Adaro, Suralaya in coal contract extension talks

South Kalimantan coal miner PT. Adaro Indonesia said that its contract with PT. Indonesia Power to supply 1 million tones of coal per year to 3,400-MW Suralaya power plant in Banten would expire April this year, and was hopeful to get the contract extended.

Adaro administration manager Priyadi said that Adaro and Indonesia Power were still talks over possible contract extension. He did not give further detail.

PT.Indonesia Power had signed 5MTPA coal supply deal with 5 new suppliers to replace the expired contracts it made with Kalimantan coal producers including Adaro, but Indonesia Power director Achmad Sadikin said that annual contract extension with previous suppliers was still possible to anticipate supply disruption from main supplier PT. Tambang Bara Bukit Asam (PTBA), which is contracted to provide 6 million, tones per year. ?More over, the new suppliers had yet shown proven track of record that they are able to supply the contracted capacity. That?s why Suralaya still need back up from reliable producers such as Adaro,? said one Suralaya official.

Suralaya consumes around 10 million tons of coal annually. (godang)