Arutmin bags coal supply contract from Therma Luzon

Philippines firm Therma Luzon Inc., a unit of Aboitiz Power Corp. said it has on Thursday in Singapore signed a coal supply deal with South Kalimantan coal mining firm PT Arutmin Indonesia, a unit of IDX-listed coal giant PT Bumi Resources Tbk.

Thermal Luzon EVP & COO Benjie Cariaso told Petromindo.Com over the week-end that under the deal, Arutmin will supply six panamaxes of coal to its Pagbilao 700-MW power station in the Phillipines.

First shipment will start March 2010, he said without giving price detail.

He said the Company has secured the entire coal requirement for 2010 with the volume of 1.6-1.7 million. Other suppliers for 2010 are East Kalimantan miners PT Kideco Jaya Agung and PT Trubaindo Coal Mining, which will supply 13 and 7 panamaxes, respectively.

Therma Luzon Inc acquired Pagbilao from Philippines state-owned National Power Corp (NAPOCOR) last year. Cariaso said that the Company is seeking to secure longer-term contracts with suppliers to replace the existing contracts which last only for one-year.

?We?ll start scouting for 2011-12 period and we?re opening opportunity for small, medium and big suppliers to participate,? he said. (denny)