ATPK eyes power generation business

By Donald Haromunthe

IDX-listed coal mining company PT ATPK Resources Tbk said that it was planning to develop a mine mouth power plant in East Kalimantan as the company eyes the power generation business to help cope with the lingering drop in coal price.

Director of ATPK Albert J. Bangun told investors during a public expose meeting on Thursday that the strategy was taken after the government eased the permitting procedure in power generation projects.

?We are interested to build a small scale power plant below 50 MW,? he said, adding that the investment for the project is estimated at around US$75 million.

Currently, the company is still studying the project, the progress of which has reached 70 percent.

Per November, ATPK?s coal production has reached 1.9 million ton, with full-year output estimated at 2 million tons.

ATPK through subsidiary PT Mega Alam Sejahtera operates a 3,274-hectare coal concession in Berau Regency, East Kalimantan, producing coal with CV of 4,800-5,000 kcal/kg, and total moisture of 40 percent. The concession holds coal reserves of 41.47 million tons, according to SRK Consulting in 2006.

Editing by Reiner Simanjuntak