Adaro in talks to supply more coal to Jawa Power

Independent power producer (IPP) PT Java Power, which operates an 1,220 MW power plant in Paiton, East Java, is negotiating a long-term coal supply contract with South Kalimantan coal miner PT Adaro Indonesia.

An industry source told Petromindo.Com last week that Adaro had an existing one-year contract, effective January 2010, for the coal supply of 800,000 tons to Jawa Power

?The company (Java Power) is seeking to secure a long-term contract with Adaro for a volume of 2 million tons per annum,? the source said.

Currently, Jawa Power gets coal from three firms, namely PT Kideco Jaya Agung, PT Berau Coal and PT Adaro Indonesia.

Kideco supplies Adaro with 2 million tons per annum under a 30-year contract, while Berau Coal supplies 1.2 million tons per annum.

According to source, Berau?s contract will end in the end of 2012. ?Once the deal with Adaro is finalized, coal supply contract with Berau will not be extended,? the source added.

Jawa Power consumes a total of 4 million tons of coal per annum. (denny)