Exploitasi Energi secures 40m tons sales contract

PT Exploitasi Energi Indonesia Thk (CNKO) has secured a 20-year contract to sell 40 million tons of coal to state owned electricity company PLN, which will use the coal for its PLTU Paiton and PLTU Pacitan coal-fired power plants.

CNKO?s President Director Henry H. Sitanggang said in Jakarta on Monday with the signing of the sale contract, the company would have a permanent buyer for at least two decades.

?With the contract, the company will not seriously be affected by coal price fluctuation in international markets,? he was quoted as saying by Investor Daily

Henry said that the company was also currently exploring the possibility of controlling production activities in order to help halt the fall in coal prices in the world market. ?We estimate demand for export will continue to fall next year. Price will also remain under pressure,? he added.

The company announced Monday its plan to issue new shares to raise fresh funds of about Rp 2.7 trillion to strengthen its working capital.(*)