Arutmin in coal deal with Indonesia Power

South Kalimantan coal miner PT. Arutmin Indonesia said on Thursday it had bagged trial contract to supply 40,000 tons of coal to Indonesia Power?s Suralaya power plants in Banten province, which could lead to longer-term contract.

?The handymax vessel is scheduled to leave for Suralaya on January 25,? Arutmin president Ari S. Hudaya told Petromindo.Com on Thursday.

Ari said both Indonesia Power and Arutmin are still negotiating deal to clinch term contract if the trial shipment meet Suralaya?s coal specification.

?Arutmin is looking to get 2-3 million tons per annum deal,? said Ari.

The 3,400 MW Suralaya power plants get some 6 million tons out of its 11 million tons per annum requirement from state coal miner PT. Tambang Batubara Bukit Asam, with the balance supplied by PT. Kideco Jaya Agung, PT. Berau Coal, Adaro Indonesia and other smaller coal miners.

The deal with Indonesia power is the first domestic deal Arutmin made as it usually sells all its coal to overseas market.

Arutmin, a unit of JSX-listed Bumi Resources plans to produce 18 million tons of coal this year. (godang/alex)