Bumi, Endesa in coal supply talks

JSX-listed coal mining house PT. Bumi Resources Tbk. is in coal supply talks with Spanish power producer Endesa Group.

?We are currently negotiating price and volume and Bumi wants the contract to be long-term,? CEO Ari S. Hudaya told Petromindo.Com Friday. He did not say when the deal is expected to be concluded.

Endesa said on Tuesday that it would import up to 5 million tonnes per annum of Indonesian subituminous coal starting 2008 to fuel its 1,400-MW As Pontes power plant in La Coruna. The plant is currently undergoing transformation to enable burning of more environmentally-friendly Indonesian coal to replace local lignite which has high sulphur content.

Bumi operates two major coal mines, namely PT. Kaltim Prima Coal in East Kalimantan and PT.Arutmin Indonesia in South Kalimantan, with planned combined production of 90 million tonnes in 2009.(godang)