Cenko clinches 4 MT coal supply deal with Indonesia power

JSAX-listed coal trader and miner PT. Central Korporindo Internasional Tbk (Cenko) announced on Tuesday it had signed deal to supply coal to Indonesia Power?s Suralaya 3,400 MW coal-fired power plant in Banten province.

Under the deal, the agreement document showed, Cenko will supply 1 million tones of coal in 2006. The deal is extendable for one million tones annually for three more years until 2009.

Under the contract, Indonesia Power will pay Rp 252,000 (US$=Rp 9,284) per tone CIF Suralaya?s receiving hopper. The price, which is subject to change on several conditions including fuel price, will be reviewed annually. The coal delivered will have standard calorific value of 4,765 kcal/kg (as received).

Coal will be sourced from Cenko?s mine in Tanah Laut and other mines in South Kalimantan.

Indonesia Power requires around 10 MT annually for Suralaya power plant. Some 6 MT of the rquirement is supplied by state coal mining firm PTBA. (alex)