Inalum , PTBA to build coal-fired power plant

State-owned aluminum producer PT Indonesia Asahan Aluminium (Inalum) is teaming up with state-controlled coal miner PT Bukit Asam (PTBA) to develop a 3x350 MW coal-fired power plant in North Sumatra, where the former firm operates, Kontan reported on Tuesday.

The planned power plant is necessary to provide extra electricity supply for the company as it aims to boost output to 500,000 tons per annum by 2020, compared to the current 265,000 tons per year.

Inalum President Director Winardi (one name) said that the company and PTBA are currently conducting feasibility study for the project, in which Inalum will have the majority stake. PTBA will supply the required 3,000-4,000 kcal/kg coal for the planned power plant.

He added that the size of investment for the project will be determined after the feasibility study has been completed. He said that the power plant is expected to start operation in 2020.

About 700 MW of the power output will be used by Inalum, while the remainders will be distributed to the nearby Sei Mengkei and Kuala Tanjung industrial zones.(*)