Bukit Asam receives LoI to build S. Sumatra mine-mouth power plant

State coal miner PT Bukit Asam Tbk (PTBA) has received a Letter of Intent (LoI) from state electricity firm PT Perusahaan Listrik Negara (PLN) to build 2x600 MW South Sumatra-8, PTBA?s President Director said on Monday.

Sukrisno said that a power purchase agreement (PPA) will be signed in January next year, adding that coal price for the mine-mouth power plant has been agreed, with a price of around US$31 per tonne with 4-year escalation

The electricity price is still being negotiated with PLN. ?We will follow government regulation,? he said.

For the project, PTBA is in a consortium with Chinese firm China Huadian with 45 percent stake being held by PTBA, Sukrisno said.

PTBA and its partners are also named as the winner of the 2x300 MW Riau mine-mouth power plant project, Sukrisno said but he declined to give more information, only adding that the consortium is still in negotiation with PLN.

PTBA is in partnership with India?s firm Lanco Group and Pamapersada Nusantara, a coal contractor unit of Indonesia-listed heavy-equipment distributor and coal mining firm PT United Tractors Tbk. in the Riau mine-mouth project. (bernard)