Govt. issues regulation on coal price for mine-mouth power plant

Directorate General of Mineral and Coal has issued Director General Regulation (Perdirjen) No. 1348.K/2011 on the determination of price of coal for mine-mouth power plants.

The Director General, Thamrin Sihite, signed the decree, which consists of 7 articles, on December 9.

The articles include the price formula of coal for mine mouth power plant which shall consist of two types, namely coal with calorific value of higher or the same as 3,000 kcal/kg (GAR) and that of less than 3,000 kcal/kg (GAR).

The selling price to mine-mouth power plants of coal with a calorific value 3,000 kcal/kg (GAR) or higher maybe lower than the benchmark price of coal approved by the Director General on the basis of study result and to be stipulated in a decision by the Director General, while the price of coal with calorific value of less than 3,000 kcal/kg (GAR) shall be formulated based on production cost plus margin. (denny)