Bintan Alumina to buy coal from Merge Mining

Monday, February 16 2015 - 01:24 AM WIB

Bauxite mining firm PT Bintan Alumina Indonesia will buy coal from a South Kalimantan mine operated by PT Merge Mining Industry to fuel its planned coal-fired power plant, Kontan reported Monday.

The paper quoted Bintan Alumina President Director Zulnahar Usman as saying that the coal supply was expected to start in 2016.

Bintan Alumina is developing a 2 million-ton per annum smelter, to be supported with a 3x110 MW coal-fired power plant at an industrial zone complex in Bintan, Riau Islands Province.

Zulnahar said that the power plant would require coal supply of about 8 million tons per year. He, however, said that the company has yet to decide on how much coal would be sourced from Merge Mining. Information on the supply volume would be available after the two firms sign the coal supply agreement, hopefully to be made after it complete the construction of the power plant.

As reported in this portal earlier, Merge Mining Industry is the local unit of China?s Merge Mining Holding Ltd, which operates a 971.2 ha concession in Banjar, South Kalimantan. The company plans to carry out underground mining operation and is currently at the phase of construction work with investment plan of US$100 million. Production is expected to start in 2016. (*)

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