Arutmin offers low rank coal to PLN

South Kalimantan-based coal producer PT Arutmin Indonesia is in negotiation with state-owned electricity firm PT PLN for the supply of low rank coal to fuel the latter?s existing and future power plants, a company staff said Friday.

Arutmin?s marketing staff Budi Santosa said Arutmin was offering coal with calorific value of 4,220 kcal/kg to be mined from its Asam-asam and Mulia coal mines.

?We have yet to conclude on the price of coal as negotiation is still at early stage,? Budi said, adding that the coal mines were able to supply a total of 352 million tons for 20 years period.

According to Budi, both coal mines were targeted to produce 4-6 million tons of coal this year.

Arutmin is a subsidiary of PT Bumi Resources Tbk, a publicly listed mining firm which also controls East Kalimantan-based coal operator PT Kaltim Prima Coal (KPC).

Arutmin produced 15 million tons of coal in 2004.

Bumi has said that its 2005 coal sales from both Arutmin and KPC would reach 44 million tons. (godang)