Cenko looks for coal concessions to support proposed power plants

Publicly listed company PT Central Korporindo International (Cenko) is looking for coal mining concessions in Central Kalimantan and Riau provinces to support its plans to build three coal-fired power plants in the provinces.

In a statement released Thursday to the Jakarta Stock Exchange, the company said the coal mines would enable it to secure coal stock for the power plants and to cut operation expenses. Cenko added that it needed around 30,000 tons of coal per month for the power plants.

Cenko plans to build a 2x7-megawatt power plant in Pangkalan Bun, Central Kalimantan. In Riau, the company proposes to construct two power plants located in Rengat and Tembilahan, each with the same capacity.

Under an agreement with state-owned electricity firm PT PLN, the Pangkalan Bun power plant is scheduled to commence operation by November 2005. Meanwhile, the operations of two other power plants are expected to start in April 2006.

Cenko also said the fabrication of major equipments for the Pangkalan Bun power plant in China had been completed and the equipments were now ready for delivery. Meanwhile, the fabrication for two other two power plants was still in progress.

Aside from power business, Cenko operates a 500-hectare coal mining concession in Asam-Asam, South Kalimantan. The company has secured contracts to supply a total of 92,000 tons of coal per month to local companies in the province until end of this year. (Robert)