ABM Investama units to build mine mouth power plant

Power company PT Sumberdaya Sewatama and coal miner PT Reswara Minergi Hartama, both subsidiaries of IDX-listed PT ABM Investama Tbk, are teaming up to build a 2x200 MW mine-mouth coal-fired power plant in Aceh, Kontan reported on Wednesday.

The paper said that total investment for the project is estimated at US$600 million.

President Director of Sumberdaya Sewatama, Hasto Kristiyono was quoted as saying that the company has recently signed an MoU with state-owned electricity firm PLN and port operator Pelindo I for the development of the Aceh power plant to meet growing demand in the region. ?We?re now at the stage of completing the feasibility study, while network study is being finalized,? Hasto said.

Construction is expected to start early next year, in the hope that it could be completed within 2-3 years.

Coal for the planned power plant will come from Reswara Minergi?s two concessions in Aceh, which are separately run by two subsidiaries PT Mifa Bersaudara and PT Bara Energi Lestari. Reswara also have coal concessions in Kalimantan. (*)