Benakat delays mine mouth power plant project

IDX-listed PT Benakat Integra Tbk said it has decided to delay the construction of a planned 35 MW mine mouth power plant project due to lingering weak economic condition and commodity prices, Kontan reported on Tuesday.

The company initially planned to start construction of the power plant in the first semester of this year. The paper quoted Benakat Corporate Secretary Remanja Dyah Intansuri as saying that the drop in coal price and slowing economic condition have affected the company?s entire business lines, causing the delay in the power plant project. The company has yet to decide as to when the project will be resumed.

In the meantime, Remanja said that the company will increase coal and oil production this year.

As has been reported previously by this portal, Benakat through its coal mining subsidiary PT Astrindo Mahakarya Indonesia will increase production this year by 37.14 percent to 96 million tons from 70 million tons reached last year.

The coal output will come from two Astrindo subsidiaries, namely PT Mitratama Perkasa and PT Nusa Tambang Pratama. Astrindo, which is also engaged in coal infrastructure, was acquired in 2013.

Benakat through subsidiary PT Benakat Oil Group is also seeking for higher crude oil production this year at 1,625 bpd.(*)