CCoWs to supply 16MT to PLN

Government has appointed seven Kalimantan-based coal contract of work (CCoWs) miners to supply 16 million tons (MT) to meet the coal needs of state electricity company PT Perusahaan Listrik Negara (Persero) (PLN)?s new coal-fired power plants built under the Phase One 10,000 MW crash program.

Secretary of director general of mineral, coal at the energy and mineral resources ministry Witoro Sularno told Petromindo.Com last week the seven coal miners are PT Arutmin Indonesia, PT Kaltim Prima Coal (KPC), PT Berau Coal, PT Kideco Jaya Agung, PT Adaro Indonesia, PT Lanna Harita Indonesia and PT Insani Bara Perkasa.

All the coal commitment is part of 2010 domestic market obligation, which this year reached total 72 million tons, he said.

Witoro said coal price will be determined by business to business scheme.

Earlier, PLN?s director for primary energy Nur Pamudji said that the seven coal miners would provide coal of low grade with a calorie content of between 4,200 and 5,000 kcal/kg (AR).

Nur said that the delivery of the coal supply from the seven coal miners would be carried out early next year. The volume of the coal supply will be different from one to another company. ?Some will provide 4 million tons, while others agree to supply up to 6 million tons,? he said.

PLN will need about 30 million tons of coal to fuel the newly operated coal-fired power plants. The state electricity company had secured contracts early this year to provide the coal supply, but seven of the suppliers had a problem to meet their contracts for about 16 MT. (bernard)