Berau Coal to build power plant and coal conveyor

Indonesia-listed coal miner PT Berau Coal Energy Tbk plans to build a coal-fired power plant and coal conveyor in the company?s mining site in Berau, East Kalimantan, Bisnis Indonesia reported on Tuesday.

The company?s president director Rosan Perkasa Roeslani said in Jakarta on Monday that the construction of the power plant and coal conveyor would be started in September. He said that power plant which will have a capacity of 2 x 20 megawatt would be operated to support the company?s mining operations.

?The company needs about US$300 million for the construction of the power plant and conveyor. The power plant alone will need about $75 million,? he added.

This year, Berau Coal has allocated $160 million in capital expenditure.

The company expects to produce 23 million tons of coal this year, a 15 percent increase from the previous year. The average coal price is expected to decline to $80 per ton this year from $81 per ton in 2011.

In 2011, Berau Coal booked net profit of US$133.97 million tons or about Rp l.20 triliun, a 170 percent increase from about $49 million in the previous year. However, net profit declined 66 percent in the first quarter of this year to $12 million or about Rp 108 billion from $35,17 million in the same quarter, last year. (*)