Govt may set coal prices for PLN, if negotiations with PTBA, KPC deadlocked
Wednesday, February 16 2011 - 08:30 AM WIB
Minister of Energy and Mineral Resources Darwin Z. Saleh warned on Wednesday that he may issue a ministerial regulation to set the prices of coal to be supplied by coal miners PT Tambang Batubara Bukit Asam (PTBA) and PT Kaltim Prima Coal (KPC) to state owned electricity firm PT Perusahaan Listrik Negara (PLN) if the negotiations between the three firms remain deadlocked.
PTBA is a state owned firm, while KPC is a subsidiaty of PT Bumi Resources.
"If they continue to disagree, a ministerial decree will be thus proposed to set the price in line with the Coal Reference Price. This aims to provide certainty regarding price for PLN, as the (rise in) operating costs of PLN as a consequence of the rise of coal price this year has been capped at Rp 2.13 trillion (US$8,885). (bernard)