Bayan unit signs coal sales contract with Korean power firm

By Romel S. Gurky

Petromindo|Boim

East Kalimantan coal miner PT Bara Tabang (BT), a subsidiary of IDX-listed coal firm PT Bayan Resources, had on August 29 signed a coal sales contract with South Korean power firm Korea Midland Power Co.

Bayan said in a statement on Thursday that under the contract, BT will supply around 10 million tons of its Bayan Ultra Coal for six years starting October of this year to Korea Midland, a subsidiary of Korean Electric Power Corp.

Maximum shipment is 2 million tons per year, the statement said. The coal will be used as fuel for Korea Midland?s Boryeong coal-fired power plant and recently completed Shin Boryeong ultra super critical coal-fired power plant.

Korea Midland operates power plants with total capacity of 8,693 MW, and is currently developing new plants with combined capacity of 3,040 in South Korea.

BT operates a 3,015-ha Tabang coal concession in Tenggarong, Kutai Kertanegara regency, East Kalimantan Province.

Bayan owns 90 percent of PT BT, which produces coal with CV of 4,200 kcal/kg.

Editing by Reiner Simanjuntak