Adaro eyes S. Sumatra $3.5 billion power plant project

PT Adaro Energy Tbk, the country?s second largest coal mining firm, has set its eye to develop a 3x600 MW coal-fired power plant project in South Sumatra, with total projected investment of $3-3.5 billion, Investor Daily reported on Thursday.

Adaro President Director Garibaldi Tohir said that the company will team up with foreign investors to win and develop the project. He said that many foreign investors have expressed interest to partner with the company in the project.

Garibaldi said that the development of coal-fired power plant will increase the added value of coal to the country, which is in line with the government?s policy to generate greater added value from mining and mineral products.

He expects the government to help push coal miners to develop more power plants to generate greater added value from coal.

Last year, Adaro, together with J-Power and Itochu Corp, won the tender for the construction of a 2x1000 MW power plant in Pemalang, Central Java. Construction of the largest coal-fired power plant project in Indonesia will begin this year, and the plant is projected to start commercial operation in 2016-2017.(*)