DH Power to invest $1.2b to build S. Sumatra mine-mouth power plant

DH Power, a unit of IDX-listed energy and mining contractor firm PT. Darma Henwa said on Friday it has submitted proposal to build a mine-mouth power plant in South Sumatra.

CEO Kazuya Tanaka said the company planned to build 2x600-MW power plant in Muara Enim, South Sumatra. Tanaka said the proposal included feasibility study and environmental impact assessment of the proposed power plant.

Tanaka said currently DH Power and state electricity firm PLN are currently discussing the proposal. Under the proposal submitted, PLN is expected to offtake electricity the power plant generated.

Coal for the proposed power plant would be sourced from the company?s PT. Pendopo Energi Batubara. The power plant will consume 10 million tonnes per annum of low-rank coal, he said.

Tanaka estimated the company will spend US$1.2 billion to construct the power plant with 40 months construction time.(bernard)