In 2003, the Company embarked on a new diversified business of ethanol production and distribution by acquiring 75.75 percent shares in Thai Agro Energy Co., Ltd. The Company decided to diversify
into the alternative energy business, starting with this 150,000 liter-per-day ethanol production plant located in Suphanburi Province, producing ethanol for the fuel purpose from molasses. The Thai
Government initiated and supported the policy of 10-percent ethanol blended gasoline or Gasohol mainly to reduce air pollution and reduce import of fuel and octane-booster additive, saving countrys
foreign currency. The ethanol production plant has commenced its operation since the beginning of 2005, which was one the first ethanol-for-fuel plants to successfully come on line. The ethanol
product is sold to most of the major oil companies before blending to become the Gasohol. The ethanol business has quickly become the Companys secondary core business, significantly contributing to
the revenues and earnings. Now Gasohol is sold in gasoline stations nationwide and with rising demand for gasohol and ethanol, the Companys ethanol business is in expansion phase with another
production line of 200,000 liters per day capacity under construction to be completed around the end of 2008. To supplement the expected flow of coal out of Indonesia, in 1996, the Company entered
into another joint venture with Pan United Corporation of Singapore to establish a ship chartering services company called United Bulk Shipping Pte. Ltd. (UBS). Today, UBS is destined to be one of
the leading ships chartering services company, handling coal shipment and other minerals to and from Indonesia and Thailand. Besides, UBS effectively manages coal shipping services for the Company.
Initially, the Companys main and only objective was in the lignite mining and sales from the Pa Kha lignite deposit situated in Lumphun Province. The Company had earlier acquired a 20-year mining
right within the concession area of the Department of Alternative Energy Development and Efficiency (Formerly the Department of Energy and Promotion or the National Energy Administration). After a
slow initial implementation during the first year of mining operation, the Company's business began to grow at a rapid pace. The initial annual lignite production in 1986 was less than 100,000 tons,
however the annual lignite coal production and sales volume soon reached and surpassed 1 million tons. The coal demand was considerably higher than anticipated. However with continuously depleting
domestic lignite coal reserves, this prompted the Company to rethink its strategies regarding its reserve requirements and business concepts and operations.
Lanna Resources Public Company Limited, formerly named Lanna Lignite Public Company Limited, was initially established on October 4, 1985 as a registered company with an initial registered capital
of Baht 100 million and later converted to a public company on December 29, 1992. The companys ordinary shares were given permission for trading in the Stock Exchange of Thailand from July 12,
1994. The Company is currently classified within the Resources Group (Energy and Utilities Sector).
