Atlas eyes power plant project

IDX-listed coal firm PT Atlas Resources Tbk is planning to participate in a tender for a mine mouth power plant project in South Sumatra, as part of a diversification strategy amid the lingering coal industry downturn, Kontan reported on Thursday.

?We will participate in a tender to be held by PLN (state-owned electricity firm) for 1x300 MW mine mouth power plant project in Musi Rawas, South Sumatra, near our Hub Mutara coal concession,? Atlas Corporate Secretary Lidwina Nugraha told the paper.

She said the company has appointed a consultant to carry out feasibility study, and is also looking for a partner. She added that given the opportunities provided by the government?s five-year plan to develop a combined 35,000 MW power plants until 2019, there is possibility for the company to also participate in other power plant tender.

Meanwhile, Atlas President Director Andre Abdi said that his company will focus coal sales to PLN as it aims to become the fifth largest coal supplier for the state utility. He said that subsidiary PT Hanson Energy has already obtained contracts from PLN to supply 60 million tons of coal for the next 20 years.

He said that the company was hoping to get additional contract from PLN to supply up to 1.2 million tons of coal per year to the Pangkalan Susu power plant in North Sumatra. He expected the contract to be signed in the second semester of this year.

Andre said that domestic sales this year is expected to account for up to 90 percent of total sales, compared to only 4 percent last year. (*)