Bumi Resources will supply coal to Suralaya

JSX-listed coal-mining giant PT Bumi Resources will sign a sale and purchase agreement this week with the state-owned electricity firm PT Perushaan Listrik Negara (PLN) to supply 3 million tons of coal annually for three years to the latter's coal-fired Suralaya power plant, the Investor Daily Indonesia newspaper reported in its Friday edition.

“In fact, we will supply 3 million tons coal, minimum 2.4 million tons for a period of three years to Suralaya coal-fired power plant. We will sign the sale and purchase agreement this Sunday,” Bumi Resources director and chief financial officer Eddie J. Soebari told the Investor Daily on Thursday in Jakarta.

Further, Eddie said that the selling of coal to Suralaya power plant is one of the company’s strategies to increase the number of local coal buyers. It supplies coal to Freeport, Andalas and several other cement factories in the country.

He said the expected price of coal will be around US$21 per ton.

Meanwhile, Martinus Peter Tabalujan, Bumi Head of Investor Relations told Petromindo.Com on Friday that the coal to Suralaya plant will be taken from PT Arutmin Indonesia’s Mulia site.

Bumi Resources controls PT Kaltim Prima Coal and PT Arutmin Indonesia. (*)