Govt proposes 51% share for MMPP consortium
Tuesday, June 25 2013 - 10:46 AM WIB
Ministry of Energy and Mineral Resource proposed a minimum 51% share for mine mouth power plant (MMPP) consortium in a draft regulation.
"The proposal is offered to guarantee coal supply to mine mouth power plant," Gultom Gushka from the ministry's Directorate of Coal Business Development said in Independent Power Plant (IPP) conference which was organized by Petromindo.com.
Gultom said that the revision of Directorate General Regulation to Ministerial Regulation is necessary to establish integration between mining, power plant and operational companies, which form a consortium.
In the same occasion, Group Vice President Director of DSSP Power Sumsel, Rudy Halim acknowledged that there are several challenges in developing MMPP, such as land acquisition and coal pricing. "The big challenge in developing a project outside Jakarta relates to the social issues," he said.
South Sumatra has 5 billion tons reserves of low rank coal, particularly those of calorific value under 3,000 kcal/kg GAR, which can be used to fuel MMPP.
Editing by Adianto P. Simamora