Adaro?s S. Kalimantan mine mouth power plant starts production

By Romel S. Gurky

IDX-listed coal mining giant PT Adaro Energy Tbk through its subsidiary PT Makmur Sejahtera Wisesa (MSW) reported on Tuesday that the first unit of the 2x30 MW mine mouth power plant in Tanjung, South Kalimantan, has completed the operational test, able to produce electricity at full capacity of 30 MW.

Adaro said in its quarterly report that the second unit is expected to be able to start preparation for production in early June 2013.

Once running in full capacity, the power plant will consume about 400,000 tons of E4000 coal per year, able to produce a guaranteed net electricity of 52.5 MW. This will allow MSW to support Adaro?s mining operation in terms of electricity supply. The excess power supply will be sold to state-owned electricity firm PT Perusahaan Listrik Negara in South Kalimantan.

Elsewhere, Adaro said that the construction of an out of pit overburden crusher and conveyor (OPCC) has been 99 percent completed as of the first quarter of this year, and that the company expected to start preparation for the operation of the OPCC in May of this year.

The electricity for the system is to come from the 2x30 MW mine mouth power plant. The system is expected to be able to transport 34 Mbcm of overburden material per year, thus providing cost saving of A$1-1.20 per bcm, the company said.

Editing by Reiner Simanjuntak