Adaro to start FS for power project soon

By Cepi Setiadi

A pre-feasibility study (FS) for a mine-mouth power plant project in East Kalimantan to be developed by a joint venture firm owned by IDX-listed coal giant PT Adaro Energy Tbk and China Shenhua Overseas Development and Investment Co is expected to start next week, according to an industry source.

The source did not provide further details. The statement, however, shows that the companies are quite serious to realize the planned project.

Two of Adaro?s subsidiaries PT Adaro Power and PT Bhakti Energi Persada (BEP) signed an MoU with China Shenhua on November 21 of last year to set up a joint venture company to develop a mine-mouth power plant in East Kalimantan with a capacity of 2x300 MW in the first stage. China Shenhua was expected to control 51 percent of the joint venture.

Editing by Reiner Simanjuntak