zinc mining and switch to renewable power.
PDI expects sales revenue contribution from the zinc business to drop by 30% in 2017, down from the current 100%, as the company focuses on other promising areas such as renewable energy and waste-to-power ventures.
PDI also wants to install an 18MW wind farm in Nakhon Ratchasima province, where the company has already built a wind mast to collect data.
