Daya Guna bags short-term contract to supply coal to Paiton

South Kalimantan coal mining firm PT Daya Guna Lestari (DGL) has got a short-term contract to supply coal to Paiton 800-MW power plant in East Java owned by PT Perusahaan Listrik Negara (PLN).

?DGL will supply 25,000 tons of coal monthly to Paiton for three months starting March,? Paiton's Assistant Manager Puspo Hadi told Petromindo.Com on Monday. The Paiton power plant is operated by PT Pembangkitan Jawa Bali, a subsidiary of PLN.

The price of the coal is about Rp 295,000 per ton CIF, he said

The contract is part of those offered by PT Pembangkiitan Jawa Bali in the recent tender to obtain 500,000 ton of low CV coal from the spot market for Paiton for March through December 2008 delivery.

Puspo said the firm had yet to decide whether to hold another tender or directly offer the contracts to suppliers to meet the remaining coal needs of the power plant.

?I still don?t know the (tender) mechanism, but we will continue looking for coal supply from spot market,? he added. (denny)