Coalminers threaten to cut coal supply to Suralaya power plant

A number of coalminers including PT Tambang Batubara Bukit Asam (PT BA), Adaro, Kideco and Berau have threatened to cut coal supply to the Suralaya power plant in Banten province, if the latter refuses to meet their demand to increase the prices.

Bambang Susianto, the general manager of the Suralaya power plant, one of power plants operated by PT Indonesia Power, said in Jakarta on Saturday that Adaro, Kideco and Berau had refused to renew their contracts which would end in December, this year if the prices were not increased.

He said that state owned coal miner PT BA had even preferred to pay penalties of between Rp 300 million to Rp 3 billion rather than fulfilling its 10-year contract to supply coal to the Suralaya power plant.

According to him, the coalminers had preferred to export their coal overseas to take advantage of the increase in the coal prices in the international market, causing a serious problem to the Suralaya power plant?s operation.

?That?s why the government?s intervention is needed to help cope with the problem,? he said, saying that the reluctance of the coalminers to resume their coal supply had worsened the Suralaya power plant?s coal stocks. ?The existing coal stocks have continued to decline. At present, the stocks are only enough for 17 days. Normally, the stocks are sufficient for 22 days,? Bambang said. (dino)