Bantaeng signs power supply deal with smelter operators
Thursday, January 15 2015 - 01:28 AM WIB
Power firm PT Bantaeng Sigma Energi, which plans to develop a 2x300 MW coal-fired power plant in Bantaeng Regency, South Sulawesi, signed on Wednesday power purchase agreement with five companies operating in the Bantaeng Industrial Park.
Of the five companies, four are planning to develop nickel smelters. They include PT Huadi Nickel Alloy, PT Titan Mineral Utama, PT Zhongning Mining Metallurgy, and PT Mitra Tambang.
PT Bantaeng President Director Irzan Yuswar said that the company aims to accelerate the construction of the power plant, hoping it could start commercial operation in 2017.
PT Bantaeng, a subsidiary of Malaysia?s BTN Power Sdn Bhd, held a ground breaking in November of last year. The company expects the environmental impact assessment approval to be issued by the authority in January of this year, to allow physical construction for the US$1.1 billion power plant project to start.
The company has acquired the required 50 hectares land for the project, and appointed China Machinery Engineering Corporation as consultant and contractor.
Coal requirement of 3 million tons per year will be supplied by PT Biidznillah Tambang Nusantara and PT Sigma Energi, which operate coal mines in Kalimantan.
Emir Yusuf, Director of Zhongning welcomes the power plant project, which ensures power supply for its planned US$300 million nickel pig iron smelter in Bantaeng, which will have a capacity of 600,000 tons per year.
Editing by Reiner Simanjuntak