Adaro, Kideco negotiating 2012 price on the supply deal with Paiton Energy
Monday, November 21 2011 - 03:24 AM WIB
East Kalimantan coal miner PT Kideco Jaya Agung and South Kalimantan coal miner PT Adaro Indonesia are in negotiation on price with regards to the supply of coal for the 2012 period to the PT Paiton Energy (PE)?s units 7 & 8 in East Java.
Paiton Energy is currently running Paiton 7 and 8 units with combined capacity of 2x615 MW. For units 7 and 8, Paiton Energy needs around 4.5 million tonnes of coal per annum, of which Adaro supplies around 3.3 million tonnes and the remaining 1.2 million tonnes supplied by Kideco.
Both mines have long-term coal supply contracts with price to be negotiated annually. ?The price will be based on an average price in the fourth quarter of 2011,? the industrial source said without giving details.
The price negotiation is expected to be completed before year end. (denny)