Adaro says S. Kalimantan power plant to require 1m TPA coal supply

By Romel S. Gurky

IDX-listed coal giant PT Adaro Energy Tbk said that the planned 2x100 MW coal-fired power plant in South Kalimantan will need about 1 million tons per year (TPA) of coal supply, much of which to be supplied by the firm.

Adaro said in its 2013 annual report released recently that the company and its South Korean partner are currently preparing for the agreements for the project.

PT Tanjung Power Indonesia, which is 65 percent owned by Adaro and 35 percent by East West Power, a subsidiary of South Korea?s KEPCO, was named as the only qualified bidder for the power plant project more than two years ago.

According to Adaro?s website, financial closure was expected to be completed within one year after the consortium signs the power purchase agreement with state-owned electricity firm PLN. The two sides agreed on the final form of the PPA in the second quarter of 2013, the website said, but does not clearly said whether it has now been signed.

Editing by Reiner Simanjuntak