Berau in talks with PLN to conclude Tanjung Jati coal supply deal

East Kalimantan cola miner PT.Berau Coal is in talks with state electricity firm PLN to finalize 1 million tonnes supply contract for PLN?s Tanjung Jati B 2x660-MW power plant.

Berau Coal Marketing Officer Isman told Petromindo.Com Tuesday that the coal will be delivered in 2009.

PLN has appointed Berau Coal to supply low CV coal for Tanjung Jati, but thus far, both parties had yet agreed on the price. Sources said Berau is asking US$87 per tonne FOB for its 5,100 Kcal/kg coal, while PLN is bargaining for less.

Berau Coal is also contracted to supply 1MT of low CV coal for Tanjung Jati in 2008, of which 900,000 tonnes had been delivered.

Isman said Berau and PLN are currently in negotiation to add 180,000 tonnes or three panamaxes on top of 1MT contract for 2008. He said that the additional coal might be delivered to Tanjung Jati starting October this year.

Apart from Tanjung Jati B, Berau also supplies 2MT for Indonesia Power?s Suralaya, which contract would be expired end 2008 and 2MTPA under long-term contract to PT.Jawa Power, which operates Paiton 5 and 6 power plant. The company also supplies 90,000-100,000 tonnes of coal per annum to cement plant PT.Indocement.

Berau Coal has produced 7.3 million tonnes of coal from January to July 2008 out of 13.5-14MT production target, Corporate Secretary Joko Setiono said, adding that the company planned to increase production to 17MT next year. (denny)