EGAT quits Jambi coal mine

Thai state electricity firm Electricity Generating Authority of Thailand (EGAT) said it has dropped plan to mine for coal in Jambi province.

Viroj Sivavong, Chief of Fuel Development and Planning Department told Petromindo.Com last week that the Company decided to quit the mine on poor exploration results and lack of infrastructure in the area.

He, however, said that the Company will continue to scout for coal mines in Sumatra and Kalimantan. ? The mines could be greenfield, brownfield or producing with minimum mineable resources of 100 million tonnes,? he said.

Sivavong said EGAT needed to secure coal supply for its proposed 4x700 MW power plant which would be built in the southern part of Thailand, with completion seen in 2016-17.

Currently EGAT operates a 2x600 IPP in the eastern part of Thailand with annual coal requirement of 3.7 million. 80 percent of the coal is supplied by Australian suppliers with the balance come from PT Arutmin Indonesia and PT Kaltim Prima Coal, both are subsidiaries of Indonesian mining giant PT Bumi Resources Tbk, under long-term contracts, he said. (denny)